<h2>Understanding Startup Entrepreneurs</h2>&nbsp;<figure class="image"><img src="https://api-v1.biznestbazaar.com/public/blog_media/9.png"></figure>&nbsp;A startup entrepreneur is an individual who initiates and develops a <a href="https://www.biznestbazaar.com/buy-a-business">new business</a> based on innovation, and high growth potential and focuses on addressing a market gap or need. These involve various aspects of consumer need, developing market aspects, creating a consumer base (consumer focus), finding problem and solution gaps, cost and benefit approaches, etc.&nbsp;&nbsp;They focus on innovation, are risk-takers, and have a clear vision about what they want to achieve and how to get there. Establishing a successful startup follows with various challenges and setbacks. So the entrepreneur must be very resilient and adaptable. Here entrepreneur should know their strength and weaknesses and overcome weaknesses by strengthening their core strength. They should be creative and resourceful in finding solutions, securing funding, and building their business.&nbsp;&nbsp;Also read:<a href="https://www.biznestbazaar.com/blog/company-registration-process-in-nepal">Company Registration Process in Nepal</a>&nbsp;<h2>Challenges Faced by Startup Entrepreneurs</h2>&nbsp;Startup focuses on rapid growth and scalability. Entrepreneur designs their business models to expand quickly and efficiently leveraging technology and innovative process. The very important focus for the success of a startup is networking. Building a <a href="https://alumni.arizona.edu/career-lab/resources/how-network-your-startup-6-tips-successful-entrpreneur">strong network</a> of mentors, advisors, investors, and industry connections is crucial for startup entrepreneurs. These relationships provide valuable guidance, support, and opportunities.&nbsp;&nbsp;In summary, a startup entrepreneur is a dynamic and driven individual who seeks to bring innovative ideas to life, overcoming obstacles and leveraging opportunities to build a successful business.&nbsp;<h2>&nbsp;</h2><h2>Startup loan</h2>&nbsp;Startup loan is a type of financing specifically designed to help a new business get off the ground. These loans can provide the necessary capital for initial expenses, and developments, such as purchasing equipment, leasing space, hiring employees, and covering operational costs.&nbsp;&nbsp;<figure class="image"><img src="https://api-v1.biznestbazaar.com/public/blog_media/10.png"></figure>&nbsp;&nbsp;There are various types of startup loans. They are:&nbsp;<ol><li>Industrial Enterprise Development Institute (IEDI) loans &nbsp;</li><li>traditional bank loans &nbsp;</li><li>microloans &nbsp;</li><li>venture capital loans and&nbsp; &nbsp;</li><li>personal loans.&nbsp;</li></ol>&nbsp;Among which IEDI is run by the Nepal Government under IEDE Act 2053.&nbsp;&nbsp;You may like this:&nbsp;<a href="https://www.biznestbazaar.com/blog/a-comprehensive-guide-to-securing-startup-funding-in-nepal">A Comprehensive Guide to Securing Startup Funding in Nepal</a>&nbsp;<h2>Loan Processing and Criteria</h2>&nbsp;During the loan processing, various aspects are noted. Creditworthiness on which lenders will evaluate personal and business <a href="https://www.investopedia.com/terms/c/credit_score.asp">credit scores</a>. Having a strong credit history can improve your chances of securing a loan and getting favorable terms.&nbsp;&nbsp;Business plan, collateral, interest rates and terms associates, repayment ability, and lender reputation are also determined during startup loan processing. A comprehensive business plan outlining the business model, market analysis, financial projections, and strategy is crucial. With a proper business plan, a lender wants to see a startup have a clear path to profitability and a high rate of success.&nbsp;&nbsp;<h2>Agriculture in Nepal</h2>&nbsp;Nepal is a landlocked country having the People’s Republic of China (PRC) and India as its neighbors. Nepal is an Agricultural Nation with 66.70% of the total population of the country associated with agricultural activities.&nbsp;&nbsp;The main agricultural products involve crops, livestock, fishery, and birds. The total contribution from agriculture to Nepal’s GDP in 2079.80 (202223) is 24.12%, of which 65.96% is from crops, 24.01% is from livestock, 8.52% from forestry and 1.51% is from fishery&nbsp;(Source: <a href="https://cbs.gov.np/wp-content/upLoads/2023/05/PPT_2023_Final.pdf">National Account Statistics of Nepal 2022/23, NSO, Nepal</a>). Nepal’s GDP contribution from 2075/76 to 2079/80 as per industry classification has been as mentioned below tables:&nbsp;<h3>Composition of Gross Domestic Product by ISIC Division (at Current Price) [in %]</h3>&nbsp;<figure class="image"><img src="https://api-v1.biznestbazaar.com/public/blog_media/7.png"></figure>&nbsp;Source: <a href="https://cbs.gov.np/wp-content/upLoads/2023/05/PPT_2023_Final.pdf">National Account Statistics of Nepal 2022/23, NSO, Nepal</a>&nbsp;<h3>Agricultural Financing in Nepal</h3>Nepal’s GDP still depends upon agricultural products and its outcome. Most of the household engaged in agriculture activities has no reach to agricultural subsidies/subsidized loan facilities. The number of households seeking loans drops significantly although the government has provided loans at subsidized interest rates to encourage the agriculture sector, whereas the amount of loans provided in the agriculture sector has increased significantly throughout the period.