Twenty entrepreneurs pitch to expand their businesses

Kathmandu, Aug. 7

The Capstone Accelerator, the final phase of the Entrepreneurship Skill-Building Programme supported by the U.S. Embassy Nepal, was held in Kathmandu on Friday.

Twenty entrepreneurs, competitively selected from across the country, participated in a three-day residential programme in Kathmandu, where they received intensive training on business scaling, investment readiness, and expanding access to international markets, informed the International Development Institute (IDI).

The programme is supported by the US Embassy in Nepal and was held in partnership with Aadyanta Advisory.

On Friday, the participants presented their businesses before a panel of leading investors, industrialists, entrepreneurship ecosystem partners, and experts. During the pitching session, they showcased the potential of their ventures, innovation, scalability, export opportunities, and investment strategies, while also receiving practical feedback and recommendations from the expert panel.

According to the IDI, the 20 entrepreneurs were selected through a competitive process from more than 200 participants who attended regional workshops held in Nepalgunj, Dhangadhi, Biratnagar, Janakpur, Hetauda, Bhairahawa, and Pokhara. "The national Capstone Accelerator provided advanced training focused on business expansion, investment readiness, export potential, the application of artificial intelligence (AI), market management, and strategic communications," it said.

Participants also showcased their products and services. The exhibition provided entrepreneurs with an opportunity to engage directly with investors, business leaders, the American Chamber of Commerce in Nepal (AmCham Nepal), and other U.S. business representatives.

Speaking on the occasion, Chief of Public Affairs at the U.S. Embassy Nepal Mike Harker said that the programme was evidence of strong economic partnership between the USA and Nepal.

"By investing in innovative Nepali entrepreneurs, encouraging innovation, and strengthening connections among entrepreneurs, industry, and investors, we are reinforcing economic diplomacy and private sector collaboration," he said.

Stating that the journey of entrepreneurship involves success, frustration and sometimes failure, Harker suggested having perseverance, dedication and developing a network and investment in relationship building.

The jury panel included Harker, Co-founder of Khalti and President of Fintech Alliance Nepal Amit Agrawal, and former MD of Daraz Nepal Anchal Kunwar. 

The organisers said that following the regional workshops, participants attended a series of virtual masterclasses covering legal compliance, export readiness, AI-driven business growth, and digital marketing.

"During the three-day programme in Kathmandu, participants further refined their business strategies through interactive masterclasses, mentoring sessions, peer learning, and pitch coaching," they said in a statement.

The selected entrepreneurs represent a diverse range of sectors, including agriculture, food, garment, ICT, manufacturing, handcraft, and digital services.  

 

Participants and businesses

S.N.	Company	Founder/Owner/ Representative	Area of Business
1	Pathsutra EDU	Hari Krishna Lamichhane (Founder & CEO)	EdTech, AI-powered education technology
2	Saino Marketplace	Kamal Raj Parajuli (Business Development Head/Founder)	E-commerce, marketplace for Made in Nepal products
3	Kopila Valley Women Co-operative	Apekshya Thapa (Manager)	Handcrafted bags, home furnishings, textiles, light manufacturing
4	Lumle Coffee Estate	Nabin Devkota (Founder/CEO)	Specialty coffee, agribusiness, coffee processing, barista training
5	Himalayan Chiurika (Himalayan Chiuri Oil Pvt. Ltd.)	Shambhu Babu Koirala (Founder & CEO)	Chiuri butter, natural cosmetics ingredients, agribusiness
6	Bharosha Krishi Bahuudesiya Pvt. Ltd. (Chito Plus)	Rajib Khanal (Co-founder)	AgriTech, bio-inputs, biostimulants, livestock and aquaculture products
7	Syaahaar	Sachin Makaju Shrestha (Head/Administrative Officer)	Natural skincare and personal care products
8	Didi Bahini Fabric	Hisila Oli (Founder/Co-founder)	Hemp and allo fibre textiles, garments, apparel
9	Lumino Technology Pvt. Ltd.	Bijay Kumal (Founder/CEO)	Enterprise software, SaaS, digital transformation
10	MM Digital Garage	Sanjay Kumar Chaudhary (Founder/CEO)	Digital marketing, branding, SEO, web development
11	Jalberry	Sushant Dhungana (Founder & CEO)	Beverages, natural ice cream, FMCG
12	Saraswati Dhaka Cloth Industry	Anushesh Rayamajhi (CEO/Proprietor)	Traditional Dhaka textiles and apparel
13	Haadi Biryani	Poshan Nepal (Co-founder/PR Head)	Hospitality, restaurant, Mughlai and North Indian cuisine
14	Deepali's Achar & Masala	Deepali Tandan (Founder)	Food processing, pickles and spices
15	Dami Treats (Pratigya Dairy & Ice Cream Industry)	Deepak Hamal (Founder/CEO)	Dairy products, ice cream, bakery and sweets
16	Nep Tech Pal Pvt. Ltd.	Bibek Acharya (Founder/CEO)	Software development, SaaS, mobile applications, AI
17	Moonwake Skincare	Aakriti Jalan (Founder/Formulator)	Natural skincare, haircare and wellness products
18	HomeSewa (Sriyog Consulting)	Prakash Upreti (Founder/CEO; profile also identifies him as CTO)	On-demand home services digital marketplace
19	Sharad Craft Creations Pvt. Ltd.	Preetam Raj Pathak (Founder/CEO)	Felt handicrafts, export-oriented manufacturing
20	Aashutosh Bahuudeshya Udyog	Aashika Kumari Giri (Founder/CEO)	Food processing, Mithila cuisine products, entrepreneurship training

