Drawbacks(Nepal)

Problems for entrepreneurship in Nepal 

1.       Most small establishments are owned and managed by the entrepreneur. Decision making is centralized. Management practices are traditional.

2.       Most entrepreneurs have learned by doing. They lack professionalism and training.

3.       Most enterprises are staffed by kith and kin relationships. The quality of human resources is poor.

4.       Technology used is not modern. Use of Indian technology is widespread. Efficiency is low. Repair facilities are poor.

5.       Market is limited.it is confined mostly to urban centers. Marketing problems are many. Customer-orientation is low. Cartel arrangements by big houses stifle competition.

6.       Infrastructure is inadequate. Delays are common in getting power, water and telephone connections. Transport facilities are inadequate and expensive.

7.  Strategic alliances are lacking among small enterprises. Strategic alliance is combining in-house resources with the resources of external unit. Mergers and acquisitions are also lacking.

8. Low creditworthiness has led to poor access to institutional credit. Cost of credit is also high.

9. Environmental changes are not effectively monitored. There is dearth of reliable and up-to-date information about small industries.

10. Government policies and facilities provided to small industries are inadequate. Policies are not properly implemented. They keep changing. Bureaucratic procedures have encouraged corruption, delays and harassment. Regulatory barriers are too many. Tax system is defective and conflicting. 

11. Sickness is the biggest problem of small establishments. More than 80% of small establishments remain sick or closed. Their sustainability is questionable.

12. Custom formalities are cumbersome for entrepreneurs engaged in exporting.

13. Protection of intellectual property rights is effective.