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Center for International Private Enterprise

Fostering Entrepreneurshipthrough Cooperation

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• Nepalhasitsownuniqueenvironmentforentrepreneursandhencetheeffortsrequiredtofosterentrepreneurshipvaryaccordingly.

• Theentrepreneurialclimatelargelydependsonthekindofpoliciesinplaceandtheenforcementofthosepolicies.

• Programstoinspireyouthentrepreneurshipareimportant,asaretheeducationandtrainingthatallowyoungpeopletostarttheirownbusinesses.

• Acooperativeapproachisaproductive,efficientandsustainablemethodoffosteringentrepreneurship.

January 15, 2013

Robin Sitoula Executive Director

Samriddhi, The Prosperity FoundationNepal

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Since its inception in 2006, Samriddhi, TheProsperity Foundation (www.samriddhi.org) hasfocusedon fosteringentrepreneurshipas awayofrealizingNepal’sprosperity.ForNepal,whichhasgonethroughalongperiodofarmedconflict,hasone quarter of its population living in absolutepoverty, and depends heavily on foreign aid forbasicservicestocitizens,entrepreneurshipoffersasustainablewaytoworkthroughitsproblems.Likeanycountry,Nepalhasitsownuniqueenvironmentfor entrepreneurs and hence the efforts requiredto foster entrepreneurship vary accordingly. Theinsecurity and chaos of recent political regimespresent particular challenges to developingentrepreneurship. Additionally, because the socialfabricinthepasthassegregatedjobsbasedoncasteand gender and profit is generally perceived as adirty word, initiatives to foster entrepreneurshiprequireinterventionfrommultiplesectors.

Recognizingtheseconditions, someof thekeyareastoconsiderinimprovingtheentrepreneurialenvironment in Nepal are these: implementingconducivegovernmentpolicies;buildingawarenessand inspiration among young people; increasingeducation and business skills; creating networksand opportunities; providing start-up incubation;and ensuring access to capital.This task requiresa multi-dimensional focus, which is not alwayswithin the capacity of a single organization andits programs.Therefore, in addition to their owninterventions, it is important for organizationsto identify and cooperatewith partners that havecompetitive strengths in particular aspects ofan entrepreneurial eco-system. This cooperativeapproachof identifying essential components andspecificgroupsthataddvaluetotheecosystemisamoreproductive,efficientandsustainablemethodoffosteringentrepreneurship.

Theentrepreneurialclimatelargelydependsonthekindofpoliciesinplaceandtheenforcementofthesepolicies.StudiesliketheWorldBank’sDoingBusinessReportortheFraserInstitute’sEconomicFreedomoftheWorldReportoffervaluableinsightintotheseconditions.Whilehavingentrepreneur-

friendlypolicies is vital, the enforcementof thesepolicies and reductionof the implementationgapis equally imperative.With a focus on economicpolicy and the business environment, SamriddhiworkswithseveralpartnersincludingtheFederationofNepaleseChambersofCommerceandIndustry(www.fncci.org), Nepal Business Initiative (www.nbinepal.org), Society of Economic Journalists ofNepal (www.sejon.com.np), local chambers acrossthe country and other business associations toadvocate for policy change.Through efforts suchas the annual Nepal Economic Growth Agendareport and nationwide grassroots campaignslike “Gari Khana Deu” at www.livablenepal.org(roughly translated as ‘let me earn my living’)Samriddhi, together with its partners, intends tocreateaconducivepolicyregimewherefreedomofenterprise,safetyoflifeandproperty,competition,and improved employee-employer relations areachieved.

Another important aspect of fosteringentrepreneurship in Nepal involves creating anawareness of the opportunities and benefits ofbeing an entrepreneur, which plays an importantroleinbuildingupanentrepreneurialculture.InariskyandunstablecountrylikeNepal,peopletendto look for jobs or leave the country rather thanengage in pursuing a dream.Many times, peopledo not even see entrepreneurship as an option.Samriddhi’sEntrepreneursforNepal(www.e4nepal.com) and Birwa Ventures (www.biruwa.net), runby a partner organization, collaborate to organizeevents that share stories and lessons of successfulentrepreneurs. These are held on a regular basiseverylastThursdayofthemonthwherehundredsofyouthandaspiringentrepreneursbenefit.Everyyear, more than 25 organizations and businessescelebrate the spirit of entrepreneurship duringGlobal Entrepreneurship Week to recognizesuccessful entrepreneurs for their hard work andinnovative approaches. Efforts like these inspiremore people to be entrepreneurs. Rotary Club,Change Fusion Nepal (www.changefusionnepal.org),NepalBusiness Initiative,RadioSagarmathaandSamriddhicollaboratetoproduceweeklyradio

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programs on entrepreneurship called ‘agi badun(Let’smoveforward)’whichservesasanawarenessand policy change medium. Change Fusion,togetherwith several partners, organizes annuallythe Surya Asha Social Entrepreneurship Awardthat recognizes upcoming and successful socialentrepreneurs.

