Course Instructor:

B. G. Bhattacharya

Institutional Support to Entrepreneurship

Financial / Technical / Logistic

MBA III Semester

Entrepreneurship
Chapters - 5&6
Purbanchal University,
Nepal
Role of Commercial Banks
Besides performing the usual commercial banking functions,
banks in developing countries play an effective role in their
economic development. The majority of people in such
countries are poor, unemployed and engaged in traditional
agriculture.
There is acute shortage of capital. People lack initiative and
enterprise. Means of transport are undeveloped. Industry is
depressed. The commercial banks help in overcoming these
obstacles and promoting economic development. The role of
a commercial bank in a developing country is discussed as
under.
Role of Commercial Banks
1. Mobilizing Saving for Capital Formation:

The commercial banks help in mobilizing savings through network of branch

banking. People in developing countries have low incomes but the banks
induce them to save by introducing variety of deposit schemes to suit the
needs of individual depositors. They also mobilize idle savings of the few
rich. By mobilizing savings, the banks channelize them into productive
investments. Thus they help in the capital formation of a developing country.

2. Financing Industry:

The commercial banks finance the industrial sector in a number of ways.

They provide short-term, medium-term and long-term loans to industry. In
India they provide short-term loans. Income of the Latin American countries
like Guatemala, they advance medium-term loans for one to three years. But
in Korea, the commercial banks also advance long-term loans to industry.
Role of Commercial Banks
3. Financing Trade:

The commercial banks help in financing both internal and external trade.
The banks provide loans to retailers and wholesalers to stock goods in
which they deal. They also help in the movement of goods from one place to
another by providing all types of facilities such as discounting and accepting
bills of exchange, providing overdraft facilities, issuing drafts, etc. Moreover,
they finance both exports and imports of developing countries by providing
foreign exchange facilities to importers and exporters of goods.

4. Financing Agriculture:

The commercial banks help the large agricultural sector in developing

countries in a number of ways. They provide loans to traders in agricultural
commodities. They open a network of branches in rural areas to provide
agricultural credit. They provide finance directly to agriculturists for the
marketing of their produce, for the modernization and mechanization of their
farms, for providing irrigation facilities, for developing land, etc.
Role of Commercial Banks
5. Financing Consumer Activities:

People in underdeveloped countries being poor and having low incomes do

not possess sufficient financial resources to buy durable consumer goods.
The commercial banks advance loans to consumers for the purchase of such
items as houses, scooters, fans, refrigerators, etc. In this way, they also help
in raising the standard of living of the people in developing countries by
providing loans for consumptive activities.

6. Financing Employment Generating Activities:

The commercial banks finance employment generating activities in

developing countries. They provide loans for the education of young persons
studying in engineering, medical and other vocational institutes of higher
learning. They advance loans to young entrepreneurs, medical and
engineering graduates, and other technically trained persons in establishing
their own business. Thus the banks not only help inhuman capital formation
but also in increasing entrepreneurial activities in developing countries.
Role of Commercial Banks

7. Help in Monetary Policy:

The commercial banks help the economic development of a country by

faithfully following the monetary policy of the central bank. In fact, the central
bank depends upon the commercial banks for the success of its policy of
monetary management in keeping with requirements of a developing
economy.

Thus the commercial banks contribute much to the growth of a developing

economy by granting loans to agriculture, trade and industry, by helping in
physical and human capital formation and by following the monetary policy
of the country.
 Asian Development Bank (ADB)
and Nepal
The Asian Development Bank (ADB) has
been working as a key development
partner with the Government of Nepal
since it joined as a founding member in
1966.

As of 31 December 2013, ADB provided

Nepal with 128 sovereign Asian
Development Fund (ADF) loans ($3.11
billion), 5 non-sovereign loans ($49.55
million), and 34 ADF grants ($823.75
million), totaling $3.98 billion.

ADB has also provided technical

assistance totaling $180.3 million. Nepal is
an ADB Group A developing member
country, making it eligible for concessional
ADF loans and grants.
Asian Development Bank (ADB)
and Nepal
As of 31 December 2013, ADBs active sovereign ADF loans and grants
comprised 47 loans and grants (37 projects), with a total net amount of
$1.55 billion: 12 in agriculture and natural resources ($212.3 million); 2 in
education ($85 million); 7 in energy ($305.2 million); 3 in finance ($77.7
million); 1 in public sector management ($21 million); 11 in transport and
communications ($310.2 million); 8 in water and other municipal infra-
structure services ($476.3 million); 1 in industry and trade ($15.0 million);
and 3 multi-sector ($51.0 million) projects.

