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UNIT 6 Institutional Support to Entrepreneurship in Nepal.pptx
- 1. Institutional Support to Entrepreneurship in Nepal: Technical & Logistic Support UNIT 6
- 2. Main Problems of Entrepreneurs • Shortage of capital • Scarcity of raw materials • Marketing problems • Lack of opportunities for competency development • Lack of access to appropriate infrastructure • Poor access to information, research ad extension services • Lack of supportive policies and incentives
- 3. Area in Need of Institutional Support • Capital Resources • Raw Material Supply • Marketing • Competency Development • Access to Infrastructure • Information, Research, Extensive Services • Policies and Incentives
- 5. Department of Industry (DoI) Functions/Activities • Registration and licensing • Incentives administration • Technology and environment impact • Foreign investment and technology transfer • Planning and monitoring
- 6. Industrial Enterprise Development Institute (IEDI) Objectives of IEDI • To assist the institutional and human resource development of institutions working for industry and enterprise development. • To develop technical, entrepreneurial and management related know-how and skills. • To carry out action research, feasibility studies, development activities and consultancy activities. • To establish and develop organization that support and help industrial growth.
- 7. Council for Technical Education and Vocational Training (CTEVT) In order to achieve and attain the mission and vision, CTEVT has set the following goals: • Develop policies for managing TEVT sub-sector ensuring social inclusion, access, sustainability, integrity and relevancy of the TEVT programs. • Coordinate and facilitate the TEVT sub sectors and stakeholders • Maintain quality of TEVT programs and services. • Prepare competent workforce for TEVT sub-sector. • Promote entrepreneurship skills and basis of employment on the TEVT graduates. • Broaden the access and equity in TEVT activities. • Encourage participation of business and industry in TEVT activities. • Coordinate to manage counseling and placement services.
- 8. Major Responsibilities CTEVT • Provide advice to the Government of Nepal regarding TEVT policy and programs. • Determine scope and standards of TEVT programs. • Arrange for and conduct TEVT Programs from basic level to higher education. • Liaison and maintain coordination with national and international TEVT agencies for quality education and training. • Grant recognition and provide accreditation services to programs and institutes run by government, non-government, and private sector. • Coordinate and maintain the standard of training by providing curriculum and learning materials. • Conduct monitoring and supervision of TEVT programs and activities of government and nongovernment institutions. • Make necessary arrangements for the operation of polytechnics, short-term vocational training, apprenticeship trainings and mobile training programs.
- 9. Major Responsibilities CTEVT • Establish and operate all kinds and level of skilled development training programs to produce skilled human resources through technical schools, mobile training and other methods of technical and vocational training programs as recommended by the council. • Carry out research activities in the field of TEVT including training needs assessments/ job market analysis and follow up studies. • Conduct technical instructors and management training programs to improve quality of CEVT programs of institutions. • Classify the skills/occupations, develop skill standards, administer skill tests and provide certificates. • Explore, obtain and mobilize national and international assistance needed for the development of TEVT sector • Establish institutional linkage with national and international agencies/universities for recognition of the TEVT programs • Enter into agreements or contract with national and international organizations and agencies regarding TEVT Programs.
- 10. Industrial Estates • Nepal has established industrial estates to promote and support entrepreneurship. • The first industrial estate, Balaju Industrial District, was established in 1960 with grant assistance from USA. • Other countries who have provided assistance for industrial estate are India, Germany, Netherland. • There are 11 industrial districts. (See G.R. Agrawal, page: 197) • Nepal also has private sector industrial estates. E.g. Chaudhary Group and Golchha Group.
- 11. Business Management Office (BMO) • The BMO provides a leveraged service, business solutions and support offering spanning the; Inform, Think, Plan, Build and Run functions • Or expanding each individually on client demand.
- 12. Consultancy Agencies • Law firm • Audit firm • BDS provider
- 13. Law firm • Business made up of lawyers that work together under a specific firm name. • A law firm may only focuses on certain kinds of law (i.e. business law) or they may deal with a variety of general law cases. • A law firm may also employee litigation secretaries, data entry specialists, and case file managers. Law firms can be composed of as few as two lawyers or as many as one hundred or more.
- 14. Audit Firm • Audit firms are hired by companies to assess their financial information and determine if that information is complete and accurate. • A firm may be an internal part of the organization of a company, or it may be hired as a contractor. • In either case, audit firms must take great care to make sure that their auditing process is unbiased and not influenced by any preexisting relationship with the companies that employ them. • When a firm is hired by a company, it must make sure the company adheres to all relevant laws and that its financial reporting is an accurate representation of the company's actual current financial standing.
