BAHIRDARUNIVERSITY

BIT Faculty of computer science 2nd year

Course: Entrepreneurship Enbd2012
GROUP ASSIGNMENT
SECTION B, GROUP 2

Student ID First Name Last Name

1. BDU1600961 ANDEBET MELKAM

2. BDU1603917 BELEN DEJENE
3. BDU1701672 BETELHEM DILNESA
4. BDU1701701 BEZAWIT NIBRET
5. BDU1701725 BIRTUKAN MEKUANNT
6.

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Introduction
This business plan presents EcoCarry Paper Bags, a small-scale manufacturing business
established to produce environmentally friendly paper bags as an alternative to single-use plastic
bags. The purpose of this plan is to outline the business concept, market opportunity, operational
strategy, and financial viability of the proposed venture.

In recent years, environmental concerns related to plastic waste have become increasingly
serious. Plastic bags contribute to pollution, block drainage systems, and negatively impact soil
and water systems. In response to these challenges, the Ethiopian government implemented a
nationwide ban on plastic bags in January 2026. This policy has created an urgent need for
sustainable packaging solutions across various industries.

EcoCarry Paper Bags is designed to respond to this need by providing affordable, durable, and
customizable paper bags to businesses such as retail shops, supermarkets, restaurants, and
boutiques. By focusing on quality, reliability, and customer satisfaction, the business aims to
establish itself as a trusted supplier in the growing eco-friendly packaging market.

This business plan will examine the market demand, identify target customers, describe the
products and services offered, and explain how the business will operate and generate profit. It
will also evaluate potential risks and outline strategies to ensure long-term sustainability and
growth.

1. Executive Summary
 EcoCarry Paper Bags is a small-scale manufacturing business based in Addis Ababa that
focuses on producing environmentally friendly paper bags as a substitute for single-use
plastic bags. This business is built around a major market shift caused by Ethiopia’s
nationwide ban on plastic bags in January 2026, which has made the use, production, and
distribution of plastic bags illegal.

As a result, businesses across the country are required to transition to alternative packaging
solutions. However, many face challenges such as high costs, inconsistent supply, and lack of
customization options. EcoCarry aims to address these problems by providing affordable,
durable, and customizable paper bags tailored to different business needs.

The company will begin with a small-scale production model to minimize risk, while focusing
on building a stable customer base. As demand grows, operations will gradually scale up to
increase production capacity and profitability. EcoCarry’s competitive advantage lies in its
reliability, flexibility, and ability to offer branding solutions for businesses

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2. Company Description
EcoCarry Paper Bags will operate as a sole proprietorship with the primary objective of
producing eco-friendly packaging solutions. The mission of the business is to reduce
environmental pollution while simultaneously helping businesses comply with government
regulations.

The environmental problems caused by plastic bags—such as blocked drainage systems, urban
flooding, soil degradation, and long-term pollution—have made sustainable alternatives
essential. The government’s intervention has accelerated demand, creating a strong market
opportunity.

EcoCarry will take advantage of this situation by producing paper bags locally. This not only
reduces dependency on imported alternatives but also allows for faster delivery, better customer
service, and flexible customization options. The business will position itself as a reliable long-
term partner for businesses transitioning to sustainable packaging.

3. Market Analysis
Customer Needs

The business fulfills several critical customer needs. First, it provides a legal solution, as
businesses must replace plastic bags to comply with government regulations. Second, it offers a
functional need, as businesses require durable packaging to carry goods safely. Third, it
addresses a marketing need, as customized bags allow businesses to promote their brand.

These combined needs make paper bags not just a replacement product, but an essential business
tool.

Target Customers

EcoCarry targets multiple customer segments, each with different priorities and purchasing
behavior.

The primary customers are small retail shops and local vendors. These customers are highly
price-sensitive and mainly require simple, low-cost paper bags for daily use. Their main concern
is affordability rather than branding.

