Startup development is govt obligation: PM

Kathmandu, Aug. 22: Prime Minister KP Sharma Oli has urged the stakeholders from the government, private sector and development partners to facilitate the development of startup enterprises to ensure their  contribution to the national aspiration of becoming the middle-income country by 2030. 

“We must move ahead with better policies, programmes and strategies to facilitate the development of this sector. As the country is transforming itself to the developing and middle-income nation by 2030, we need to promote innovations that build the foundations for industrial development,” he said while addressing the Startup Nation 2030 conference in the Capital on Wednesday. 

Stating that startup development is the liability and obligation of the government, PM Oli said that they are the means to achieve the national goal of ‘Prosperous Nepal, happy Nepali’. “With innovative and creative thinking, youth and women can find employment and income opportunities within the country, without going abroad for work,” he said. 

He urged the banks and financial institutions to provide loans to such entrepreneurs based on the viability of their projects rather than asking for collateral. 

“We must boost entrepreneurship based on technology, skills, and capital to ensure visible results in production across the country. Any startup supported by the government should not fail; it should be pursued as a national campaign. To achieve prosperity, the government will continue to provide unwavering support to the private sector,” said PM Oli. 

“Through startup development we can promote the growth of manufacturing and service sector. It is important to establish and expand the number of industries to enhance production from small capitals,” he said.   

Commenting on the national goal to create 10,000 startups by 2030, he urged the Ministry of Industry, Commerce and Supplies (MoICS) and the National Planning Commission (NPC) to perform better. 

Speaking on the occasion, Deputy Prime Minister and Finance Minister, Bishnu Prasad Paudel, said that there is a need to promote all creative and innovative youth to take up startup enterprise.

According to him, the government has an understanding of the challenges faced by the entrepreneurs and they would be solved one by one according to their priority. 

“The economy is on a gradual course of recovery. Indicators have been improving. Revenue collection is up by 20 per cent in the first month of this Fiscal Year 2024/25. Capital expenditure has also seen an improvement while real estate and share market are growing,” said DPM Paudel. 

He maintained that the government is putting in efforts and cooperating with the private sector to boost the latter’s confidence in business and investment. “However, we want a healthy growth in the share market and will not allow any activities like insider trading and cornering,” he said. 

Vice-chairman of the National Planning Commission (NPC), Prof. Dr. Shiva Raj Adhikari said that Nepal will make significant progress and achievement by the end of 2025. 

The government has recently implemented the Startup Enterprise Operation Procedure, 2080. Likewise, it has already implemented the startup loan guidelines and mobilised the funds to the startup entrepreneurs.  

President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Chandra Prasad Dhakal has said that startups and small entrepreneurs can seek investments from the investment company established by the FNCCI. 

The Investment Company, with a capital of Rs. 10 billion, was established on the initiative of the FNCCI. However, it will be operated independently and any investor can invest in the company, Dhakal said while speaking at the Startup Nation 2030 conference in the Capital on Wednesday. 

He added that to boost the economy, along with foreign direct investment, the country can also tap into the funds of small investors spread across the country who want to invest in an industry or business. 

“However, since the funds are small when taken individually, we need to pool all their money to form a large fund,” he stated.

According to him, the large fund managed by the new company can be used to invest in bigger development projects that the country requires. The fund can also be used to invest in state-owned industries that have remained shut for years. 

“Not only will this help in industrialisation but also in generating employment within the country,” Dhakal said. 

The FNCCI plans to mobilise its offices in the provinces to drive this initiative forward, and also collaborate with the provincial government to establish the centres there. 

The business body has already launched an initiative to establish an incubation centre in Sudurpashchim in collaboration with the provincial government there and the Kailali Chamber of Commerce and Industry. 

Executive Director of the IEDI, Umesh Gupta, said that the national startup support project aimed at facilitating 10,000 startups to create 100,000 jobs in the next six years.

The two-day conference is the third edition in the national campaign to promote and facilitate startups. Chaired by the MoICS and led by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the conference aims to make Nepal one of the most startup-friendly nations in South Asia by 2030. 

Supported by ICIMOD, Industrial Enterprise Development Institute (IEDI), the University Grants Commission (UGC), and PUM Netherlands, the conference will bring together entrepreneurs, mentors, experts, educational institutes, investors, government bodies, and other stakeholders, said the organisers. 

The Startup Nation 2030 initiative aspires to establish Nepal as a startup-friendly nation by 2030. This conference will centre on the essential 4P Framework – ‘Policies, Procedures, Practices and People’ – required to realise this vision, according to the organisers.