Housing for the Poor in Bangladesh

7/31/2019 Housing for the Poor in Bangladesh

1/20

1 | P a g e

OUR proposed Social Business Plan

Name:

The proposed name for our organization is Sopnokhutir Housing society.

Address:

We are yet to fix a land for our housing project but according to our plan the site for our

housing project should be in Fatullah or Pagla.

Principles:

The main aim of our business is to provide proper housing facilities for the deprivedslum dwellers of Dhaka city without taking any initial charges from them.

We will ensure better water supply and adequate number of sanitary latrines in ourhousing project.

There will be a waste disposal system in our housing project in order to ensure thecleanliness of the project.

We will develop our project in a legal property unlike the illegal slums of Dhaka city. The residents of our housing project will be given opportunities in the income

generation activities, based on their existing skills.

Nature of Business:

Sopnokhutir Housing societyis a non-profitable organization that intends to run a socialbusiness for the noble cause of improving the life standards of the urban poor people of

Dhaka who are leading their life in a miserable way in the slums.


2/20

2 | P a g e

Confidentiality of the Report

Information, data and drawings embodied in this business plan are strictly confidential and

are supplied on the understanding that they will be held confidentially and not disclosed to

third parties without the prior written consent of the following persons:

Avijit Ghosh

&

Jaker Jahan ShuvraEntrepreneurs

Sopnokhutir Housing society


3/20

3 | P a g e

Financial assistance needed

Sopnokhutir Housing societyis a non-profitable organization that aims at providing housing

facilities to the underprivileged people who are living in poor conditions in the slums of

Dhaka city. We would like to provide housing facilities to these urban poor people with

taking any large amount of initial charges. But we will engage the residents of our housing

society in income generation activities in order to repay the loan taken from the investors.

As its mentioned earlierSopnokhutir Housing societywill run a social businessfor a noble

cause. In order to strengthen our positive initiative,Sopnokhutir Housing societyneeds

financial assistance from the influential people from our society. The initial estimated

investment required to start our project is around 2300000(2 core thirty lac taka).

We are very hopeful that the dedicated souls of our society will come forward to help us for

the noble cause.

Let us make a better world together.

With Regards,

Avijit Ghosh

&

Jaker Jahan Shuvra

Entrepreneurs

Sopnokhutir Housing society


4/20

4 | P a g e

Executive Summary

Bangladesh, with a population of 147.4 million is one of the poorest countries in the world;

with an estimated 3.4 million people live in some 5000 slums of its capital city, Dhaka. In

2010, the population of the city of Dhaka has been projected at 17.6 million people, with up

to 60% living in the slums. Most of these slum dwellers are leading a very miserable life and

suffer thousands of problems in their everyday life. Some of the major problems faced by

the residents of slum are: 1. Unhygienic living condition, 2.absence of a legal lease or title, 3.

inadequate living space and 4.scarcity of safe drinking waters and toilets.

Despite of such poor conditions every day we observe the influx of hundreds of new people

to the city of Dhaka who accommodate themselves in those slums. But why people in such a

large number are coming to Dhaka? There are two factors behind it: a) pull factor and b)

push factor. Bangladesh is urbanizing fast. People are moving to places where there are or

perceived to have jobs and opportunities. The cities are the new centers of jobs and

opportunities. The bigger the centre, the stronger is the pool. Dhaka is the primate city in

Bangladesh according for over 30% of the total GDP. It is pulling rural migrants faster and

larger than any other cities in Bangladesh. Findings showed that, 56% people migrated to

Dhaka city for economic reasons. There are also some push factors working in the process of

migration to the cities, especially to Dhaka city. Now-a-days maximum slum dwellers are

one kind of environmental migrants. The often natural disasters: flood, drought, cyclones,

riverbank erosion destroys the agricultural outcomes every year. While Bangladesh is an

agro-based country these disasters are much painful for the farmers and they are obliged to

go to the cities. The job sectors of rural areas are not much strong so people are pushed to

the cities.

