Government Fuels Startup Innovation with Rs 1.25 Billion Boost

In an effort to boost industrialization within the country, the government has implemented a policy aimed at fostering innovative startups. This year, a budget of Rs 1.25 billion will be allocated towards supporting startups by funding research on cutting-edge ideas and nurturing the talents and expertise of individuals who are hindered by insufficient capital.

Baburam Gautam, the Director General of the Department of Industry, revealed that a plan is in place to conduct research on innovation while also offering entrepreneurs loans at favorable rates. The intention behind this plan is to stimulate the growth of startup businesses through the creation of credit fund procedures. Gautam further stated that the Ministry of Industry, Commerce, and Supplies has devised its procedure and forwarded it to the Ministry of Finance for endorsement. "After obtaining approval for our procedure, we will initiate the process of disbursing loans at concessional rates," declared Director General Gautam. "We have plans to distribute Rs 250 million at preferential rates."

The government's intention is to support startups that struggle due to inadequate capital investments. Financial assistance will be given to entrepreneurial groups demonstrating innovation and creativity in various aspects such as development, production, operation, and distribution of goods, services, and processes while maintaining a professional approach.

In the previous fiscal year, the Ministry of Industry lent its support following the Startup Enterprise Loan Fund Procedure 2079. This guideline identified 14 sectors as viable startup enterprise sectors.

As per this procedure, innovations in areas like Forestry and Herbs, Agriculture and Livestock, Tourism Promotion and Entertainment, and Science/Technology/Communication and Information are encouraged.

Additionally, investment programs have been established for businesses tied to public health services, education, teaching and learning experiences, safe transportation services, infrastructure construction endeavors, and automobile-related industries.

Plans are in place to offer concessional loans for startups focusing on mining and mineral research & development efforts that aim to streamline daily life routines, improve safe food production, and processing practices, as well as waste management. The strategy also favors initiatives in traditional technology, production, and service-oriented startups. This approach is envisioned to help materialize innovative ideas and strategies.

The government has given priority to the growth, promotion, and facilitation of startup enterprises along with addressing legal, institutional, and structural concerns. It also focuses on infrastructure development as a core policy.

Government policy also encompasses financial and non-financial support for the enrichment and expansion of enterprises. This includes efforts directed towards capital mobilization for businesses, an increase in local and international investments, backing and facilitation in management aspects while fostering capacity building of stakeholders involved in startup economies. The scheme encompasses the promotion of partnerships and offering essential support in manpower management. Enterprises are encouraged to enlarge their operations abroad.

Support has been extended to companies whose fixed capital does not exceed Rs 20 million, and whose paid-up capital remains below Rs 5 million. Organizations such as the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Confederation of Nepalese Industries (CNI) are also providing backing to both startups and small to medium-sized enterprises (SMEs).

CNI actively encourages startups that contribute positively toward the digital economy, local knowledge-based employment opportunities, stemming brain drain issues while increasing export potentials as well as enticing foreign direct investments. CNI continues to work alongside the Youth Entrepreneurs Forum in these efforts.