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Agribusiness and livestock farming have become crucial sectors for youth entrepreneurship in Nepal as they contribute to food security, income generation, and creation of local jobs. Young entrepreneurs in these fields have received necessary support from the Step Up project to overcome the challenges and attain sustainable growth.
An entrepreneur from Duhabi Municipality, Biratnagar, Nayan Kumar Chandrabanshi, started his agribusiness, ‘Mausham Krishi Farm’ a year ago. He attended an Entrepreneurship Development Training Programme, facilitated by the District Enterprise Development Facilitator Society (DEDFS), which is Step Up’s partner in promoting awareness on entrepreneurship trainings and business development services. Nayan, struggled with pricing his vegetables and often sold at a cheaper rate. At the training, he learned to set prices based on market value and analyse the demand and supply aspect of the business.
His farm yields various vegetables, including tomatoes, chilies, maize, and other seasonal crops. This success has not only increased his income, but he is also creating opportunities by employing 5-6 youths during peak seasons. He aspires to grow his farming business and is working on securing a commercial bank loan.
Similar progress can be observed in livestock farming. Raj Kumar Majhi, a resident of Duhabi Municipality, returned to Nepal after working abroad for five years. With limited options, he ventured into livestock farming, starting with three pigs. With the support of the Step Up project, he received NPR 50,000 (CHF 385) as seed fund and gained valuable business insights through entrepreneurship development training. Despite challenges like market crises and local complaints about odour from his farm, he remained resilient and expanded his operations, achieving significant financial success. To address the problem of odour, he constructed the pig shed further away from his home. Taking advantage of the Step Up supported incubation programme, he also networked with other entrepreneurs.
Raj takes pride in his business and shares:
Approximately, 46 women entrepreneurs are operating beauty parlours, tailoring shops, agri businesses, having gained essential business skills and grants to sustain their operations through targeted training support and funding.
For instance, 15 women operating parlours showed a significant change in their business management practices.
Chano Kumari Majhi, owner of Chadni Beauty Parlour, Duhabi-5, Sunsari, registered her business in the department of Small and Cottage Industry and started keeping detailed financial records after completing the Entrepreneurship development training. This has helped her track daily income and expenses, understand profit and loss, and realise the necessity to access loans and network with other businesses.
Another entrepreneur, Nabina Tabdar, the owner of KN Makeup Studio and Training Centre in Duhabi, also registered her business in the Department of Small and Cottage Industries and received a government grant of NPR 73,000 (CHF 561) to support her business. She used the grant money to upgrade her studio by purchasing two chairs and a hair styling iron. This investment allowed her to expand her services and attract more clients, giving her a competitive edge in the market.
While the success stories of these young entrepreneurs are inspiring, their journey has not been without challenges. Some of the key challenges include:
Access to Finance: Many micro, small, and medium enterprises (MSMEs) face difficulties in accessing loans and grants, making it challenging to invest in resources and expand their operations. A total of 154 (106 women) MSMEs who had difficulty accessing loans and grants now have gained access to small loans and grants in average NPR 50,000 (CHF 385) facilitated by Step Up project.
Lack of Awareness and Understanding of Business Fundamentals: For individuals with limited prior experience, grasping the fundamentals of running a business—such as dynamic pricing, financial management, and market analysis—can be a significant challenge. Many new entrepreneurs are unaware of the Business Development Support (BDS) Services available in the market. These services, though limited in number, offer valuable support for MSMEs. Unfortunately, the lack of awareness means many people miss out on the opportunity to seek assistance and gain essential knowledge on business management. Over 150 MSMEs and aspiring entrepreneurs have been reached with awareness about such BDS services through Step Up’s interventions.
Market Crises and External Factors: Livestock entrepreneurs farming may face external challenges such as infectious diseases which could wipe out their entire stock putting them at greater financial risks.
Overcoming Initial Hurdles: Women entrepreneurs often face initial hurdles in financial management and business registration, since almost all of them are first time business owners.
Providing Knowledge of Business Fundamentals: Entrepreneurs have gained important business skills and formalised their ventures. The knowledge and skills acquired have allowed them to make better investments in resources, expand their operations, and create local jobs.
Working Closely with Local Government and Private Partners: Recognising the importance of localisation, Step Up has been working with the local government’s Micro Enterprise Development Unit. The Micro Enterprise Development Unit advocates and facilitates interaction between MSMEs and BFIs to improve access to finance for aspiring entrepreneurs. The project is also working with private partners to facilitate access to enterprise development training and increase awareness of BDS services.
Way Forward: Despite the obstacles, the dedication and perseverance of these entrepreneurs demonstrate the potential for positive change. Step Up's efforts are not only helping individual entrepreneurs but also contributing to the economic growth of the Koshi province by developing skilled and confident business owners. The journey of transformation for these young entrepreneurs highlights the importance of continued investment in youth and the broader impact of developing a culture of entrepreneurship in Nepal.
The StepUp project is financed by the Happel Foundation, among other donors. It is part of the Swisscontact Development Programme, which is co-financed by the Swiss Agency for Development and Cooperation (SDC), Federal Department of Foreign Affairs FDFA.