More women entrepreneurs borrowing from financial institutions due to pandemic

 Despite the Covid-19 crisis, the pandemic might emerge as the turning point for the women entrepreneurs as the figures suggest 85 per cent jump in the loans offered to the women-owned enterprises in the last seven months. 

By mid-July 2020 financial institutions’ lending to women entrepreneurs stood at Rs 4 billion, the amount has reached Rs 27 billion as of now, informed executive director and spokesperson of the central bank, Dr  Gunakar Bhatta at a webinar titled ‘Towards recovery: Women entrepreneurs coping with the pandemic’ oraganised by South Asia Watch on Trade, Economics and Environment (SAWTEE). 

He also pointed out that the number of female borrowers has also increased three-fold during the period. 

Highlighting the difficulty in access to finance experienced by the women entrepreneurs, senior gender, rights and policy specialist Chandni Joshi, expressed that investing in women should not be considered a charity but as a smart decision. She urged the private sector to invest in women-owned-led businesses as viable business decisions.

Likewise, vice president of Federation of Nepalese Cottage and Small Industries (FNCSI) Shobha Gurung pointed out the difficulty faced by their members as the economic activities shut-down but they also utilised the period to enhance the digital and financial literacy of the members. She pointed out that during disasters like these, small businesses need more support from the government to survive. Federation of Women Entrepreneurs’ Association of Nepal (FWEAN) president Reeta Simha also seconded that suggestion. She also insisted along with the soft skills entrepreneurs need better support in the form of finances for their recovery and revival.

Chief executive officer at Enterprise for Management, Economic Reform and Gender Equality (EMERGE) Dr Mona Shrestha Adhikari said that women entrepreneurs need more support to help transition from brick-and-mortar setting to digital. She added more analysis is needed to examine disaster impacts through a gender lens.

The webinar was organised to disseminate the findings of a small-scale survey of women entrepreneurs engaged in the manufacturing sector conducted by SAWTEE to examine the impact of the pandemic on their ability to do business. The survey found that 61 per cent of the women-owned businesses reported having been affected severely by the pandemic and the lockdown measures; some 57 per cent of the respondent sought loans to cope with the pandemic; some 56 per cent of the respondents used e-commerce platforms for sales or promotion during the period. Further, some 92 per cent of the respondents were not aware of any support facilities offered by the government, revealed senior research officer at SAWTEE Dikshya Singh.

On the occasion, chair of SAWTEE Dr Posh Raj Pandey pointed out the lack of mentorship offered to women entrepreneurs, by private sector associations, government and civil society, during the pandemic to help them innovate and shift towards the digital landscape.

The participants in the webinar included women entrepreneurs, representatives from civil society organisations, policymakers and academia. They pointed out limited access to information for the women entrepreneurs that inhibits their ability to expand their businesses. Similarly, they also insisted that the difficulty in accessing finance needs to be addressed for enhancing women’s participation in the entrepreneurial ecosystem.

Banks urged to increase access to finance for cottage, small firms

The small and cottage industries are still finding it hard to get financial access.

The participants in an interaction here today on 'Access to Finance in Cottage and Small Industries' organised by Federation of Nepal Cottage and Small Industries (FNCSI) complained that the banks have not been easier to access for finance though they have enough liquidity.

Even Agricultural Development Bank Nepal, Nepal Bank and Rastriya Banijya Bank have been extending only 6.4 per cent, 3.7 per cent and 4.4 per cent of their total lending, respectively, to cottage and small industries, they said, adding that they are the banks and financial institutions are charging high interest rates to cottage and small industries. "Banks offer car loan at nine per cent but charge 12 per cent for cottage and small industries,” they added, asking the banks and financial institutions to reduce the rate to eight per cent for small and cottage industries.

Industrial trade fair concludes

The 12th National Industrial Trade Fair and Cottage Industry Festival and Renewable Energy Week 2014 concluded here today with a transaction worth Rs 125 million.

