ASSIGNMENT

ON

Course Name: Introduction to Business

Course no- BAN 171

Department of Business Administration

Shahjalal University of Science and Technology,
Sylhet.
 ASSIGNMENT
ON
INTRODUCTION TO BUSINESS

Subject : (i) Survey on a small business.

(ii) A report on local small business
administration office.

Survey Topic : Mushroom Shilpo

Department of Business Administration

Shahjalal University of Science and Technology,
Sylhet.
 Submitted to:
Dr. Md. Nazrul Islam
Associate Professor,
Head,
Dept. of Business Administration
SUST, Sylhet.

Submitted by:
1. Afsar Ahmed - 2005731051
2. Nur-E-Jannath - 2005731052
3. Mohammad Ahsan - 2005731053
4. Sajib Kumar Talukder - 2005731054
5. Farhat Mehjabeen - 2005731055
1st year 1st semester
Date of submission:
22 March, 2007

Department of Business Administration

Shahjalal University of Science and Technology,
 Acknowledgement:

We are given an assignment about selecting a small business that looks

attractive as a career possibility and collect information from some
people who manage such business. We have selected "Mushroom Shilpo"
as a small business for our assignment. We take this opportunity to
express our gratitude to all those people who have been instrumental in
making our project.
We want to convey a special gratitude to Md. Nazrul Islam, Head of the
Department of Business Administration, SUST, Sylhet for giving us the
assignment.
We want to convey a special thanks to Mohammad Mizenur Rahaman,
Lecturer, Department of Business Administration, SUST, Sylhet for his
valuable suggestion to conduct and complete the assignment.
We are very grateful to some other persons for their great help. We want
to say thanks to Md. Ruhul Amin, Additional Director, Agricultural
University, Sylhet.
We also want to convey special thanks to Jotirmoy Roy, Director of
Shahjalal Mushroom Shilpo, Mr. Surul haque, Md. Fajul Karim Azad,
Director of Ashoan Mushroom Shilpo and Meheraj Ahmed, Director of
Ayesha Mushroom Shilpo for their great help by giving us different types
of information and data.
And at last we also like to thanks to our friends for their healthy co-
operation.
March 22, 2007

To,
Mohammad Nazrul Islam
Head
Department of Business Administration,
Shahajalal University of Science & Technology,
Sylhet-3114.

Subject: Letter of Submittal assignment.

Honorable Sir,
With due respect and humble submission we beg to state that we are the
students of Group-11 on 1st year 1st semester, department of BAN. We are
given an Assignment to select a small business which looks attractive as a
career Possibility for us. And to collect data and information about small
business. For this we have selected the Mushroom business as a career
possible small Business. According for collection of data we have
investigated into the ‘Agriculture Office’ in Sylhet. We have also gone in
some Mushroom business And have survey on cultivation of Mushroom,
demand and satisfaction of Mushroom and how to operate this business.

May we note here that, there has been no dearth of sincerity on our part to
bring the issue under study into proper focus. However, we would like to
request you to consider if any error is found in the paper.

Finally, we would like to request you to accept our paper and thereby
permit us to present it before the panel of experts.

Thank you in advance for your assistance and advice in this connection.

Yours obediently,

Name Registration No.

1. Afsar Ahmed 2005731051
2. Nur-E-Jannath 2005731052
3. Mohammad Ahsan 2005731053
4. Sajib Kumar Talukder 2005731054
5. Farhat mehjabeen 2005731055
 SUMMERY

Mushroom is a business that takes the place in provability business in

Bangladesh. In present, mushroom seems an employment of many
unemployed people in Bangladesh. In competitive world and like other
country the want of mushroom is augmenting day by day. Mushroom is
meanly a fungus. It is grown in moist place. There are 14000-12000 kinds
of Mushroom in the world. All of them only 20 kinds of mushrooms we
can eat. In Bangladesh only 4 kinds of mushroom is grown mushroom is
a nutrias food. Every kind of diseases can cure to eat mushroom. It can
grow in any kind of place. Natural calamity can not damage this
plantation. It has all nutritious quality. Commentary one can cultivate it
and can profitable. It is a small business so hared of low in not needed. In
this organization the business risk is limited. So one can do this business
and can country built in National economy.
 Profiles

In Bangladesh small business is a probability sector for us. It creates vast

scope for ones to use his business knowledge, skill ness and plan. It is
easy to create a small business. By observing the public demand,
usefulness and profit we choose "Mushroom shilpo" as our small business
career. Starting mushroom shilpo is very easy we know it from the survey
report. We can easily collect money for starting the business personally
or owing money from the Banks or financial institutions. The demand
field of mushroom is so vast that we have no risk to start it. By filling the
demand of customer and providing service we can easily risk in this
sector.
 TABLE OF CONTENTS
Page No.
Topic - 1

