College Of Agriculture Faculty of

Gender, Environment and Development Studies Department Of

Agricultural economics Entrepreneurship Group Assignment
Group members name ID.No.

1. Abdo Gelgelu ……………………………………… 0040/13

2 . Abenet Tesfaye …………………………………….. 0098/13

3 . Agmas Fentaw ……………………………………… 0237/13

4. Berihun Sintayew …………………………………… 0505/13

5. Eman Molla ………………………………………….. 2633/13

6. Hussein Goraw ……………………………………….. 1383/13

7. Rediet Simeneh ………………………………………. 2077/13

8. Tsehaynesh Wondale …………………………………. 2493/13

9. Zerihun Bekele ………………………………………. 1823/13

Submitted to: Mrs. Tsigereda.

Submission date: march,

Hawassa Ethiopia

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BUSINESS ENTERPRISE NAME: HIBRET PAPER BAG
MANUFACTURING

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Tables of contents
Introductory ..........................................…………………………………………………………3

Executive summery………………………………………………………………........................3

Industryanalysis............…………………………………………………………………...….....4

Description of venture……………………………………………………...................................5

Production plan…………………………………………………………………………………..6

Marketing plan………………………………………………………………………………..….7

Organization plan………………………………………………………………...........................8

Assessment of risks ……………………………………………………….……….....................10

Financial plan...………………………………………………………………….........................11

Conclusion……………………………………………………………………..…......................12

Appendix…………………………………………………………..............................................13

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1. Introductory
 Name and address of the business
Hibret Paper bag manufacturing business in Hawassa, Sidama Regional State, Ethiopia

 Nature of Business
The paper bag manufacturing business is involved in the production and distribution of paper
bags for various industries, including retail, food and beverage, and promotional products. The
business aims to provide high-quality, environmentally friendly paper bags to meet the growing
demand for sustainable packaging solutions.

 Statement of Financing Needed

The paper bag manufacturing business is seeking financing to support its expansion plans,
including the purchase of new equipment, hiring additional staff, and marketing efforts. The
funding will also be used to cover operational expenses and support the implementation of new
product offerings. The business is open to discussing various financing options with potential
investors or lenders to support its growth strategy.

2. Executive summary
Paper bag is one commodity that is used mostly in the retailing industry for packaging goods that
are bought from departmental stores, supermarkets, and in the open market; although nylon bags
polythene bags are also used, but most people prefer paper bags. This goes to show that there is
indeed a very large market for paper bags in our world.

Hibret Paper Bag Manufacturing will be involved in the manufacturing of a wide range of paper
bags casing for both corporate and individual clients. Hibret Paper Bag Manufacturing will at all
times demonstrate its commitment to sustainability, both individually and as a firm, by actively
participating in our communities and integrating sustainable business practices wherever
possible. We will ensure that we hold ourselves accountable to the highest standards by meeting
our customers’ needs precisely and completely whenever they patronize our product

3. Industry analysis
 Future Outlook and Trends
The paper bag manufacturing industry is expected to continue growing as consumers and
businesses increasingly prioritize sustainability and eco-friendly practices. The demand for paper

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bags as an alternative to plastic bags is expected to rise, driven by government regulations and
consumer awareness of environmental issues. Additionally, the trend of customization and
personalization in packaging is expected to create new opportunities for innovative and unique
paper bag designs.

 Analysis of Competitors
Our competitors in the paper bag manufacturing industry include both large-scale manufacturers
and smaller, niche players. We have identified key competitors in terms of their market share,
product offerings, pricing strategies, and distribution channels. By analyzing their strengths and
weaknesses, we can identify areas for differentiation and competitive advantage.

 Market Segmentation
The market for paper bags can be segmented based on the type of customer, including retail
businesses, grocery stores, restaurants, and event planners. Each segment has unique
requirements and preferences for paper bag design, size, and functionality. By understanding the
needs of each segment, we can tailor our product offerings and marketing strategies to
effectively target specific customer groups.

