Emerging Business Environment in Nepal

Rate this post

 Emerging Business Environment in Nepal


Emerging Business Environment in Nepal
Known as the land of the world’s highest peak, Mt. Everest, and the birth of Buddha, Nepal is a small landlocked country located between two large neighboring countries India and China. Nepal is a land of beautiful landscapes and endless opportunities. Poverty alleviation, employment-centric growth, agriculture, infrastructure building, and social development are currently the key priorities for Nepal.
Nepal Government has mixed economic policy for a long time where both private and public enterprises involve in economic activities. Since then the government has adopted economic liberalization policy and emphasis has been given to private sectors. Nepal has become a member of the World Trade Organization (WTO),
which has been changing the economic environment of the country.
The emerging business environment in Nepal can be explained as:

(i) Emergence of open market economy:

After the restoration of democracy in 1990, the government adopted a liberal and open market economic policy. Under an open market economy, economic freedom has been given to private sectors by minimizing governmental obstacles in licensing, registration, etc. Now private enterprises and entrepreneurs have the freedom to choose the line of business on basis of their interest with nominal administrative formalities. The government has also privatized many public enterprises.

(ii) Increasing role of private sectors:

The open market economy has increased the role of private sectors in economic activities. They started to play major roles in the economic development of the nation. They invest not only in general lines of business but are also involve in core areas of economic activities. The private sector plays a great role in the economic development of the country. The government has terminated the monopoly power of public enterprises in hydropower, telecommunication, water supply, airlines etc.

(iii) Emergence of multinational companies:

The liberalization policy of the government has opened the door for multinational companies to invest and conduct business in Nepal. Multinational companies may involve in commercial, industrial, and other service sectors through a joint venture with Nepalese entrepreneurs. The agreement with WTO and developed concept of globalization have created a great scope of business for multinational companies in Nepal.

(iv) Growth of service sectors:

There has been a rapid growth of service sectors in Nepal in recent years. Some businesses are diverted from manufacturing business to service sectors. New private enterprises are emerging in the field of service sectors. These service sectors consist of a hotel, restaurant, transportation, telecommunication, education, health, etc.

(v) Emergence of consumerism:

The evolution of the free-market economy has diverted the concept of seller’s market to consumers’ market. The open market policy has developed the competitive environment among the manufacturers and suppliers and has provided selection facilities to the consumers. Customers purchase goods and services on the basis of their needs and requirements. Therefore, business organizations have adopted different strategies to draw the attention of customers toward their products and services. The liberalization policy has facilitated free access of foreign goods and services in the Nepalese market and customers have choices to purchase on their own.

(vi) Private investment in infrastructure development:

Private companies including foreign investors started to invest in the infrastructure areas of the nation consisting of hydropower, telecommunication, transportation, water supply, health, and education,  etc.

(vii) Development of information technology:

So far the use of technology in Nepal is concerned; organizations are gradually starting to use modern technology in their operations. The rapid development of information technology has also affected the Nepalese business. The use of IT resources consisting of computer programs, e-mail, internet, network system, e-commerce, etc increases the working efficiency of business organizations. Present information technology has been taken as an important component of economic activities in Nepal.

This site is a free online educational website portal. It collects & shares educational as well as job related contents and Careers Offers.

Leave a Comment

error: Content is protected !!