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The secondary customers include clothing stores, boutiques, and specialty retailers. These
businesses are more focused on brand image and are willing to pay extra for customized bags
that display logos, colors, and designs. For them, packaging is also a marketing tool.

The tertiary customers are supermarkets, restaurants, and pharmacies. These customers
purchase in large volumes and prioritize reliability, consistency, and timely delivery. They
require a steady supply of bags and often prefer long-term agreements with suppliers.

Competitive Analysis

 The paper bag market is becoming increasingly competitive due to the high demand
created by the plastic ban. Many small businesses have entered the market; however,
most operate with limited production capacity and inconsistent quality.
 Imported paper bags are also available, but they tend to be more expensive and involve
longer delivery times.

EcoCarry differentiates itself by focusing on three key areas: consistent quality, reliable supply,
and strong customization options. By maintaining a balance between affordability and value-
added services, the business can compete effectively against both local and imported alternatives.

4. Products and Services

EcoCarry will produce a range of paper bags designed to meet different business needs.

 The basic product line will consist of simple, unbranded paper bags intended for small
businesses that prioritize low cost. These bags will be produced in standard sizes and sold
at competitive prices.
 The standard product line will include paper bags with basic customization, such as
printed logos or simple designs. These will target businesses that want some level of
branding without significantly increasing costs.
 The premium product line will offer high-quality, fully customized bags made from
stronger materials with advanced printing options. These products are aimed at
businesses that want to enhance their brand image and customer experience.

All products will be made from kraft paper, which is known for its durability and environmental
friendliness.

5. Marketing and Sales Strategy

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EcoCarry will adopt a business-to-business (B2B) sales approach. The primary method of
customer acquisition will be direct interaction with business owners. This includes visiting
shops, presenting samples, and explaining the value of the product.

In addition to direct sales, the business will use social media platforms such as Telegram and
Facebook to showcase product designs, share customer testimonials, and attract new clients.

The sales process will follow a structured approach. First, potential customers will be contacted
either physically or online. Then, their needs will be discussed, including bag size, quantity, and
customization requirements. After agreeing on pricing, the order will be processed and
production will begin. Once completed, the products will be delivered, and payment will be
collected.

Distribution will initially be handled directly by the business to ensure reliability. For larger
orders, third-party transportation may be used.

To retain customers, EcoCarry will offer bulk discounts, maintain consistent product quality, and
build long-term relationships through reliable service and communication.

6. Organizational Structure
The business will begin with a simple organizational structure. The owner will manage overall
operations, including sales, procurement, and decision-making. One worker will handle
production, while another assistant will support packaging and logistics.

As the business expands, additional employees may be hired to increase production capacity and
manage larger client accounts.

7. Operational Plan
The operational process will involve several stages. First, raw materials such as kraft paper will
be sourced from suppliers. Next, the paper will be cut and shaped according to required sizes.
The bags will then be assembled and, if necessary, printed with customized designs.

After production, the bags will be packaged and prepared for delivery. Finally, orders will be
transported to customers.

The business will start with manual or semi-manual production methods to minimize startup
costs. This requires an investment of approximately 50,000 to 150,000 ETB. As demand
increases, EcoCarry will transition to semi-automatic machinery, which allows for higher
production volume and improved efficiency.

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8. Financial Plan
The financial plan of EcoCarry Paper Bags is designed to ensure gradual and sustainable growth.
The business will begin with a small-scale investment and expand operations as demand
increases.

The estimated startup capital ranges between 50,000 and 150,000 ETB for a manual setup, with
the possibility of scaling to 200,000–600,000 ETB for semi-automatic production. Funding
sources may include personal savings, family contributions, or small business loans.

The cost of producing each paper bag is estimated between 2 and 5 ETB, while the selling price
ranges from 5 to 10 ETB, depending on size and customization. Profitability will depend on
production volume and efficient cost control.

Table 1.1: Sample Income Statement (Year 1)

Description Amount (ETB)

Revenue 300,000
Cost of Production 150,000
Gross Profit 150,000
Operating Expenses 80,000
Net Profit 70,000
This table shows that the business can generate profit even at a small scale, provided production and sales
targets are met.