Agricultural assistance focuses on transforming agriculture into a more

productive and commercially oriented economic sector. Support is
provided to develop key infrastructure, value-chain networks, and local
capacity. ADB also assisted in preparing the governments Agriculture
Development Strategy, 20142034 in collaboration with 11 other
development partners.
Asian Development Bank (ADB)
and Nepal

In education, ADB is supporting enhanced access and equity, improved

quality, and strengthened capacity of the basic and secondary education
system through a multi-partner, sector-wide program, along with market-
responsive and inclusive skills development.

ADB is according high priority to addressing acute power shortages in

generation, transmission, and distribution. Support is also provided for
institutional reforms, such as restructuring the Nepal Electricity Authority
and revising its tariff regime, and facilitating regional power trade and
private sector investments.
Asian Development Bank (ADB)
and Nepal

In transport, ADB is supporting the governments strategic road

network to strengthen domestic and regional connectivity through
customs modernization, improving urban transport systems in
Kathmandu, and enhancing capacity of Tribhuvan International
Airport and Gautam Buddha Airport, along with institutional
development.

ADBs support in water and other municipal infrastructure services

prioritizes the timely completion of the Melamchi Water Supply and
associated projects in Kathmandu Valley.
NABIL Bank Ltd.
NABIL, the first foreign joint venture bank of Nepal, started operations in
July 7, 1984. Nabil was incorporated with the objective of extending
international standard modern banking services to various sectors of the
society.

Nabil provides a range of commercial banking services through its 51

points of representation across the country and over 170 correspondent
banks across the globe. It was earlier known as Nepal Arab Bank Ltd.

Nabil, as a pioneer in introducing many innovative products and

marketing concepts in the domestic banking sector, represents a
milestone in the banking history of Nepal as it started an era of modern
banking with customer satisfaction measured as a focal objective while
doing business.
 NABIL Bank Ltd.

At Nabil Bank, the management know that any small business needs a
firm financial base, whether you are starting a new business or already
running. Nabil Bank strives to provide small to medium enterprises with a
complete financial solution to maximize their business growth.

The bank act as a partner to help support and grow small to medium scale
business to take it to the next level, delivering cost effective solutions at
almost every geo-locations in the country with promptness and
convenience.

With its ability to attain nationwide entrepreneurs, Nabil has the expertise
and proficiency to help their clients reach new pinnacle - shaping the
industries of tomorrow. The bank provide dedicated banking services for
entrepreneurs thriving for amplification of their business.
Nepal Bank Ltd. (NBL)

Nepal Bank limited (NBL) is the first Bank of Nepal, established in

November 15, 1937. It is also the commercial Bank that initiates formal
banking in Nepal.

In that early era of formal banking in Nepal, NBL had authorized capital
of NRs. 2.5 million of which raising equity of only Rs. 842, 000. NBL was
established as a joint venture between Nepal government and Private
sector.

At present NBL, is under management of Nepal Rastriya Bank, the

central bank of the country.
Nepal Bank Ltd. (NBL)

Nepal Bank Limited was established as a result of need call from the
governmental side. In lack of proper financial institution, development and
economic progress of the country was being affected. The oldest Bank of
Nepal, NBL has crossed milestone of 75 years in November 15, 2011.

The Bank has been providing a boost to the economic operation of the
country. Today, there are more than 31 commercial bank in the country
and numerous financial institutions but NBL still is in the same run along
with private sector though had suffered from debt in the past.

Nepal Bank Limited is providing services to its customers from its 118
branches. It provides deposit facility, various loan facilities, advanced
ABBS services from 110 branches, Internet Banking along with the ATM
facilities all over the country.
 Rastriya Banijya Bank (RBB)
Rastriya Banijya Bank (abbreviated as RBB) is
fully government owned, and the largest
commercial bank in Nepal. RBB was established
on January 23, 1966 (2022 Magh 10 BS) under
the RBB Act. RBB provides various banking services to a wide range of
customers including banks, insurance companies, industrial trading houses,
airlines, hotels, and many other sectors. RBB has Nepal's most extensive
banking network with 141 branches.

RBBL which has made glorious history of contributing for the monetiza-
tion of the economy, eliminating dual currency in the market, initiating
preliminary financial literacy, help flourish industrial, commercial and
financial sector of the country has now emerged as a modern and strong
financial institute of the country.