&nbsp;&nbsp;Total loan amounted to NRs. 18,278.40 million in 2011 to NRs. 3,88,227.30 million in 2022. Which is 2.60% in 2011 to 8.24% in 2022 of total loans provided by finance, development, and commercial banks and financial institutions. The total loan scenario by Commercial banks, Development banks &amp; Financial institution sectors from 2011 to 2022 is presented below in the table:&nbsp;&nbsp;<h3>Sector-wise loans and advances of Commercial Banks, Development banks, and Financial Institutions&nbsp;</h3>&nbsp;<figure class="image"><img src="https://api-v1.biznestbazaar.com/public/blog_media/8.png"></figure>(Source: <a href="https://www.nrb.org.np/">Nepal Rastra Bank</a>)<h2>&nbsp;</h2><h3>Challenges in Agricultural Development</h3>The number of agricultural loan takers decreased significantly over the decade, the concession given by the government in agriculture is like water poured on sand. According to the agricultural census, 2021/22 only 12% of households engaged in agriculture have taken agricultural loans. According to the Agricultural Census 2011/12, the number of households taking agricultural loans was 8,36,000 which was 22% of the total farming households at that time.&nbsp;&nbsp;The government of Nepal, Industrial Enterprise Development Institute (IEDI) has recently shortlisted 183 firms from 394 firms for startup entrepreneur loans for 2080. Details of which as per industrial category are mentioned below table:&nbsp;<figure class="table"><table><tbody><tr><td style="width:48.0pt;">S.N.</td><td style="width:145.25pt;">Industry Category</td><td style="width:152.9pt;">&nbsp;No. of companies&nbsp;</td><td style="width:58.2pt;">%</td></tr><tr><td style="width:48.0pt;">1</td><td style="width:145.25pt;">Agriculture</td><td style="width:152.9pt;">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 100.00&nbsp;</td><td style="width:58.2pt;">54.64%</td></tr><tr><td style="width:48.0pt;">2</td><td style="width:145.25pt;">Information Technology</td><td style="width:152.9pt;">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;5.00&nbsp;</td><td style="width:58.2pt;">2.73%</td></tr><tr><td style="width:48.0pt;">3</td><td style="width:145.25pt;">Manufacturing</td><td style="width:152.9pt;">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;46.00&nbsp;</td><td style="width:58.2pt;">25.14%</td></tr><tr><td style="width:48.0pt;">4</td><td style="width:145.25pt;">Service</td><td style="width:152.9pt;">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;30.00&nbsp;</td><td style="width:58.2pt;">16.39%</td></tr><tr><td style="width:48.0pt;">5</td><td style="width:145.25pt;">Tourism</td><td style="width:152.9pt;">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;1.00&nbsp;</td><td style="width:58.2pt;">0.55%</td></tr><tr><td style="width:48.0pt;">6</td><td style="width:145.25pt;">Trading</td><td style="width:152.9pt;">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;1.00&nbsp;</td><td style="width:58.2pt;">0.55%</td></tr><tr><td style="width:193.25pt;" colspan="2">Total</td><td style="width:152.9pt;">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 183.00&nbsp;</td><td style="width:58.2pt;">100.00%</td></tr></tbody></table></figure>&nbsp;The shortlisted companies as per province are mentioned in the following table:&nbsp;<figure class="table"><table><tbody><tr><td style="width:69.0pt;">Province&nbsp;</td><td style="width:125.0pt;">No. of companies</td><td style="width:56.0pt;">%</td></tr><tr><td style="width:69.0pt;">Koshi</td><td style="width:125.0pt;">16</td><td style="width:56.0pt;">8.74%</td></tr><tr><td style="width:69.0pt;">Madhesh</td><td style="width:125.0pt;">10</td><td style="width:56.0pt;">5.46%</td></tr><tr><td style="width:69.0pt;">Bagmati</td><td style="width:125.0pt;">88</td><td style="width:56.0pt;">48.09%</td></tr><tr><td style="width:69.0pt;">Gandaki</td><td style="width:125.0pt;">9</td><td style="width:56.0pt;">4.92%</td></tr><tr><td style="width:69.0pt;">Lumbini</td><td style="width:125.0pt;">14</td><td style="width:56.0pt;">7.65%</td></tr><tr><td style="width:69.0pt;">Karnali</td><td style="width:125.0pt;">22</td><td style="width:56.0pt;">12.02%</td></tr><tr><td style="width:69.0pt;">Sudurpaschim</td><td style="width:125.0pt;">24</td><td style="width:56.0pt;">13.11%</td></tr><tr><td style="width:69.0pt;">Total</td><td style="width:125.0pt;">183</td><td style="width:56.0pt;">100.00%</td></tr></tbody></table></figure>&nbsp;Also read: <a href="https://www.biznestbazaar.com/blog/post-registration-of-private-company">post registration of private company</a>&nbsp;<h3>Government Initiatives and Policies</h3>&nbsp;The government of Nepal has focused its policy on the <a href="https://www.ssoar.info/ssoar/bitstream/handle/document/67966/ssoar-rnjds-2018-2-chaudhary-Agricultural_Policies_and_Rural_Development.pdf;jsessionid=F6A9B8EE00C1C81818A73CD67A3D927E?sequence=1">development of the agriculture industry</a> in every aspect. Increases in government expenditure towards agriculture, priorities in the fiscal budget, and subsidies loans can be seen very clearly in this sector.&nbsp;However, lack of modern agricultural knowledge, lack of modern technology, non-availability of sufficient and timely fertilizer, existence of middlemen, and high import of agricultural products from India without market study have synchronized the market and could not get the return expected.&nbsp;&nbsp;Also, there is a big gap between lenders, policymakers, and farmers could be seen. This has resulted gap between projected and actual results. The results are not parred to investment and priorities made by the government and policymakers. Policies should be made after proper and detailed study at ground levels.&nbsp;&nbsp;Only after that the result we are expecting be achieved and the agriculture industry will also be a properly developed sector in Nepal.&nbsp;

Startup Entrepreneur Loan & Agriculture in Nepal

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