Qualitative Research

1. | Bharat Chalise |
Development of Entrepreneurship Culture;
Great Challenge for Developing Countries,
Experience from Nepal

2. Introduction
 Entrepreneurship
 Entrepreneurs
 Entrepreneurship Culture
 Developing Countries
 Nepal

3. Role of Entrepreneurship in Economy
 Entrepreneurs are the drivers of sustainable
economy (Joseph Schumpeter)
 Entrepreneurs as a gap filler (Ács & Virgill, 2009)
 They don’t only contribute in production and
innovation but also create employments

4. Challenge for Developing Countries,
Ex. Nepal
 Per Capita Income in last decade increased 20% to
40 % in developing countries and 37% in Nepal
 Most of the income increment in Nepal due to
Remittance (25% of GDP) and still increasing
 But, There is no motivation for start-ups (Chalise,
2014)
 Overall <10% of the total labor force employed by
the industrial sector in Nepal

5. Recent research shows..
41%
41%
8%
10%
Education
Traditional Assets
Business
General Expense
Investment Plan of People

6. …..Challenges
Economy
Ease of
Doing
Business
Rank
Economy
Starting
Business
Rank
Singapore 1 New Zealand 1
Hong Kong SAR,
China 2 Canada 2
New Zealand 3 Singapore 3
United States 4 Australia 4
Denmark 5 Hong Kong 5
Nepal 105 Nepal 97
India 134 India 179
Bangladesh 130 Bangladesh 74
Turkey 69 Turkey 93
Following table shows the easiness index to do business
Source: World Bank doing business project

7. General Factors Affecting
Entrepreneurship
 According to Lorraine (2010) following are the
general factors affecting entrepreneurship
 Economic
 Social
 Cultural and Religious
 Psychological
 Political
 Economic Policies

8. Specific Factors for Developing
Countries
There is no shortage of entrepreneurs in Developing
countries but because of following factors they are
shying to invest
 Political Instability
 Offensive Bureaucrats (Bribery)
 Absence of e-governance
 Lack of knowledge and confidence on
entrepreneurs
 Shortage of infrastructure, resources and
information

9. Conclusion
 Unlike developed world, developing countries
have their own specific problems like lack of
entrepreneurial education, political vandalism,
long and complex process of registration,
injustice, corruption, lack of skilled manpower,
technology and power problems .

10. To overcome those problems,
 Government can take many forms ranging from reform of
the environment for doing business to providing venture
capital, to tapping into migrant workers and diasporas,
provision of technical and managerial education,
infrastructure and more active state–private-sector
partnerships (Wim Naude & Goedhuys, 2011)
 Government can stop remittance being invested in
unproductive sector by selling bonds to the remittance
receivers

11. ……
 Should provide trainings on how to grow and
taxation system for new entrants
 Automation in registration and company update
processes are the solution to reduce corruption
and delay which will attracts FDIs too

12. Recommendation
Training, access to the capital through loans,
security of investment, justice, e-governance and
realistic accessibility on market information, regular
supervision and entry stage tax subsidy are the
major contribution government can do for
entrepreneurship development.