Monday, December 23, 2019

Compliances, fines hurt innovative business practice

Through the multiplicity of compliance and vast number of fines imposed, smooth and efficient operation of an enterprise is a distant dream in Nepal. In the wake of such inadequacies and bottlenecks pertinent to innovative businesses, regulators and the regulated today discussed on ‘Facilitating Innovative Business Practices in Nepal’ to find out possible future steps that can be helpful to both the parties.
In the interaction organised by Samriddhi Foundation the participants highlighted that innovation in entrepreneurial ventures ultimately helps the economy but Nepal’s arcane laws either prohibit innovative practices like mobile businesses or ride sharing businesses or to a certain degree fail to create an environment for such businesses to prosper.
National Governing Council Member of the Nepalese Young Entrepreneur Forum (NYEF) Nivita Pradhan, on the occasion, voiced concern about finance as one of the major challenges that Nepali start-ups face.  She went on to explain how potential entrepreneurs lack assets for collateral to acquire loan at banks. Pradhan also stressed on lack of substantial research, policy irregularities, and lack of a one-stop mechanism for ecosystem players as few among the many reasons why the failure rate of startups is so high in Nepal.
“Start-up is a word that has been used, misused and abused as it is subject to one’s individual approach; hence, it is important that the government, legislature and the judiciary understand its definition and potential,” said Founder of Tootle Sixit Bhatta. He also stated how Tootle has protected the country and its people from economic shocks as everyone, ranging from professionals, students to homemakers, can become riders and use the platform as a transitional job involvement.
The session that began with a presentation by a researcher at Samriddhi Foundation Yatindra KC by giving a brief overview on the areas that require considerable scrutiny so as to propel entrepreneurial growth in Nepal, also witnessed advocate and partner at the Abhinawa Law Chambers Semanta Dahal, who used a rather philosophical and a thought-provoking approach to explain the need for innovation in the country. He stated that law can never catch up with the pace of technology, therefore, it is for us to ponder up if law should choke or cope with such changes.
“When you have paternalistic policies, the government’s role is going to be controlling,” Bhatta said, adding that we, however, need policies nudge people towards desirable outcome, rather than punish undesirable outcome. “Our policies need to be libertarian paternalistic.”
Pointing out the need to change the pattern of the existing notion of policy making and implementation and he said strongly believes that libertarian policies will better guide the society.
The participants, on the occasion, were also curious to know the imposed challenges and the support mechanisms in part of the government. In response to the queries, it was cited that that the country’s ever-changing laws and lack of awareness to make deliverables poses a recurring challenge. To tackle this gap of knowledge, an up to date research must be done and data reservoir created so that the government can keep track of the pace of the innovative industries and the entrepreneurs can keep themselves updated.
One of the panelists, chief executive officer of Health at Home Bishal Dhakal said that the laws exist in order to facilitate the young and vibrant ideas but apart from what the government is doing to facilitate the startup ecosystem, private individuals also need to be professional. “We as individuals also need to be proactive,” he said, adding that it is agreeable that changes are conceivable when everyone is liable to their duty; as policy makers or as policy drivers.

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