Editorial
Many benefits of boosting Nepal’s startup ecosystem
The newly unveiled Startup Fast Track Working Plan 2026 is a step in the right direction.Nepal’s startup ecosystem is experiencing rapid growth, so much so that it emerged as the ‘world’s fastest-growing startup ecosystem’ in the Global Startup Ecosystem Index Report 2026, published by StartupBlink, a global startup ecosystem map and research centre. Yet the journey has never been easy for aspiring entrepreneurs. Governments frequently promise to boost innovation and entrepreneurship to boost the morale of the country’s youth, yet bureaucratic hassles, lack of funding, regulatory uncertainty and administrative delays still deter them from joining the startup ecosystem. Many find it easier to go abroad for better jobs than to navigate the maze of bureaucracy in Nepal. Despite overall growth, the vast majority of startups close within a year of their formation due to a lack of a robust startup ecosystem and the many hassles entrepreneurs face at every step.
Amid such a contradiction between what the government promises and how aspiring entrepreneurs feel, the newly unveiled Startup Fast Track Working Plan 2026 is a step in the right direction. It acknowledges the solution that entrepreneurs have been highlighting for years: facilitating startup businesses by amending existing laws and streamlining administrative procedures. To this end, the government plans to ease tax compliance for businesses. Previously, they had to file tax details every four months, but the new plan aims to enable them to do so annually. Similarly, the government is preparing to implement a ‘one-door business registry platform’ to streamline registration and post-registration processes. Once businesses enter their information, it will be shared across government agencies, thereby removing the need to submit the same documents to various offices. More importantly, the fast-track plan will speed up the subsidised loan process.
Lack of access to finance or a subsidised loan has been a major deterrent for aspiring entrepreneurs. Many startups struggle as they lack funding, markets, mentorship and investment opportunities in the country. Early-stage businesses are the hardest hit as they cannot secure loans without collateral. Worse, even if their loan is approved, they have to wait for months or even years to secure it. Many also complain that while the cost of running a business is sky-high, the subsidies they receive are too low. Over the past three fiscal years, including this fiscal year, the government paid approximately Rs1.88 billion in subsidised, low-interest loans to nearly 1,500 entrepreneurs. However, due to a severe lack of long-term support, incubation networks and structural mentoring, an estimated 99 percent of these new ventures shut down within their first year of operation.
The plan, if implemented well, would boost the confidence of startups. However, concerns remain about its implementation. In the recent past, governments have sold ambitious policies to businesses, including startups, but the changes are not visible on the ground. To improve things, the new government should heed the call of entrepreneurs to create venture capital and private equity funds to channel large amounts into startups. For instance, entrepreneurs argue that, in the past, when the focus was on making small clothing shops and restaurants thrive, there was no money being spent to build a resilient or innovative startup ecosystem. Yet, with adequate support and dedicated funding, there is no reason both these sectors cannot thrive side by side. Every penny spent on facilitating the functioning of Nepal’s startup ecosystem will yield long-term rewards, not the least by helping retain the country’s talented youth.




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