The Bank with 2600 hands has expanded its wings in the most part of the
country through multiple distribution outlets of 141 branches, 10 counters,
8 branch less banking (BLB) and 50 ATMs.
 Rastriya Banijya Bank (RBB)
RBB, with as many as 1.7 millions satisfied /direct customers ranging from
poor to elite ones and millions of indirect ones, has drawn important
imprint in the picture of country's economy through its significant
involvement in the best use of its resources to enhance the production,
income and employment opportunities.

The Bank is fully committed to contribute its best for the socio economic
development of the country and people in the days to come.

Services Currently Offered by RBB Credit- Business loan, Housing Loan,

Vehicle Loan, Hire Purchase Loan, Educational loan, Apartment Loan,
Loan Against Gold, Loan against fixed deposit receipt, Loan against the
government bond, Loan against shares, Loan against the first class bank
guarantee, Rastra Sewak Loan, Teachers Loan, Personal Loan, and
Agricultural Loan.
Role of Development Banks

Among the institutions whose role in the development of the less

developed regions is well recognized but inadequately emphasized are
the DEVELOPMENT BANKS.

Playing multiple roles, these institutions have helped promote, nurture,

support and monitor a range of activities, though their most important
function has been as drivers of industrial development.

Development banks are most often public or joint sector institutions.

Development banks are in the nature of universal banks undertaking a
wide range of activities besides those undertaken by commercial banking
institutions.
 Role of Development Banks
To cover the shortfall in funds required for long-term investment,
developing countries need to and have created development banks with
the mandate to provide long-term credit at terms that render such
investment sustainable.

They tend to lend not only for working capital purposes, but to finance
long-term investment as well, including in capital-intensive sectors. Having
lent long, they are very often willing to lend more in the future.

Since such lending often leads to higher than normal debt to equity ratios,
development banks to safeguard their resources closely monitor the
activities of the firms they lend to, resulting in a special form of
relationship banking.

Often this involves nominating directors on the boards of companies who

then have an insiders view of the functioning and finances of the
companies involved. In case of any signs of errors in decision-making or
operational shortcomings, corrective action can be undertaken early.
 Role of Development Banks
Since very often lending begins at the stage of the formulation of project
itself, development banks are also involved in decisions such as choice of
technology, scale and location.

This require more than just financial expertise, so that development

banking institutions build a team of technical, financial and managerial
experts, who are involved in the decisions related to lending and therefore
to the nature of the investment.

This close involvement makes it possible for these institutions to invest in

equity as well, resulting in them adopting the unconventional practice of
investment in equity in firms they are exposed to as lenders.

This would in other circumstances be considered an inappropriate

practice, since it could encourage development banks to continue lending
to insolvent institutions since they are investors in the firms concerned and
may suffer significant losses due to closure.
Role of Development Banks
Given their potential role as equity investors, development banks provide
merchant banking services to firms they lend to, taking firms to market to
mobilize equity capital by underwriting equity issues. If the issue is not
fully subscribed the shares would devolve on the underwriter, increasing
the equity exposure of the bank.

Firms using these services benefit from the reputation of the development
bank and from the trust that comes from the belief of individual and small
investors that the banks would safeguard their investment by monitoring
the firms concerned on their behalf as well.

Development banks can help monitor corporate governance and

performance on behalf of all stakeholders, reducing their dependence of
systems of indirect monitoring resulting from the discipline exerted by the
threat of takeover in stock markets ostensibly prevalent in developed
countries like the US and the UK.
Role of Development Banks

Thus, development banks lend and invest. They leverage lending to

influence investment decisions and monitor the performance of
borrowers.

They undertake entrepreneurial functions, such as determining the scale

of investment, the choice of technology and the markets to be targeted by
industry, and extension functions, such as offering technical support.

Stated otherwise, they are a component of the financial structure that can
ensure that lending leads to productive investment that accelerates
growth and makes such lending sustainable.
Role of Development Banks
The five Grameen Bikas banks currently
operating in the countrys five development
regions of Nepal are: Purbanchal, Sudur
Pashchimancal, Pashchimanchal, Madhya
Pashchimanchal and Madhyamanchal
Grameen Bikas Banks respectively.

These banks were established to bring the rural population into the formal
financial channel and provide them the micro-credit to alleviate poverty.
The Nepal Rastra Bank (NRB) has categorized them under D level of
financial institution.

The banks, following the footsteps of exemplary Grameen Bank of

Bangladesh, were established to provide credit facility to micro-industries,
agro business and trading among others in the rural area.
Role of Development Banks
The five banks signed a MoU in presence of
the representatives of the NRB and went for a
merger in 2012. After merger, the entity
became a national-level financial institution.

