Building a Strong Startup Ecosystem in Nepal: What’s Missing?
Nepali startups are getting larger in number day by day. Well, the enthusiasm is there for the beginning but not enough to sustain a startup. We can’t say that the ecosystem is getting better for these start-ups. Three crucial areas where the ecosystem fails are networking opportunities, finance, and mentoring. Addressing these gaps will support innovation and long-term expansion in the field of entrepreneurship.
Mentorship:
Lack of mentorship and guidance for entrepreneurs remain a major barrier in Nepal for most of the startups. Many people these days start their entrepreneurial journey without any proper knowledge and proper guidance. This lack of experience and mentorship can lead to unnecessary hurdles at the start of the journey and can also hamper the sustainability of the start-up. Without mentorship, startups are at risk of early departure from the market. Proper guidance and mentorship can lead to better sustainability and also have been building a better ecosystem within the start-up environment. So what can be done? Nepal must establish mentorship initiatives that connect experienced mentors with recently established startups with limited expertise and experience. Educational institutions can also make a difference by offering official mentorship programs and fostering a culture of information exchange.
Finances:
Financial challenges are not only a major problem for Nepali startups but also a problem for startups all over the world. It is one of the major problems that lead to many companies getting shut down and start-ups not being sustainable in the long run. As startups are just growing in Nepal in recent times, many traditional finance institutions do not support finance startups as they believe them to be high-risk ventures. While some angel investors and venture capitalists have begun investing, it's not enough to meet the needs of the growing startup market. The expansion of Angel investments, landscape, and venture capital is important for startups. Government backed initiations such as seed funds, as well as the private sector, driven incubators, and accelerations should attract more investors. Introducing tax incentives for investors could encourage more people to support startups. Foreign investment could be a game changer, but while a few startups have secured funding from abroad, most still struggle to get international backing. Foreign investment can also bring mentorship and guidance from the international level and more experience from the bigger and better market outside.
Inadequate Networking:
Foundation for a reliable and strong ecosystem for startups requires networking, which is weak in Nepal, especially for the start-up environment. In Nepal, there aren't many occasions when business owners, mentors, and investors get together to exchange ideas and experiences, possibly forge new partnerships, and look into prospects for additional projects. However, these little events are not sufficient for the growing startup market. By building a supportive community of startup founders, industry experts, and potential investors, entrepreneurs gain access to a wealth of knowledge, experience, and advice. Many startups are not able to share their experience, ideas, and potential connections with other people due to these insufficient programs. By organizing more frequent activities, events, and networking programs, including startups, pitch competitions, and conferences can help foster a culture of collaboration with the startup community. Recently, even King's College, along with Tyrosoft, organized an entrepreneur and investing event, the Tahe Babal Challenge, to cultivate an investing and entrepreneurial mindset in young adults. However, it's crucial that such efforts are expanded beyond the capital, Kathmandu, to reach other cities nationwide, ensuring inclusive growth and opportunity.
Way Forward:
Given the significant surge in startups in the country, it's crucial to implement numerous initiatives aimed at creating a sustainable and efficient ecosystem for startups in Nepal. Expanding networking opportunities, attracting foreign investment, and providing mentorship programs for inexperienced startups are key steps. These efforts will inspire and guide young entrepreneurs, helping them succeed and contributing to the country's economic growth. By addressing these challenges, we can create a platform where entrepreneurs and investors connect, collaborate, and expand together, strengthening Nepal's financial future.