According to the Bangladesh Demographic and Health Survey centre (BDHS)

conducted upon the slum dwellers revels that most of the respondents of the survey (89%)

did not feel that they lived in a hygienic environment, and 93% felt that the slum had lead to

disease or ill health in their families. The most desirable place to live was felt to be in their

village of origin (57%), while others dreamed of living in higher-class places in the city (14%),

a place more quiet (14%) or free of mosquitoes (5%). Only 6% were happy in their current


5/20

5 | P a g e

location. Evils described were unclean latrine facilities(30%), harassment by slum owners

and need to pay bribes(10%), lack of employment(32%), mosquitoes(86%), extremes of

heat(5%), lacking roof(11%), harassment of women(7%), lack of available fuel/gas(17%) and

lack of food(3%). Barriers preventing to a move to a more desirable location were stated as

a lack of funds (91%), lack of land (11%), inability to find work (10%), lack of government

assistance (14%), illiteracy (2%) and large family size (1%).

So to improve the living standards of those urban poor people we need to provide them

with proper housing facilities at a minimum price and the main objective behind the

development of Sopnokhutir housing society is exactly that. Our aim is to provide hygienic

and satisfactory housing facilities to the slum dwellers of Dhaka city through this housing

project. This housing project can be termed as a social business since our main motive is to

provide better accommodation facilities to the deprived slum dwellers of Dhaka.

In the initial stage we will launch a campaign in the slum areas of the Dhaka city to introduce

our plan among the deprived people of the slums who are looking for better living facilities.

From this campaign we will select forty families from any of the slums of Dhaka city. We

assume these forty families will constitute a population size of 200 people. In our first

project we will provide proper housing facilities to these 200 people. In order to develop our

first project we will buy a land of 14400 square feet (20 khata) adjacent to the Dhaka city

most probably in the area of Fathulla or Pagla. We will build a total of twenty two storied

houses using clay, bamboo, wood and thatch. Two families will be accommodated in the top

and the ground floor of each house. We will develop a biogas plant inside our project arena

so that all the families get access to the hydraulic gas. In order to provide electricity a solar

panel will be establish on the roof of every house. There will be no scarcity of safe drinking

water and toilets inside the arena. There will be ten tube wells and fifteen sanitary latrines

inside the project field. All together it will be a perfect accommodation for the poor people

for our community. There will be no such problem of harassment by slum owners,

mosquitoes, extremes of heat, lacking roof, harassment of women or lack of available

fuel/gas . It will be a proper accommodation for the deprived people of our society in a calm

place where they will feel like they are in their villages.


6/20

6 | P a g e

Our plan is to provide all those facilities to the poor slam dwellers without any initial charge.

To develop our project we will take bank loan or monetary assistance from the affluent

people of the society. Since it is a social business project we hope we will get the aid. But at

the same time we will also assure a certain profit margin for the investors. In order generate

revenue from our project we will develop four different earning sources inside the project

arena. We will create two different gardens for fruits and vegetables. Moreover we will

plant plenty of trees inside the project field. We will develop a poultry firm and a cow firm in

our project. According to our project plan we will also dig a pond inside the project for fish

cultivation. In all those ventures the male members of the family will work as a labor. For

that we will constitute a contract with the families who will be helped through this project.

The contact will make sure that at least two adult members from each family will work as a

labor in our revenue generating projects for a minimum of fifteen years from the date they

will be handed over their houses. According to the contract a good amount of wage will be

provided to all the labors. Moreover, we will provide a sewing machine to every family so

that the female members of the family can also participate in the revenue generating

activities and at the same time earn some money for them. Before providing employment

opportunities all the working members of the families will be trained properly.

From all those projects we will be able to generate a large amount of revenue every year.

We will repay our loans though this money. According to our calculations we will be able to

pay back all our loans within ten years from the day the project will start. After repaying our

loans within ten years we will be able to produce profit from that project which we have

planned to use in other socially beneficial sectors.