Chapter – 1
Introduction ---------------------------------------------------------------------- 01
Background of the business --------------------------------------------------- 01
Purpose of the study ------------------------------------------------------------ 02
Methodology -------------------------------------------------------------------- 02
Limitation of the study --------------------------------------------------------- 02

Chapter – 2
Analysis a small business- against "Mushroom Shilpo." ------------------ 03

Chapter – 3
Questionnaire on survey ------------------------------------------------------- 13

Chapter – 4
Field work on Mushroom Shilpo
(i) Shahjalal Mushroom Shilpo --------------------------------------------- 15
(ii) Srijon Mushroom Shilpo ------------------------------------------------ 20
(iii) Ayesha Mushroom Center --------------------------------------------- 23

Chapter – 5
Table & Chart ------------------------------------------------------------------- 27

Chapter - 6
Conclusion ----------------------------------------------------------------------- 33

Topic – 2
Report on local small business administration office ---------------------- 34
 TOPIC - 1
CHAPTER - 1
Introduction:
Mushroom is the name of that business which has taken its place
ordinarily among the all probabilities business. Now-a-days, it is well
known business organization in respect of easy of earning livelihood.
According to the mass popularity of the mushroom in the world wide,
the demand of mushroom is increasing day by day in our country. In one
side mushroom fill up the nutritious demand of a family, another side it
is taken an easy source of economy in commercially. Many people get
find the way of self-relies through the mushroom business. The
mushroom business is easily build up through small capital, small area
in prospect of small capital, small area in prospect of small or sole
proprietorship business. As it is a sole proprietorship business, so there
is no legal complexity. To establish this kind of business required
capital is easily found. Besides these, the business is continued with the
help of some labor and employee. Besides study, student can also
conduct the business for easy maintenance. And for this reason the
demand of mushroom business is increase indiscriminately.

Background of the business:

To realize the utility and probability, the western country has taken the
mushroom business a long time before. Through this mushroom they fill
up their nutritious demand and create the source of employment. To
follow their work processing. The south-east countries have also taken
the mushroom commercially. According to these, mushroom has started
up in our country since 1980. Next time through various developing
 steps mushroom has gotten popularity in our country since 1992.
Following these, the mushroom business is now taken a great
demandable business.
Purpose of study:
(1) It is an attractive business concept to build up our carrier.
(2) It is our social responsibility to inform general people about the
nutrition's and usefulness of mushroom.
(3) Besides study students can operate this business easily.
(4) It is a better way of self employment.
(5) Through this business it is possible to contribute in social economy.

Methodology:
Keeping the above purpose of the study in mind, some enterprises were
selected at random there of which belong to the sole proprietorship
business group. We can say turn as small business. These are-
(i) Shahjalal Mushroom Shilpo (Akhalia, Sylhet)
(ii) Srijon Mushroom Shilpo (Amborkhana, Sylhet)
(iii) Ayesha Mushroom Centre (Choukidighi, Sylhet)
The approach was to identify qualitative information that explained
management information system and services.

Limitation of the study:

(i) It is not available in Sylhet. So we have to face problem to find out the
mushroom business.
(ii) Business owners didn't give the accurate amount of capital and profit.
(iii) We got cooperatively limited time to collect data and information to
prepare the assignment.
(iv) In some cases, they didn't explain their managerial secret and that's
why we had to fail in collecting resourceful data.
 CHAPTER - 2
Analysis a small business against "Mushroom Silpo"

What is Mushroom:
Mushroom is a large reproductive structure of edible fungi which is the
most popular nutritious, delicious and medicinal vegetable in the world.
Mushroom is now one of the promising concepts for crops
diversification in world. It grows in moist environment and it takes
oxygen to live. Now it is considered as a money earning crop. In our
country it is found always fresh.

Classification:
Currently about 2-3 million of fungi are known to exist of those about
14000 species are known as mushroom and 7000 species are considered
to have varying degrees of edibility. Almost 3000 species from 31
genera are regarded as prime edible mushroom and 200 of them are
experimentally grown. 100 of them are economically cultivated;
approximately 60 commercially cultivated and about 10 have reached to
industrial scale production in many countries. Further more, about 2000
are medicinal mushrooms with varieties of health attributes.
The following 8 types of mushrooms are mainly cultivated-
1. Oyster mushroom.
2. Milky mushroom.
3. Shiitake mushroom
4. Wood ear mushroom
5. Button mushroom
6. Tropical Button mushroom.
7. Paddy straw mushroom.
 8. Reishi mushroom.

