KATHMANDU UNIVERSITY

Dhulikhel, Kavre

Course: MGTS 402

Assignment: 02

Submitted to:
Mr. Birendra Vaidya
Department of Management Informatics and Communication
Kathmandu University
Dhulikhel, Kavre

Submitted by:
Reeha Neupane (20)
Swopnil Pradhan (22)
Manavi Shrestha (31)
B. tech in Biotechnology
4th year, 2nd semester
Kathmandu University

Date of Submission: 31st July 2020

1. How do the characteristics at the model’s nucleus, opportunistic mindset
and tolerance of risk and failure, fit together in the entrepreneur’s mind?

Today, many entrepreneurs, particularly in economics and other fields of

management and business, agree that the defining feature of
entrepreneurship is innovation and creativity through spotting and utilizing
the available opportunities. Risks are however often thought of only as
hazards despite the fact that they can present significant opportunities and
possibilities for organizational innovation and new competitive advantage
leading to short- and long-term profitability and opportunity. In fact, risk and
opportunity are in duality like two sides to the same coin. Those who can
identify both risk and opportunity allow companies to develop flexible
organizations that can manage value protection and creation
simultaneously. Developing the capacity to recognize such opportunities
requires a change in the risk management mindset and is critical for
financial professionals interested in helping their organization to better
manage and benefit from risk. Entrepreneurs play a key role in using the
skills and initiative necessary to anticipate needs and bring good new ideas
to market by utilizing the available opportunities or seeking to find new and
better opportunities, this opportunistic mindset of an entrepreneur is
associated with many risks and failure that he may have to overcome
during his journey. With great opportunities comes great failures, playing a
vital role in utilizing the available opportunities, entrepreneurs also must
face many failures and understand that their work has a significant impact
on the nation’s economy and the people. On one hand risks should not be
taken lightly as its repercussions can prevent one from reaching their goal.
However, businesspersons who have dealt with risks throughout their
careers know that risks also create opportunity for improvement that can
make a company more efficient. Business failure can lead to financial ruin
for an entrepreneur, opening and running a business provides no
guarantee that an entrepreneur will earn enough money to survive by
utilizing the available opportunities. Although he grabs all the opportunities
that comes his way one cannot assure that he will accomplish the goal that
he has aimed for. Being an entrepreneur, one must accept his success as
well as his failure. He must risk his money to utilize the available
opportunities that comes his way, and there is no guarantee that he will get
over what he has aimed for. When an entirely new industry is created, the
odds are that an entrepreneur is responsible for all the opportunities that he
has grabbed and the consequences that he must face because of his
decision to take the opportunity. So, the idea of utilizing available
opportunities comes hand in hand with tolerance of risk and failure.
So, in our opinion the characteristics at the model’s nucleus, opportunistic
mindset and tolerance of risk and failure definitely fit together in the
entrepreneur’s mind because although he grabs all the available
opportunities he has no assurance of his success in that particular field that
he has stepped in.

2. Work with a team of your classmates to interview at least one

entrepreneur. Does he or she fit the model described here? Explain,
giving specific examples from your interview.

We interviewed a very successful entrepreneur Mr. Mohan Bikram Karki the

Managing Director of Sagarmatha jalabidhyut company PVT.LTD and
Chairman of Supermai Hydropower LTD. He has already completed about 7-8
hydropower projects within very short interval of time. His hard work,
dedication and passion has helped him achieve this success. He fits the model
described in the book. The characters of internal locus of control that are
opportunistic mindset and attitude of risk and failure go hand in hand in his
case, had he not taken that opportunity to invest in one of the project he was
offered, he risked his money with fear of loss and failure but he grabbed that
opportunity which has helped him today to become a successful entrepreneur.
He has that leadership quality in him which he has been using to lead his 6
projects on his own, he has build an ecosystem of finance, his people who
work cooperatively with him and knows how to handle the problems that
comes his way and knows that negative impacts have to be assessed and
managed properly. His passion towards his work has helped him build 6
projects within a very short period. There are many challenges that he has
faced but his persistence has helped him. According to him the decision-
making process required for projects to obtain permission to proceed into
construction and subsequently to commence operations can be
unpredictable, starting hydropower projects is difficult as there are many
authorities involved in the process. Risk must be factored into the process
of accessing finance and hydropower projects until they are well advanced
in terms of their implementation, are high risk. So, with high risk and
uncertainty of success he had started his business but his drive, tenacity
persistence and his focus towards his goal has helped him reach a great
height. He has also increased the employment opportunity for more than
3000 people considering all his projects. He has a monthly income of 3
crores and is very happy and successful in his projects. He has further
aimed of building few more hydropower projects which will help Nepal with
the electricity facilities. Some of the projects he has undertaken are
Supermai Cascade Hydropower Project(3MW) at Ilam which was completed
1 year earlier than the estimated time, Supermai Hydropower Project (7.8
MW) Ilam and Sagarmatha Jalbidhyut Company .LTD Supermai hydro
power “A” Project(9.6 MW) which was completed 8 months earlier than the
time estimated. According to him, by the rules all his projects should be
handed over to the government and all the profit will be earned by the
government after 30 years from the date of construction. So, this will be of
a great source of income for the government.

