Private enterprise in the market of Nepal

Until the mid-1970s, Nepal focused primarily on developing the public sector of the economy. In the late 1970s and early 1980s, state-owned industrial production began to decline sharply, and private enterprise and foreign investment were encouraged. Beginning in May 1991, the government set out to liberalize the economy by encouraging foreign investment. The government reduced government spending by cutting subsidies, reducing the number of civil servants, privatizing industrial enterprises, and freezing unpromising development projects.

The subtleties of entrepreneurship

The study uses a fairly broad definition of entrepreneurship that emphasizes the role of the individual in the entrepreneurial process. Entrepreneurship is any attempt to create a new business or company (self-employment, new commercial organization, expansion of an existing business) undertaken by an individual, a group of individuals or pre-existing companies.

Attitudes towards entrepreneurship reflect the general mood of the population towards entrepreneurs and entrepreneurship in general. The presence in the country of people who are not only able to recognize new business opportunities, but also have enough knowledge and experience to implement them, significantly affects the development of the country.

An important characteristic of potential entrepreneurship is the number of people planning to start a business. The higher the level of entrepreneurial activity in the country in the future, the higher the number of inhabitants with entrepreneurial intentions, i.e. the desire to create their own business. Entrepreneurial activity is a multifaceted concept and describes the involvement of the population in creating new companies, managing growing and established companies, and closing businesses.

The development of social entrepreneurship in Nepal

Social entrepreneurship in Nepal in general is now very well developed. It has been developing for about 60 years. It is mostly government support. The government has helped to create social enterprises, which worked as a full-fledged business, solving various problems. The condition is that the company’s profit should be distributed only in its development. So that the money does not go outside its boundaries. 

If suddenly there’s nowhere else to develop, you can pay your employees more and channel the money also into investments in your related companies. The decision to grow or not to grow is left to the entrepreneur, but since they usually want to solve the social problem, 

they try to grow.

This is something reminiscent of the Soviet practice, when large state-owned enterprises invested in building houses for employees, kindergartens, cultural centers, stadiums. But by and large the behavioral patterns of the Nepali system are somewhat different. The coincidence is that the request is from the government. And the solutions are still different. One model is when a businessman wants to solve some social problem and goes to the government for support (grant). The second is when he goes to investors. But, again, the request can also come from the government.

The benefits of social entrepreneurship for society

There is, for example, an organization that helps the basic illiterate women of the countryside. This is assistance in employment – to do household chores, housekeeping, child care. They are additionally trained for this purpose. In two years, 600 women have already been employed. This is the program “Help to Sign”. 

Another program helps school children. Nepali schools often do not have gymnasiums, so there is nowhere for the children to play team sports. So, the organization’s staff play

 with the children, teaching them how to act as a team in the open playgrounds. 

Women’s entrepreneurship in Nepal

There are a lot of women involved in business there.Traditionally, there are already a huge number of social enterprises organized by women. Mostly at first they were just focused on survival. And women are doing both social entrepreneurship and explicitly commercial entrepreneurship. As one Nepali entrepreneur put it, “There’s all hope for women because they’re better at spreading knowledge, and if a woman is smarter, the family is better off, it will only benefit.”


The world economy is in a clear period of crisis these days, but it is not a big threat to Nepal. Nepali society is very different because they are more focused on saving and saving. So they will not be affected by the crisis as much. 

In Nepal, everything is based on relationships: parents educate their children, they educate their children, and everyone inherits property from each other. At the country level, there will be some impact, but right now the crisis is not really felt, because Nepalis are mostly concerned with their own internal affairs: creating jobs, what’s going on in communities, interacting with the government. 

Fifty percent of the GDP here is generated by companies from the Middle East, i.e., Arab companies. And yet 17,000 people from Nepal go every day to work in their countries. They come back, of course. But it is clear that Nepal is more dependent on Arab companies.