Advantages:
Nutrition: It is well recognized that mushroom contains all essential
components of a balance food. In fact mushroom is rich in highly
digestible essential amino acid rich protein, vitamins and minerals but
low quantity of high quality unsaturated fat and water soluble
carbohydrate (Low calorie food). It is rich in folic acid, vitamin B-
complex, phosphorus, potassium, calcium, copper, iron and other
essential trace element.
Medical treatment:
Mushrooms are also reported to have high medicinal attributes.
Mushrooms contain biologically active polysaccharide protein complexes
having anti-tumar, immunomodulating and antioxidant properties.
Ganoderna lucidum nutriceuticals have exhibited promising antiviral
effects like anti HIV and anti hepatitis B. In addition these mushrooms
contain other active substances which reduce blood pressure, blood sugar
and cholesterol. Recently, oyster mushroom has been reported to have
anti bacterial effect and reduced cholesterol. The interesting fact is that
the K: Na ratio in mushroom is very high and it is suitable for people who
suffer from hypertension.

Mushroom-as like food:

Mushroom is used with meat, fish, vegetable, soup, noodles, tea, omelet,
curry etc. It is also used with fast food which is very popular and
interesting in taste.
 Prospect of Mushroom in Bangladesh:
The future of the mushroom industry in Bangladesh is very bright. The
demands of the mushrooms do not get spread in the large wise business
sector in our country. So to go forward in these probabilities business
we need-
1. Proper sponsorship from governmental and non-governmental
organization.
2. Great inspiration to involve many people with these businesses.
3. Ensure to get capital in easy terms and conditions.
4. Proper leading to conduct these businesses. And thus way we will
be able to build up the mushroom industry in overspreading
dimension.

Why we choose the business:

Mushroom is the most promising Agril, item of Bangladesh because-
i. Mushroom production is an indoor activity hence does not seed
agricultural and thus suited to small and landless farmer.
ii. It converts agricultural wastes into nutritious health food and
organic manure.
iii. Mushrooms have high biological efficiency conversion of dry
substrate into fresh mushroom (up to 100%)
iv. Due to its vertical cultivation in selves per unit area of production
and economic return in short time is very high.
v. It is an ideal venture to generate mass employment particularly
for unemployed and female.
vi. It has potential to generate valuable foreign exchange through
export.
vii. It needs low capital, low labor but high return.
Start a small business:
To start a new small business like mushroom shilpo, it needs some
requirement. Some of those are, Financial reword, Experience, Capital,
Labor, lease, customer demographics, inventory, management,
competition, produce etc.

Financi
Produc
al
e reword

Competitio Experienc
n e

Management Capita
l
Small Business
Inventor Locatio
y n

Customer
demographic
Lease
s

All of those are need to start up new business.

Nature of service:
In the mushroom industry, besides to product different types of
mushroom they also offer various services. These are given below-
 Production related: - (i) Mushroom seeds.
(ii) Fresh Mushroom.
(iii) Dry Mushroom
(iv) Powder Mushroom.
(v) Mushroom comport.
  Service related:- (i) Training in mushroom seeds production
(ii)Training in mushroom firm establishment.
(iii) Training in mushroom processing and
marketing.

Raw material:
To product any kind of goods it is need to have raw material. In the
mushroom industry there is also need various raw material in various
production sectors. It is estimated that about 30 million tons of crop
residue are generated annually and a large amount of which (mainly rice
straw) is left unused or used to produce farm yard manure. Beside cereal
straw, a large amount of sugarcane bagasse, vegetable and fruit wastes
coir dust, husk, dried leaves, sawdust etc. are available for the recycling.

Required capital:
Capital is the backbone of a business. Every business has a standard
amount of capital according to business structure. As mushroom
industry is established in prospect of sole proprietorship business so this
kind of business need small capital according to the ability of business
owner.
Generally, anybody can build up these business by invested about 2-3
lakh. Sometimes, these business is also start-up through 60-80 thousands
Taka.

Source of capital:
To get capital we have to realize the source of capital. It is need the
long-term capital to conduct the permanent assets of a business similarly
short-term capital is also need to maintain the labor- staffing cost and
daily expenses. To conduct these types of cost and expenses, any
business can called their required capital from the following
sources.
 Internal: (i) Proprietor's own capital

(ii) Friends and relatives.

 External:(i) Commercial Bank.

(ii) Local money-lender.

