Bikalpa an Alternative organized a focus group discussion with a young start-up owner at Aims Bakery on May 5th, 2022, to find the essential information about the status of startup businesses in our region. Five participants who have been doing start-up businesses in the various sectors bestowed their opinions on definition, economic development, current scenario, registration, loan, subsidies, challenges, failure of the start-up, and role of government and the private sector to enhance start-ups. The discussion also shed light on the policy challenges that have been creating obstacles to the growth of startups.
At the initial phase of the discussion, participants discussed what makes the business a startup in Nepal. They shared that growing and exploring different kinds of start-ups in province-1 will help economic growth like cultural, traditional, and tourist areas that we can explore to generate economic growth. In comparison to other regions, province-1 has more youth who motivate each other to do start-up as well literacy rate is a bit good here. Talking about the challenges, they highlighted the registration process and finance access as the most troublesome factors while starting any business.
They opined that the process of registration is complicated as it takes around 1-2 years. The government provides agricultural loans, but nepotism and favoritism will get it illegally. The needy person cannot reach through the lengthy process. The banking sector has a trust issue with start-up owners. Without Collateral, they cannot start their business if the owner has their collateral; they have to exercise a lot for it. The major challenges highlighted by the participants were:-
- Lack of cold storage for fruits for a start-up directly affects the product and demotivates the farmers.
- Restriction of International payment by the government directly affects the export of goods.
- Lack of Digital platform
- The lack of one window system demotivates many youths to quit the start-up through the first phase.
- Lack of family support, trust issues from financial sectors.
The discussion was Moderated by Shristika Neupane ( Research officer of Bikalpa ). The program was held from 2:10 pm to 3:30 pm.
