Case Study on Small Enterprise Finance!

Case Study on Small Enterprise Finance!

QVC was established in 2012 located in Dinajpur for manufacturing chain used for motorcycle. The whole output will be sold to the particular motorcycle assembler of the country at pre-agreed rate. The production process is small because the parts of the chain are imported and then assembled in the factory. Previously, the product was imported from different countries. As the uses of motorcycle are increasing day by day, the demand of the product will continue for a long future. The owner, Mr. Azam Khan, was a dealer of motorcycles that used to sell local and imported motorcycles. He has a good reputation in the business for the last 13 years. Total estimated investment in the project is Tk. 9.5 crore excluding land and building. The project is availing of Tk. 3.80 crore as term loan from a private bank and Tk. 1.20 crore as working capital limit. The production capacity of the project is about 15 million meter per year that satisfies only 15% of total local demand of the product. The price of the product is relatively lower than the imported price and it also ensures the quality. The quality has been tested in BUET and the customers are satisfied as well. Other attributes of the project are as given below.

Case Study on Small Enterprise Finance!

  • Bangladesh is populous and developing country. Users and uses of the motorcycle are increasing over the time and thus the demand of the product is very
  • The project is 1st mover in manufacturing this
  • Maintaining strong liaison with customers and
  • Extensive demand for the products both in home and
  • It has been possible to ensure quality and minimizing production
  • Marketing strategy, less competition, personal commitment of the sponsor and environment friendly manufacturing

There is a great opportunities for horizontal and vertical expansion of the project. Being a nontraditional project and 1st mover in the industry, QVC is successfully manufacturing and supplying chain which is import substitute. This may be an example for establishing such small industries of different parts of motorcycle and other auto-mobile as well. These types of project will create employment generation.

 

Case Study on Small Enterprise Finance!

Requirement: Critically analyze the case and identify the success factors.

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