Upon merger, the new entity had a paid-up

capital of Rs 400 million. After implementation
of the merger process, operational cost of the
institutions have substantially decreased while
the operational efficiency appreciably
increased.

Nepal Grameen Bikas Bank Limited come into

existence in 2014, August 15 (Shrawan 30,
2071) with its Head office at Butwal,
Rupandehi District after the successful merge
of five Grameen Bikas Bank working in the five
developmental region of Nepal.
Role of Development Banks

Nepal Grameen Bikas Bank Ltd, as a

Micro Finance Bank of National Level, is
working continuously to alleviate
poverty, hardship and suffering of the
rural people throughout its working area
by proving them micro finance services.

The unique trait of the Bank are well

defined target group (especially women)
area approach, group guarantee lending
approach, no need of physical collateral
in order to disbursement loan at the
Centre.
Role of Development Banks

:(Objectives )

,
-

Role of Development Banks

Nirdhan Utthan Bank Limited, "the bank for upliftment of the poor" is a
microfinance bank established in October 1998 under Company Act of
Nepal 1997 (now Company Act 2006).

Nepal Rastra Bank, the central bank of Nepal granted a license in April
1999 to undertake banking activities under the Development Bank Act
1996. It started its formal operation from July 1999.

Now, operated under Bank and Financial Institution Act 2006, Nirdhan
Utthan Bank (NUBL) provides microfinance services such as Loans,
Deposits, Micro insurance and Remittance services to poor families of
Nepal.

The lending methodologies are individual lending based on Grameen

Bank, Bangladesh model and group lending based on Self-help Group
model through few specified branch offices.
 Role of Development Banks
Though, legally established as a company in 1998, the operation of NUBL
is a continuation of microfinance services provided by an NGO called
"NIRDHAN" which was providing microfinance services since March 1993.

The story behind the establishment of "NIRDHAN" starts from 1986 when
Dr. Harihar Dev Pant, the Chief Executive Officer of NUBL/Executive
Chairman of "NIRDHAN" (then senior officer with central bank of Nepal)
visits Grameen Bank in Bangladesh.

The visit inspired him to launch microfinance program in Nepal resulting

the birth of "NIRDHAN" or "people without money" in 1991. NIRDHAN
began its microfinance operation in March 1993.

NIRDHAN, as an NGO has a limited recourses and capacity to satisfy

unmet demand of poor people in different part of the country. This results
the establishment of Nirdhan Utthan Bank Limited, NIRDHAN being a lead
promoter. In July 1999, NIRDHAN transferred all microfinance operations
to Nirdhan Utthan Bank.
Role of Development Banks
The primary goals of Nirdhan Utthan Bank are to:

Reach a maximum number of poor households with potential and

financial viability by adopting proven delivery mechanism.

Develop a well-managed institution with high staff morality.

Enhance women's "self-respect" through social awareness, proper use &

on-time repayments of loans, regular savings and provision of related
micro-finance services.
Different Loans offered by Nirdhan Utthan Bank Ltd. -
General Loan Microenterprise Loan
Seasonal Agriculture Loan Biogas Loan
Seasonal Business Loan Foreign Employment Loan
Tube-Well/ Sanitary Loan Education Loan
Housing Loan Emergency Loan
Role of Finance Co. & Cooperatives
Finance companies and Cooperatives
operate differently than traditional
banks or mortgage lenders.

A finance company/ cooperative

provides loans from an available
capital source and earns profits strictly
through the interest paid by borrowers.

They usually requires some collateral

for the loan amount. Finance
companies/ cooperatives rarely offer
revolving credit lines.

Borrowing more money involves

refinancing the loan and possibly
providing additional collateral.
Role of Finance Co. & Cooperatives

Poor Credit Help

Through a finance company/ cooperative, borrowers with poor credit will

usually have access to funds otherwise unavailable through traditional
bank lenders or unsecured credit cards.

Because borrowers put up collateral to secure a loan, finance companies/

cooperatives are more likely to lend money to poor credit risks.

The loan will involve a higher interest rate, as the finance company will
want to recover its exposure through several early payments.
Role of Finance Co. & Cooperatives

Major Purchase Financing

Consumers can access money through a finance company/ cooperative

for major purchases such as appliances, used cars, electronics, musical
instruments and other big-ticket items. Such financing sources often work
directly with retailers selling such items.

As the finance company/ cooperative is already aware of the retail value,

depreciation and resale value of the item, securing the financing is often
quicker than going through another funding source.

