There are numerous barriers for investors when looking to put money into start-ups within Nepal. Many of these issues are conjoined with the problems faced by the new enterprises themselves. Some of these complications include a lack of qualified workers, high tariffs, non-transparent legislation, and political instability.
Many investors have found certain real-life problems when investing in Nepal, as a huge majority of start-ups are IT-based, these need minimal investment or not more than NPR 50million. The huge investment requirement is harming start-up investments in Nepal. The ‘GlobalEntrepreneurs List – World’s Most Bizarre Working Destination’; put Kathmandu 3rd at the global level. Second, IT businesses do not fall under the ambit of the Ministry of Information and Communication Technology nor with the Ministry of Industry. Because of this, Nepal Rastra Bank refuses to grant permission to remit the money. This situation discourages small innovative investors and only helps big business houses. Start-ups also require pleasant places to operate with high bandwidth and good connectivity. They are small investments with their business overseas. If you are from Nepal and want to have business overseas, it is almost impossible to do this from Nepal.
However, there has still been a rise of investors within Nepal, especially due to the pandemic. In Nepal, there were still 275,433 SMEs registered by the end of the fiscal year 2074/75 and has supported the country by generating employment, increasing exports, and contributing to GDP growth. The SMEs contributed around 22% of the GDP and generated around 17 lakh employment in Nepal. COVID-19 made a great opportunity for start-ups, except for those in the hospitality sector (hotels, resorts). What we have seen during COVID-19 is people want to go back to their homes and work from there through data services. Several countries are providing visas for entrepreneurs to come and work in their countries. Nepal is taking advantage of the COVID-19 situation as one of the most beautiful places in the world. COVID-19 can be a good opportunity for Nepal, and it can offer a pleasant climate for start-up investors from across the globe. It has a huge opportunity to attract start-ups from all over the world. Nepal can also offer an entrepreneurial visa or remote working visa to facilitate people from around the world to visit.
Moreover, this lockdown was a great opportunity for businesses to develop digital literacy among employees to bring technological advancement in their services and day-to-day business activities. The bright side is that the pandemic may accelerate changes in consumer habits that were taking time to materialize. Digital Financial Services and e-commerce companies are expected to benefit as consumers are introduced to digital payment systems. Many of the E-commerce sites are expected to add new merchants as companies search for alternate and effective ways to grow their business. Even the government is working to develop an online platform to sell essential food items online. This is why Nepal Realistic Solution wants to bring together investors and new companies to aid the overall market in Nepal to keep it growing. Within this program, not only will some start-ups receive investment, NRS wants to help businesses with certification, marketing help, and recruitment aid. This is why we believe joining our program will be hugely advantageous for new start-ups and should decrease the number of challenges investors may face. With a motive to give back to the Nepalese industry, we want to contribute to the ever-growing expansion and surge of investors providing capital for new tycoons.