Nepal’s need of start up culture

Startup defines as an emerging high growth company that is using technology and innovation to tackle a large and most often global market.

Start Up Culture Catalyzed a major shift in attitudes from being consumer to being creator using the technology as a basis of economic growth is which change the shift from trade based economy to knowledge intensive economy.

Over last two decades many countries have recognized that high growth technology based or trough technology business are important driver of economic growth and growing numbers of governments have responded by launching programs to systematically invest in creation or trough creation and support of high growth companies.

Nepal has not kept pace and has vested in catalyzing and supporting its high tech industries as evidence by the fact that we now have one of the lowest rates of startup formation in the world and one of the zero rates of Venture Capital investment.

Nepal doesn’t have a proper managed start up Ecosystem behind those of many other under developed countries due to lack of emphasis on entrepreneurship education, limited engagement with universities and poor cultural support for entrepreneurs. Although Nepal doesn’t have a proper startup ecosystem but at a slower rate its culture is growing here like a formation of Start Up fund and presence of few half dozens of funds were operating as Venture Capital investors although success rate is Ground Zero is due to absence of direct government support, unless innovation and entrepreneurship become a national priority, Nepal will find it increasingly difficult to compete on the global stage.

Nepal’s start in Start Up sector has experiencing good activity over the last few years, there is much enthusiasm, numbers of incubators and accelerators are growing, increased media interest , Awareness of start ups and entrepreneurship platforms

However we are witnessing a mass trend of talents and educated peoples leaving Nepal for their growth and favorable regulatory environment and Capital is a National Tragedy for its solution we need to take immediate and far reaching steps to address market failure that are impending the growth of our start up ecosystem. It needs to set out an action plan based on analysis of local startup ecosystem and of government policies and programs that have been effective in growing vibration start up ecosystem in other countries.

Startup Ecosystem will form an important part of economic reform upon Nepal’s need to embark if we are to successfully transition to a knowledge intensive economy which will bring prosperity in the nation.

Community have to be committed to work closely with Entrepreneurs, corporate, universities and all level of government to develop and implement policies and programs to systematically grow Nepal’s technology creation and its use so that it can drive economic prosperity for future generations.

Start ups have long been an important driver of Developed Countries economic Growth and competitiveness. These firms provide outsized contribution to employment, innovation, exports and productivity growth, many policymakers focus more broadly on helping all business start ups without regard to type. Such a broad based focus risks reducing overall economic growth for three key reasons first most owners of new non tec based firms have no intentions to growing beyond just a few employees. Second Small Non Tech firms on Average have much lower productivity and wage levels than tech based starts ups. And third most non tech start ups are in local serving industries and as such create few or no net new jobs .As such the focus in entrepreneurship policy should be squarely on spurring more technology based startups.

Per year 400000 Students will be ready to work, We need to make Start Ups a national sport to incubate entrepreneurial and innovation culture and that we should also target the lakh or more in the security forces Having our own arms and ammunition manufacturing will boost start ups together with inculcating a  culture of innovation.

Sadly, our govt’s role has been ineffective in promoting start ups in a strategic manner. Govt’s intervention has not been creative.The greatest constraint for start ups is the lack of VCs in Nepal.We need Venture Capitalist companies to not only invest in start ups’ equity but also to be involved in HR, Marketing, Logistics, Accounting and other Back office functions to nurture the start up.

Startups are free from economic downturns and free from encumbrance and that’s what makes it disruptive and agile. Startups work in an environment of changing technology and try to maximize profits by innovation. This induces backward and forward linkages which stimulate the process of economic development in the country irrespective of the economic environment.
They even act as catalytic agent for change, which results in chain reaction. Once an enterprise is established, the process of industrialization is set in motion. This will generate demand for various types of units and will in turn, lead to overall development of an area due to increase in demand and setting up of more and more units. I.e. like OLA and Airbnb

But the basic problem of our country is although we have startup fund but we don’t have a start up policy which need to be formed soon to rapid the speed of our country’s Economic growth.

All levels of government—Central, state —should work to bolster technology-based start-ups by crafting policies in key areas that accomplish objectives like Encourage individuals to create or join technology-based start-ups, Increase survival and success rates of technology-based start-ups, Enable technology-based start-ups to scale their growth faster and become larger.

Government need to release a regulatory framework in Crowd Based Equity Funding .Growing list of countries already enabled it to support start up fundraising to success start ups. If a Venture Fund or any funds fail in any start ups to control their burden if government wave taxes as the same amount if from their successive start ups. Funds will rise again and ecosystem will be well managed. After a foreign fund or private investor if invested in Nepal’s start up, regulation shall be needed to built to address the investor’s residential visa rule and regulations.

Government need to launch the accelerating commercialization stream of EIP as a part of budget. It costs almost half of the budget of what funds needed to invest in total to start ups and Government need to raise the amount value of startup fund to enable start up ecosystem in Nepal effectively. It shall be done trough simulating the existed funds of Chamber of commerce PE and mutual Funds all together in one platform as a umbrella phenomenon.