 Industry Forecast
The paper bag manufacturing industry is projected to experience steady growth in the coming
years, driven by increasing environmental concerns and the shift towards sustainable packaging
solutions. As more businesses and consumers seek alternatives to plastic bags, the demand for
paper bags is expected to rise. Additionally, advancements in technology and manufacturing
processes are expected to improve efficiency and reduce production costs, further driving
industry growth.

4. Description of venture
 Our Products and Services
Hibret Paper Bag Manufacturing is in the paper bag manufacturing industry to manufacture a
wide range of paper bags casing for both corporate and individual clients. We are set to service a
wide range of clientele not just in Addis, but also all parts of the country and of course to make
profits, which is why we will ensure we go all the way to give our clients options.

Our product offerings are listed below;

 Paper bags for food storage

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  Paper bags for grocery
 Paper bags for trash
 Paper bags for packaging
 Our Target Market Paper bags for pharmacy
 Our Target Market
We in the paper bag manufacturing industry will supply our products to the following fast-
moving consumer goods organizations;

 Groceries Stores
 Pharmaceutical Stores
 Electronic Stores
 Supermarkets
 Boutiques
 Fast food restaurants
 Mobile phones and accessories stores

5. Production plan
 Management Process
The management team of our paper bag manufacturing business includes the owner/CEO,
production manager, sales and marketing team, and other key personnel. Each member of the
team has extensive experience in their respective roles and responsibilities within the company.
The organizational structure is outlined with clear decision-making processes to ensure smooth
operations.

 Physical Plant
Our manufacturing facility is located in a 100 square meter space with a layout designed for
efficient production. The facility is equipped with state-of-the-art machinery and equipment to
meet our production needs. We have also made renovations and improvements to the facility to
optimize our manufacturing process.

 Machinery and Equipment

Our paper bag manufacturing process requires machinery such as bag making machines, cutting
and folding machines, printing machines, and quality control equipment. We have outlined plans

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for purchasing or leasing equipment and have scheduled maintenance and repair processes in
place to ensure continuous operation.

 Names of Suppliers

We have established relationships with reputable suppliers for raw materials such as paper, ink,
adhesives, and other necessary supplies. Our suppliers are known for their reliability, quality,
and competitive pricing. We have also negotiated contracts and secured favorable terms with our
suppliers to ensure a steady supply chain.

 Raw Materials

We require high-quality paper, eco-friendly ink, and durable adhesives for our paper bag
manufacturing process. Our plan includes detailed inventory management, quality control
measures, and cost-saving strategies related to sourcing and handling raw materials.

6. Marketing plan
 Customer handling
A side from quality, pricing is one of the key factors that give leverage to paper bag
manufacturing companies, it is normal for consumers to go to places where they can get paper
bags at cheaper prices

 Payment Options
Here are the payment options that Hibret Paper Bag Manufacturing will make available to the
clients;

 Payment via bank transfer

 Payment with cash
 Payment via online bank transfer
 Payment via check
 Pricing mechanism
 Small bag: 50birr
 medium bag: 100birr
 large bag: 150birr (all per piece)

Here are the platforms we intend leveraging on to promote and advertise Hirra Paper Bag
Manufacturing;

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  Place adverts on community based newspapers, radio and TV stations
 Encourage the use of word of mouth publicity from our loyal customers
 Leverage on the internet and social media platforms to promote our business
 Ensure that our we position our banners and billboards in strategic positions all around
 Distribute our fliers and handbills in target areas in and around our neighborhood

Contact corporate organizations and stores by calling them up and informing them of Paper Bag
Manufacturing and the products we manufacture

7. Organizational plan
 Formation of ownership
Hibret paper bag manufacturing will be owned and operated by our team of experienced
entrepreneurs. The business is structured as a limited liability company (LLC) to protect the
owners' personal assets and provide flexibility in management and tax benefits.

