The rapid spread of COVID-19 put a halt in Nepalese economic activities as the government imposed a strict lockdown in March 2020. It had devastating effects on Nepalese SMEs (small and medium enterprises) and start-ups, as they are less equipped with strategies and resources to cope with the crises. UNDP (2020) estimated that accommodation and food (include tourism, hotels), arts, entertainment, recreation, and transportation are the most affected whereas, manufacturing, construction, wholesale, retail trade, and agriculture are affected moderately. Although COVID-19 restrictions have disrupted Nepal’s economy, tourist arrivals, for example, fell by 81% in 2020 – the pandemic has created new online opportunities. Nepal’s largest online supermarket Thulo.com, has seen sales surge by more than 200% from 2019 to 2020. Co-founder Surakchya Adhikari forecasts another three-digit increase this year. The store, which sells fresh organic fruits and vegetables from more than 50 farms, has seen its online sales grow by 60% since the coronavirus outbreak which also proves there are huge opportunities still, due to the pandemic.
99% of registered enterprises are micro, small, and medium enterprises and 95% of employment is created by this sector (Central Bureau of Statistics, 2019). SMEs play an important role in the economy because they create jobs, utilize local resources, and generate income. The business performance of this sector has a large impact on the overall economic performance of the country. For investors, moments like these present opportunities to invest in firms that have withstood the crisis. Moreover, it also offers a series of mergers and acquisitions for investors to snatch distressed assets on the market. Businesses cannot rely only on the government to provide a solution to this problem. Many of the SME/start-ups will need hand-holding to implement cost reduction measures for sustainability.
One-way Nepalese start-ups can grow their businesses amidst the pandemic is by staying ahead and afloat by sharing knowledge and resources. For instance, customers inside Kathmandu valley can order goods from Big Mart through Daraz. During the lockdown, these firms were able to pool their resources to create an opportunity for both. SMEs and Start-ups should make themselves flexible and adjust their business operation as per the need of the situation to find a new normal for operating under government-imposed health and safety restrictions. Another way start-ups can ensure economic growth despite the pandemic is by building customer relationships. The population is more than ever online during the pandemic, working remotely and taking virtual classes.
Another aspect start-ups should consider is being strategic with their marketing decisions to be targeted and data-driven to return the best results. Use marketing technology and platforms that integrate with all channels so that they are able to track which posts are performing and how customers are responding and use that information to drive decision-making. Hiring agencies or consultants who have marketing expertise in the start-up's industry to immediately boost their profile and drive-up customer interaction across their media platforms can be hugely important to a new business.
This is why here at Nepal Realistic Solution we are giving the chance for start-ups to gain new businesses with certification, digital marketing, recruitment, and the chance of investment through our new program. NRS has introduced one of the biggest support start-up programs in Nepal, the Support Start-Up Program where are we are offering various services to uplift the start-up market in Nepal. We believe these aspects are vital for survival and growth for new business which is why we are aiming to give back and help the Nepalese economy. With many years of expertise managing and consulting providing authentic and practical solutions to all kinds of customers, we believe at NRS we have the right experience to support up and coming start-ups. To know more about the program, you can contact NRS who will assist you to enrol in the program.