Nepal is at a pivotal moment. The country, despite its vast potential, is facing a troubling reality: a steady exodus of young talent and entrepreneurs, lured by the stability and opportunities available abroad. This “brain drain” has been weakening Nepal’s socio-economic foundation, leaving the country struggling with stagnating consumption and an economic slowdown. The causes run deep — political instability, restrictive policies, and chronic underinvestment in infrastructure. One critical issue that is often overlooked is the lack of proactive, responsible intervention by nation's most influential and resourceful people

The Paradox of Silence

The challenges faced by Nepali entrepreneurs and young workforce are not secret. They include high taxes, excessive regulations, weak infrastructure and a lack of support for small businesses and startups. Yet, many of Nepal’s influential figures merely offer advice on resilience and self-sufficiency without taking meaningful steps to alleviate these obstacles. Their inaction speaks louder than their advice. Telling the youth to "stay and build" is hollow if it lacks the support and resources needed to make that possible.

Calls for "self-sustenance" and "return to agriculture" ignore the harsh realities faced by struggling entrepreneurs. Beyond rhetoric about resilience, meaningful change requires active support for local businesses, startups, and young talent who can drive structural transformation.

The Cost of Neglecting Small Businesses

Small businesses and startups form the backbone of any economy, leading to the creation of a manufacturing base. They create jobs, foster innovation and promote economic self-sufficiency. However, in Nepal, startups often face bureaucratic red tape, poor infrastructure and outdated regulations.

Instead of stepping in to ease these burdens, Nepal’s influential circles often shy away from challenging the system. They provide minimal financial or operational support to entrepreneurs. Without essential interventions such as investment in business incubators, mentorship programs and access to seed funding, small businesses and startups have little chances of success.

Nepal’s ranking on global ease of doing business indicators remains alarmingly low, stifling new enterprises before they can even begin. High entry costs, convoluted tax policies and inadequate infrastructure make it difficult for young entrepreneurs to view Nepal as a viable place to realise their dreams.

Infrastructure and Policy Reform

Nepal’s infrastructural shortcomings are painfully evident. From erratic infra to poorly maintained roads hurdling distribution channels and limited internet connectivity, the country lacks the basic framework required to support a modern economy. Those with resources and influence are uniquely positioned to advocate for and invest in critical infrastructure. However, they largely remain disengaged even though these issues continue to hinder economic growth and deter investment.

These people must use their influence to advocate for policies that make it easier to start and sustain businesses. Some of these could be pressing the government to streamline regulatory processes, reduce unnecessary bureaucratic barriers, and create tax incentives for startups and small businesses. They can lobby for better access to low-interest loans for small businesses, grant tax breaks for tech and innovation startups, and fund infrastructure projects that facilitate more efficient business operations.

Redefining the Role

For Nepal to secure a sustainable economic future, people with resources should not remain passive. The sight of Nepal's youth departing for foreign shores has become all too familiar. This exodus calls for more than passive observation or well-intentioned counsel from those in positions of influence. Those with resources must become active participants in driving change by leveraging their power and resources to improve the conditions within the country. Some of the things that they can do have been listed below:

Investing in Startups and Local Talent:  Instead of just advising youth to stay and build, influential people should provide the tools and support needed to actually make that possible. This means investing in startups, business incubators and mentorship programs. Imagine a network of thriving local businesses, fueled by mentorship and funding from Nepal’s big corporations and state as well. This would create jobs, stimulate the economy and build a foundation of hope for those considering their options.

Pushing for Political Accountability

Nepal’s political instability has consistently impeded its economic progress. While the country’s wealthy citizens cannot single-handedly stabilise the government, they can use their influence to press for transparency, anti-corruption measures, and accountability in policies that directly impact the business environment. They can also lead by example in their own business practices, promoting ethical standards that could ripple through society

Promoting Entrepreneurship

By investing in programs that support risk-taking, research, and innovation, we can create a culture where entrepreneurship is celebrated, not discouraged. This cultural shift could foster a generation of creative, business-minded individuals who feel empowered to shape the future of Nepal’s economy.

The Path Forward

Nepal cannot afford to lose more of its talent, nor can it continue to rely on remittances as its economic backbone. The time for empty words and passive advice has long passed. The country’s big corporations and individuals need to acknowledge the extent of their influence and take an active role in creating a business-friendly environment that retains talent and fosters local growth.

The country desperately needs visionaries who can translate their influence into tangible change, following the footsteps of transformative leaders like Ratan Tata, whose TATA Group demonstrated how corporate vision could align with national development. Global philanthropists and corporations - from the Gates Foundation to Wipro Limited - have shown how private resources can drive societal change. We need leaders who understand that true impact goes beyond charitable donations to creating sustainable economic ecosystems.

The path forward is clear: Nepal's influential class, intelligentsia and general public must step up and rise above rhetoric and actively support and mentor local startups, lobby for infrastructure development, champion policy reforms that attract investment and create opportunities that keep talent within our borders.

Collecting effort is a must if we are to secure Nepal’s future. It is high time we moved from observation to transformation to build a Nepal where people do not just survive, but thrive.

(Bakshi is Head - Marketing & Corporate Communication at Mahalaxmi Bikas Bank.)

(This opinion article was originally published in   December 2024 issue   of New Business Age Magazine.)