Table 1.2: Sample Balance Sheet (End of Year 1)

Assets
Assets Amount (ETB)
Cash 40,000
Inventory 30,000
Equipment 120,000
Total Assets 190,000

Liabilities & Equity

Liabilities & Equity Amount (ETB)
Loan (if any) 60,000
Owner’s Capital 130,000
Total 190,000
This shows the financial position of the business and confirms that assets are balanced with liabilities and
equity.

Table 1.3: Sample Cash Flow Statement

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 Description Amount (ETB)
Net Income 70,000
Operating Activities +60,000
Investing Activities 40,000
Financing Activities +20,000
Net Cash Flow 40,000
This table highlights how cash moves in and out of the business, ensuring liquidity is maintained.

These financial projections demonstrate that EcoCarry is financially viable, with strong potential for
profitability and sustainable growth under realistic operating conditions.

9. Environmental Impact and Dependence

EcoCarry is both dependent on and impactful to the environment in several ways.

The business depends on natural resources, particularly paper, which is derived from trees. This
means that the sustainability of raw materials is an important consideration. Additionally,
production requires energy, especially if machinery is used.

In terms of impact, EcoCarry provides significant environmental benefits by reducing the use of
plastic bags, which are a major source of pollution. Paper bags are biodegradable and decompose
much faster than plastic, making them a more sustainable option.

However, paper production can contribute to deforestation if not managed responsibly.

Therefore, the business should aim to source materials from sustainable suppliers whenever
possible.

Overall, EcoCarry has a positive environmental impact, but it must remain aware of its resource
usage and strive for sustainable practices.

10. Risk Assessment and Mitigation

The business faces several potential risks, including increased competition, fluctuations in raw
material prices, and the possibility of slow customer growth in the early stages.

To manage these risks, EcoCarry will start with a small-scale operation, allowing flexibility and
reducing financial exposure. Building strong relationships with suppliers will help stabilize costs,
while focusing on quality and reliability will create a competitive advantage.

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11. Implementation Timeline
The business will be implemented in phases. The first month will focus on planning, sourcing
materials, and setting up operations. In the second month, production will begin on a small scale
while marketing efforts are intensified.

In the following months, the focus will shift to expanding the customer base, increasing
production capacity, and gradually upgrading equipment.

12. Appendix
This appendix provides additional supporting information for the EcoCarry Paper Bags business
plan, including cost estimates, product details, supplier information, and profit calculations.

Appendix A: Detailed Cost Breakdown (Per 1,000 Bags)

Cost Item Estimated Cost (ETB)

Kraft Paper 2,000
Labor 1,000
Transport 500
Electricity 300
Miscellaneous 200
Total Cost 4,000

This table shows the estimated cost of producing 1,000 paper bags. It helps in understanding the overall
production expenses and supports pricing decisions.

Appendix B: Sample Product Designs

EcoCarry offers different types of paper bags to meet various customer needs:

 Basic Bags:
Small-sized, low-cost bags without printing. Suitable for small retail shops and local vendors.
 Standard Bags:
Medium-sized bags with simple logo printing. Suitable for general retail businesses.
 Premium Bags:
High-quality, durable bags with full customization (logos, colors, and design). Ideal for clothing
stores and branding-focused businesses.

Appendix C: Supplier Information

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Raw materials such as kraft paper will be sourced from local suppliers within Addis Ababa or
regional distributors. Prices may vary depending on quality and quantity purchased.

Building long-term relationships with suppliers will help ensure:

 Stable pricing
 Consistent quality
 Reliable supply

Appendix D: Profit Estimation

Item Amount (ETB) Notes

Selling Price per Bag 7 Average price
Cost per Bag 4 Estimated average cost
Profit per Bag 3 Profit margin
Profit for 1,000 Bags 3,000 Estimated total profit

This table demonstrates how profit is generated based on production and sales volume. Increasing
production will significantly improve overall profitability.

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