Unlocking Nepal’s Future Through Entrepreneurship

SUBMITTED BY JOE QIAN ON THU, 01/28/2010 - 14:21

Towering mountains, majestic temples, and colorful cityscapes

are all characteristics that I had expected for Nepal. I wasn’t
disappointed. Driving into Kathmandu, the myriad of exotic
colors, shapes, and smells truly ignited my senses and the sense
of respect for tradition and gracious hospitality unsurpassed.
Something I didn’t expect was the sense of liveliness on the
streets and the industriousness of the people. This is especially
evident amid challenges in infrastructure, connectivity, and
constraints such as the lack of electricity for up to 9 hours a day
and a noticeable lack of quality roads. In spite of this, there were
numerous shops selling all kinds of goods and services dotted
around the city creating a palpable sense of entrepreneurship and energy.
23 year old Sushant Shrestha is one such innovator. He works in a clothing shop with a few of his
friends in the lively commercial district of Thamal. While looking through their products, I was very
impressed by the creativity and quality of their silk screen on shirts. They create exclusive and
customizable designs to suit every type of customer and then embosses them on the spot. Adeptly
running his fingers through the sewing machine, Sushant creates designs that are distinctly
Nepalese, attractive, and of exceptional quality. With themes ranging from the Himalayas, Yaks, to
Tibetan flags, I couldn’t help but to pick up a few for my friends and family.
Nepal faces a number of challenges in strengthening its development imperative including improving
infrastructure and governance. However, with people like Sushant among others who are using their
imaginations to create and deliver tangible value while improving their own livelihoods, I had a
feeling that this creative energy would be key to unlocking the country’s future.

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• creativity
• electricity
• Energy
• Entreprenuership
• Infrastructure Economics and Finance
• Macroeconomics and Economic Growth
• Nepal
• Poverty Reduction
• Private Sector Development
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• South Asia

Comments

Thanks Joe

SUBMITTED BY PRAJWOL ON THU, 01/28/2010 - 15:04.

Amidst all the negative news coverage’s and disappointing events, I am so glad to read this
optimistic take on Nepal. Thanks again.
Though Nepal is very proud that it was never historically ruled by any foreign "superpowers"; but
unfortunately during those periods Nepal never made any meaningful progress either, thanks
largely to the autocratic "Rana Regime" followed by the inept "Panchayat System".
When the British left India, they had already built universities, roads, bridges, courts, and other
constitutional structures. When "Rana Regime" and "Panchayat" system were toppled, Nepal was
left with debt; while the previous rulers and their families’ amassed big wealth, general public were
living the lives of 19th centaury. There were absolutely no democratic infrastructures or democratic
culture in existence.
That very lack of democratic infrastructures and culture are niggling people like Sushant Shrestha.
If he slightly succeeds, there will be lot of people around to pull his legs, a big crowd will line up for
forceful “political” donations. He won’t feel the protection of law unless he can bribe the "law and
order" to keep him and his business safe.
Don't get me wrong, I did not (and will never) wish that Nepal too was ruled by British. My point
was, for people like Sushant to succeed even further, there has to be democratic structures in
place, like a very powerful and efficient High Court. Right now, Sushant leaves his home every
morning for work, but by midday he might have to return back because some agitators are revolting
on some petty issues. And if the agitators vandalize his business, there is no way he get's
compensated for that.
But, I whole heartedly support and wish good luck to the entrepreneurs like Sushant. It will require
lot more people like him to unlock the current income scheme of Nepal: the foreign aid and
remittance.
BTW, I'm so jealous you were there in Kathmandu. It's been over two years that I was there. I wish
I had your job, LOL :)

• reply

Ingenuity and the Small Business

SUBMITTED BY MIKE ON THU, 01/28/2010 - 16:33.