The money will be made available for financing 100 percent of the retail
price. This eliminates the need for any sort of down payment.
Role of Finance Co. & Cooperatives

Cash Resource

Finance companies/ Cooperatives will also lend cash directly to

borrowers. Although prospective borrowers with very poor credit may not
secure a loan, finance companies/ cooperatives are an excellent source
for quick funds for people in most credit situations.

The finance company/ cooperative can provide money quickly for

medical emergencies, unforeseen home or education expenses, or
financing a vacation trip.

Borrowers will be asked for the reason for the loan; a simple personal
expenses answer will be satisfactory.
Role of Finance Co. & Cooperatives

Some finance companies/ cooperatives lend to consumers, while others

make loans to businesses or finance the sales of manufacturers' products
to customers.

Because they do not take in deposits from the public, they are not
classified as banks, and they are not subject to the strict banking
regulations.

Finance companies/ cooperatives that engage in commercial credit

activities base their loans on the value of the assets that borrowers
pledge as security.

Finance companies/ cooperatives obtain funds for lending through their

own borrowing or from parent corporations.
Role of Finance Co. & Cooperatives

Installment
Factoring
Loans

Asset based Personal

Loans Loans

Four main types of loans provided by

Finance Co./ Cooperatives in Nepal
Role of Finance Co. & Cooperatives
Factoring
Factoring is a more expensive variation on asset-based lending. In this
case, a small, fast-growing manufacturer may not have sufficient credit
and is selling to multiple customers. The manufacturer sells its accounts
receivable to the lender in return for approximately 80 percent of the value
of the receivables. The manufacturer receives the rest of the funds upon
collection, less the lender's fees.

Installment Loans
Merchants that offer installment payment plans for sales of items such as
large appliances use contracts from finance companies. The financing can
usually be approved over the phone while the customer is in the store. In
other cases, such as new car sales, the dealer seeks financing approval
for his customer by contacting the manufacturer's finance subsidiary. An
example of this type of finance company in the context of Nepal is
Narayani National Finance Ltd.
Role of Finance Co. & Cooperatives
Personal Loans
People who are unable to obtain loans or financing from banks may
qualify at a finance company. The types of available consumer loans
include second mortgages, loans for purchasing used automobiles, home
improvement or debt consolidation. All loans must be secured by tangible
personal assets. Loans from finance companies are more costly than bank
loans, but sometimes finance companies are more accommodating.
Asset-Based Loans
Commercial finance companies lend to businesses based on pledged
assets. Customers are typically rapidly growing businesses that have
assets to pledge as collateral but are low on cash. Such assets include
accounts receivable, inventory and equipment. In case of default, the
lender takes possession of the assets. An example is a garment
manufacturer who has a contract from a reputable retailer. The
manufacturer pledges the account receivable, borrows the funds needed
to begin manufacturing and repays the loan from collections.
Technical & Logistical Support

Technical support refers to a plethora of services by which enterprises

provide assistance to users of technology products such as mobile
phones, televisions, computers, software products or other electronic or
mechanical goods.

In general, technical support services attempt to help the user solve

specific problems with a product rather than providing training,
customization, or other support services.
Technical & Logistical Support

Most companies offer technical support for the products they sell, either
freely available or for a fee.

Technical support may be delivered over the telephone or online by e-

mail, live support software on a website, or a tool where users can log a
call or incident.

Larger organizations frequently have internal technical support available

to their staff for computer-related problems.

The Internet can also be a good source for freely available tech support,
where experienced users may provide advice and assistance with
problems.
Technical & Logistical Support

Integrated logistics support (ILS) is an integrated and iterative process

for developing materiel and a support strategy that optimizes functional
support, leverages existing resources, and guides the system engineering
process to quantify and lower life cycle cost and decrease the logistics
footprint (demand for logistics), making the system easier to support.

Although originally developed for military purposes, it is also widely used

in commercial product support or customer service organizations.
Technical & Logistical Support
T&L Support: Government Agencies

Digital Object Identifier

A digital object identifier (DOI) is a unique alphanumeric string assigned

by a registration agency (the International DOI Foundation) to identify
content and provide a persistent link to its location on the Internet. The
publisher assigns a DOI when your article is published and made
available electronically.

The DOI system has been developed and implemented in a range of

publishing applications since 2000; by late April 2011 more than 50 million
DOI names had been assigned by some 4,000 organizations. By April
2013 this number had grown to 85 million DOI names assigned through
9,500 organizations.
T&L Support: Government Agencies

The DOI system is designed to work over the Internet. A DOI name is
permanently assigned to an object to provide a resolvable persistent
network link to current information about that object, including where the
object, or information about it, can be found on the Internet.