(iii) Co-operative Bank

Terms and conditions of financial institutions:

 Term-based condition:(i) Short-term

(ii) Mid-term
(iii) Long-term
In the mushroom industry generally have short-term capital.
 Rate of interest: Financial institutions offer different types of

interest rate based on different term.

 Installment: How much installment will be followed in

payment of collective loan, it determines the financial

institutions.
 Mortgage: Financial institutions offer loan to recipient
according to their permanent temporary assets or personalize
mortgage.

Structure of organization:
Different types of business follow different types of organizational
structure. Generally four types of organizational structure are followed
in business institutions.
They are - (i) Straight-line organization
(ii) Functional organization
(iii) Line and stuff organization
(iv) Committee organization.
To regard the business maintenance and proper controlling system, the
mushroom industries normally follow the straight-line organization.

Staffing:
Expect and competence employees play an important role in any
business organizational improvement. Raw material, capita, equipment
and other elements can do nothing without staff. For being productive
and marketing institution this business follow the employee's
competence, honesty, and educational qualification to appoint
employees in this sector. As becoming a small business the mushroom
industry conduct their staffing process by personal knowing people or
the advertising system.

Promotion:
In the mushroom industry, there is also offering promotion based on
employee's experiences, skill ness, behavior, and other qualification.

Motivation:
In every institution follow different methods of motivation to increase
the skill ness and the speed ness on work of employees. The mushroom
business is not exception from it.
This business applies the following topics to motivate their employees.
(i) Fair salary (ii) Bonus, (iii) Advance (iv) Financial rewards
(v) Advance (vi) Transportation facilities (vii) Medical facilities
(viii) Fair treatment (ix) Appreciation of worth while work (x) Training
facilities.
Controlling:
The success of business mostly depends on the proper controlling
system. As the mushroom business becoming sole proprietorship
business so whole maintenance of this business have to maintain the
owner.
Decision Making:
As mushroom business is established in sole proprietorship business
sector and business owner have to conduct the whole business so
business related any decision is taken by the owner. Sometimes business
owners consult with their subordinates and sometimes they take
decisions alone.
Managerial problems:
For being a small business mushroom business's owner has to face
different managerial problems. These are given bellow:-
i. Lack of higher business environment
ii. Lack of associate institution
iii. Lack of efficient management
iv. Absence of modern approaches toward management
v. Communication problem
vi. Lack of labors- management relations
vii. Political violence.

Expert knowledge:
Sometimes mushroom owners have to face some critical problems
which do not solve them alone. In that situation they take help from the
experts.
Price determination:
According to other business, mushroom business follows a standard rule
of price determination. Generally price determination of the goods
products is taking based on production cost, transport expenses,
conservation expenses, advertising expenses and other expenses. The
rate of profit verify according to the business organization.

Accounting process:
As mushroom business has small capital and small area so it can
preserve its accounting system without any hazard. Daily expenses and
incomes are calculated based on receivable and payable accounts.
Generally they determine the accounts of profit and loss in monthly.

Marketing policy:
To increase the demand of mushroom to people and to go forward with
their business, owners follow or take some marketing policies which are
very useful to their business. The policy are -
I) Publicity ii) Sales extension iii) Advertisement

Way of advertisement and publicity :

i) Festoon - banners ii) Poster iii) Leaflet iv) Mieking
v) Advertise in newspaper vi) Radio vii) Television
viii) Seminar ix) Personal communication etc.
Buyers of mushroom :
Generally mushroom business owner conduct their business through the
following buyers -
i) Mushroom farmer ii) Hotel & Restaurants
iii) Departmental store v) General public etc.
Selling process:
Maintaining mushroom business owners follow normally two types of
selling process. These are -
i) Supply mushroom seeds to buyers according to their demand.
ii) Sale fresh mushroom, dry mushroom, powder mushroom
based on wholesaler and retail system.

Risk:
There is a proverb in business that "No risks no gain". So every business
has some risk which is faced by the owner conducting their business. In
the mushroom business owner faces the following risk -
i) Problem in collecting current capital.
ii) Fail to sell product according to target.
iii) Spoil of seeds.
iv) Banned on using poly bag.
v) Political imbalance.