1. How did the idea for your business come about?

Before starting my hydropower project, I used to earn for my living by

transporting electrical goods and I owned my wholesale shop of kitchen
appliances in new road and had 3-4 trucks for transportation of goods from
china. During this time, I had contact with number of different people. One
day I got the offer and opportunity to invest in one of the hydropower
projects from my client. Seeing a very good scope in this field I decided to
start my own project after I was profited from my investment in one of the
hydropower projects.

2. What was your key driving force to become an entrepreneur?

I also worked as an employee in Soaltee hotel in Tachal and was working

at night shifts which was very tedious and painful. For very little income I
had to work very hard. So, I decided to quit being a slave and decided to
start my own shop. During that journey I got the opportunity to know many
people and now I consider it my luck that one day I got the opportunity to
invest in one of the project which was profitable for me since then I
decided to become my own boss so that I can pay my employees and
myself.

3. How did you raise funding for your venture?

I started my project by taking loans from bank, which I can easily repay
from my project now.
4. How do you market your business, and which tactics have been most
successful?

As we generate electricity’s my main client is our government. We do not

have to use any tactics to sell our product as electricity is much needed in
Nepal in todays context. The government itself is looking for similar
projects like ours so that they can buy electricity. So, my only tactic is to
complete my project within given interval of time so that we can distribute it
to public as soon as possible.

5. How many hours a day do you work on average?

I work for about 12 hours a day; I start my office from 8 am in the morning
and have many meetings to attend during the day. I usually return home at
9 pm. It obviously is tedious, but I am happy with the results that I get from
my hard work.

6. How has being an entrepreneur affected your family life?

I am living with my parents and I am unmarried, during these years I have

not been able to spend time with my parents and have not been able to
socialize much because I spend almost 12hrs at my workplace. As I live in
Thimi Bhaktapur, and all my projects are outside valley in Ilam, Lamjung,
Sindhupalchowk I have to travel frequently about 3 days in a week to these
sites so that I can monitor the work progress and coordinate with my
employees for the better output and to complete the project in time.

7. What motivates you?

My own success has motivated me throughout, I have been working

tirelessly day and night so that I can complete my projects and I aim to
work on other projects after I complete one. I have achieved tremendous
success in all 6-7 projects that I have done till now, this is what motivates
me the most.

8. How do you generate new ideas?

With time we have been learning from our projects, we try to improve and
do much better in new projects than the ones that we have completed. We
have been trying to use more advanced technologies so that we can
complete our projects much faster than the estimated time. So, we have
been generating new ideas by learning from our mistakes and work to
improve it in our next project.
9. How do you define success?

I have been appreciated with a token of love from our present Managing
Director of Nepal Electricity Authority of Nepal, Kulman Ghising for
completing my project about 1 year earlier than the estimated time. This
work of mine has been appreciated by many and banks have initiated to
give loans of about 400 crores with an assurance from my work that I have
completed two of my projects before time. Usually two to three banks
support a project with such high budget but because we completed our
project within 1 year, we have been approached by many banks for
financial support.

10. Do you believe there is some sort of pattern or formula to becoming a

successful entrepreneur?

We have witnessed levels of growth over the last five to seven years.
Now, the challenge for the sector is really to ensure that the industry
continues to improve its practices, and that its projects are sustainable.
Therefore, all the people involved in hydropower need to work together
to ensure that expectations and responsibilities are understood and met
for me this is the formula to becoming a successful entrepreneur.

11. What is your favorite aspect of being an entrepreneur?

Being an entrepreneur has made me a very responsible person, I am very

confident now, which is because I have many people who look upon me,
my employees my colleagues whose expectations I must meet. Most
importantly I pay myself I do not have to depend on others for my income.
So, I am very happy to be an entrepreneur.