Current Scenario & Eco-System of Startups in Nepal

'Startup' has not been clearly defined, as academics have different meanings for this concept. Startups are set up by one or more entrepreneurs who want to develop a product or service that they believe is necessary. These companies usually start with high costs and limited income, which is why they look for money from different sources such as venture capitalists.

Start-ups are becoming increasingly important in today's economy: fast response, growth-focused strategy, and high flexibility help these companies overcome financial problems better than large companies with slower response times.

As the long-running political instability in the country begins to clear, the term ‘entrepreneurship’ has become a saying over the past few years in Nepal. Many young people today are finding themselves in a predicament where they can go into business. Interested in the growth of some of the most influential companies in the world like Google, Facebook, Airbnb, and Uber. Nepalese youth are attracted towards realizing their vision of bringing new and exciting products and services that are innovative and groundbreaking.

Startups may be a small business or any organization that should develop an economic model. Many startups use e-commerce, internet, social media, or say robots as a niche. These startups are hard at work in designing and implementing the latest innovations, out of the box process of development, targeted market, and audience. The exact definition of a startup is discussed in more detail. In short, we can say "any company that is technically driven and has the potential for high growth". Here growth potential is called growth in staff, income, market, and all other related factors.

The past decade has played a significant role in technological development in Nepal. With growing technology, the number of startups in Nepal has increased over the past decade. According to Startups Nepal, there are currently more than 300 startups in Nepal. Startups work on a variety of domains such as recycling, online food delivery, ride sharing, and fintech which show you the most chances once you have identified a problem.

Although the number of startup programs appears to be growing rapidly, official startup details in Nepal are not available. It is believed that 90 percent of startups fail in Nepal and the success rate is between 5-10 percent at present. The reasons for failure are understood to be: lack of knowledge of related risks, market research, lack of financial assistance, and inability to adapt to changing business environment.

Startup may fail if there is only one person as a company founder with experience in a particular field. For example, if the founder is an engineer, the company is less likely to grow. This is because they may not have the right business ideas. On the other hand, startups can also fail if creative design minds are not present in the company.

Startups in Nepal are currently facing the challenges of lack of proper training, lack of proper work ethic and awareness, inadequate IT infrastructure, lack of flexibility to start funding, and migration of small talent abroad. Despite the challenges, here are many opportunities if you have a clear idea of ​​your product (especially digital products in the Nepalese context). To know your potential market, you must first know your product, you must identify the right audience, a clear business model, and especially the right problem-solving technology.