2. Challenges
• . Funding
• Entrepreneurs are frustrated by the apathy of the Nepali Government
towards entrepreneurship. Starts ups have to struggle with problems
related to funding. The banking sector has been the main source of
funding for enterprises. There haven’t been any cases
where SMEs have used the capital market to collect the initial
funding. SMEs have to pay around a 12 % interest rate to banks for
loan money and a 1% service charge in addition. Getting loans from
banks and financial institutions is a very inconvenient process, also
high-interest rate and lack of collateral is another major problem.
3. Challenges
• Lack of Good Governance
• Another big challenge in entrepreneurship is the lack of good
governance in Nepal. The unstable government, load-shedding, Nepal
Bandas, Corruption, etc makes the situation even worse. Despite,
Nepal not having a business-friendly environment, Youths are still
coming up with dynamic entrepreneurial ideas.
4. Challenges
• Lack of Low cost technology: We are using indigenous and primitive
technology for production which results in poor quality and high price
products unable to compete foreign products. So we need to upgrade
our technology and processes based on modernized and redesigned
process and technology.
5. Opportunities of Entrepreneurship in Nepal
• Team Availability: Due to high unemployment rate it is easier to obtain teams for
starting an enterprise. Youths can be obtained and convinced to be part of the
startup.
• Less competition: The chances of getting success when having less competition
are very high. Nepal is a small country so there aren’t many international
entrepreneurial companies working in Nepal. So, you can bring any business or
startup idea to the market in Nepal with a good team, the chances of getting
success get high.
• Necessity: Necessity is a key that can help in the journey of doing some
new innovations. As Nepal is a developing country, getting an idea to launch a
startup seems comparatively easy.
Fundamentals of Entrepreneurship by - Vivek Shakya