For the overall maintenance of the project there will be a management team consisting ten

members. This team will submit a monthly report to the higher authority engaged with this

project. A meeting will be arranged once in a month between the families and authority

where various issues regarding the project will be resolved. Proper control and feedback

mechanism will be developed so that all the problems regarding the project can be solved

quickly.


7/20

7 | P a g e

Market Analysis:

Dhaka has been recognized as a hub of both economic and political activities of Bangladesh

since the seventh century. The earliest available map shows Dhaka extending over an area

of only about 1.5 square kilometers near the junction of the Dholai Khal and Buriganga

River. Dhaka will be the second largest city in the world in terms of population by 2015, next

to Tokyo, with a growth of urban population at a rate of 3.1 per cent per year, according to

a report of the United Nations Population Division on agglomeration in the world cities. By

then, the projected population of the metropolis will rise to 21.1 million.

Bangladesh's rate of urbanization is 3.15 per cent indicating the mounting housing pressure

on Dhaka. The physical feature survey in the city corporation area reveals that there are

nearly 225,000 permanent structures, which can accommodate three to four million people.

The remaining nine million people dwell in semi-permanent or temporary structures in

slums and squatters. So, all those suggest us that a increasing number of people in Dhaka

are living in the slums where they are deprived of basic living facilities. The current condition

of the slums in Dhaka has been described below:

Most of Slums of Bangladesh is situated in Government land and land of railway

department is one of the most common locations of Slums. Slums are growing rapidly,

now 19.4% of total population of Dhaka City lives in the Slums and lack of government

officials presence and activeness are main reason working behind the growing Slums of

Dhaka City in the Government Property. Some of the slum lands are owned by a landowner

who leases the land giving permissions to build a bamboo shelter to use as a home.

Landowners are not thought to pay government taxes and are not accountable for the

conditions or safety of the slums. Government land is also illegally occupied by so-called

musclemen, who build slum dwellings or rent bare land plots, and allegedly maintain

corrupt links with police and political parties; the remainder lived on these lands. On top of

rent and the cost of security paid to the landowners and muscle men, the subjects were

variably charged for the use of facilities such as toilet, drinking water, bathing water,

electricity and gas. All families lived in one-room dwellings, with construction usually of


8/20

8 | P a g e

bamboo frame, fencing and roof. Forty-five of 100 dwellings were built elevated over water.

An average of 5 people lived in each room, and four families had over eight individuals in

one room. Drinking water was from a tube well for most, and five to 100+ families shared

each well. The rest used city tap water, also sharing one tap among many. A latrine area (pit

or elevated) was located outside the room for most. The rest used a lake, river or non

designated latrine areas as a toilet. Bathing water was from a tube well, standing water or

river water, and subjects bathed themselves and their children daily, and their clothes 2-7

times per week. Electricity was available to a small number of families though most of them

get electricity in their rooms in an illegal way. In the slums there every family has three to

four children. Only a small portion of the school-aged children attends school. A large

portion of the students could read and write. Children go to work in their early ages to

support the household. Childrens health has always been reported to be very poor.

Reasons for poor health included rheumatic fever, tuberculosis, leprosy, abscess, epilepsy,

disabled hand or leg, kidney disease and non-specific descriptions Immunization . There is a

lack of health care facilities in the slum areas. Most of the slum dwellers are uneducated,

lives in unhygienic and difficult conditions, works in the informal service sector and

consumed a diet low in protein. Health concerns include a variety of acute and chronic

conditions. Slum dwellers are comprised of distressed migrants from rural areas, with

poverty-driven urbanization due to unsustainable rural economy.