Causes of failure :
Sometime mushroom business also face some failures. The causes of the
failure are given below -
i) Complexity to collect current capital.
ii) Employee's neglect on business.
iii) Failure in controlling expenses and costs.
iv) Failure in preservation of accounts etc.
 CHAPTER - 3

Questionnaire for survey on owners of Mushroom Shilpo

1. What is the name of your organization?

2. What type services do you offer?
3. What is the name of entrepreneur?
4. When you start the business?
5. What is your background before starting the business?
6. From where the idea of business has been arrived?
7. What is the amount of starting capital?
8. From where you have collected your capital?
9. Did you face any problem in collecting capital?
10. What are the terms and conditions of financial institutions? When
they offered loan?
11. What was the duration of bank loan payment?
12. What was the amount of bank loan mortgage?
13. Is the loan paid clearly?
14. What is the amount of your current capital?
15. What organizational structure is fallowed in your business?
16. What is the method of hiring employees in your business?
17. How many employees are working in our business?
18. What is the amount of employee's salary?
19. What is the amount of labors wages?
20. Have you any facility to train up the employees?
21. What is the promotion system in your business?
22. What are the steps of promotion to employees?
23. Do you follow the firing system to employees?
24. What is the control system of your business?
25. What system is followed when you take a decision?
26. What is the managerial problem in your business?
27. What is the source of raw material in your business?
28. What is the pricing policy in your business?
29. What is the marketing policy?
30. What is the way of publicity?
31. What is the system of packaging and processing Mushroom?
32. Who are the buyers of your product?
33. What is the selling process?
34. What is the risk of business?
35. What are the causes of failure in performing business?
36. What is the condition of your business profit?
37. What is the future plan of your business?
 CHAPTER - 4

Field work on Mushroom Shilpo

i) Shahjalal Mushroom Shilpo

Name of organization : - Shahjalal Mushroom Shilpo.

Address : 6th Annuara Road, Akhalia, Sylhet.
Services : (i) Production of Mushroom
(ii) Processing of Mushroom
(iii) Marketing (iv) Selling
(v) Training (vi) Staffing
Entrepreneur : Jotirmoy Roy, Director.
Time of staring business:On August 2006,
Background of the owner: Student.
From where the idea has been arrived: Mushroom is a notorious
food. Like the others countries of the world the want of mushroom is
augmenting day by day. Mushroom also works as a remedy of many
diseases. Like diabetics, Blood pressure, Blood deficiency, cancer
etc. The importance dimension of mushroom plantation is that any
one can grow mushroom in a short place and also in a small capital and
by that it not only can solve the nutrition problem of his / her family
but also can contribute a lot on the economy of his country.
From this aforementioned idea the enterpriser can understand the
necessity of joining with this business.
The amount of starting capital: The starting capital of this
mushroom business was 3, 00,000 taka.

Sources of collecting this capital: i) personal - 40%

 The amount is - 2,40,000 taka.
ii) Bank lone - 20%
The amount of - 60,000 taka.
Did you face any problem in collecting capital: i) Yes ii) No
Collection of capital : i) the selling of personal properties.
ii) Bank mortgage.
Terms and condition of financial institutions :
i) Types of lone - Short tram Agriculture lone
ii) Present of interest - 8%
iii) Instilment - 1
The time of payment Bank loan: Within a year.
Bank loan mortgage: Personal property.
Is the loan paid clearly? : No, the loan is not paid clearly.
Present/current capital: The current capital at this organization
has 5,00,000 taka.
Organizational structure: Shahjalal Mushroom Shilpo has an
organizational structure. They followed strait line organization.
They have labors, technician, Technical officers, Director.
Director - 1
↓
Technical Officer - 1
↓
Technician - 2
↓
Labor - 2

Method of hiring employees: Shahjalal Mushroom Shilpo some

methods to hire employees.
(i) Advertise in newspaper (ii) Personal Knowing.
Number of employees :3
Number of Labor :2
Salary of employees : Technical officer- 6000 taka
Technical - (3,500× 2) =7000 taka.
Wage of labor : (2,500× 2) =5,000 taka
Training : They training there employees and labor in their own
organization. And a technical officer helps them to training. The
time of train is 7 days.
Has there facility to promotion? : i) Yes ii) No
Basis of promotion : Promotion is depended on employees
working abilities, capacity, method and experience.
Step of promotion : It is a small business. So the promotion step
also limited, here has two steps of promotion.
Labor- Technician - Technical officer.
Way of motivation : (i) Fair salary (ii) Bonus
(iii) Promotion iv) Financial rewards (v) Training facilities
Control system: Owner controls his business with his own
ability, capacity, method and expertness.
Way of decision making: Owner makes decision by discussing
with the employees of the organization.
Problems of regarding decision: Sometimes owner's falls in the
problems of making decision, such as - disagreement with the
employees, fallen in doubt in decision making etc.
Does the organization face any managerial problem? : Yes
Managerial problems: (i) Lack of higher business environment
(ii) Lack of Associate institution (iii) Lack efficient management.
(iv) Lack of labor- manager relations (v) Transport problem
(vi) Political clash.