 The business
Our company Hibret paper bag manufacturing will have various types of paper form sizes to
shapes for different clients and firms.

 Our Mission and Vision Statement

Reducing the amount of plastic used around the world.

 Organizational Structure
The organizational structure of the employees is as follows. This will help our company to have
a clear chain of command. This will enhance the service that is given by the company

 Job Roles and Responsibilities

 Chief Executive Officer – CEO:
 Increases management’s effectiveness by recruiting, selecting, orienting, training,
coaching, counseling, and disciplining managers; communicating values, strategies, and
objectives; assigning accountabilities; planning, monitoring, and appraising job results;
developing incentives; developing a climate for offering information and opinions;
providing educational opportunities.
 Accountable for fixing prices and signing business deals
 In control of providing direction for the business
 Responsible for signing checks and documents on behalf of the company
 Appraises the success of the organization

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Factory Manager:

 Responsible for managing the daily activities in the paper bag manufacturing factory
 Ensures that proper records of paper bags are kept and warehouse does not run out of
finished products.
 Ensure that the factory is in tip top shape.
 Control cardboard packaging and paper bag distribution and supply inventory.
 Supervise the workforce in paper bag manufacturing factory.

Sales and Marketing Manager

 Manages external research and coordinate all the internal sources of information to retain
the organizations’ best customers and attract new ones
 Models demographic information and analyze the volumes of transactional data
generated by customer purchases
 Recognizes, arranges, and spreads out to new partners, and business opportunities
 Identifies development opportunities; follows up on development leads and contacts;
participates in the structuring and financing of projects; assures the completion of
development projects.

Working employees

 Making sure that the machine is working accordingly.

 Changing the paper rolls when needed.
 Packaging and counting the paper bags produced.

8. Assessment of Risk
 SWOT Analysis
Hibret Paper Bag Manufacturing is in business to become one of the leading paper bag
manufacturing companies in Ethiopia and we are fully aware that it will take the right business
concept, management and organizational – structure to achieve our goal.

 Strength:

Our main strength lies in the high quality of our finished paper bags, the power of our team and
our state-of-the-art paper bag manufacturing factory. We will have a team of highly trained and
experienced paper bag designers and makers and support staff members that can go all the way
to produce top notch paper bags.

 Weakness:

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A major weakness that may count against us is the fact that we are a new paper bag
manufacturing company which will affect out distribution and customers for few months.

 Opportunity:

The fact that we are going to be operating our paper bag manufacturing company in the main city
Addis Ababa provides us with unlimited opportunities to sell our products to a large number
businesses. We have been able to conduct thorough feasibility studies and market survey and we
know what our potential clients will be expecting from us.

 Threat:

Just like any other business, one of the major threats that we are likely going to face is economic
downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat
that may likely confront us is the arrival of a paper bag manufacturing company in same location
where ours is located.

 Critical risks
Our most frightening risk that we expect is the malfunction of the machinery, but for this
malfunction we have a solution it is either to bring a well-trained person from a foreign country
of try to fix it with our own county expertise. Another critical risk is the lack of raw material
which we will search for other suppliers of the paper rolls.

 Exit strategy
In the event of the proposed plan is not successful we will implement necessary measures to exit
the business by selling the paper rolls and the manufactured paper bags with low price either to
an individual or to a relatable firm.

