Aid Startup Ventures

A startup is a new business launched by an entrepreneur. As startups often face uncertainties in the initial stage, they have high rates of failure. Despite this, several such businesses become successful in their mission. Though startups account for a negligible share of the total number of firms in any nation, they can play a vital role in boosting the economy. They contribute significantly to the aggregate employment growth.

Because startups can also satisfy consumer demand, they are instrumental in building robust economies. These companies are believed to be responsible for well over 15 per cent of the total number of jobs created in the country. Initially, every society is in need of startups to build foundations and frameworks for the economy to foster because the government’s efforts alone may not be enough to advance the economy. In view of the startups’ contributions to the economy, economists often denote such businesses as ‘the engine of economic growth.’ 

Nepal’s economy is in dire need of startup ventures to support its growth. Over the past some years, successive governments, in their annual budget, appear to have come up with plans and programmes meant to help the startups. But it is sad to mention that such plans and programmes have not been implemented in a desired manner and entrepreneurs have failed to benefit from such programmes.

Considering the possible economic contributions of the startups for their economies, numerous neighbouring nations such as China, India and Bangladesh have created startup-friendly policies and strategies to support such businesses. India seems to have accorded top priority to boosting these types of business. Through its campaign ‘Startup India’, the country has made great strides in this sector over the past decade. 

But Nepal still lacks a clear policy and institutional arrangement to buttress the startup business. The nation also does not have laws to govern the sector, provision to attract crowd funding and business incubators to help the enterprises to prosper. However, every successive government has been announcing programmes for the development of startups, creating a glimmer of hope among the entrepreneurs. But they are left frustrated because such programmes are not executed properly. This type of tendency has been a major obstacle to the implementation of such crucial programmes. However, some initiatives that were taken to facilitate startups through the Startup Enterprises Implementation Committee at the Department of Industry (DoI) were implemented. 

According to a news report published in this daily on Monday, the committee has lately published a list of 173 enterprises that applied for the startup loan facility. A lack of effective coordination among the different public bodies such as Nepal Rastra Bank, the Ministry of Finance (MoF) and Ministry of Industry, Commerce and Supplies (MoICS) was blamed for delaying the process. However, it is encouraging to note that the government has recently drafted a startup policy that may help streamline the programmes and activities announced to support the startups businesses.

The federal government has set aside Rs. 1.25 billion in the budget for the fiscal year 2023-24 in order to develop startup businesses. The government aims to create a startup eco-system to promote innovation and entrepreneurship. Under its plan, an incubation centre is going to be set up in Kathmandu for the realisation of entrepreneurial concepts. The country is also going to mark the fiscal year 2023-24 as the Youth Entrepreneurship Promotion Year to facilitate the startups and other small enterprises. To make the programme a success, the government and other stakeholders must focus on the result-oriented implementation of the startup related policies and programmes.