Is there needs expert knowledge: Yes

Source of expert knowledge: Every month one expert
(Agriculture officer) comes here. And gives some suggestions for
different problems.
Row materials: Ear-wax, husk, sawdust, polybag,
Source of Row material: The mushroom business organization
collects row material from local area.
Nature of produce: Seeds of mushroom, fresh mushroom, dry
mushroom, powder mushroom.
Pricing policy: The organization calculates/makes/determined its
selling price at the rate of / (a) 30% on it's to the cost.
Accounting Process: Though it's a small sole proprietorship
business, so it calculates its transactions through receivable and
payable account.
Marketing policy: In competitive market, the success of any
business depends on marketing policy; mushroom business is not
differing from that. Depends on its usefulness and importance the
organizations takes steps to make it popularize among people and
as well as it takes the marketing policy in order to make sufficient
profit.
The marketing policies are: (i) Publicity
(ii) Sells promotion
(iii) Advertisement.
Way of publicity: (i) Public communication: (a) Television (b)
Radio (c) Advertisement in newspaper (d) Posturing (e) Leaflet
(f) Festoon (g) Banner
(ii) Group communication: (a) Seminar (b) Consultation.
(iii) Personal communication: (a) Telephone (b) Mobile
(c) Personal talk / discus / conversation
Packing and Processing of mushroom:
 (i) According to demand packing and supply
(ii) Improvement of labeling
(iii) Get returned mushroom which is expired dated
Buyers of mushroom: Mushroom is bought by
(i) The farmer of mushroom
(ii) Different organizations which are related with mushroom
cultivation (iii) Departmental stores (iv) General people.
Selling process: As the organization is related with the
production of mushroom seeds and cultivation, so
(i) The organization supplies the seeds according to demand
among the buyers.
(ii) Supply cultivated mushroom.
Risk: (i) Spoiling seeds
(ii) Unsealing of produced produce
(iii) Banding of polybag.
Cause of failure: (i) Problems of collecting of current capital
(ii) Careless of employees
(iii) Failure in preserving accurate accounts.
Other offers: (i) Training in mushroom seeds cultivation
(ii) Training in the establishment of mushroom firm.
(iii) Training in processing and marketing of mushroom.
Is the business profitable? : Yes, profitable.
If yes, what is the profit on last month: 25000 taka.
Present of profit: 7.5%
Future plan of the organization:
(i) To build in a large wise organization (ii) Increase the amount
of buyers. (iii) To create brunches in local area. (v) To involve in
national economy.
ii) Srijon Mushroom Shilpo
Name of organization: Srijon Mushroom Shilpo.
Address: 10 point view shopping center, Amborkhana, Sylhet.
Nature of organization: Soul proprietorship organization.
Services: Collecting and selling different types of mushroom.
Entrepreneur: Mr. Nurul Haque.
When start the business: May 2006.
Background: Student (SUST)
How you get the concept of the business:
(a) To fill in the nutritious demand.
(b) The easy way of earning money.
The amount of starting capital: The starting capital of this mushroom
business was 65,000/-.
Sources of collecting this capital: Personal.
Did he face any problem in collecting capital? : Yes
Current capital: 85,000/-
Organizational structure: Srijon Mushroom Shilpo has an
organizational structure. They follow strait line organization. They have
director and labors and employees.
Director - 1
↓
Employees - 1
↓
Labor - 2

Method of hiring employees: Personal knowing.

Number of employee: 1
Number of labor: 2
Salary of employees: 2000/- (part time)
Wages of labor : (500× 2) = 1000/-
Training: (i) There is no formal training. (ii) Sometimes they offer oral
training according to need.
Steps of promotion: There is no step of promotion.
Motivation :
a) Fair salary b) Bonus c) Inspiration d) Medical facility
e) Financial reward f) Transport facility
Firing of employer's: no need.
Control system: Owner controls his business with his own ability,
quality, method and expertness.
Way of making decision: Owners makes decision by himself.
Problems of regarding decision: As owner is the boss of his own
decision so there is no problem to make decision.
Does the organization face any managerial problem : NO
Is there need expert knowledge ? : Yes
Row materials -
i) Seeds of mushroom
ii) Nourished mushroom
Source of raw material :-
i) Local farmer ii) Local productive organization.
Nature of product :-
i) Fresh mushroom
ii) Dry mushroom
iii) Powder mushroom
Pricing policy : The organization calculates its selling price at the rate
of 20% on its total cost.
Way of calculation: Though it is a small sole proprietorship business so
it calculates its transactions through receivable and payable account.
Marketing policy : The way of marketing policy are as follows-
 i) Publicity ii) Sells promotion iii) Advertisement
The way of publicity :-
i) Festoon ii) Leaflet iii) Billboard iv) Advertise on newspaper
v) Television vi) Banner vii) Oral communication.
Consumers : Mushroom is bought by-
i) Different type of restaurant ii) Departmental store
iii) Upper class family.
Selling process :-
i) The organization supplies the mushroom according to demand
among the buyers.
ii) They sell the mushroom at wholesale and retail price.
Risks :-
i) Problems to collect current capital. ii) Ban of polythene.
iii) Fail to sell the target of buying product iv) Political crash.
Cause of failure: Now it is not face.
Other offers :
i) Training on mushroom seeds cultivation.
ii) Training on the establishment of mushroom firm.
Is the business profitable : Yes\
What is the profit on last month? : 10,000/-
Percent on profit : 12.5%
Future plan of the organization :
i) To build in a large wish organization.
ii) Increase the amount of buyers.
iii) To create business in local area.
 iii) Ayesha Mushroom Center