9. Financial plan
 Projected revenue report

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 PROJECTED REVENUE REPORT
3,000,000

2,500,000

2,000,000

PROJECTED REVENUE REPORT

1,500,000

1,000,000

500,000

0
JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV DEC

 Profitability
Profitability in two years would look like

Year 1 Year2
10,610,000 29,495,000

 Funding requirements
The funding requirements are as follows. The numbers are in the currency (ETB)

 Startup cost

Paper bag machine: 1,100,000

Paper roll: 60,000

First rent: 300,000

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  Wages

Job title Number of employee Wage per month

Factory manager 2 10,000

Sale and marketing manager 2 5,000

Accounting/ cashier 1 6,000

Working employee 7 2,000

Driver 1 5,000

Total: 55,000 birr

 Other expenses

Type Expense per month

Rent 300,000

Electricity 30,000

Total: 330,000 birr

10. Conclusion
In the product project report on paper bags I have discussed all financial data and other relevant
information. The market of paper bags is expanding; demand for the product is increasing day by
day. The return on this business is also satisfactory. With the expectation of high profitability it
is assumed that it would be the perfect product to be manufactured in today’s environment.
AFTER ALL, IT’S ANENVIRONMENTALLY FRIENDLY PRODUCT!

11.Appendix
Robert T. Kiyosaki

Robert Toru Kiyosaki (born April 8, 1947) is an American investor, businessman, self-help
author, motivational speaker and financial literacy activist. Kiyosaki is well known for his Rich
Dad Poor Dad series of motivational books and other material published under the Rich Dad
brand.
The first time I knew about him was through his book called Rich Dad's CASHFLOW Quadrant,
which thought me about how to be financially free, how to differentiate the four type of work or
as he says it “Quadrants”. Those four types of quadrants are the employee as the first, self-
employed as the second, business as the third, and investment being the forth Quadrants. By

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knowing these quadrants I can see which path leads to which type of life. Three of his books,
Rich Dad Poor Dad, Rich Dad's CASHFLOW Quadrant, and Rich Dad's Guide to Investing,
have been on number one on the top 10 best-sellers on The Wall Street Journal, and USA Today
and the New York Times. His books have showed me how to live my life with an entrepreneurial
mind. Hehas achived many of role for economic development
by inspireing others towaeds entrepreneurship, enhancing the number of enterprise and so much
more.
Kiyosaki was a great opportunity-seeker, that he has a lot of Business ventures
and investments, one of his investments is real estate. Kiyosaki is an active real estate investor,
and a large portion of his wealth came from real estate investing. He has various real estate
investments, real estate development ventures, and property management ventures operating
around the United States, such as Texas and Oklahoma, particularly in his home state of Arizona.
Many of his holdings include hotels, golf courses, and large apartment complexes.
As stated in his book After graduating from college, Kiyosaki took a job with Standard Oil
's tanker office as a third mate. Kiyosaki resigned after six months andstarted with small
residential real estate investments back in 1973, Kiyosaki began investing in small condos on the
island of Maui, making a small profit from capital gains by the mid-1970s.which makes him
a risk taker.
Ermyas Amelga
Ermyas Amelga is an Ethiopian financial expert and business visionary. Ermyas was brought
into the world in Ethiopia and left the country during the 1970s, to seek after his schooling in the
United States.
During his time in the States, Ermyas procured a M.B.A. degree in Finance from Boston
University, a M.A. degree in International Economics from Boston University, Graduate School
of Economics, and a B.A. degree in Economics and Political Science from Amherst College in
1980. He burned through 12 years as a venture financier in the United States Wall Street before
he got back to Ethiopia in 1996. Where he proceeded to open a heap of organizations, his first
business in Ethiopia was an oil factory with around 200 employees but this enterprise didn’t last
long due to high supply through donation of food oil during that time. After he shut down the oil
business, he started Ethiopia’s first bottled Highland Springs Mineral Water. He created and
introduced a new form of banking which he named Zemen Bank. His biggest investment was his
real estate called Access Real, which he formed a partnership with Soliton Holding with a
2billion birr capital he is real estate was the biggest in Ethiopia, however he couldn’t finish his
work because of government problems .
I admire his work and general living ethics, even tho he has been shut down many time he had
great self-confidence that changed and advanced Ethiopia in water supply,
banks, infrastructure and by balancing regional developments. Many people have worked with
him and most of those people lives have changed foe the greater good.

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