Nabil Bank begins to create entrepreneurs

Kathmandu, July 16

Should the banks and financial institutions (BFIs) that play an instrumental role in the development of business, industries and infrastructure through the mobilisation of finance put their efforts to create entrepreneurs by themselves?

While many BFIs have concentrated their policies and practice to enhance their lending and deposit portfolio, Nabil Bank has taken a different route to create and nurture entrepreneurs and startups in the country. The profit-seeking private sector bank has been implementing a programme to create entrepreneurship to develop social enterprises to solve everyday problems of the people.

With the announcement of 'sustainable banking' supported by the adoption of latest information and communication technology, it has launched a new initiative called 'Nabil School of Social Entrepreneurship (Nabil SSE) aiming at creating social entrepreneurs to promote socio-economic transformation in the society.

Beyond 'deposit and lending'

"This project is driven by the philosophy that the banks should not only give away loans but train the potential entrepreneurs to utilise it. The BFIs must think beyond 'deposit and lending' practice," said Upendra Paudyal, chairman of the bank.

The programme has a process to identify people who have workable idea for tackling a specific social issue and demonstrate entrepreneurial characteristics, and support them for certain months to develop their leadership and business skill to create successful social ventures.

For example, Raj Bikram Maharjan of Airlift Technology, one of the fellows at the Nabil SSE, has been developing a local map that would help to identify and locate houses and destinations even in the narrow allays in the Kathmandu Valley. The alleys, commonly known as 'galli' are not visible on satellite images which has crated challenges for e-commerce, food and goods delivery companies, as well as ride sharing and taxi services. "Our project will save cost and time of the entrepreneurs and businesses as well as the customers. People have to spend a huge amount of time and make multiple phone calls to find the exact location of the house in the valley," said Maharjan.

His company is crating high resolution map of the cities with the use of drone imagery which is available online now. "Our map app is here to build a social and technological infrastructure to create a better place to live," Maharjan stated.

Collaborating with the academia

Nabil is implementing fellowship programme and certificate course in collaboration with the Tribhuvan University School of Management (SOMTU) and various colleges in seven provinces to promote entrepreneurship. The fellowship programme delivers knowledge, skills and other necessary tools to enable people to launch their social enterprise, said Ujjwal Chapagain, Coordinator of Nabil SSE. The bank has created the required infrastructure at SOMTU and provided necessary financial support as well to nurture 20 fellows for six months.

It is a residential programme where the fellows attend 3-day session physically every month. Each of them will have a mentor to process their ideas and support with the necessary ideas. By the end of six month they have an investment-ready enterprise or a business ready with product/service to trade in the market.

Similarly, the certificate course provides platform where individuals can present their creative ideas and solution through business. The bank said that the 3-month certificate course helps build individuals with entrepreneurial mindset, develop a sustainable business model with a feasible solution and is ready to receive investment. The participants have to attend 14-day physical training over the 3-month period. This programme aims at training about 700 students every year across the country.

Varieties of startups

It is interesting to see the diversification of entrepreneurship ideas being developed by the SSE. The fellows have unique and bankable business ideas from paper and poultry to information technology to waste management. It has a fresh graduate like Saurav Koirala who is working on ideas of temple waste management and aims at hiring physically challenged, trauma victims and marginalised groups on the job, and seasoned entrepreneur like Krishna Kumari Poudel of Anugraha Handicraft who has trained thousands of men and women in Dhaka production, making designs and marketing. "My company is working to provide skill training and create self-employment. We are also focusing on returnee migrant workers and those who are leaving the country in search of job abroad," she said.

Poudel has a large group of satisfied customers including actress Manisha Koirala and former Miss Nepal, Malvika Subba.

Likewise, Rajesh Das and his team is creating a smart journey platform that allows booking travel tickets, GPS tracking of the buses, ensure safe travel with the installation of CCTV tracking and provide free-of-cost entertainment programmes on the way.

The engineering graduate is aiming to expand their services to 50-60 routes by coming Dashain.

Another entrepreneur whom The Rising Nepal talked to is Harinath Dangol who has initiated 'Lachhi' – meaning local hub for Newari food, living and product. "We offer authentic local experiences, skills with local products that empower local people of Khokana, create awareness and promote cultural heritage of the place," he said.

Lachhi also aims at preserving indigenous knowledge and traditional crafts which are on the verge of disappearance due to modernisation.

The aspiring entrepreneurs said that the SSE had helped them in refining their business ideas and finding a better track to entrepreneurship development. "My idea was just a rough concept but the rigorous training and consultation at the SSE has refined it to the level that I am confident about its workability," said Koirala.

Chairman of Nabil, Paudyal, said that the bank had launched the programme as a pilot project this year but its success has motivated the company and the team. "We aim at expanding this programme to other areas to support business generation. Development of small and medium enterprises will help the local as well as the national economy," he said.

He suggested other banks to run the porgramme similar to his bank.

NRB to support SMEs

Promoting entrepreneurship and SMEs is the policy of the Nepal Rastra bank as well. It has announced the policy to provide loan of up to Rs. 10 million at 2 per cent addition on the base rate. However, it has not created any provision to force the BFIs to invest in entrepreneurship creation.

Senior Deputy Governor of the NRB, Nilam Dhungana, appreciated the entrepreneurship programmes implemented by the BFIs. She also said that if the banks sought any return or profit from the programmes, they couldn't be counted as CSR schemes.

However, Dhungna said that the banks should facilitate project financing by mitigating the risk. 

Published in The Rising Nepal on 17 July 2022.