Name of the organization : Ayehsa mushroom center.

Address : Ma Jubeda Manjil
Rongdhonu 21/1, Chaukidighi, Sylhet.
Nature of organization : Sole proprietorship.
Type of services : i) Production of mushroom
ii) Marketing
iii) Selling
iv) Training
Owner of the business : Meheraj Ahmad
When start the business : July, 2005
Background of the owner : Student (National University)
From where the idea has been arrived: Mushroom is a most popular
food. It is nutritious, delicious and medicinal vegetable in the world.
Mushroom is now one of the promising concepts in Bangladesh. Any
one can easily participate in cultivation. It is a scope of employment for
unemployed people. One can benefit to cultivated mushroom and
contributed in the economy of our country.
The amount at starting capital : 2,00,000 taka.
Sources of capital : personal - 70%, 1,40,000 taka.
Relatives - 30%, 60,000 taka.
Condition of loan : Capital from relatives had to pay with in a
year without interest.
Is the collecting loan fully paid? : Yes.
The amount of current capital : 3,20,000 taka.
Organization structure : Strait line organization.
Director - 1
↓
Technical Officer - 1
↓
Trainer - 2
↓
Labor - 2

Manner of hiring employer: The hire employees to personal

knowing person.
Numbers of employees : There are 5 employees work this
organization.
Salaries of employees : Technical officer - 5,000/-
Trainer - 3,000  2 = 6,000/-
Labor - 2,000  2 = 4,000/-
Promotion facility : There has a limited promotion facility.
Basis of promotion : Promotion is depended on employees working
abilities, capacity, method and experience.
Step of promotion : 2 steps
Labor → Technician
Technician → Technical officer
Ways of motivation : i) Fair salary ii) Bonus iii) Promotion
iv) Financial rewords v) Appreciation facilities
Firing of employees : No needed.
Control system : Owner controls his business with his own
competence, ability, method, capacity and experience.
Managerial problems: i) Lack of higher business environment
ii) Lack of associate institution. iii) Lack of efficient management.
iv) Lack of labor management relation.
Ways to overcome the managerial problems - i) Improve the training
facilities. ii) Apply the modern management approaches. iii) Use of
modern techniques.
Do you need the expert knowledge : Yes
Sources of expert knowledge: Take succession from local agricultural
officer for different problem.
Nature of product: fresh mushroom, dry mushroom, powder
mushroom.
Accounting process: Immediately write down the daily transaction on
the account book and calculate the profit and losses after the month.
Raw materials: Cereal straw, sugarcane, bagasse, vegetable and fruit
waste, coin dust, husk, dried leaves sawdust etc.
Pricing policy: The organization determines the selling price of
products at the rate of 25% at its total cost.
Marketing process : i) Publicity ii) Sells promotion
iii) Advertisement.
Way of publicity : i) Banner ii) Leaflet iii) Posturing
iv) Mikeing v) Advertisement in news papers vi) Seminar
vii) Television viii) Personal communication.
Customers of mushroom : i) Departmental stores
ii) Hotel and restaurants iii) General people.
Selling process: According to demand sells the mushroom products in
retail and whole sale process to the customers.
Risks : i) Spoil of needs ii) Fail to sale the buying product
iii) Banned of politics.
Is the business profitable? : Yes.
The profit of last month : 18,000.
Percent of profit : 8.5%
Future plan : i) to build in a large wish organization.
ii) In crease the amount of buyers. iii) To create brunches in local area.
iv) Modernized the laboratory v) To involve in national economy.
 CHAPTER - 5
Table and Chart
Chart (1)
Nature of products

