Startup Entrepreneurship

What do Google, Apple, Microsoft, Amazon, Nvidia, Tesla, and now OpenAI, the developer of revolutionary Artificial Intelligence (AI) tool ChatGPT, among many other juggernauts, have in common?  The answer is: they all were once startups with humble beginning but went on to change the world in profound ways. In the process, their valuation skyrocketed from a few millions to billions and then to even trillions of dollars, minting hundreds of millionaires and billionaires and creating enormous prosperity. In now-developed countries which are also the most prosperous, like those in the West and notably Japan, Korea and China in the East, the culture of startup is deeply embedded into their national character.  

Startups are important because they are the source of new ideas and innovations. They are the engine of economic growth, creating jobs and driving productivity. Starting a startup can be a source of accomplishment and pride that comes from building something from scratch. What sets them apart from other businesses is that they are a risky yet promising venture with the potential of yielding tremendous returns.  

The culture of startup entrepreneurship is indispensable to build a nation to the rank of a developed and prosperous status. Guided by this belief, the government has embarked on the goal of creating 10,000 startups by 2030. To this end, it has also implemented the Startup Enterprise Operation Procedure, 2080, alongside startup loan guidelines, and mobilised funds to the entrepreneurs. As part of its effort to provide a fillip to this target, Prime Minister KP Sharma Oli inaugurated the Startup Nation 2030 conference in Kathmandu on Wednesday. The Startup Nation 2030 initiative aspires to establish Nepal as a startup-friendly nation by 2030 by promoting and facilitating startups. The two-day conference will centre on the essential 4P Framework – Policies, Procedures, Practices and people – required to realise this vision. 

At the conference, the Prime Minister 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 graduating to a developing country by 2026 and becoming a middle-income country by 2030. 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. His remarks that the government will provide unwavering support to such a venture – whether private or government – to boost entrepreneurship based on technology, skills and capital to ensure visible results in production sector across the country provides much-needed reassurance for course correction in case such a venture struggles financially.   

The first and foremost challenge startups face is, of course, financial. They need the capital, called seed money, to take off. To address this need, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Chandra Prasad Dhakal has said that startups and small entrepreneurs can seek investment from the investment company established by the business umbrella body, which has a capital of Rs. 10 billion.

The FNCCI also plans to mobilise its offices in the provinces to drive this initiative forward, and also collaborate with the provincial governmnet to establish centres to cater to such ventures. Besides, it has already launched an initiative to establish an incubation centre in Sudurpaschim. Given the country's huge potential abundant with burgeoning youth population and improving economy, there's no reason to doubt that these initiatives will be instrumental in inculcating the culture of startup entrepreneurship.