  Published in The Rising Nepal on 8 August 2026. 

Budget outlines series of business, investment reforms

Women entrepreneurs, startups get focus

 

Kathmandu, May 30

Through the budget of the next Fiscal Year 2026/27, the government has expressed its 'full commitment' to industrial innovation.

It has made a plan to invite the private sector to develop and operate industrial areas like Motipur and Nayurdhap in line with the policy of expanding high-quality industrial infrastructure.

In the Panchkhal Special Economic Zone (SEZ), priority will be given to women entrepreneurs. Further concessions will be offered on loan disbursements to women entrepreneurs. "We will make arrangements for a 'Special Economic Administration Zone' where all decisions regarding tax, customs, import, export and investment will be made under a single roof," said Finance Minister Dr. Swarnim Wagle while presenting the budget at the joint session of the Federal Parliament on Friday.

To enhance the competitiveness of productive industries, the government plans to review the demand charge for electricity and provide discounts on electricity tariffs. Industrialists will be able to mortgage structures built on land provided in industrial areas, SEZs, or on lease, for banking purposes.

A plan is also announced to encourage the expansion and growth of industries and businesses that have been unable to operate at full capacity due to lack of capital, by providing 'Business Revival Loans'.

Likewise, the government is set to implement the 'Investment Express' concept by introducing an automated route system within the next three months.

"We will make arrangements for integrated services covering everything from company and industry registration, financial services, tax system participation, and visa applications, including provisions for information access, compliance reporting, and risk-based auditing," read the budget.

A legal provision will be made so that projects approved by the Investment Board do not require further approval from other agencies. Investment visas will be provided for conducting research and studies related to investment in approved projects, and investment and profit repatriation will be facilitated by simplifying share transfer, tax clearance, asset valuation, loan repayment, dividend distribution, and liquidation processes.

 

Expansion of labour-intensive industry

To develop and expand labour-intensive industries with export potential, such as agro-processing, tourism services, and light manufacturing, model Employment-Linked Production Zones will be operated.

A sewage system with treatment plants will be operated in collaboration with the government and the private sector in industrial areas and corridors, using clean energy-based technologies.

Concessional loan facilities will be provided to replace traditional boilers in industrial establishments with electric boilers. An allocation of Rs. 220 million is made to convert 100 industries to electric or bio-briquette-based boilers.

Rs. 650 million is earmarked for industrial infrastructure development, and Rs. 500 million for the design, construction, and maintenance of industrial and mining access roads used by heavy vehicles, with special standards.

The budget also announced to establish a Mining and Minerals Authority for the comprehensive regulation and management of the extraction, production, supply, and use of mineral and construction materials.

"We will expedite the necessary processes for the commercial production of petroleum in Dailekh. We will proceed to reduce the Government of Nepal's share in the Dhaubadi Iron Industry and operate it under a public-private partnership model," said FM Dr. Wagle.

 

Customs duties lowered to seven tiers

The finance minister reduced customs duties on 273 types of raw materials, ensuring that the tariff on industrial raw materials is at least one level lower than that on finished goods. He also limited the existing eleven tiers of customs duties to just seven.

The budget also announced to draft, replace, or amend dozens of acts, regulations, procedures, and directives for investment promotion, economic reforms and smooth delivery of services. A Bill to amend related acts will be presented in Parliament to immediately repeal the 15 laws announced earlier.

Similarly, the government announced to amend company law to facilitate the process of dissolving companies, while ensuring clarity on issues such as conflicts of interest and disclosure of information.

It will enter into foreign investment protection and double taxation avoidance agreements with more countries. "We will amend the Insolvency Act, 2063, to resolve financial problems of consumers as well as micro, small, and medium-sized enterprises. To promote investment, we will draft a limited liability partnership law, which will encourage angel investment to be directed into venture capital and private equity funds," said Dr. Wagle.