While information about an object can change over time, its DOI name will
not change. A DOI name can be resolved within the DOI system to values
of one or more types of data relating to the object identified by that DOI
name, such as a URL, an e-mail address, other identifiers and descriptive
metadata. The DOI system enables the construction of automated
services and transactions.

Applications of the DOI system include but are not limited to managing
information and documentation location and access; managing metadata;
facilitating electronic transactions; persistent unique identification of any
form of any data; and commercial and non-commercial transactions.
T&L Support: Government Agencies

Industrial Enterprise Development Institute, Nepal

The Industrial Enterprise Development Institute (IEDI), a national resource

organization committed to entrepreneurship development through training,
research, consultancy and enterprise education was established in 1996
as a successor of Industrial Enterprise Development Centre which itself
was a successor of former Small Business Promotion Project (SBPP), a
joint project of Ministry of Industry and German Technical Cooperation
(GTZ) established in 1984.

The approach pioneered and developed in Nepal by the project is being

implemented in more than 70 countries in Asia, Africa and South America,
under the name of CEFE (Creation of Entrepreneurs, Formation of
Enterprises).
T&L Support: Government Agencies

Objectives of IEDI

To assist organizations, institutions, industries and enterprises through

need-based services such as trainings, entrepreneurship and management
development, feasibility studies, consultancy and training of trainers.

To provide quality support services to industry/enterprise development.

To carry out need-based action research to provide quality services for

enterprise promotion and development.

To conduct need-based programs to develop technical, entrepreneurial and

management related know-how and skills.

To carry out research and development related activities.

To establish and develop projects and organizations for enterprise

development.
T&L Support: Government Agencies

Council for Technical Education & Vocational Training

The Council for Technical Education and Vocational Training (CTEVT)

constituted in 1989 (2045 BS) is a national autonomous apex body of
Technical and Vocational Education and Training (TVET) sector committed
for the production of technical and skillful human resources required to the
nation.

It mainly involves in policy formulation, quality control, preparation of

competency based curriculum, developing skill standards of various
occupations and testing the skills of the people, conduct various research
studies and training needs assessment etc.

It has an assembly consisting of 24 members and a governing board

known as Council comprising nine members. Minister of Education chairs
both the Assembly and the Council. The Council has a full time Vice-
Chairperson and a Member-Secretary.
T&L Support: Government Agencies
Mission
CTEVT is a vibrant organization promoting TVET system to develop a
competent workforce for national and international market needs

Goals
In order to achieve and attain the mission and vision, CTEVT has set the
following six goals:
TVET
Technical
1. Expand TVET programs for ensuring access and equity Vocational
Education
2. Ensure quality, relevant and efficient TVET system & Training

3. Enhance effectiveness and efficiency of CTEVT management

4. Establish NVQF to ensure its compatibility with education framework
5. Extend technical input to establish TVET Fund
6. Establish effective coordination with and among TVET Stakeholders
T&L Support: Government Agencies
Major Responsibilities

CTEVT mainly has the following responsibilities:

>> Provide advice to the Government of Nepal regarding TEVT policy and
programs.
>> Determine scope and standards of TEVT programs.
>> Arrange for and conduct TEVT Programs from basic level to higher
education.
>> Liaison and maintain coordination with national and international TEVT
agencies for quality education and training.
>> Grant recognition and provide accreditation services to programs and
institutes run by government, non-government, and private sector.
>> Coordinate and maintain the standard of training by providing curriculum
and learning materials.
>> Conduct monitoring and supervision of TEVT programs and activities of
government and non-government institutions.
T&L Support: Specialized Agencies
Federation of Nepalese Chambers
of Commerce and Industry (FNCCI)
was established in 1965 with the aim
of promoting business and industry
while protecting the rights and
interests of business and industrial
communities in Nepal.

FNCCI has been playing a key role in

promoting business and industry in the
country. It provides, inter alia,
information, advisory, consultative,
promotional and representative
services to business and government
and organizes training / workshop /
seminar on a regular basis.
T&L Support: Specialized Agencies

FNCCI is the largest private sector organization in Nepal and has more
than 10,000 direct and indirect members. Direct members are most big
business houses and corporate companies of Nepal as well as few
multinational companies that have production facilities in the country.

FNCCI is working to promote Nepalese entrepreneurship and Nepalese

products across the world. It maintains relations with the representative
business associations of various countries of the world.

Since the young democracy Nepal is in the process of writing a new

constitution, FNCCI is continuously lobbying to strengthens the political
framework conditions for a good business environment in the country.
T&L Support: Specialized Agencies

FNCCI organizes among others Nepal International Trade Fair every year
to promote Nepalese products across the globe. This trade fair is the
biggest in the country and takes usually place in March or April.

