Ken Shimizu, FAO Country Representative for Nepal and Bhutan, has called for greater investment and innovation in Nepal’s entrepreneurship ecosystem—particularly in agriculture. He made the remark during his keynote address at the Nepal Entrepreneurship Forum, which began in Kathmandu on Saturday, July 26.

Organised by King’s College—one of Nepal’s leading institutions in entrepreneurship and business education—along with its research wing CERAD in association with New Business Age, the international conference, now in its second edition, focuses on building a sustainable entrepreneurship ecosystem. It will feature over 25 speakers from Nepal and abroad, according to the organisers.

The two-day event aims to bring together academicians, entrepreneurs, policymakers, and other stakeholders to discuss sustainable entrepreneurship.

Shimizu noted that young entrepreneurs in Nepal face persistent challenges, including limited access to finance due to high collateral requirements, bureaucratic hurdles, and inadequate digital and business literacy—especially in rural areas. Infrastructure deficits further constrain agri-business growth in such areas, he added.

He also underscored Nepal’s vulnerability to environmental threats such as climate change, pollution, and biodiversity loss, all of which negatively affect agricultural productivity. Social and economic pressures—including trade imbalances and rural outmigration—have also impacted the sector, contributing to a shortage of skilled labour and the feminisation of agriculture.

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With fewer than 10,000 agricultural enterprises among Nepal’s 350,000 registered companies, Shimizu highlighted the untapped potential for agri-entrepreneurship. “Nepal is rich in natural resources and has strong international branding for high-value agricultural commodities,” he said, stressing the importance of attracting and retaining youth in the sector.

To address these challenges, FAO is partnering with King’s College on initiatives such as the Youth Food Lab, an incubation programme for agri-entrepreneurs, and supports the Nepal chapter of the World Food Forum—a youth network engaged in advocacy and leadership across all provinces.

Shimizu also pointed to the FAO’s broader efforts, including its Hand-in-Hand Initiative, which seeks to catalyse agricultural investment through value chain development and national forums like the upcoming Nepal Food Forum, scheduled for September. These efforts are complemented by provincial-level events, such as the Madhes Food Forum and commodity-focused summits like the recent Potato Summit.

Highlighting ongoing digital innovation, Shimizu spoke of the Digital Village Initiative, which pilots agricultural technology solutions, and FAO’s support for Nepal’s national digital agriculture strategy. He also mentioned the One Country, One Priority Product programme, which aims to strengthen value chains for key products such as large cardamom.

On the role of technology, Shimizu warned of a widening global divide in artificial intelligence (AI) adoption. While countries like the US and China are moving towards fully automated smart farms, Nepal’s AI readiness remains low, with only an estimated 20–25 percent of businesses currently AI-capable.

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“The digital and AI divide will continue to grow unless Nepal invests in AI infrastructure and skills—particularly for vulnerable groups including rural women and indigenous communities,” he said. However, he welcomed Nepal’s increasing interest in AI, citing its second-place finish in a recent international robotics competition.

Shimizu concluded by reaffirming FAO’s commitment to working with partners to build an inclusive and sustainable entrepreneurship ecosystem in Nepal.