- 15. BDS provider Business Development Services (BDS) are generally defined as: “… services that improve the performance of the enterprise, its access to markets, and its ability to compete. The definition of ’business development service’… includes an array of business services [such as training, consultancy, marketing, information, technology development and transfer, business linkage promotion, etc.], both strategic [medium to long term issues that improve performance] and operational [day-to- day issues]. BDS are designed to serve individual businesses, as opposed to the larger business community.” (Committee of Donor Agencies for Small Enterprise Development, 2001)
- 16. TYPES OF BDS PROVIDERS
Editor's Notes
- no doubt current level of institutional support helped to up-lift development of entrepreneurship. BUT only capacity extension and skill development is NOT SUFFICIENT to develop entrepreneurship. Those institutions are neglecting the Value Chain Analysis. ( identifying each part of its production process, noting steps that can be eliminated and other possible improvements.) Entrepreneurs can only develop their business if they can produce high quality and reliable product. To maintain high quality raw material producers should be trained. Indigenous technology must be developed for local adaptability and the long term survival of the industries.
- Shortage of capital: Poor access to capital and credit. Scarcity of raw materials: Unreliable supply sources for inputs. Marketing problems: Poor access to market and tough competition. Lack of market information. Lack of opportunities for competency development Lack of access to appropriate infrastructure Poor access to information, research ad extension services Lack of supportive policies and incentives
- Institutional support to entrepreneurs is needed in the following areas: Capital Resources: Entrepreneurs lack adequate capital resources. The cost of credit (loans) tends to be low by financial institutions such as commercial banks and cooperative. INGOs may also provide concessionary loans to target entrepreneurs. Raw Material Supply: Institutional support regarding raw material in terms of forex, insurance, and regularity. Marketing: Institutions may help provide outlets for the products/services, Trade fairs and exhibitions etc. Competency Development: Education and training on subsidized cost by support institutions. Access to Infrastructure: e.g. Industrial estates, transport, communication, power, water, waste disposal etc. Information, Research, Extensive Services: R&D support on its own is very difficult. Policies and Incentives: Supportive policies, Special packages. The industrial Policy 2010 of Nepal has specified incentives and facilities for industrial ventures.
- Entrepreneurs are good for the economy and employment. The government supports innovative startups and helps them grow.
- DoI is concerned with implementation of policies programs and regulations for medium and large industries.
- IEDI is specialized government agency. Specialized government agencies are concerned with promotion aspects that support entrepreneurs. IEDI was established in 1996 as an autonomous organization under the Ministry of Industry, Commerce and Supplies. It works as a development-cum-resource center for small and medium enterprises. It conducts entrepreneurship development programs
- They provide all facilities under one umbrella, such as land and sheds, water, electricity, warehousing, health center, telephone, post office, bank, canteen and day care services.
- In Partnership with client steers, the BMO Governance Model covers: Governance Provide oversight of a governance structure that facilitates high level decision making, programme control and consultation. Communication Ensure that strategies and protocols for appropriate consultation and other communications are established in the Partnership. Business Alignment Ensure that all projects and services are closely aligned, and maintain that alignment with the objectives and intended outcomes of the Corporate Strategy and Partnership Objectives. Plan and Monitor Endorse the Partnership plan and budget, monitor actual performance and the achievement of planned outcomes and benefits. Risk Management Provide strategic risk management oversight and the initiation of action to address high-risk areas. Guidance and Advice Provide advice on strategic issues that may affect the scope and performance of the projects and services. Report to Client Executive Forums Ensure that appropriate reports are regularly submitted to the Partner Executive Forums and that approval is sought on key investment proposals.
- Of all of the responsibilities attached to audit firms, their ability to provide an unbiased assessment of the company that hires them may be the most important. Most audit firms employ financial experts who specialize in the legal side of finance. These experts are expected to ensure that all of a company's financial reports are in compliance with the applicable laws. In addition, these compliance experts use technical analysis to determine particular areas where a company may be in danger of non-compliance in the future, even if there are no current problems to report. Another feature offered by most audit firms is an analysis of where a company may be at risk in terms of taxation. As larger companies are often taking in huge amounts of money, they often have a significant tax burden that they carry. Auditors can often perform accounting services that can help offset these taxes and suggest methods by which a company might be able to lessen its tax burden. Once again, it is crucial that anything suggested by auditors is compliant with tax laws, or else the company may suffer stiff penalties in the future.