Name of Institution Product Rate of production

Seeds of mushroom 45%
Fresh mushroom 20%
Shahjalal Mushroom Shilpo
Dry mushroom 18%
Powder mushroom 17%
Fresh mushroom 50%
Srijon Mushroom Shilpo Dry mushroom 30%
Powder mushroom 20%
Fresh mushroom 60%
Ayesha Mushroom Center Dry mushroom 25%
Powder mushroom 15%

0.6

0.5

0.4
Product
0.3 Rate of production

0.2

0.1

0
Shahjalall Mushroom
Shilpo
 Chart (2)
Starting capital

Institution Amount of capital

Shahjalal Mushroom Shilpo 3,00,000/=
Srijon Mushroom Shilpo 65,000/=
Ayesha Mushroom Center 2,00,000/=

600000

500000

400000 Ayesha
Mushroom Shilpo
Srijon Mushroom
300000
Shilpo
Shahjalal
200000
Musroom Shilpo

100000

0
Amount of
capital
 Chart (3)
Present capital

Institution Amount of capital

Shahjalal Mushroom Shilpo 5,00,000/=
Srijon Mushroom Shilpo 85,000/=
Ayesha Mushroom Center 3,20,000/=

1000000
900000
800000
700000 Ayesha
600000 Mushroom Shilpo
Srijion Mushroom
500000
Shilpo
400000 Shahjalal
300000 Mushroom Shilpo

200000
100000
0
Amount of
capital
 Chart (4)
Current capital

Institution Salaries and wages Amount

Salaries 13,000/=
Shahjalal Mushroom Shilpo
Wages 5,000/=
Salaries 2,000/=
Srijon Mushroom Shilpo
Wages 1,000/=
Salaries 11,000/=
Ayesha Mushroom Center
Wages 6,000/=

14000

12000

10000

8000
Amount
6000 Salaries and wages

4000

2000

0
AyeshaMushroom
Srijon Mushroom
Mushroom Shilpo
Shahjalal

Shilpo

Shilpo
 Chart (5)
Nature of customer

Rate of
Institution Nature of customer
Customer
Farmer of mushroom 30%
Organization related with 22%
business of mushroom
Shahjalal Mushroom Shilpo
Departmental store 12%
Hotel and restaurant 15%
General public 2%
Hotel and restaurant 30%
Srijon Mushroom Shilpo Departmental store 20%
Upper class family 10%
Farmers of mushroom 60%
Ayesha Mushroom Center Hotel and restaurant 25%
General people 15%

Srijon Musroom
1.2
Shilpo Hotel &
Restautrne
1

0.8 Shahjalal Mushroom

Shilpo General Public
0.6

0.4 Shahjalal Mushroom

Shilpo Hotel&
0.2 Restaurent

0 Shahjalal Mushroom
1 2 Shilpo Departmental
store

Shahjalal Mushroom
Shilpo Organization
releted with business
of mushroom
 Chart (6)
Profit rate

Institution Rate of profit (last month)

Shahjalal Mushroom Shilpo 7.5%
Srijon Mushroom Shilpo 12.5%
Ayesha Mushroom Center 8.5%

14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00% Rate of profit (Last
0.00% month)
Shahjalal Mushroom

Srijon Mushroom

Ayesha Mushroom
Shilpo

Shilpo
Shilpo
 CHAPTER - 6

Conclusion:

Mushroom related industry / farming utilizing lignocelluloses wastes

available from agriculture, horticulture, forestry and industry in plenty,
can have long term input towards human nutrition, health and
management of environmental of environmental pollution and
promoting economic and social status of millions of poor people in our
country. We have grate opportunity to take benefit of such venture to
improve health and economic status of our poor people through
diversification in mushroom production. Let us utilize this opportunity
to make Bangladesh a leading mushroom producing country in the
world and help to create expert opportunities for poverty elevation
quickly.
 TOPIC - 2

Report on local small business administration office

We went to local agricultural office and meet agriculture

officer and take his interview:

Mushroom is a very profitable business. We can cultivate it easily at

staying home. Any types of natural disaster can't destroy these crops.
Some one can create employment facility not only for him but also for the
society. To fill up the nutritious demand it helps. By advertising and
inspection the agriculture officers accommodate training for those are
eager to cultivate mushroom. They provide training on processing.
production of seeds etc. Agriculture Development Institutions help the
farmer financially. They also help them by supplying mushroom seeds.
The govt. has taken various steps to make it eagerful to the various
people. They advertise it on TV mass media. For future development
more and more steps should be taken to make the people aware about it.
We have to change general concept that mushroom is not "Banger Sata".
Our govt. should include a chapter about mushroom in text book.

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