Stay Safe. Wear Mask and Maintain Social Distancing. Let's flatten the curve. #COVID

Entrepreneurship and Innovation in Nepal

People in Nepal are more energetic and reaching out to participate in the global economy. There are plenty of investment opportunities here. Entrepreneurship is the ability to develop, organize, manage and run a business enterprise, along with any of its uncertainties in order to make a profit. For example: Vegetables Vendor is an entrepreneur, when Vegetables Vendor sells vegetables is called entrepreneurship. According to Jeffry A. Timmons, entrepreneurship is the process of creating or seizing an opportunity and pursuing it regardless of the resources currently controlled. Entrepreneurship generates employment and it also provides an entry-level job, required for gaining experience and training for unskilled workers. Entrepreneurship helps to improve the standard of living of a person by increasing the income. The standard of living means, increase in the consumption of various goods and services by a household for a particular period.

To be successful, entrepreneurs need innovation. Innovation is the Key to Entrepreneurship. Innovation and entrepreneurship are essential ingredients in building a successful commercial venture. According to Fredrik, It’s the introduction of novelty in a given market or industry, such as new products, services, methods, sources of supply or organization. Entrepreneurship has more to do with attitude, perseverance and focus. An entrepreneur can be a good innovator but an innovation manager is not necessarily a good entrepreneur. Entrepreneurs need to search purposefully for the sources of innovation, the changes and their symptoms that indicate opportunities for successful innovation. Innovation is not about making new inventions, but rather about recognizing how to take advantage of opportunities and changes.

Need of Entrepreneurship and Innovation in Nepal

Entrepreneurship is one of the important ways we can accelerate our economic growth and compete in the fast-changing global marketplace. Entrepreneurship is important as it has the ability to improve standards of living and create wealth, not only for the entrepreneurs, but also for related businesses. Entrepreneurship can help boost national income and tax revenue. Entrepreneurs also help drive change with innovation, where new and improved products enable new markets to be developed. For any nation to establish a sustainable economic growth, then there should be suitable environment for new entrepreneurship and innovations.

Every year many young and energetic people are leaving from Nepal in search of opportunities. To make strong economic of Nepal there should be the provision of likely environment for entrepreneur. It brings about changes in society and promotes facilities like higher expenditure on education, better sanitation, a higher level of homeownership. To make our country Nepal less dependent upon other countries, all the Nepalese citizens should be engaged in entrepreneurship. Therefore, entrepreneurship assists the organization towards a more stable and high quality of community life.

Challenges of Entrepreneurship and Innovation in Nepal

In Nepal, there are a lot of opportunities for entrepreneurship development. Despite the opportunity and severe need of entrepreneurship, there are several challenges of smooth operations for entrepreneurship.

Limited Capital

To startups any new business, the very important is capital. But in Nepal, Banks, financial institutions lend huge amount of money to youth if they want to go abroad, but none of them will take risk in investing on entrepreneurship. Youths who have great ideas are unable to initiate their startup because of the lack of funds.

Hiring employees

Employees are the assests for any business. The success of business depends upon the employees work. If wrong employee gets in, then the distance of the organization goal gets further more time to achieve.

Self-doubt

An entrepreneur’s life is not enviable, at least in the beginning. It’s extremely easy to get discouraged when something goes wrong or when you’re not growing as fast as you’d like. Self-doubt creeps in, and you feel like giving up.

Corruption

Corruption is the main obstacles to startup new business. It brings the less confidence among the entrepreneur. Because of corruption there is no sustainable development goals as it is evil for new startup business.

Social judgement

Most of people in our society are not ready to take risk. People are more attracted towards government work. As a Entrepreneur, it will take time to get the results but people of our society are not ready to wait. So that our social judgements are also challenges for entrepreneurship.

Unfavorable rules and regulations

For new startup company registration and taxes, it is more complicated and time-consuming. So many entrepreneur are domotivated. Moreover, there is high custom duty for importing new technologies and electrical products.

Opportunities of Entrepreneurship and Innovation in Nepal

Entrepreneurship is a challenging task for underdeveloped country like Nepal. There are limited business opportunities. As per the World Bank annual rating, Nepal ranks in 110th position in the ease of doing business among the 190 economics of the world. There are several opportunities for entrepreneurship in Nepal.

Energy and hydropower

As Nepal is the second richest country in water resources but only 40% of Nepal’s population has access to electricity. Nepal has faces acute power shortage even when huge opportunities exist in the hydropower sector for investors to meet this gap in demand. Electricity consuming industries like cement plants are on track for development which will increases demand of electricity and recent hydropower is not sufficient. Several hydropower need to be set up to provide electricity in all sectors. Moreover, several planned by the government and with the systematization of the energy and hydro sectors, this energy and hydropower sector will be provide more beneficial to the investors.

Tourism sector

There is a huge potential for investors in order to develop the ski resorts in the Himalayan slopes. The investors can also make an investment to create places like parks, golf driving and so on. In Nepal, there exist more opportunities in developing restaurants serving speciality food. If tourists get their own food taste in Nepal, then there is chance of increases the number of count in tourists. This tourism sector is a huge opportunities for the investors to get more beneficial.

Mining Industry

An abundance amount of minerals have been used in industrial and construction works like Coal, Limestones, Talc, Granite and marble. About 63 minerals have been identified in Nepal. The Department of Mines and Geology focuses on the exploration and evaluation of mineral resources in Nepal. The investors can make investment in fuel minerals. Recently, the western part of Nepal has witnessed and confirmed the presence of oil and natural gas in Nepal. So, there is still remains a lot as untouched part and can be explored for investments. Moreover, investors can make huge benefits from investing in the mining sector as there is a lot to be done in this sector Mining industry.

References

Karki, B.B. (2011). Doing business and role of government for entrepreneurship development. The Journal of Nepalese Business Studies, Vol. VII No. 1 Dec. 2010/2011.

Poudel, R.(2008). Entrepreneurship Development. Buddha Academic Enterprises PVT.LTD.

Lutel, S. (2020, sept 18). Entrepreneurship Challenges and Opportunities in Nepal. Retrieved from investopaper.com.

Karki, B.B. (2013). Entrepreneurship development programme in Nepal.

Bir Bahadur karki(2014). Entrepreneurship Development Programme with Reference To Small Enterprises in Nepal. Poudel, R. (2016, july 29). Challenges and Opportunities for Entrepreneurship Development in Nepalese Society. Retrieved from academia.com

Scholar Nepal is a Digital Journal to encourage reading, researching and writing culture in Nepal.