Great, on-the-ground perspective Joe! I find the importance and capabilities of small business to
drive a community forward towards progress tend to be left by the wayside with political leaders in
the United States and elsewhere. We will see if US President Obama, in his recent State of the
Union Address, will be able to help the small businesses in the US make a come back as he
proposes to do with investments and tax credits.
I am no expert on development, but from the tidbits I have collected from newspaper articles or
interviews that it is often these entrepreneurs that can lead the charge. In developing nations or
poorer areas of a nation, these incredibly creative and unique individuals have the ability to
strengthen their community’s economic landscape.
Microloan programs (which the author of this blog introduced me a few years ago) have created
new opportunity and in many cases significantly increased an entire village’s standard of living. Not
to mention the incredible repayment rates. In another instance, comedic news journalist, Jon
Stewart, in October of 2009 interviewed William Kamkwamba on his program. William had
successfully built a windmill from scrap pieces around his village to provide a source of electricity.
These are the people we need to be finding, funding, and allowing to succeed.
I agree with the first commenter that it is the “political donations,” or simply bribes and waste, that
reduce a lot of the great work down by the entrepreneurs, like Sushant. Somehow the cycle of
waste and corruption must be broken for these investments in local businesses to succeed. How to
do that?...I leave up to the real experts in this field.

• reply

To Prajwol

SUBMITTED BY JOE QIAN ON FRI, 01/29/2010 - 02:08.

Thanks so much for your encouragement and insightful comments and context on Nepal!
I think Nepal has a great opportunity to remake and rejuvenate itself since the establishment of the
new Democratic Republic. I also think they can benefit from the growth of both India and China and
use resources and expertise from both neighbors in creating this new framework as well as
constructing universities, roads, bridges, and courts, as you said.
As for governance, differences should be set aside between different parties, that remains to be
seen with the goal being a government that's effective and clean. Different factions will have to
learn to unite and work together to achieve this common aspiration. The less obstacles (strikes,
powercuts, corruption, rent seeking) for entrepreneurs like Sushant and everyone else, the more
prosperous the country will be. I believe there's a lot of energy waiting to be unleashed, Nepalese
overseas are very successful, what's holding them back at home?
That being said, Kathmandu was fascinating and Nepal was absolutely gorgeous with awe inspiring
geography and architecture. The Nepalese have a lot of to be proud of.

• reply

To Mike

SUBMITTED BY JOE QIAN ON FRI, 01/29/2010 - 02:31.

Thanks for your perceptive comment and bringing context on an international level!
I was quite pleased with seeing small businesses, shops, and restaurants lining most of the streets
of Kathmandu, it was refreshing to see as economies of scale in the US has reached such a point
that large corporations and chains dominate our economic landscape and small businesses are now
seemingly (to me) at an inherent disadvantage to compete.
I truly do believe small businesses and entrepreneurs can be the driving force for development in
communities and this phenomena is just kicking off in much of developing world which is very
exciting and will change innumerable lives in the future. As for accounted and unaccounted costs of
doing business, it's a cycle that's difficult to break.

• reply

Entrepreneurs for Nepal

SUBMITTED BY JULIE WEST ON FRI, 01/29/2010 - 08:42.

Dear Joe,
I live in Nepal part of each year and have a fashion design business their with Nepali entrepreneur
partners.
My experience in Nepal is aligned with the perceptions your reflect in your post: a smart,
industrious, innovative and creative vibe that creates a palpable sense of good energy.
I also wanted to let you know about a 2000 member strong group, Entrepreneurs for Nepal, that
meets the last Thursday of every month at a restaurant venue. Each month an entrepreneur in
Nepal speaks to the group sharing their stories of success, failure, and lessons learned. These
meetings also provide the youth of Nepal with an opportunity to network with the speaker, other
mentors and each other during a social hour following the talk. Leaders of the group also provide
one-on-one mentoring to young enterpreneurs launching their projects.
The group has a website, http://e4nepal.com, and a Facebook fan page.
While Nepal's constitution-writing is behind schedule and the government remains stagnant, groups
like Entrepreneurs for Nepal are poised to lead Nepal's economic development by creating
businesses, jobs and hope.

• reply

To Julie

SUBMITTED BY JOE QIAN ON FRI, 01/29/2010 - 09:45.

Thanks for sharing your experiences and organization Julie!

I noticed an entrepreneurial spirit from the expatriate community as well such as François Driard's
dairy farm and marketing Nepali cheese. All your initiatives seem excellent, I would definitely like to
learn more some of the experiences you have.
Cheers,
Joe

• reply

Entrepreneurship development

SUBMITTED BY ANIA ON SUN, 01/31/2010 - 18:01.