 

Simplifying provisions to invest abroad

The government has announced plans to simplify the provisions allowing Nepali citizens to invest abroad. Through amendments to the Industrial Enterprises Act, a new provision will be introduced requiring industries only to notify the Department of Industry regarding matters such as capacity expansion, change of ownership, and capital increases.

Similarly, amendments to the Foreign Investment and Technology Transfer Act will remove the requirement for prior approval from Nepal Rastra Bank for the repatriation of investment, with notification to suffice. Convertible instruments, project-related funding, and other hybrid instruments will be included within the scope of foreign investment.

The requirement for prior approval in the automatic approval process for foreign investment will also be removed. Furthermore, procedures for sending service fees, royalties, and technology-related payments abroad are to be simplified.

Likewise, FM Dr. Wagle announced that legal provisions for the recovery of loans will be made. A law on the protection of intellectual property will be drafted shortly. By analysing past overall economic activities, arrangements will be made to provide credit based on the creditworthiness of individuals and businesses. A separate tribunal is to be established for the speedy resolution of commercial disputes, and the Conciliation Act will also be improved.

To ensure financial access for small and medium-sized industrialists, loans will be guaranteed through a 'first loss recovery' mechanism.

Dr. Wagle also announced that the start-up operating system will be strengthened by tailoring start-ups to identification, skills, market access, and financial inclusion, through profit-linked tax concessions, preferential access to public procurement, digital registration, and regulatory facilitation.

Published in The Rising Nepal daily on 31 May 2026.   

Nabil to train agriculture entrepreneurs in 16 villages

Kathmandu, Apr. 22

Nabil Bank Limited has launched skill-based financial literacy and entrepreneurship development training programmes targeting people engaged in agricultural businesses across 16 villages in Nepal.

The training began on Wednesday in Sinja Rural Municipality of Jumla and will be expanded to 15 additional locations within the current fiscal year 2025/26, the bank informed in a statement.

The programmes are being conducted in coordination with local governments across Koshi, Madhes, Gandaki, Lumbini, Karnali and Sudurpashchim provinces.

The bank said around 500 individuals currently involved in, or planning to start, agriculture-based enterprises will benefit from the initiative.

CEO Manoj Kumar Gyawali said participants will receive practical knowledge on savings, budgeting, loan management, insurance and investment options. “The programme aims to strengthen financial literacy, reduce unemployment, encourage new business ventures and promote sustainable economic growth through entrepreneurship development,” he said.

The training is part of the bank’s corporate social responsibility efforts and aligns with its focus on sustainable banking. It is intended to support people in rural areas to become more self-reliant by equipping them with relevant skills and information.

"Participants will receive both technical and business-related training in areas such as goat farming, pig farming, buffalo rearing, mushroom cultivation and vegetable farming. The programme will also cover identifying business opportunities, marketing and financial management," read the statement.

The bank said the initiative also prioritises environmentally responsible and socially accountable investment practices, in line with long-term economic sustainability goals. 

Published in The Rising Nepal daily on 23 April 2026.         

FNCCI pushes for policy reforms to ignite startups

Kathmandu, Feb. 18

The Startup and Innovation Forum under the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has emphasised the need to accelerate collaboration by prioritising policy reforms, an investment-friendly environment, and entrepreneurship development programmes to promote startups and innovation in Nepal.

Forum's meeting held on Tuesday evening concluded that stakeholders must collaborate to promote startup and youth entrepreneurship, the FNCCI informed in a statement.

Senior Vice-President of the FNCCI Anjan Shrestha said that the startup ecosystem cannot be strengthened without innovation-friendly policies and expanded access to finance. He stressed the importance of enhancing cooperation between the private sector and the government.

Shrestha also informed that FNCCI would remain active in facilitating market access, mentorship, and regulatory clarity for startups. According to him, there is a need to make training, technical support, and incubation services more effective for innovative enterprises.

Vice-President Hemraj Dhakal noted that policy facilitation related to taxation and investment is essential to encourage startup and innovation-based enterprises. Similarly, Vice-President Jyotsna Shrestha highlighted the need to place women and youth entrepreneurship at the centre of startup policy and stressed expanding capacity-building and networking programmes to create an inclusive entrepreneurial environment.

Treasurer Bharat Raj Acharya pointed to the need to transform the Startup and Innovation Forum into a formal committee and stated that institutional standards must be developed for its expansion.

Executive Director of the Industrial Enterprise Development Institute, Umesh Kumar Gupta, said that policy reforms have been introduced in the startup and innovation sector and that government programmes for enterprise development would be advanced in partnership with the private sector.

