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Lack of financial aid hampers Nepalese entrepreneurs

By Kalpana Khanal
Entrepreneur Sumitra Chaudhari, 32, started her own craft company in Nepal that employs 25 women. (GPI/Kalpana Khanal)
Entrepreneur Sumitra Chaudhari, 32, started her own craft company in Nepal that employs 25 women. (GPI/Kalpana Khanal)

KATHMANDU, Nepal (GPI)-- Clad in yellow, Shila Nepali, 43, arranges her handmade tea mats, table mats and floor mats among the 300 stalls lined up in the heart of Kathmandu, Nepal’s capital. She says she traveled by bus to this craft exhibition from Jajarkot, a district 320 kilometers (200 miles) west of Kathmandu. She struggled to become a successful entrepreneur where she lives because of economic hardship, geographical remoteness and scarcity of local skilled labor, she says. So she took the long trip to Kathmandu to sell her crafts, which she makes from natural fibers, including stalks of banana plants, maize, turmeric, paddy and wheat. “Facing different kinds of challenges to become an enterprenuer, I have come to this state,” Nepali says. She launched her craft career in 2007 when she participated in a free training for new entrepreneurs offered by the Federation of Woman Entrepreneurs Associations of Nepal, a nonprofit organization that financially aids female entrepreneurs. “When I learnt about running a business, including its choice of place and the reason for it, I felt inspired and encouraged,” Nepali says. After, Nepali took a three-month free training to learn how to spin cotton. A local branch of the Ministry of Industry's Department of Cottage and Small Industries, which promotes productivity among these industries, offered the training. The branch provided her with a single weaving machine, which she repaid in installments. She then started her fiber craft business, Koseli. Nepali also started a marketing business with a government loan of 50,000 Nepalese rupees ($575). She sells the products handmade by other local female entrepreneurs in national exhibitions. “Acquiring [a] loan and paying it back in time has enhanced my creditworthiness for subsequent loans to expand the business,” Nepali says. “I took the handicrafts produced by our local women to different exhibitions being organized all over Nepal.” She has won two awards for her crafts and her stall since 2007, she says. She has also participated in international fairs in countries such as South Korea. “Trainings and achievements have made me courageous and determined,” Nepali says. Female entrepreneurs in Nepal face many challenges, especially a lack of financial support. Government entrepreneurial programs provide free training and equipment to women, but budgetary constraints prevent continued support. Nongovernmental organizations also offer free training, but high membership fees make it difficult for them to take advantage of the organizations’ marketing assistance. Some female entrepreneurs use their new skills to invest in other craftswomen and to sell their goods. Meanwhile, the government plans to disburse more funding and introduce tax breaks for female entrepreneurs. Cottage industries use specific skills or local raw materials related to national tradition, art and culture, according to The Industrial Enterprises Act 1992. Small industries are worth up to 30 million rupees ($345). There are 3,100 female entrepreneurs in the Kathmandu Valley, according to a 2012 survey by the Federation of Woman Entrepreneurs Associations of Nepal. The number of female entrepreneurs is increasing, says Renu Sthapit, one of the federation’s vice presidents. But accurate numbers are not available, says Rita Bhandary, another vice president with the federation.

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