The Five Biggest Factors Challenging Startups in Nepal

Abstract

There are a variety of factors that pose challenges for start-ups globally. These challenges vary based on the country, region, or economy of operation. Research identified the challenges start-ups face depending on whether start-ups were established in developed or undeveloped countries. However, few research studies have been conducted in Nepal. Hence, the purpose of this study was to examine the top five factors that hindered start-up formation or posed difficulty for the growth of start-ups within Nepal between 2017 to 2020. The primary data was collected using a mixed method using purposive sampling consisting of an in-depth interview followed by a survey with entrepreneurs and experts of the entrepreneurial ecosystem of Nepal. The authors administered an in-depth interview with open-ended questions and then conducted key informant interviews. Throughout the interviews, the five major issues identified as hindering start-ups were human capital, finance, support system, policy, and marketing.

Financing Start-ups, the Need, Relevance, Facets and Constraints in Kenya Start-ups Ecosystem

“…According to the study carried out by Rijal et al (2021) in Myanmar, start-ups have been working on legislative and administrative changes for start-ups. Poorly developed infrastructure, a cumbersome bureaucracy, opaque rules, a scarcity of trained labor, some of the issues that Myanmar enterprises face include limited market access and limited technological progress.…”

“…Poorly developed infrastructure, a cumbersome bureaucracy, opaque rules, a scarcity of trained labor, some of the issues that Myanmar enterprises face include limited market access and limited technological progress. According to Park et al (2017); Rijal et al (2021); Wiesenberg et al (2020), 89 percent of setup in Myanmar based on personal or familial savings or assets for beginning investment, while only 17 % of the entrepreneurs depended on credit facilities from the beginning, and % had not implemented for a mortgage in the two years prior to the establishment the enterprise.…”

“…Because they are based in countries with a bad reputation for producing subpar goods, some start-ups cannot expand and prosper abroad. They find it challenging to join global supply chain platforms because of current regulations (Rijal et al, 2021).…”

Unveiling Strategic Mastery: Navigating the Nepalese Business Landscape for Competitive Advantage

“…Strategic mastery is a continuous process demanding a deep understanding of the business environment, a proactive mindset, and adaptability (Ma, 2004).In a competitive and volatile market, mastering strategy is key to thriving. Businesses that consistently refine their approach stay tuned to market dynamics and embrace innovation secure a lasting competitive advantage (Porter, 2008).…”

“…The country's trade focuses on India and China, with SMEs playing a key role in employment and economic growth. Increasing status in digitalization, product quality, branding, and alignment with government initiatives somehow gives businesses a competitive edge in the market (Ghimire, 2011;Bhattachan, 1994).In the pursuit of strategic mastery within the Nepalese business landscape, enterprises encounter a myriad of challenges that impede their quest for competitive advantage and issues such as insufficient infrastructure, political volatility, intricate regulatory frameworks, limited financial accessibility, workforce skill gaps, and increasing rate of corruption are significant impediments (Rijal et al, 2021;Neupane & Sharma, 2016;Man Vaidya, 2002). Coupled with external factors such as global economic trends and environmental considerations, these challenges demand a thorough investigation to discern their origins, evolution, and pervasive impact (Nepal & Sapkota, 2023;Sharma, 2002).…”