The government is once again making tall promises to re-energise the start-up ecosystem while nearly a dozen policies and programmes intended to support new firms are gathering dust, analysts said.

Speaking at the Start-up Nation 2030 on Monday, Minister of Industry, Commerce and Supplies Ramesh Rijal reiterated that the government was working on policies and legal frameworks to uplift fledgling companies.

“We are working on several projects such as idea-based funding and subsidised loans for entrepreneurs and returnee migrant workers,” Rijal told the two-day conference in Kathmandu. “A new start-up policy will also come into effect soon.”

Entrepreneurs say they have heard that before. Eight years ago, the government had announced in its budget statement for fiscal 2015-16 that a Rs500 million fund would be established to groom start-ups and innovators.

Again in 2019-20, the government had announced a cash subsidy of up to Rs5 million for promising new businesses. It then started preparing a work procedure, but that got nowhere.

In 2020-21, the government created an Rs500-million start-up fund to issue loans at 2 percent interest to encourage innovative entrepreneurs hit by the pandemic.

The 2021-22 budget had provisioned a Rs1-billion fund to help start-ups. Under the scheme unveiled by the government, a firm would receive up to Rs2.5 million for seed capital at 1 percent interest without collateral, if the proposed project was convincing.

In the last fiscal year, the Department of Industry had invited start-ups to submit proposals for subsidised loans. Participating start-ups were promised loans of up to Rs2.5 million at 3 percent interest.

The selection process was abandoned halfway after the government suffered financial problems itself.

Start-ups say they have stopped believing the lofty proclamations as they appear to be no more than political stunts.

Amid this cynical mood, the Start-up Nation 2030 conference kicked off on Monday to foster the start-up ecosystem in Nepal.

The campaign launched on July 25 last year with a goal to make Nepal a start-up-friendly country, help establish 10,000 start-ups, and create 100,000 jobs by the end of 2030.

The campaign was initiated jointly by the Ministry of Industry of Industry; Federation of Nepalese Chambers of Commerce and Industries (FNCCI); PUM Netherlands Senior Experts; International Centre for Integrated Mountain Development (ICIMOD) and Antarprerana.

The University Grant Commission also joined the campaign this year.

Around 200 participants from Nepal, India, Bangladesh and the Netherlands are participating in the conference to exchange ideas and bridge gaps in resources, partnership, knowledge and policy.

Om Rajbhandari, chairperson of Antarprerana, a private company that supports entrepreneurs of Nepal through investment and mentorship, said that the campaign works on a triple helix model where policymakers, academia and the private sector come together to support innovation and start-ups in Nepal.

“At present, Nepal needs a regulatory framework that empowers innovation and encourages the private sector to invest in start-ups,” said Rajbhandari.

The government's sincerity appears doubtful. The National Planning Commission and the private sector drafted the National Start-up Enterprise Policy 2079 in the last fiscal year. However, it is yet to go into effect.

Anjan Shrestha, senior vice-president of the FNCCI, said the key concern of the economy right now was the exodus of youths. Nearly 1 million Nepalis are estimated to have left the country in the last fiscal year ended July 16.

“An encouraging start-up policy can be key to holding back youths in the country,” said Shrestha. “Thus, the government must hurry to implement start-up-friendly policies.”

According to Izabella Koziell, deputy director general of ICIMOD, the stakeholders must prioritise the climatic aspect of start-ups along with profit.

“Nepal must invest in nature-related business that commands a higher value in the international market,” said Koziell. “Innovations related to ecology and climate have the best competitive advantage and return in the global market.”

At present ICIMOD is engaged in several eco-friendly enterprises such as strengthening the Allo (Himalayan nettle) value chain in Darchula and large cardamom farming in Taplejung.

“Greater diversity promotes innovation, problem-solving and entrepreneurial mindset which is plentiful in Nepal. So, Nepal can be a very fertile ground for start-ups,” she added.

Pim de Bokx, PUM programme manager and incubation expert, agrees with Koziell.

“Nepal is on the way to becoming a start-up-friendly country. Although start-ups are in the early stages, they will pick up very fast,” said Bokx.

“Nepal is one of the most prioritised projects of PUM to help the stakeholders, policymakers, students, enterprises and start-ups at present.”