With the support of USAID, FNCCI established the Agro Enterprise

Centre in 1991 which is promoting agro-business in the country. Within
past fifteen years, FNCCI/AEC made valuable contributions in Agro
Business Development and Promotion.

Since 1 October 2002, FNCCI/AEC has been re-shaped with more

focused Mission and Vision and is taking a renewed role in re-presenting
the private sector agribusiness community in the development of
agriculture and agribusiness in Nepal.
T&L Support: Specialized Agencies

Due to regular power outage (called load shedding) up to 14 hours a day

and fuel shortage, Nepalese Industries are facing serious problems and
severe production losses. Therefore, FNCCI established the Energy
Efficiency Centre (EEC) in 2010 that is a think tank and service provider
in the field of energy efficiency.

The EEC is the first institution that is raising awareness for energy
efficiency in Nepal's private sector and provides professional energy
auditing services to the industries.

Furthermore, FNCCI conducts various social activities like sport events,

health camps etc. In 2012, FNCCI supported the CACCI-FNCCI Golf
Challenge - an international golf competition in Nepal.
T&L Support: Specialized Agencies
BMOs - Nepal
Business Membership Organizations (BMOs) are international tie-ups with
professional organizations working on overall business development
issues.

In order to strengthen district chambers of commerce and industry in

Nepal, the BMO component, supported by SEQUA, a partner of German
business, assists them to provide effective business services to member
companies and lobby on their behalf on policy issues.

SEQUA successfully operates in the subsector BMOs of the GTZ-funded

"Private Sector Promotion Project" (PSPP). Now this project component
has completed its own webpage for Nepal. Beside interesting project
information helpful documents such as manuals on "Membership
recruitment and retention" can be downloaded. Access to the webpage
under www.sequa.org.np
T&L Support: Specialized Agencies
BMOs - Nepal
The BMO component is cooperating directly with 15 district chambers and
their national federation FNCCI. In addition, 12 so-called sister chambers
benefit from twinning them with chambers receiving direct assistance from
PSP-BMO.

The focus of the support has been on strategic BMO development

(capacity building, planning, and formulating annual plans), local economic
development (LED) and advocacy.

The capacity of the district chambers has been effectively strengthened as

a result of the long-standing PSP-SEQUA cooperation. PSP facilitates
PPP between business partners in Nepal and Germany, who can apply for
public co-financing (under fulfillment of certain developmental criteria).

Furthermore, PSP supports the National Business Initiative (NBI) of

private sector federations and big business firms aimed at overcoming the
conflict situation impacting on the economy.
T&L Support: Consultancy Agencies
Law Firms

The primary service rendered by a law firm

is to advise clients (individuals or
corporations) about their legal rights and
responsibilities, and to represent clients in
civil or criminal cases, business
transactions, and other matters in which
legal advice and other assistance are
sought.

Many private law firms, venture capital firms

and other for-profit organizations maintain
websites with discussions of legal issues of
potential interest to entrepreneurs and
innovators.
T&L Support: Consultancy Agencies
Law Firms

The common issues in entrepreneurship which require consultation and

attention from law firms:

Intellectual Property Rights

Patents
Trademarks
Copyrights
Trade Secrets
Licensing
Product Safety & Liability
Insurance
Contracts
T&L Support: Consultancy Agencies
Law Firms of Nepal

The eleven major law firms in Nepal (in the sequence of ranking) which
provides legal assistance and advice to entrepreneurs and entrepreneur-
ship in the country:

1. Karki Law Associates 7. Jurist & Company

2. Pioneer Law Associates
3. Pradhan & Associates
4. Sinha-Verma Law Concern
5. Advocates & Associates
6. Dhruba Bar Singh Thapa & Associates
8. Kusum Law Firm
9. Legal Advisors' Forum
10. Neupane Law Associates
11. Reliance Law Firm
T&L Support: Consultancy Agencies
Audit Firms

Audit firms are hired by companies to assess

their financial information and determine if that
information is complete and accurate.

A firm may be an internal part of the organization

of a company, or it may be hired as a contractor.
In either case, audit firms must take great care to
make sure that their auditing process is unbiased
and not influenced by any preexisting relationship
with the companies that employ them.

