Stakeholders’ consultation meeting is a program that assembles corresponding stakeholders including policymakers, intellectuals, social activists, entrepreneurs, and civil society members to gather surplus insights and information on certain policy research papers. Bikalpa an Alternative organizes such stakeholders’ meetings on a regular basis to gather further insights on its ongoing research areas. Consequently, after conducting a study on “Startup Ecosystem and Policy Hurdles”, 25 stakeholders were identified and invited for the stakeholders meeting from distinguished sectors. Representatives from several private organization like FNCCI, CIM, CNI, FNSCI, Morang Merchant Association, NYEF, Startup owner, entrepreneurs bestowed their valuable insights on the scenario of startups on province no. 1. Similarly, representatives from government entities like Mayor of Biratnagar, Ministry of Agriculture, Ministry of Industry, Directorate of Industries, Provincial Planning Commission, Provincial Investment Board set forth their knowledge on boosting startup ecosystem in Province no. 1. The event was held at “The Big Hotel” on 13th January 2023.
The program was facilitated by Basanta Adhikari, director of Bikalpa – An Alternative followed by a presentation on the findings of the research paper titled Startup Ecosystem and Policy Hurdles by Shristika Neupane and Sarwagya Raj Pandey, researchers at Bikalpa .Following the presentation, the floor was opened for discussion. The following are the opinions expressed by the stakeholders.
Chudamani Bhattarai (Director General, Chamber of Industries Morang)
We cannot always blame the government and their policies. Today’s younger generation should stop blaming the government for everything because it is not that complex to commence business at present. Policies are the secondary factor for the startups, ideas stand out as primary. Youth have brilliant ideas. If ideator undergo challenges in executing those ideas, then policymakers should intervene by finding the policy that stifle their growth. First, startup owners should properly learn market strategy, documentation, regulations. When they’re ready with everything, they must search for investors. If they don’t understand the documentation process, then the government and other authorities should assist them.
Raghav Koirala (President, Nepalese Young Entrepreneur Forum)
Many people have ideas for startups, but don’t know how to start it. First, they should plan and conduct market research. And then, they should undergo a Research and Development process alongside exploring clients and product trails. The registration, investments, and self-certification process comes later. Government policies are in one place, but anyone willing to commence their venture should comprehend these things initially.
Chudamani Neupane (Officer, DICCP)
There is no compulsion to go to the center for registration anymore. There is provincial law for that. Industries which are established with an investment of less than 6 billion can be registered here itself. Not all businesses should go for company model, instead it can be registered as firm which does not require MoA and AoA. Startups are mostly small-scale firms which can be registered as micro enterprises. At the end of this economic year, every work related to micro enterprises will be carried out digitally.
Pratik Raut (Managing Director, Raut Construction)
Startups are those kinds of businesses which should scale up and grow in the future. For obtaining that scale up, several challenges persist in Nepal. We can never compete with India and China in terms of products. However, there are 5-6 areas which could be special boon to tap into the global market. Those would be health care and health tourism, technical education, hydro and renewal energy, technical education, and agriculture. The role of universities is huge in startup ecosystem. 16 universities across Nepal which has stepped into building ecosystem should take a leading role in terms of research and development. Startup is a mindset, and foundation of that mindset should be developed by educating about startup culture, business, risk taking from the school and plus two levels of education.
Sunidhi Kc (Nutri Care)
Tax constitutions, regulations, registration should be included in the academic course from the school level because they govern the many facets of our society.They are like modern treatise which everyone should be aware of. Graduate and undergraduate students are already framed by the perceptions. School and high school level is a period of transformation and preliminary stage of forming a perception. Thus, school and high school level of education should encompass syllabus related to taxations, regulations, registrations. Apart from this, there should be government bodies that do rigorous research and studies, and private organizations should go hand in hand with them.
Nagesh Koirala (Mayor, Biratnagar Metropolitan)
First, we need to be digitally literate. Since I belong to political background, I have less understanding about the technical part related to startups. Recently, Metropolitan paired up with several business associations to promote startup culture. However, it is insufficient to boost the growth of startups. Thus, we must impart knowledge about market and entrepreneurship to the younger generation at school level.
Anil Shah (Vice President, Morang Merchant Association)
“Charkila”verification should not be made compulsory while registering business. Government policies aren’t that substandard, if so, there won’t be any firms running in Nepal. However, these policies are difficult to follow. There is misconception about startup being only related to modern technology which is not the case. One can start a business by doing traditional work in a unique way. Nepal lacks the research and development. There must be a separate government entity dedicated to research and development. The government should invest in that sector.
Ravi Gupta (Aarohan Enterprises)
For me, Nepal is one of the easiest countries to register a firm. In my opinion, Charkila should be more strictly implemented because when one establishes a firm, physical infrastructure is required. For instance, if you’ve invested 5 lakhs in a firm but your Neighbours complain about it, your money would go wastage. Due to that issue, the government created a policy about Charkila. Taking about startup, establishing startup board funded by government organization should be the foremost step.
Gopal Regmi (Senior Vice-president, Nepal Domestic and Small Industries Federation)
Business can only be done with a positive mindset. At the moment, Charkila is a serious issue. People who are in touch with the big personalities can get their job done easily but it is strenuous for the rest of the people. So, either Charkila should not be compulsory, or some particular areas should be designated to run the firm. While running business, businessmen should focus on their firms not on these issues. Not only the industrialists, but the government and the people on the authority should change their mindset. We should create an environment for our children to easily start their own business in Nepal. Nowadays, youngsters flee abroad and work in the industries established by other people. Rather they can stay in the country and do something using their capability and mind.
Abhinayak Malla (Malla enterprises)
Two years back, I went to the provincial Agriculture ministry with a project related to coffee farming. They helped me to complete the project, and it passed and was well documented within 4 months. But at the same time, it took me 2years just to get the license at the registration office. There are no proper policies related to intellectual property. Talking about taxes, new entrepreneurs still can’t comprehend taxation properly. I myself am at a learning phase. If we submit our documents to one government office, the required office must get that from one domain itself. It will make the documentation process easier for the new starters.
Pashupati Pokharel (Division Planning Chief, Ministry of Agriculture)
Startup is the new concept for each of us. Capacity building in the government sector to comprehend the concept and essence of startups is the foremost necessity. According to my understanding, there must be research and development at the different levels of government. On the basis that R&D there must be policy recommendations to address the hassles persisting in the startup sector. There is need of platform like startup board including private organizations, government entities and expertise. From that platform the emerging startups would receive the needed assistance, guidance and facilitation. People are entering into business imitating other businesses without adequate knowledge about the startup ecosystem. At present, skilled human resources are very scant in the government sector. Budget are being allocated for the startups but due to insufficient skilled government officers, improper mechanism to channelize the budget, the money has freeze.
Prof Dr. Biju Thapaliya (Dean, Purwanchal University)
There has been discussion on lots of dimensions here.What this shows is that, if we want to work on the startup ecosystem, we need to have discussion in every aspect related to startups. Due to cultural barriers, youth in Nepal doesn’t want to become an entrepreneur. The students in business schools in Biratnagar do not have the mindset to become entrepreneurs. I have been struggling to involve my students in entrepreneurship. I started a lot of programs and students participated in the beginning, but at the time of graduation the number goes down to zero. That’s because they need immediate income as they are pressured by their family for it and eventually, they look for a job. So, the mindset should be changed from school level. Success stories of entrepreneurs should be published in order to motivate youths. The person doing startups should bring imagination and creativity so that the government can specially focus on it.
