Since 2017, successive government budgets have mentioned start-ups and allocated money for their establishment, however, these are usually without clarity and development. There are several other factors that make starting a business in Nepal challenging. The risk appetite for new investments is limited partly because of the absence of an enabling environment. Although the cost factor for starting a tech business in Nepal is lower than anywhere else, there is a constant flow of eligible young graduates well versed in English who are relatively computer literate leaving the country to look for work and a better life. In excess of 10,000 young people leave Nepal consistently.
In terms of culture and unawareness, not many start-ups can launch because of the working society. The people of Nepal are generally uninformed of how they can add to work and economic growth. This is in addition to an unorganized market, consumer behavior, and area which are different variables causing the destruction of start-ups. In Nepal, the need differs subsequently to moving certain kilometers from the current geological region. This idea seems to be more financially difficult due to the tax rate being strong for start-ups. Nevertheless, Nepal is at the outset of technological development, so there lies a huge opportunity. As it stands, 400 start-ups have been invested so far in 2021, all in Kathmandu. Following this, are consequently huge opportunities for new business outside of the capital like agriculture and e-commerce.
Nepal being a landlocked country means market access is a challenge. Surface transport in and out of Nepal can be difficult as the one reliable road route from India to the Kathmandu Valley is 84 miles and takes a minimum of six hours to traverse. The primary seaport for entry of goods bound for Nepal (or for exports) is in Kolkata, India, about 460 miles from the Nepal-India border. Political instability also proposes obstacles for start-ups, with 25 governments in the past 28 years, this has created an uncertain environment for foreign and private investment. Foreign investors must deal with a non-transparent legal system, where basic legal procedures are neither quick nor routine. U.S. firms and foreign investors have identified corruption as an obstacle to maintaining and expanding direct investment in Nepal. Additionally, qualified workers are in short supply. Nepal produces technical manpower, but a lack of economic opportunity and low wages compel millions of workers to seek jobs overseas.
On the other hand of the problems faced by new businesses, there still lies opportunities for start-ups in Nepal with the marketing widening consistently. Online companies are becoming increasingly popular, like digital marketing, travel agencies, and online shopping. With a developing nation like Nepal emerging in the digital platform, numerous digital management companies in Nepal have been established and are working online successfully. Continuing from this, there are more and more start-up programs emerging from within Nepal which tend to link entrepreneurs with investors to help them pass the survival phase. This is where Nepal Realistic Solution’s new start-up program comes in, with the objective to aid new businesses with certification, digital marketing, recruitment, and the chance of investment, the main aspects start-up companies struggle with which leads to failure.
Here at NRS, we are a management consulting firm providing authentic and practical solutions to help businesses improve their performance and grow by solving problems. Having worked with a number of clients both private and public sector to help develop their services, reduce costs and make savings, we are well qualified and take pride in our work. This is why we believe joining our Support Start-Up program will be hugely advantageous for new start-ups and should decrease the number of challenges the new enterprises may face. With aspects like certification making the business more reliable and a chance of investment aiding with economic growth and the tax rate, we aim to get the start-up up and running victoriously.