When a firm is hired by a company, it must make

sure the company adheres to all relevant laws
and that its financial reporting is an accurate
representation of the company's actual current
financial standing.
T&L Support: Consultancy Agencies
Audit Firms

Of all of the responsibilities attached to audit firms, their ability to provide

an unbiased assessment of the company that hires them may be the most
important. Many companies try to hire independent outside auditors to
assure the public of their financial transparency.

Most audit firms employ financial experts who specialize in the legal side
of finance. These experts are expected to ensure that all of a company's
financial reports are in compliance with the applicable laws.

Another feature offered by most audit firms is an analysis of where a

company may be at risk in terms of taxation. As larger companies are
often taking in huge amounts of money, they often have a significant tax
burden that they carry. Auditors can often perform accounting services that
can help offset these taxes and suggest methods by which a company
might be able to lessen its tax burden.
T&L Support: Consultancy Agencies
Audit Firms of Nepal
There are many audit firms that have been established in Nepal. Some
claim to have associated with international firms, and some say they are
correspondent of the international firms. Previously, T.R. Upadyaya & Co.
was correspondent of well known world famous, KPMG(one of the best
four audit firms in the world).

P. P. Pradhan audit firm - Though now, ACCA is not given COP in Nepal,
Pradhan is one of them to get it before, after he passed ACCA. The firm
provides both accounting and consulting services to it's client. It was
established in 1979.

S. C. LAL Associates is another firm that is associated internationally with

msi global alliances.

Baker Tilly Banskota & Co. is another firm that is associated with Baker
Tilly International, a top ten audit firm of the world. This audit firm provides
large varieties of the services as well as information about the audit firms
and business.
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Audit Firms of Nepal

CSC & Co. is the firm associated with Price Waterhouse Coopers(pwc),
one of the big four in the world, located at Gairidhara, Kathmandu. This
firm is extending commanding audit assistance to entrepreneurial activities
in Nepal.

Suvod Associates, another internationally associated firm with TIAG

Network International, located at Sankhamul, Baneshwor, provides audit
support to business starters along with financial discipline advice.

Besides these, there are many other firms listed in ICAN that can be
assessed through -

http://www.ican.org.np/_downloads/member/list_of_ca_firms.pdf
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Business Development Services (BDS)

Business Development Services are defined as those

non-financial services and products offered to
entrepreneurs at various stages of their business needs.

These services are primarily aimed at skills transfer or

business advice. The field of business support has been
growing alongside the SME development process
internationally.

Business development services are important because

they can assist entrepreneurs to run their business more
effectively and, if appropriately applied, can act as an
enhancer of access to finance and as an alternative form
of collateral in circumstances where tangible collateral
may be an impediment to meeting traditional security
requirements.
T&L Support: Consultancy Agencies
BDS - Nepal

As a national arm of International Development Enterprises Inc., IDE

Nepal has been promoting BDS markets with the objective of enabling the
subsistence smallholder farmers to be commercially oriented and making
their produces competitive through productivity increase, diversification of
produces and efficient marketing.

Its efforts are directed at facilitating backward and forward linkages

between smallholder farmers known as MSEs and BDS providers.

Promoting business relationship between these two stakeholders to trade

their way out of poverty IDE Nepal has sought to bridge the existing huge
gap between the supply of and the demand for BDS by following a
demand led, market creation approach.
T&L Support: Consultancy Agencies
BDS - Nepal

BDS providers are marketing products and services to MSEs. In the rural
area agro-vets lay an important role in providing MSEs with seeds,
fertilizer, pesticide, micronutrients and other agri-inputs. Lead farmers
selected from different farmers groups are providing agronomic support
and other services to MSEs.

IDE Nepal BDS project focused on promotion of micro irrigation technolo-

gies (treadle pumps in the Terai and Drip and Micro-sprinkler irrigation
system s and low-cost water storage tanks in the hills), off-season
vegetable production techniques, the leader farmer concept of providing
services, the agro-vet concept of providing information services, and the
supply of quality inputs ( seeds, fertilizer pesticides, micronutrients) and the
market delivery of upstream services needed by the MSE groups.
T&L Support: Consultancy Agencies
BDS - Nepal

The smallholder market environment is characterized by a three-part

system comprising input market, the small farm and output market. IDE has
identified four critical market factors that demand attention in the input-
production-output commodity chain from the BDS.

Technology: the technologies required for increasing MSEs productivity,

delivering the necessary inputs, and moving outputs to markets.

Capacity-building the knowledge, skills and experiences of the MSEs

and the BDS providers that serve them.

Information: timely and accurate information about crop prices, evolving

market conditions, new opportunities, etc.

Credit/ capital micro-credit loans to MSEs and capital loans to

enterprises that serve the small-holder market.