Most of the slum dwellers want to get rid of those miserable situations and want to get

access of a better living condition. They want to have a hygienic accommodation where

there will be no scarcity of safe drinking water and sanitary latrines. They want to live in a

legal property in a permanent basis so that the law enforcing authority cant withdraw

themselves from their house. They want to get access of natural gas and electricity in a

legalized way to avoid disconnection although the slum dwellers dont earn enough to pay

the electricity or gas bill. Moreover, they want to live in a quiet place free from hustle and

bustle of the city.


9/20

9 | P a g e

This is the list of facilities we would like to provide to the slum dwellers through our housing

projects:

Improved housing and shelter for the slum and squatter dwellers. Better water supply inside the housing project. Adequate number of sanitary latrines for a hygienic living environment. Maintaining safety of all the residents of the housing project. Providing access to gas/fuel and electricity. Accommodation in a legalized property. Improving the garbage disposal system at the living area. Providing opportunities in the income generation activities, based on their existing

skills.

Overall a housing solution for slum dwellers in a clam place adjacent to Dhaka city.We, the Sopnokhutir Housing society plans to provide all those facilities to the deprived

slum dwellers of Dhaka city so that they can lead their life in better living conditions. We

believe if we take this initiative most of the slum dwellers will be eager to grave such

opportunities. No other organizations have worked on such noble concepts before, so we

will be the first mover in this industry. We believe through this housing project we will be

able to improve the life standards of the underprivileged slum dwellers.


10/20

10 | P a g e

Architectural Plan of Our Project


11/20

11 | P a g e

Satellite and Side Views


12/20

12 | P a g e

Operational Plan

*** Land price appreciation is also a useful tool to maximize assets.

poultry

DairyFirm

CropsSewing

Fishing

Fig: Agro Product Line


13/20

13 | P a g e

Operational Plan

Revenue Source

Approximate

Investment

Approximate

Return(per year)

Description

Poultry Firm 500,000 3,60,000 In this Project we

firm chicken and

producing poultry

chicken & egg. We

will try to make a

hygienic product

those will be sold to

premium customers.

Five star hotels,

Hospitals, and

selective group of

people will our

target Customer.

Fishing 10,00,000 4,20,000 According to an

agriculture specialist

10 taka price per fish

can be worth of 100

to 200 taka fish

within one year.

Firming Vegetable 500,000 480,000 Hybrid seeds we will

collect for our best

productivity.

Consulting with

agriculture

department we will

cultivate crops.


14/20

14 | P a g e

Dairy Firm 100,000 (Purchasing

cost)

480,000One year

milk selling

Total 40 cow & per

cow purchasing cost

is 40,000 taka.

Sewing 80,000 24,00,000 per annual Per machine

purchasing cost 4000

& total 40 machine.

*** All those estimated amount is written by consulting with Krishibid Farid Uddin, Deputy

Director, Cotton Development Board, Ministry of Agriculture.


15/20

15 | P a g e

Marketing Plan

Bangladesh is one of the world's most densely populated countries with 150 million people,

49 percent of whom live below the national poverty line. In addition, child malnutrition

rates of 48 percent are the second highest in the world, a condition that is tied to the low

social status of women in Bangladeshi society.

Pricing Plan

No down payment. No taka per month for each shelter. More flexibility in term of paying installment. Only labor is our installment (Alternative of Money)

Distribution

Among the poor people. Applicant must be a homeless. Family Member at least 4 per family.

Promotion

There are several tools of promotion. But we must concern about it our target customers

are extreme poor and not educated. In that case direct marketing will be much more

effective. In term of marketing we must know that our target customer are less analytical

skilled in comparing better. But our mission is not to make them fool. We just want to make

a better life for them.

But for our long time better social business operation we must focus on the following

marketing tools.

In project Promotion. Public relation & Media coverage. Joint activity with other business operators. Make it as a picnic sport.


16/20

16 | P a g e

Organizational Plan

Form of Ownership: Partnership.

Partners

JakerJahanShuvra

BBA (Marketing & HRM)

North South University

Experience and certificates:

Worked as a field officer of IslamicRelief Foundation

Worked as a Team member of aresearch on Vulnerability of flood in

Bangladesh and river bank erosion.