Forum Chair Juna Mathema briefed the meeting on the forum’s activities, partnership expansion, startup showcases, and policy dialogue programmes, stressing the need to further strengthen entrepreneur-investor platforms in the coming days.

Published in The Rising Nepal daily on 19 February 2026.     

Nine Nepali startups secure investment thru IN-SPAN

Kathmandu, Feb. 4

Nepal-India Chamber of Commerce and Industry (NICCI) hosted the Nepal-India Startup Samvad in Kathmandu on Wednesday to mark it as an important milestone in cross-border entrepreneurial collaboration.

The event featured the successful cohort of the India-Nepal Startup Partnership Network (IN-SPAN), a flagship initiative facilitated by IITM Pravartak Technologies Foundation (IIT Madras) with the support of the Ministry of External Affairs, India.

Under the programme, 24 Nepali startups participated in an intensive eight-week residency within the IIT Madras innovation ecosystem, gaining access to advanced mentorship, technological guidance, and market exposure, informed the NICCI.

A significant outcome of the cohort was that nine startups secured exclusive investment and incubation offers from leading Indian incubation platforms - a strong indicator of the rising potential of Nepal’s innovation ecosystem and the value of regional cooperation.

Speaking at the event, President of NICCI Sunil KC, emphasised that cross-border startup partnerships are essential to enhancing regional competitiveness and driving youth-led economic growth.

Likewise, Vice-President of NICCI Kunal Kayal, noted that the next phase of Nepal-India economic relations must be driven by the private sector and powered by innovation. “To institutionalise this momentum, our committee is spearheading the establishment of a Startup Innovation Centre, which will serve as an epicenter connecting all ecosystem stakeholders,” he added.

Er. Umesh Kumar Gupta, Executive Director of the Industrial Enterprise Development Institute (IEDI) Nepal, highlighted the importance of institutional support, policy alignment, and capacity-building initiatives in nurturing startups into globally competitive enterprises.

Founders of the selected start-ups shared their experiences from the IIT Madras residency. Participants spoke about access to high-end laboratories, investor engagement opportunities, product refinement support, and exposure to global best practices. Many described the experience as a turning point that helped them move from early-stage development to market-ready innovation. They sought government and policy support to make their entrepreneurial ventures successful in the long-run.

According to NICCI, by linking Nepali entrepreneurs with Indian innovation platforms, the initiative aims to accelerate knowledge transfer, promote regional market integration, and position Nepal as an emerging hub for technology-driven enterprise.

Published in The Rising Nepal daily on 5 February 2026.  

CIM launches mission to enhance business connectivity

Kathmandu, Jan. 15

With the aim of further strengthening cooperation between industrial development and regional businesses in Koshi Province, the Chamber of Industries Morang (CIM) is set to launch a three-day ‘Koshi Connect Business Mission’ from Friday to Sunday – January 16-18.

The Mission is being initiated to play a catalytic role in promoting industrial development, regional collaboration and business-to-business cooperation, the CIM said in a statement on Thursday. Under the mission, a delegation from the organisation will visit Udayapur, Khotang and Bhojpur districts, where interactions will be held with local industries and businesses on investment opportunities and areas of cooperation, according to the organisation.

The organisational delegation includes President Nand Kishore Rathi, Immediate Past President Rakesh Surana, Senior Vice-President Bholeshwar Dulal, Vice-Presidents Surendra Golchha, Bipin Kabra and Subodh Koirala, Treasurer Paras Luniya, and Executive Committee Members Saurabh Sarda, Birendra Rathi, Dipak Agrawal, Santosh Bhagat, Siddharth Kabra, Kiran Byas, Paras Golchha, Ukesh Agrawal; entrepreneur Nirmal Kochar; women entrepreneurs Pratibha Paudel Niraula, Sabitra Dhakal and Bimala Thapa, among other members.

Rathi said that the business mission is expected to contribute towards strengthening regional trade, promoting local products and supporting the goal of building a pathway to shared prosperity.

He expressed confidence that, through this initiative, the CIM will help advance the hills and the Tarai on a shared development journey, expand business-to-business relationships, facilitate the exchange of knowledge and ideas, and establish a common voice on economic agendas.

Likewise, Rathi also noted that the mission will support the ‘Koshi Tourism Year 2082’ campaign launched by the Koshi Provincial Government, and will further assist in strengthening tourism promotion led by the private sector, expanding regional ties and reinforcing cooperation.

According to the CIM, the Mission aims to establish inter-district business networks and partnerships, promote investment and trade opportunities, market domestic products through the ‘My Country, My Products’ campaign, virtually connect businesses through a B2B platform, encourage entrepreneurship and innovation, and develop a shared perspective on economic agendas.

