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Vegetable Seller Essay

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Executive Summary:

We interviewed four small businessmen who sell vegetable in karwan bazar kitchen market. We asked various questions about their business operations.We discover their business practice and how they operate their business.We come to know that the hawkers avoid debt financing, as they find debt to be extremely risky, and depend completely on equity financing. There is no scope of growth as they can not generate enough funds from their business to finance the growth in this competitive market. They only take some interest free current liabilities from their suppliers which they repay continuously on daily basis while they buy inventories from the suppliers, and the remaining amount they pay at the beginning of the Bengali New Year. The vegetable market is highly unstable and therefore the income is not fixed. The vendors can generate enough money to support their family throughout the year with their business.

Data collected:

CRITERIA1st Person (Lal Mia)2nd

Person ( Mostafa)3rd Person

Business duration24years15 years

Initial investment(approx.)6,000 tk12,000 tk

Current investment 8,000 tk13,000 tk

Equity or debt funds100% Equity financing80% Equity financing, 20% debt funds

Repayments & termsX 2 years, 100 tk/month

Interest rateX5%

Daily starting time of their business6 AM

7 AM

Daily starting investment

5,000 tk

9,000 tk

Cash left with them4,000 tk4,000 tk

Location of selling fishesKarwan Bazar fish marketKarwan Bazar Fish market

Pricing of the fishes (approx.)Depends


Recovery period (approx.)

1 day2.5 days

Business risks

Non durable productsNon durable products

Political RisksHartals, blockades hampered supply Hartals, blockades hampered supply.

Safety issues and other jeopardyYes, extortion occursNone

Business expenses-Daily (approx.) (Least/most/average)(60/120/100)


Personal expenses-Daily (approx.)


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