Entrepreneurship development must be massively supported , it utilize available manpower and

resources that might have remain idle and put them into productive use.

• reply

Economic Development Tools

SUBMITTED BY AUSTIN ON MON, 02/01/2010 - 15:28.

Great post. Small businesses and their products have been the reasons that developing countries
have seen economic growth and prosperity. This is evident by the economic development past of
China, US, Europe, and most other countries. More importantly, I think that if and when a better
governance structure is in place in Nepal many opportunities exist for organizations to bolster
economic development through small businesses. Mike gave microloans as an example and that will
make significant differences. But, small companies that depend on infrastructure (such as
telecommunications, internet, it services, etc), which I am assuming are not very common in Nepal
could benefit from economic development tools such as an incubator. Incubators will allow reliable
infrastructure and office space to be provided until the business is able to make an investment in
their own field. I agree that I see a lot of potential for the entire South Asia area.

• reply

Entrepreneurship in Asia

SUBMITTED BY LEXY ON TUE, 02/02/2010 - 00:39.

I live in China and I'm truly amazed by the people's entrepreneurship skills around here. That's far
from my french hometown, where people complain when they can't get a job.
Here, they just start their own production or service, and that's great! I met the poorest
entrepreneurs in the world, those who buy 0.01 USD worth material to make a 0.02 USD profit and
yet they're really motivated!
I really think there's a huge market for micro loans but as well individuals who would act as small
investors in these countries, and if I had some spare time, I'd surely work on a model to bring these
guys and western individual investors together! Why would we spend 5 USD for an Mocha latte
when so much value can be created with the same amount of money? An international incubator
would be great !
 • reply

To Ania

SUBMITTED BY JOE QIAN ON TUE, 02/02/2010 - 08:26.

Thanks so much for your comment. Encouraging a strong, vibrant entrepreneurial base allows for
economic growth and self reliance for the individual reducing the burdens on social safety nets and
cash transfer programs.

• reply

Supporting small enterpreneurs

SUBMITTED BY ANONYMOUS ON MON, 02/08/2010 - 20:03.

Hi Joe,
I want to add one comment thanking you for your reporting. Entrepreneurship should indeed be
supported. They represent a very dynamic segment of the population and the economic base (de
Mel and McKenzie recently estimated very high returns to capital for micro entrepreneurs in Sri
Lanka!).
I wonder why so many of these microentrepreneurs, however, do not grow their business. All
developing countries have so many self-employed individuals, mostly on a very small scale, but
rarely (compared to the sheer number of entrepreneurs) do they develop innovative ideas on a
large scale. Issues of credit availability come to mind with the existence and usefulness of
microfinance. But more must be at play (and microfinance is not a panacea -- see recent papers by
Financial Access Researcher Dean Karlan and Jonathan Zinman, and JPAL researchers Banerjee and
Duflo).
I hope you're there to work on helping these microentrepreneurs!

• reply

Entrepreneurship is the most respectable work

SUBMITTED BY SOHAEL CHOWDHURY ON WED, 02/10/2010 - 16:30.

Nepal as our very friendly neighboring country i would like to get connect there entrepreneurs &
bring synergy within us.
Also I am very pleased to know that WORLD BANK is showing very keen interest about young
entrepreneurs.
In March i am going to join Global Entrepreneur Congress (GEC) 2010 in Dubai.
As i am founder of YELL (Young Entrepreneur & Leaders League) Bangladesh & working among
young people to foster entrepreneurship here in Bangladesh. Hope we will get both WORLD BANK &
Bangladesh Government Concern & help.

• reply
Alleviation of Poverty through Entrepreneurship

SUBMITTED BY SUHRID CHAPAGAIN ON SAT, 02/20/2010 - 13:03.