Under the programme, interactions on various dimensions of B2B engagement and cooperation will be held with representatives of Triyuga Chamber of Commerce and Industry, Khotang Chamber of Commerce and Industry, and the Bhojpur Chamber of Commerce and Industry.

Published in The Rising Nepal daily on 16 January 2026. 

Entrepreneurship orientation held

Kathmandu, Nov. 19

The Women’s Chamber under the Nepal Chamber of Commerce (NCC) organised a Startup Entrepreneurship Orientation Programme in Kathmandu on Wednesday. The event, held in collaboration with the Industrial Enterprise Development Institute (IEDI), benefited more than 100 emerging entrepreneurs.

The orientation provided aspiring entrepreneurs—interested in applying for the government’s startup loan—with guidance on the loan application process, the nature of enterprises eligible for the scheme, and other key requirements, the NCC said in a statement.

The IEDI has announced that proposals for the startup loan can be submitted until November 25. It's Executive Director, Umesh Gupta, briefed participants on matters such as loan proposal requirements, the evaluation process, priority sectors, and loan accessibility.

Addressing the orientation, President of the NCC, Kamlesh Kumar Agrawal, emphasised the need to expand the Startup Loan Programme across all seven provinces to foster entrepreneurial development.

He said that the budget for the scheme should be increased in the forthcoming fiscal year so that the startup loan can be extended nationwide.

Agrawal also highlighted the importance of showcasing the success stories of entrepreneurs who have utilised the startup loan, adding that they should receive support for production and marketing. He said that the Chamber would assist in further study and research related to the Startup Loan scheme.

Urmila Shrestha, chairperson of the Women’s Chamber, stressed the need to make proper use of the startup loan to promote entrepreneurship. She stated that the NCC would continue providing orientation programmes focused on women’s entrepreneurship.

Published in The Rising Nepal daily on 20 November 2025.

Zaap EV launches scooter rental with batter swap facility

Kathmandu, Aug. 17

Zaap EV, a pioneering electric mobility startup described as a comprehensive mobility ecosystem for delivery and ride-sharing, has officially announced its operation.

Zaap EV’s electric scooters, which boast a range of 60 km, will be available for rental at under Rs. 500 per day, making them highly accessible for daily use. The scooters are modular, allowing for easy modification—whether it's adding an extra seat or converting them into goods carriers for delivery purposes.

The service is expected to be launched within a month, with plans already in place to scale rapidly. Starting in the Kathmandu Valley, Zaap aims to expand nationwide within the year.

According to Dr. Sudeep Rauniyar, Managing Director of the company, the Zaap ecosystem includes a robust battery-swapping network, with 200 batteries distributed across 30 locations, initially. Users can swap batteries from 6 am to 9 pm, with 24-hour access planned soon to better support gig economy workers with irregular hours.

Looking ahead, the number of electric bikes is set to increase to 400 within a year, as the company expands its footprint beyond Kathmandu.

“The initiative marks a significant step forward in Nepal’s green transport revolution, with a unique focus on empowering women, gig workers, and students,” said Dr. Rauniyar.

He described the initiative as Nepal’s first women-focused, sustainability-driven two-wheeler product, designed not only to promote eco-friendly transportation but also to support inclusive economic participation.

“We want to create a bridge between gig workers, women, and students. Our mission is to provide affordable, sustainable mobility while enabling women to become micro-entrepreneurs,” said Dr. Rauniyar.

The company is tying up with an Indian auto manufacturer for chassis and battery products exclusively for it. Users can visit the website of Zaap EV, enroll for membership, and complete their KYC to gain early access to the electric two-wheeler rental service.

Published in The Rising Nepal daily on 18 August 2025. 

Zaap EV launch scooter rental with batter swap facility

Kathmandu, Aug. 16

Zaap EV, a pioneering electric mobility startup described as a comprehensive mobility ecosystem for delivery and ride-sharing, has officially announced its operation.

Zaap EV’s electric scooters, which boast a range of 60 km, will be available for rental at under Rs. 500 per day, making them highly accessible for daily use. The scooters are modular, allowing for easy modification—whether it's adding an extra seat or converting them into goods carriers for delivery purposes.

The service is expected to launch within a month, with plans already in place to scale rapidly. Starting in the Kathmandu Valley, Zaap aims to expand nationwide within the year.

According to Dr. Sudeep Rauniyar, Managing Director of the company, the Zaap ecosystem includes a robust battery-swapping network, with 200 batteries distributed across 30 locations, initially. Users can swap batteries from 6 am to 9 pm, with 24-hour access planned soon to better support gig economy workers with irregular hours.

