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November, 2003

SME Focus

Singha Bdr. Tamang
Happy as an Ancillary

He prefers to be called a sportsman rather than businessman. "Perhaps it is because of my age", he explains. At an age of 38, Singha Bahadur Tamang, the proprietor of SB Carpet, Gongabu, thinks he is still not grown up enough to be referred to as a businessman. But look at those facts: He has not studied beyond the tenth grade, still he owns three factories, runs two of them while one is rented out; employs some 300 persons in the carpet factories he runs (more than in some of the big commercial banks); has visited many countries of the world; moves around in a Tata Indica car and owns a house in Kathmandu. And compare that with this: When he first came to Kathmandu 24 years ago from Dolakha as a 14 year old lad with his elder brother to try his luck in the capital he had to sleep at night on a Sukul (straw mat).

But this "Sukul to Carpets" journey was not simply a meteoric rise. "I've put a lot of hard work to reach here," he notes. First he learned Karate and he still teaches this Martial art to school students and earns salary. Then he worked as a contractor, with his elder brother, supplying labour to the carpet factories, and taking up small scale construction jobs in the development activities like road construction.

The major turning point in Tamang's life came when Swayambhu Carpet started. The Sahu (i.e. the owner) of this export-oriented factory called up Tamang and offered him a job as the manager of the washing section of his factory. After nearly three years of the job, the same Sahu asked Tamang to set up his own factory and he obliged by investing some Rs. 500,000 which he had earned as a Wado-kai karate trainer, labour contractor and construction contractor. There are altogether four factories ancillary to Swayambhu Carpet. While the others are only in knotting (making carpets), Tamang does the washing as well.

Being a producer that produces according to the order of the principal, SB Carpet has no worries related to the export hassles, and Tamang does not show any interest to start exporting on his own. "I'm getting better rates than what many exporters get from their overseas customers", he grins and says this has made it possible for him to pay higher than market wage rates to his workers thus motivating them to stay loyal to him.

Despite being little educated, Tamang knows what is needed to know for his business. He speaks English sufficient enough to communicate with his customers; he knows how the quality of carpet differs and where to control so as to get quality product; and teaches his workers how to earn more and save more. More importantly, he knows very well that transparency with the workers is essential for the success of the business. He shows his workers the bills of his transactions with the principal (who provides the wool and buys back the product) so they know how much he earns and they do not feel cheated by the employer. "This may be the reason why my people are not interested in any unionising", he opines.

(This feature on SME has been sponsored by Laxmi Bank Ltd.)


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