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What Types of Business Have Scope in Nepal?

Rajendra Nhisutu
Rajendra Nhisutu

Nepal got too crisis all around electricity, water, fuel, communication, inflation. Remember crisis is an opportunity for an entrepreneur, and for us to become a multi-millionaire while serving fellow Nepali and beyond.

Starting a new business, in Nepal, is not for the ones who lack boldness and courage. You will not only face the usual uncertainty about the demand for your products and the competition but you'll also venture into perhaps a completely new world, with its own business and consumer culture, different language and way of life. There are many reasons why you should start your business in Nepal like a number of educated people are increasing day by day which has resulted in an increase in the number of job seekers, people with new innovative ideas, hardworking, enthusiastic people Nepal has the capacity in various sectors that helps you to earn billions of dollar. For e.g. electricity, tourism,agro-based industry.

Nepal lies between two of the fastest growing economies of the world, India and China

As a least developed country, Nepal is entitled to preferential treatment in a number of rich markets. Two other advantages, according to investors already in Nepal, are a low-cost and non-hostile workforce and a small and accessible bureaucracy.
The natural, as well as cultural assets of Nepal, offer very substantial opportunities to investors.

The country has a range of climatic conditions – from the tropical to the sub-arctic – and a terrain that is mountainous in the north, hilly in the middle and near sea level in the south. Many niche agricultural products can thus be grown in Nepal, medicinal herbs and high-quality tea being but two examples.

There is huge potential for hydropower. About 44,000 MW is thought to be economically feasible, which may be contrasted with about 800 MW currently being generated. Nepal has not been able to exploit much of its potentiality and the people in Nepal still face severe power shortages. In order to harness and develop hydropower, the government is encouraging private foreign investment in this sector. In the last several years, the government under competitive basis has been awarding licenses to private sector developers with over 5000MW of hydropower development in various stages of progress where well known international and domestic firms are involved. This priority sector provides great opportunities for contractors, equipment suppliers, and consultants alike.

There is scope for foreign investment in other areas/sectors also. Tourism is another area with enormous potential. Nepal has spectacular natural assets such as Mount Everest – the Top of the world – and seven other peaks of 8,000 meters and higher. It also has a rich cultural heritage and a great diversity of ethnic groups with distinctive traditions: Lumbini in western Nepal is the birthplace of the Buddha, while Bhaktapur in the Kathmandu valley is a perfectly preserved medieval town full of Hindu temples. Tremendous opportunities exist in developing tourism / hotel projects and resorts in Nepal.

Other trade opportunities include telecommunications equipment, ICT equipment, water resources equipment, and aircraft parts. The major telecom players are in expansive mode. Other upcoming opportunities also include civil aviation infrastructure, toll fast track roads, and railways.

Other areas like Software Development; Leather and Textile; Pharmaceutical; Electronic and the Service Industries also carry high possibilities of foreign investment. Other sectors such as Medicinal and Aromatic Herbs; Flower and Vegetable Seeds; Floriculture and Sericulture; Processing of Spices, Coffee; Fruits and Dairy Products; Vegetable and Mushroom Farming and Tea, also carry high possibilities of foreign investment. Minerals that include Stone and Limestone; Talc; Silica; Dolomite; Iron-ore; Oil and Natural Gas need to be further explored.

There are lots of potential business opportunities in Nepal. Don't worry about the changing political climate. It is always ups and downs. However, there are many foreign companies working and creating jobs in the country. You can easily establish a business relation with Nepalese entrepreneur who will show you the way how to set up a new venture or partnering with existing companies to expand your future business in Nepal.

Some Tips why you got a chance to start a business in Nepal:

A. There is crisis all around (electricity, water, fuel, communication, inflation). Remember crisis is an opportunity for an entrepreneur, and for you to become a multi-millionaire while serving fellow Nepali and beyond.

B. High unemployment rates means you can build a team around motivated youths who are desperately looking to stay employed. Plus, you get their goodwill and hopefully loyalty to build a sustainable company in the long run.

C. Youths are leaving to work abroad,(1500 a day in 2014), which means less competition for you.

D. Workers abroad (2.5 million or more) send back more than $5 Billion a year (2014). Find out how to do a good business catering to them and their families. The market for the poor is huge! Serve these billion dollar customers!

E Win business from customers by showing your consistently delivering track record and honest intentions! Many of your competitors might be taking the short-cut to success by using corruption.

Take advantage of this unique situation. Learn that they can never compete against you in terms of transparency, honesty (and probably quality also). If your corrupt rivals try to outmaneuver you, challenge them to open their accounts, and get the sensation-hungry media on them or the government watchdogs to inspect them.

For example, open a good hygienic gudpak' or sweets shops to out-compete with corrupt, shady ones that exist today.

Nepal is fast becoming a consumer driven nation. We buy a lot and throw away a lot. From clothes to recycling there is an opportunity. Why do you think there are 1000's of families dedicated to recycling our trash? Why do you think shops after shops are opening in Malls? Serve our consumer-driven nation with quality, affordable price and superior customer service!

Industries built right after civil strife or wars can last for a long time as proved by the industries that opened after the Second World War in much of Europe and the US. So start now when there is less competition. High unemployment rates mean you can build a team around motivated youths who are desperately looking to stay employed. Plus, you get their goodwill and hopefully loyalty to build a sustainable company in the long run.

Image Credit: Monkeybusinessimages / Getty Images
Rajendra Nhisutu
Rajendra Nhisutu Member
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