While programs to inspire entrepreneurshiphave been important, aspiring entrepreneursneed education and training in order to buildtheir dreams. Arthālaya – Samriddhi’s school ofeconomicsandentrepreneurship–trainshundredsofuniversity students inconceptsandapproachesto entrepreneurship. The unique setting for thissix-day residential program not only explainswhat entrepreneurship, markets, and policies arebut also offers the participants an opportunity toactually work like a real-time entrepreneur. Thisexperimentalmarketlabapproachtoeducationandtraining has already helped almost one hundredstudents to begin their entrepreneurial journey.Some universities have started offering electivecoursesinentrepreneurshipasapartoftheirdegreeprogram. King’s College (www.kingscollege.edu.np)hasrecentlystartedofferingamaster’sdegreein entrepreneurship. Change Fusion Nepal offerstraining to aspiring social entrepreneurs whileEntrepreneursforNepalconductsbootcampsthatdetailthepracticaloperationalsideofenterprise.

Samriddhi and its partners alsowork togethertocreateareaswhereentrepreneursandyouthcannetworkandshareideas.NepalBusinessInitiativeorganizesaperiodiceventcalledIDOthatfocuseson innovation, dialogue and opportunities.Similarly, the eventsheldon the lastThursdayofeachmonthserveasplatformsfornetworkingandexploring opportunities. Entrepreneurs for NepalmanagesaFacebookgroup(https://www.facebook.com/groups/e4nepal) that connects almost 8,000members with like-minded people. These effortscontribute towards creating networks necessaryfor entrepreneurial activity andmake it easier foraspiringyouthtofindopportunities.

Biruwa Ventures (www.biruwa.net) hasestablished an incubation center with advisoryservices that aspiring entrepreneurs utilize for asmallfee.Thisallowsthemtogearuptheirbusinessand operate for a short period until they becomebetterestablished.ChangeFusionNepalhassimilarincubators that focus on social enterprises.Theseare just some of the initiatives that have startedaddressingtheneedforincubationservices.

In addition, Biruwa Ventures and ChangeFusion offer offer startup capital programs forbusinesses and social enterprises respectively.TheYouth Action Fund administered byChangeFusionhashelpedseveralsocialentrepreneurswithstartup.Samriddhi’scorporatepartnerslikeBrihatInvestments,World Link and F1 Soft have beenoffering startup funding todeservingyouthwithentrepreneurialideasascorporatesocialinitiatives.NepalYoungEntrepreneursForum,Confederationof National Industries Youth Forums, andEntrepreneursOrganization have a programmaticfocus on startup capital for innovative businessideas. BEED Investment hasmade efforts to linkprovenideaswithscaleupfunding.TwocorporatebanksofNepal,MegaBankandLaxmiBank,havestartedprovidingentrepreneurswithscaleupcapitalwithoutrequiringcollateral.Theseinitiativeshavehelpedseveralaspiringentrepreneurstoembarkontheirjourneystoachievetheirdreams.

Entrepreneurs forNepal and BiruwaVentureshave jointly started mentorship programs andsounding boards for needy entrepreneurs. Brihat

[A] cooperative approach of identifying essential components and specific groups that add value to the ecosystem is a more productive, efficient and sustainable method of fostering entrepreneurship.

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Investments, World Link, F1 Soft, PrismaAdvertisingandseveralothercorporatehouseshavebeenofferingmentorshipstoyoungentrepreneursinrespectivebusinesssectors.Theseeffortsprovidemuch needed role models and pave the way formoreopportunitiesinthefuture.

Thesearesomeexamplesofseveralcooperativeefforts aiming tocreateanentrepreneurial societyinNepal.Whiletheseeffortsonlyaddressselectedissues and a small part of demand, they havedefinitely offered hope for a model that can beexpandedandreplicatedtocreateanentrepreneurialcultureinNepal.

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Robin Sitoula is Executive Director of Samriddhi, The Prosperity Foundation – a public policy institute based in Kathmandu, Nepal. He first became involved in youth activism in 1997. In 1999, he joined Youth Initiative as a co-founder of the organization. Since then, he has been designing, developing and conducting programs meant to bring leadership skills and civic awareness to young students and young policymakers in Nepal. He is also the founding President of Liberal Youth South Asia and has traveled extensively throughout South Asia to conduct programs in free market and democracy with young people in the region. He has been a delegate to the International Visitor Leadership Program (IVLP) of the Department of State and a visiting fellow at the Atlas Foundation. Mr. Sitoula graduated with a degree in Investments and Financial Management (MBS Program) from Tribhuwan University of Nepal. He has co-authored research papers on youth employment status and youth political organizations and their influence in Nepal. His areas of interest are public policy, youth empowerment, and development.

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