Assigned Area was Gaibandha district

Choor Area.

Inspiring the Future Minds byMarketing Guru Prof. Philip Kotler.

Standard Chartered Bank ConfrontingAIDS challenges in 21st century.

Workshop on Theater performanceand professional film making.

Performed as a Cadet in BangladeshNational Cadet Core.

AvijitGhosh

BBA (Marketing & HRM)

North South University

Experience and Certificates:

Effectively designed IMC tools forSharp Blade and Nescafe Coffee for

Brand marketing and promotional

marketing courses. Addressed the strategic

management process of British

American Tobacco (BAT) and

Square Hospitals LTD.

Surveyed on NSU computer lab andon community parks in Dhaka.

Attended the seminar of marketingguru Philip Kotler at Dhaka.

Solved a large number of cases forMarketing and Human resource

management courses and attended

in a number of educative seminars.


17/20

17 | P a g e

Financial Plan

Initial Investment (Assumption)

Investment Quantity Amount

Land price: 20 katha*8lac per katha 1 core 60 lac taka.

House building cost: 20,000 per house* 20 40 lac taka.

Biogas plant cost: 3 lac taka

Solar panel cost: 5 lac taka.

Toilet and tube well

investment:

2 lac taka

Pond digging cost: 10 lac taka

Poultry and dairy firm Initial

Investment

5 lac taka + 5ac taka= 10 lac

Fruit and vegetable garden

Initial investment:

5 lac taka

Purchase of Sewing machine: 5000 per piece* 40 piece 80 thousand taka

Investment on training 2 lac taka

Purchase of transporter van 50 thousand per van*5van 2lac 30 thousand taka.

Total investment: 2 core 29 lac 30 thousand

taka


18/20

18 | P a g e

Cost (per month)

1. Maintenance cost:

For houses and other living facilities= 5 thousand taka For pond =10 thousand taka For dairy firm= 10 thousand taka For poultry firm= 7 thousand taka For fruit and vegetable garden = 3 thousand taka For transporting van= 10 thousand taka

2. Labor cost:

For pond = 5 labours*1000 taka= 5 thousand taka For dairy firm= 5labours*1000 taka= 5 thousand taka For poultry firm= 5 labours*1000 taka= 5thousand taka For fruit and vegetable garden = 5labours*1000 taka= 5 thousand taka For sewing= 40 female labour(1 labour per house)*1 thousand taka= 40 thousand

taka

Total cost (Per Month) = 1lac 5 thousand taka


19/20

19 | P a g e

Revenue per month

From pond: 35 thousand taka From dairy firm: 40thousand taka From poultry firm: 30 thousand taka Form fruit and vegetable garden: 40 thousand taka From sewing: 5 thousand from per family* 40 family= 2lac taka

Total revenue: 3lac 45 thousand taka

Gross profit per month: 2lac 40 thousand taka.

Entrepreneurs salary: 20 thousand * 2 entrepreneurs= 40 thousand taka Return to the investors: 2lac taka per month Repayment of the loan: 2lac per month*12= 24 lac per year (approx. 15 year to cover

the whole investment loan with interest)

****The residents of our project will work as our labor and they will get the monthly wage.

Wage rate may increase with the increase of profit margin and with the decrease of

operational coast.

**** After repayment of the loan we will use the profit margin to invest in other socially

beneficial projects.


20/20

20 | P a g e

Income Statement

Revenue

Cost of goods sold

Salary

Promotional Expense

Income Before Income Taxes

(-) Income Tax (No income tax)

Net Profit

12,60,000

4,80,000

50,000

41,40,000

19,10,000

19,10,000

000

19,10,000

****In our country no taxes are imposed on agricultural goods.

Date post:	05-Apr-2018
Category:	Documents
Upload:	jaker-jahan-shuvra
View:	219 times
Download:	0 times

Housing for the Poor in Bangladesh

Documents