Towards Rural Inclusive Growth and Economic Resilience (TRIGGER) II project funded by GIZ and implemented by PEM CONSULT signed Memorandum of Understanding with the Public Organization (PO) Zamonat to enhance implementation of the TRIGGER II project. PO Zamonat has a pool of experienced and well-educated experts who provide consultation services to new business ideas to start their activity and to existing ones to develop and expand their commerce. One of such professionals is Asrorov Naim who is an expert in the field of agribusiness development and Strat-up ideas.
In 2019 Asrorov Naim met an entrepreneur from Jayhun district, Khatlon oblast, Gulakov Rasul who owns a newly established wood processing business. His business was succeeding, thanks to his extensive experience in wood processing technology and his small dekhkan farm with the land area of one ha, where he grows vegetables and grain crops. Gulakov Rasul seek for advice on how to effectively utilize and dispose production waste and how to register a business. Asrorov Naim suggested Gulakov Rasul to use production waste (sawdust) for manufacture of organic fertilizer (compost), as well as to prepare firewood from non-standard timber for sale. It would safe time and costs he spent for transportation of sawdust, as well as will bring additional income for young entrepreneur.
Gulakov Rasul liked the recommendations of consultant a lot and invited Asrorov Naim to his farm to demonstrate him how to make compost. Gulakov Rasul invited farmers from neighboring farms to attend the master class and to learn how to prepare organic fertilizer.
Asrorov Naim provided participants information on what kind of waste can be used for compost. They used the waste available in the farm to make compost, including sawdust, mineral fertilizers (carbomide), lime and manure. In the site suggested by Asrorov Naimparticipants placed the waste layer by layer as Asrorov Naim instructed them.
Gulakov Rasul aslo started production of firewood from non-standard timber, cutting them one size. He is now selling the product at the price of 200-250 somoni per one cargo scooter, which has led to an increase in entrepreneur’s income.
The second issue Gulakov Rasul had with managing his business was related to tax regulations and registration requirements. The local tax inspectors misinterpreted tax law requirements to Gulakov Rasul recommending him to obtain another certificate in the name of third party to register a wood processing business, which would impose additional burden on entrepreneur. In order to learn the case details and understand the law requirements Asrorov Naim met with the local tax inspectors and the expert from republican Tax Committee. Since Gulakov Rasul had already registered himself as an entrepreneur for production of agricultural products, i.e. as “Dekhkan Farm”, tax committee expert recommended Gulakov Rasul to formalized the wood processing business as the second type of activity, after his main activity on “Production of agricultural crops” and work according to his current Certificate of entrepreneurial activity.
The consulting services provided by Asrorov Naim to an entrepreneur resulted in the following successes:
- Wood production workshop has become waste-free, non-standard timber is processed and sold as ready-to-use firewood.
- Sawdust is used to make compost, which is an organic fertilizer for growing vegetables.
- The business is registered in the best possible way
- The entrepreneur keeps track of financial income and expenses.
- Business profitability increased by more than 20%.
Dear young start-uppers! If you need consultations or have questions on how to start the business or to sort out issues you faced, you can always address experts of TRIGGER II project. Good luck!