Looking ahead, the number of electric bikes is set to increase to 400 within a year, as the company expands its footprint beyond Kathmandu.

“The initiative marks a significant step forward in Nepal’s green transport revolution, with a unique focus on empowering women, gig workers, and students,” said dr. Rauniyar.

He described the initiative as Nepal’s first women-focused, sustainability-driven two-wheeler product, designed not only to promote eco-friendly transportation but also to support inclusive economic participation.

“We want to create a bridge between gig workers, women, and students. Our mission is to provide affordable, sustainable mobility while enabling women to become micro-entrepreneurs,” said Dr. Rauniyar.

The company is tying up with an Indian auto manufacturer for chassis and battery products exclusively for it. Users can visit the website of Zaap EV, enroll for membership, and complete their KYC to gain early access to the electric two-wheeler rental service.

Published in The Rising Nepal daily on 19 August 2025. 

PM Oli urges young entrepreneurs to stay determined, optimistic

Kathmandu, July 31

Prime Minister KP Sharma Oli has called on young entrepreneurs to remain determined and optimistic about the future, and said that their efforts will play a crucial role in achieving the national aspiration of 'Prosperous Nepal, Happy Nepali'.

Speaking at the ‘Startup Entrepreneurs with the Prime Minister’ programme organised today by the Industrial Enterprise Development Institute at the Prime Minister’s Residence in Baluwatar, he stressed the importance of forward-looking optimism.

“If we abandon the development and course for future, nothing will remain. Therefore, we must move ahead with confidence, with an aim of making Nepal a bright and developed nation,” he said.

According to him, Nepal will achieve the status of a developing nation by 2026, and will then move on to becoming a developed country.

"No one else will come and build our country for us, we must do it ourselves. Through the development and practice of technology, we can achieve modernisation and increase productivity,” said PM Oli. “If we all commit to this, we can do it. Nepal can be built.”

During the programme, the Prime Minister also visited various stalls showcasing a wide range of products by Nepali entrepreneurs.

Published in The Rising Nepal daily on 1 August 2025.

MSEs hesitate to join SSF scheme

Kathmandu, July 24

Seven years since Nepal implemented the contribution-based social security scheme for the employees, the question remains on how to better attract Nepali businesses to the Social Security Fund (SSF).

In particular, micro and small enterprises (MSEs), which according to the Economic Census of 2018 constitute 99.5 per cent of total 923,356 in operation then, are lagging in this regard.

While the law has mandatory provisions for formal schemes, MSEs remain apprehensive whether they could continue with SSF in a sustainable manner. The take-up across informal sector schemes, and the self-employed schemes also remain sluggish.

MSEs contribute about 22 per cent to the national economy and employ about 1.8 million people.

Chairperson of Cottage and Small Industry Committee at the Federation of Nepalese Chamber of Commerce and Industry (FNCCI), Narendra Kumar Khadka, said that in the current economic situation and stringent policies, it is not easy for the employers to ensure the sustainability of contribution-based social security.

"The micro and small enterprises are between compulsion and understanding in terms of executing the social security provisions. We need to find a middle ground to support the employers and facilitate the employees," he said.

According to him, the FNCCI is working on it through a committee led by the Ministry of Labour, Employment and Social Security, Social Security Fund (MoLESS) to implement the National Action Plan on Formalization with technical assistance from the International Labour Organization (ILO) which is promoting the registration of MSEs into SSF.

The Contribution-Based Social Security Act 2017 envisions all business establishments – both in formal and informal sectors – as well as non-profit sector institutions, and individuals including those in foreign employment to be included in the system.

According to the law, the employee contributes 11 per cent and the employer puts up 20 percent making it 31 per cent of the basic salary for formal schemes. The informal sector worker schemes have 11 per cent of the workers and 9.37 per cent from the local government while self-employed schemes see the full 31 per cent contributed from income.

The benefits on offer include medical treatment and health benefit, and various protections like maternity, accident, incapacity, old age, dependent family and unemployment. Such schemes ensure protection for both employers and workers, enhancing productivity and promoting employment security.

However, in case of failure to deposit the contribution within 15 days after the end of each month may result in a 10 per cent interest charge on the overdue amount. However, there is a clause in the law whereby the employer can register an application to the SSF to deposit the money within 30 days if there are plausible reasons that the situation was beyond their control.

If the non-compliance continued beyond the period agreed by the SSF, it can write to the concerned authorities to freeze the bank account, moveable and immoveable assets of the concerned individuals or institutions, suspend or stop the rebate facility entitled by law and suspend their permit or license, and freeze the passport of the persons concerned.

These provisions have forced the MSMEs, many of which lack business sustainability plan, think twice before joining the SSF.

