Many people in Nepalese society are entrepreneurs, because they have proper knowledge, ability and skills to take economic advantage. Entrepreneurship is an art of business activity for entrepreneurs. For example: Goldsmith is an entrepreneur, when Goldsmith makes an ornament is called entrepreneurship. Entrepreneurship is the process of new ventures. It involves creativity and innovation. The whole idea about entrepreneurship is about self-employment which will generate employment opportunities for others. Entrepreneurship is the most effective method for bridging the gap between science and the market place, creating new enterprises, and bringing new products and services to the market. According to Peter Drucker (1970) and K. knight (1967), entrepreneurship is about taking risk; it is the process of creating new values that did not previously exist; it is the practice of starting new organization, especially new business; it involves creation of new wealth through implementation of new concepts. Robert (1985) looked at entrepreneurship as the process of creating something different with value by devoting the necessary time and effort, and social risk and receiving the rewards of monetary and personal satisfaction.
Why entrepreneurship is important in Nepal?
According to the 2011 Census, the total youth population in Nepal is 10,689,842 (40.3% of the total population). Nepal is ready to grow because it is young, energetic, and reaching out to participate in the global economy. There are plenty of investment opportunities here. Entrepreneurship plays a vital role in sustainable economic development of our nation. The future of Nepal cannot be dependent on foreign aids and remittance only. If we want to move forward on a sustainable economic growth, then there should be enough support and suitable environment for new entrepreneurship and innovations. Entrepreneurship is important because it will not only create employment but it will create positive impact on the youths. Everyday young and energetic population are leaving Nepal in search of opportunities. If all the Nepalese citizens are engaged in entrepreneurship there is less dependency on the other countries.
What are the challenges for entrepreneurship in Nepal?
We have a lot of opportunity for entrepreneurship development in Nepal, there are several challenges for entry and smooth operations for entrepreneurship.
Lack of Knowledge in Science and Technology
The biggest challenges for our countries like lack of access to technology and infrastructure. The lack of high skilled expertise in the area of new technology which is related to our business activities and making the needed adjustment is the fundamental challenge of entrepreneurship in Nepal.
Lack of financial institutional support
In context of Nepal, most of the bank and financial institution provides financial support only for students with foreign degrees. When youths are doing something in our nation, there might be problem in collateral and other things. Youths who have great ideas are unable to initiate their startup due to lack of funds, which is an absolute barrier to new startups.
Nepalese society is traditional because most of the people spend money for the land, saving gold and silver, constructing building, consuming luxury goods rather than the investing in new entrepreneurship. Parents are not supportive of startups and are hesitant to take risk. The mind set of our society towards high profile job/ government officer. So that our social judgments are also challenges for entrepreneurship.
Unfavorable policies, rules and regulations
The process of company registrations and regulations and taxes are difficult and time consuming. In some cases, if the business idea is something innovative then there might be no provision at all in the law for registration. The threat of tax is always a demotivating factor for new business as well as existing venture. Likewise, there is high custom duty for importing new technologies and other electronic material. If law and policies encourages new business, in a short span of time startups can contribute to the growth of the nation.
Corruption is the main root or evil in public organizations. Public organizations are so deep that people have limited confidence working with such organizations and achieving sustainable development goals. Corruption is one of the major problems in public sector around the world.
Intellectual property rights
Nepal lacks adequate laws to protect intellectual property right. Therefore most of the innovative business ideas are infringed by others. For entrepreneurship development in Nepal, there is a need for strong provision and act for the intellectual property rights.
Apart from these, more hidden challenges for entrepreneurship such as lack of training and development, political intervention, lack of practical education system etc. also exists.
What are the opportunities for entrepreneurship in Nepal?
As per the latest World Bank annual rating, Nepal ranks at 110th position in the ease of doing business among 190 countries of the world. The many advantages for promoting entrepreneurship in Nepal like legal support, favorable environment, major youth population and abundant resources. These are the major opportunities for entrepreneurship in Nepal.
Nepal has huge possibilities for commercializing the agricultural sector. Government of Nepal is more committed towards agriculture sector and the government is currently focusing on the modernization, diversification, commercialization and marketing of the agriculture sector. With increasing government support towards agriculture sector, entrepreneurs can take more advantage from it.
There is considerable growth in tourism in recent years. According to Nepal Tourism Board, the average length of stay for a tourist in Nepal is approximate 13 days. In the context of Nepal, tourism entrepreneurship has increasing opportunities. Most of Nepal’s geographical condition is favorable for tourism sector business.
The information technology sector is rapidly booming in Nepal. IT has a high potential to generate growth, investment, and significant profits in entrepreneurship sector. Nepal is relatively new in the IT entrepreneurship and is more relevant in the modern society. The future scope of IT sector is more favorable in Nepal. It has less operating cost, easy access, and impact of events like COVID-19 pandemic is limited.
There are numerous problems in society that needs new and innovative solutions. Since most of the youths are focused on going abroad, those who choose to stay here and experiment in their entrepreneurship skill, have less competitions.
Apart from these entrepreneurship opportunities in Nepal, we still have a lot of problems to overcome which creates more opportunities for entrepreneurship in Nepal. At last we contribute our skills, ability and education in Nepal and not in foreign countries.