Dear all,
Thanks for great discussion going on entrepreneurship .. ofcourse visit to Kathmandu and looking at
Kathmandu based entrepreneur may have provided some insights ... Kathmandu is becoming one of
the most costlier places along with high level of entrepreneurship ( mostly on tourist based,
land/real estate, and import based trade).
Entrepreneurship is a way of development in this era ..not only for Nepal but for all .. the main point
to be discussed is to find competitive advantage of Nepal in sector of Enterprise. At present 80% of
FNCCI (Federation of Nepalese Chamber and Commerce) deals with 10% of GDP of country. Thus
huge amount in GDP is contributed by Small and micro entrepreneurs and farmers (so is the case
with other country)
I hope what u have found in Kathmandu (meeting an entrepreneur) ..that u will find in Delhi, dhaka
or any other places.
World Bank programs in Nepal along with Private sector development program of other are focusing
on micro and small enterprises at rural areas .
It simply is not working ..may be planning as u said is made by looking at Kathmandu or thinking
Nepal as same as other places in the world.
Lots of Dollars and Nepali Rupees is spent on that and everyone knows Nepal economy is stable
thanks to REMITTANCE. and this is done without any DIRECT support.
So thanks for bringing this issue in debate, but i strongly believe entrepreneurship in Nepal has to
be looked upon differently. ( Import business is most profitable here so everybody talks value
addition and nobody supports) .
We Need Alternative mechanism including: Fair trade market, Eco tourism, Religious tourism , High
level value addition of Medicinal and aromatic plants ... and so on ..
Also, not getting more Private Sector who are ready to work with Community Based Entrepreneurs
in Nepal, So need of Nepal is 1001 (will be enough) entrepreneurs who can cater to global and
national market along with Social business partnership with community ( raw materials and semi
value addition).
Catch us at Enterprise associates of Nepal is facebook for discussion on enterprise development in
Nepal .http://www.facebook.com/pages/Enterprise-Associates-of-Nepal/310782831848?
ref=search&sid=1278974765.3463971913..1 for more discussion.
Suhrid

• reply

To Lexy

SUBMITTED BY JOE QIAN ON TUE, 03/02/2010 - 12:45.

Thank you for your comment Lexy. I think an business incubator for entrepreneurs would be
excellent as there's so much value to be created. I think China has been successfully growing due to
its entrepreneurs and solid SOE management.

• reply

To Sohael

SUBMITTED BY JOE QIAN ON TUE, 03/02/2010 - 12:47.

Thanks so much for your comment and keep up the good work. I look forward to going to
Bangladesh in the near future and seeing the dynamics of entrepreneurship there.

• reply

To Suhrid

SUBMITTED BY JOE QIAN ON TUE, 03/02/2010 - 13:08.

Thank you so much for your comment and I apologize in the delay of my response. I agree that
costs of doing business in Kathmandu may be higher than other places. The mountainous
topography and geography are definitely impediments that will hopefully be overcome by investing
in more infrastructure and fostering an innovative environment and overcoming the "rent-seeking"
mentality and some have.
Remittances do play a incredibly important role in Nepal's economy and it seems like this will
continue, although not ideal, this is an equalizer for balance of payments. I also concur with you
that imports are a dead end especially as neighboring China has almost unlimited capacity to flood
Nepal's market. My perspective is that Nepal is very special and should definitely focus on it's
unique identity and create high value alternative products as you suggested. I brought back all the
natural soaps and papers I could get my hands on and I think there would be a a certain target
group that would be very interested as well.
I will be following the group on Facebook and hope to keep in touch.
Best,
Joe

• reply

Nepal Needs More Efforts from Private Sector

SUBMITTED BY ROSHAN ON THU, 03/11/2010 - 06:09.

Government should be there for at policy level. but its the people that lift the nation. entrepreneurs
and private sector should contribute more to the society and nation. thanks for bringing this story of
a normal person. would like to see more such success stories.

• reply
Nepal & Entrepreneurship

SUBMITTED BY ANANTA ON WED, 04/07/2010 - 06:03.

Copied from
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=17175
Foreign aid, which covers about 40 percent of the government expenditure, is now in question vis-
à-vis its impact on Nepal’s sustainable development. Despite billions of dollars provided by donors,
the post-conflict development plan failed to fill the structural gaps between the rich and the poor
through equitable redistribution of resources. More than 90 percent of resources are still under the
control of the same dominant elite who managed aid during post-1951 development planning.
...........
Advice.
Please refer to above web site for illustrative approach" discussed in literal manner" & picturesque
on the constraints of development in Nepal & it`s restricted resources & it`s impact on rural
development.
Ananta Paudel.
Kathmandu,Nepal