The private sector has welcomed the government’s recent ordinance on investment, emphasizing the need for its prompt approval by parliament and the formulation of necessary regulations and procedures. Entrepreneurs and business leaders at the Nepal Startup and SME Business Conference, organized by the Nepali Congress and inaugurated on Wednesday, expressed these views.

Chandra Dhakal, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), described the ordinance as industry-friendly. “The ordinance is crucial for business and industry. I urge its swift implementation and support,” he said.

Dhakal noted that political parties can play a vital role in fostering innovation, thereby encouraging youth investment in startups. He highlighted FNCCI’s establishment of a Startup and Innovation Committee and Forum to promote entrepreneurship, stating that many young entrepreneurs have entered the market through startups.

“In the past, investment was a bigger challenge than operations. Now, banks, financial institutions, venture capital firms, and even individual investors are willing to invest. There is no shortage of capital for those with viable ideas. This opportunity for entrepreneurship and innovation must be fully utilized,” he added.

Vidushi Rana, executive director of Kiran Shoes Manufacturers Pvt. Ltd., emphasized the employment potential of the footwear industry, ranking it just behind agriculture and garments. She expressed concern over the high-risk contribution of the manufacturing sector to GDP, stating, “The state must invest in manufacturing industries. While doing business is challenging worldwide, it is significantly harder in Nepal.”

She criticized the lack of government concessions for manufacturers and stressed the need for differentiated banking policies. “For the past 10 years, exports have faced severe difficulties. Interest rates for trading and manufacturing should differ because traders can repay loans within a month after selling imported goods, whereas the production cycle for footwear takes six months. Additionally, acquiring land and setting up industries is unaffordable, and the promised export subsidies have not materialized,” she said.

Manoj Gyawali, senior deputy CEO of Nabil Bank, revealed that the bank has Rs 6500 billion in deposits, of which Rs 5200 billion has been invested in businesses. He explained why banks hesitate to finance startups, stating, “While established businesses and reputable companies can access loans, startups and new entrepreneurs struggle due to a lack of collateral. Nepal Rastra Bank mandates that loans without collateral cannot be granted, which makes it challenging to fund startups.”

At the conference, Gaurav Pandey, vice president of the Nepal Association for Software and IT Service Companies (NAS-IT), praised the ordinance for supporting Nepal’s tech ecosystem. “The IT sector has the potential to create 400,000 jobs over the next decade and generate Rs 800 million annually in foreign exchange. Achieving this requires strong collaboration between political parties, the government, and the banking sector,” he stated.

The two-day conference, being organized by the Entrepreneurship and Small and Medium Enterprise Development Department of the Nepali Congress, will address issues such as SME challenges, innovation, agricultural enterprises, information technology, women’s entrepreneurship, and success stories of entrepreneurs.

Nepali Congress President Sher Bahadur Deuba, who inaugurated the event, stated that the government introduced the ordinance to remove legal barriers hindering entrepreneurs. He noted the growing interest in startups among young people and emphasized the government’s critical role in supporting entrepreneurship, skill development, and business continuity.

“As Nepal’s economy remains heavily trade-dependent, we have adopted policies to promote small and medium enterprises (SMEs) to boost local production,” Deuba added.