The SSF has estimates that out of 21,031 economic establishments registered with the Fund, 3,000 (about 14 per cent) are MSEs. Its collections had reached Rs. 86.93 billion in contribution till Wednesday 23 July 2025 and paid Rs. 15.79 billion against the claims for medical and health treatment, accident and disability, dependent family protection and retirement facility.

 

MSEs' possibility of joining SSF

A sample survey on micro and small enterprise contribution capacity has now completed by the MoLESS led the committee in charge of implementing the national action plan on formalization.

On the demand side, it was found that nearly half of the non-contributing enterprises demonstrated good financial health, suggesting the potential to participate in SSF. Also, many MSEs lacked proper bookkeeping, with some even lacking bank accounts in the name of the enterprise, which calls for financial literacy and business management support. Interestingly, it was found that there was a segment of unregistered businesses that could join SSF, and in cases unaware of the different formal, informal sector and self-employed schemes on offer.

On the supply side, a need to consider subsidies, financed through tax mechanisms or redistribution though carefully designed to ensure sustainability and avoid creating disincentives for MSE formalisation or business growth was found.

Spokesperson for the SSF, Krishna Adhikari, has made a primary assessment that there is a possibility to include all the MCSEs in the social security scheme.

"We found that joining the SSF may not be a financial burden to the enterprises since it entails other various benefits, relieves the employers from the potential extra expenses on health and other areas while employees could be more motivated," he said.

Yet, there is a need for intensive campaign for information, awareness and education to micro, and small entrepreneurs to attract them to the scheme.

Meanwhile, the FNCCI together with MoLESS, SSF and other members of the committee with technical assistance from the ILO, and the European Union United Nations Empowered Women Prosperous Nepal programme has begun implementing a targeted awareness programme based on the findings.

In Nepal, micro enterprises are businesses with fixed assets of up to Rs. 2 million and employ up to nine persons with direct involvement of the investor. Small enterprises are the businesses with fixed assets ranging between Rs. 2 million and Rs. 50 million employing between 10 and 49 persons. Similarly, medium enterprises have fixed assets between Rs. 50 million and Rs. 150 million and employ between 50 and 249 persons. These investments are excluding the land and buildings. 

Published in The Rising Nepal daily on 25 July 2025.

Ghimire elected new NYEF president

Kathmandu, July 19

The Nepalese Young Entrepreneurs’ Forum (NYEF) has elected a new National Executive Committee for Fiscal Year 2025/26 under the leadership of Sudip Ghimire.

The newly elected Executive Committee includes Immediate Past President Kushal Sundar Shrestha, first Vice President Abhushan Jyoti Kansakar, second Vice President Nivita Pradhan, female Vice President Richa Shrestha, and members Krish Sapkota, Pabitra Bahadur Gautam, Subilasha Shrestha, Yunesh Raj Shrestha, Subin Shrestha and Abhimanyu Golchha.

The announcement was made during the organisation’s 21st Annual General Assembly held on Friday in Kathmandu.

Sudip Ghimire is an Executive Director of SG Group. The group operates in energy. He had begun his journey with NYEF in 2019 as the founding president of its Sunsari chapter and served on the national council since 2020.

In a statement issued on Friday, the NYEF – youth wing of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) – said that the Forum will focus on promoting innovation, inclusion, and impact in Nepal’s youth entrepreneurship landscape. It has also committed to building international partnerships with young entrepreneurs from neighbouring countries and fostering leadership and entrepreneurial thinking at the grassroots level by collaborating with schools, colleges, and youth communities nationwide.

The forum also pledged to identify challenges faced by youth-led businesses and advocate policy reforms in coordination with relevant authorities to create a more business-friendly environment in Nepal.

Speaking at the AGM, FNCCI, Chandra Prasad Dhakal, has called on young people to create opportunities within the country rather than seeking them abroad.

“There are plenty of opportunities in Nepal. One can do a great deal while staying here. Jobs can be created here itself. I urge the youth to generate opportunities within the country,” he said.

Dhakal reiterated FNCCI’s continued commitment to promoting youth entrepreneurship and innovation and said that NYEF now holds ex-officio membership in the central committee of the federation under its recently amended statute.

Published in The Rising Nepal daily on 20 July 2025.   

Registration empowers women's business

 Procedural hurdles still hinder wider transformation

 

Kathmandu, July 17

Anita Basaula, a woman entrepreneur from Birgunj, has been running beauty parlour business informally. Nobody told her about the need and benefits of registering the business. Meanwhile, after attending a two-day Formalize your Business training under the 'Empowered Women and Prosperous Nepal' programme organised at the Birgunj Chamber of Commerce and Industry, she realised the avenues could be opened with the registration of her business.

"I will register my beauty parlour this month (mid-July to mid-August). Now I know that formalisation opens doors to cooperation with banks, government bodies, non-government organisations and other partners," she said.

According to Anita, training provided her with clear and practical knowledge on how, why and where to register a business. "All entrepreneurs who are yet to register their businesses should be provided such training. It will provide them legal knowledge and ensuring business sustainability."

Likewise, Sunaina Thakur, owner of Mithila art-based enterprise Sunaina Arts in Janakpur, has transformed her artistic skills and cultural identity into a business venture and created jobs for local women. While she was in this business for the last two-and-a-half decades, her business was running informally without being registered at the concerned authorities.

Registering her business was not 'all-pleasant' activity. "I encountered a few challenges in the beginning. But when my business is registered, I could participate in government projects, access loan from the banks and financial institutions and collaborate with other companies and agencies," she said  adding that it supported in expanding her network and growing business.

Sunaina shared that running a business formally, getting it registered at the local or federal agencies, allows entrepreneurs to have better and transparent engagement with local producers. According to her, renewal process is easy and it is mandatory to renew if you want to continue with your business.

Business formalization has brought multitudes of benefits to entrepreneurs and supported in their growth and networking.

"It does wonders in creating an environment of trust and can have direct positive impacts on business and related activities," said Niru Rayamajhi Khatri, Immediate Past President of the Federation of Women Entrepreneurs' Associations of Nepal (FWEAN).

 

Opening doors of opportunities

Many entrepreneurs, especially micro, cottage and small (MCSEs), faced challenges in obtaining the financing facilities from the banks and financial institutions (BFIs), government incentives and other support in the wake  of the COVID-19 because they were not registered with the concerned government agency at any level.

However, with the implementation of the federalism and local bodies beginning the business registration, the scenario has improved significantly, said Khatri. Although actual numbers are not available, the estimates from the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) tell that the numbers are encouraging.

For example, about 85 per cent of the businesses in Tilottama Municipality of Rupandehi district are registered. According to the Economic Census of 2018, about half of the businesses in operation across the country were running without being registered.

"We have been calling on the entrepreneurs for the registration of their businesses and timely renewal. Agricultural businesses get 50 per cent discount in the registration fee while businesses run by women's group are  entitled to  75 per cent discount," Krishna Prasad Pandey, an officer of Tilottama Municipality Office said to The Rising Nepal.

Tilottama launched business formalisation as a campaign since 2017.

Capital city Kathmandu Metropolis and Dhangadhi Sub-Metropolitan City have also launched business registration drive in their respective areas. Krishna Kumari Bista from Dhangadhi said that following her business registration and quality products, she has been awarded as the 'best entrepreneur' for multiple times.

 

Poor policy implementation

Meanwhile, Juna Mathema, Chairperson of the FNCCI's Start-Ups and Innovation Forum, pointed to the need for further facilitation in the registration process and timely implementation of the government-announced policies.

"It's not that our policies are bad. Problem is with their implementation. Although the government announces various incentives and discounts to the entrepreneurs, their implementation is most often delayed," she said.

For example, the government announced registration fee waiver for entrepreneurs in the budget of the current Fiscal Year 2025/26, it hasn't formulated a procedure for it. As a result, concerned authorities will not be able to implement the provision.

"Entrepreneurs ask the FNCCI when will they get the announced benefits and incentives. But it takes months for their implementation," said Mathema.

Likewise, lack of procedure to recognise the startup business has deprived the entrepreneurs from the benefits. According to Mathema, most often, poor inter-agency coordination is behind these shortcomings .

 

Complexities observed

These perspectives reflect growing calls from employers to address existing bottlenecks, in particular for women entrepreneurs. They include lack of coordination between departments and agencies, reliance on intermediaries, requirement of rental document and inconsistencies in defining industries has created problems in enterprise registration process.

FNCCI is working with the ILO and local governments in awareness and facilitation support with priority in supporting women entrepreneurs. It is conducting training to women entrepreneurs to educate them in business formalisation, through Women Entrepreneurship Helpdesks in select districts.

Issues in obtaining incentives for business registration and renewal are lack of policy clarity, multiple taxation, need for physical visits, and ineffective operationalisation of incentives. FNCCI has renewed calls for single digital registration and renewal system for enterprises, building on recommendations from enterprise formalisation paper developed by ILO under the national action plan on formalisation.

Likewise, issues relating to compliance are emerging due to lack of monitoring, perceived excessive and disproportionate punitive measures for non-compliance, lack of awareness of regulation and requirements, and lack of digital data management.

 

Published in The Rising Nepal daily on 18 July 2025.