The five-day event organised jointly by Federation of Nepal Cottage and Small Industries and Alternative Energy Promotion Center was a grand successful compared to last year, according to the organisers, who claimed that the event witnessed more than 250,000 footfall.

Aimed at promoting local products, the event showcased renewable energy products, wooden and bamboo crafts, and Nepali wines, apart from herbal products, ceramics, stone crafts, metal crafts, wooden crafts, leather and footwear products, agriculture products, and renewable energy products.

Development of small and cottage industries reflect investment friendly environment

Development of small industries reflects the business friendly environment in the country, according to the chairman of Council of Ministers Khil Raj Regmi.

Inaugurating the 12th National Industrial Trade Fair and Cottage Industry Festival and Renewable Energy Week-2014, here today, he said industrial development plays a crucial role to overall development of a country. "However, economic development eluded Nepal unlike political development," Regmi said, adding that the pace of economic development depends on industrial development. "Political progress and economic development should go hand-in-hand."

Likewise, renewal energy is key to development of small and cottage industries and it has to be developed side-by-side, he added. "The elected government is going to take charge of the country and it should focus on economic development."

Similarly, finance minister Shankar Prasad Koirala, on the occasion, said the development of small and cottage industries has no option. "The government is ready to help industrial sector," he said, adding that the rules and regulations would also be amended, if need be. "The government is also ready to work with the private sector for the industrial development."

However, the Nepali products lack effective promotion, he added.

Lack of energy has made it difficult to operate industries, Koirala said, adding that the private sector is suffering from the power shortage.

Calling for the active participation of private sector, energy minister Umakanta Jha, on the occasion, accepted the government's inability to provide adequate electricity to the private sector. "We have to look for alternative and renewal energy – except hydropower – as energy is key to development."

The five-day expo of the domestic products is jointly organised by the Federation of Nepal Cottage and Small Industries and Alternative Energy Promotion Centre from February 6-10. The five-day expo is showcasing herbal products, ceramic products, stone craft, wooden craft, leather and footwear products, agriculture products, and products related to solar energy and bio gas, and many more.

National Industrial Exhibition on February 6-10

Federation of Nepal Cottage and Small Industries (FNCSI) and Alternative Energy Promotion Center (AEPC) are jointly organising National Industrial Trade Fair and Cottage Industry Festival and Renewable Energy Week-2014 is on February 6-10.
The 12^th edition of the exhibition is aimed at promoting domestic productsand bring together entrepreneurs from across the country. The five-day event will also help to encourage entrepreneurs to focus on quality products.

"The fair will provide a platform for entrepreneurs to share their experiences and problems," president of the Federation Suresh Pradhan.

The event will see some 340 stalls of entrepreneurs from 55 districts.  Industrial products will be showcased in 200 stalls while 125 stalls have been allocated for alternative energy products. Some stalls will also showcase creations by women entrepreneurs.

Different herbal products, ceramics, stone crafts, metal crafts, wooden crafts, leather and footwear products, agriculture products and raw materials apart from utensils made of steel and wood will be showcased in the expo. Likewise, the products related to solar energy and bio gas will also be displayed at the fair.

according to executive director of AEPC Govinda Raj Pokhrel, the fair will also celebrate renewable energy week to encourage people to use renewable energy products which hold great significance as the country is facing long power cuts.

Private sector urges government to bring Industrial Enterprise Act immediately

Private sector has urged the government today to immediately bring Industrial Enterprise Act through ordinance.

Calling on finance minister Shanker Prasad Koirala, who is also industry minister, today in his office, the private sector representatives asked him to immediately promulgate the Act through ordinance to protect the industries that are on the verge of shut down and manage chronic trade union problem.

The industrialists also asked the minister to include the right to shut down an industry – under sheer financial problem – in the Act.

Federation of Nepalese Chambers of Commerce and Industry (FNCCI) president Suraj Vaidhya, on the occasion, said that the industries that are in extremely bad financial health should be allowed to shut down. "It is impossible to rescue every sinking ship," he added.

However, president of Confederation of Nepalese Industries (CNI) Narendra Basnet said that the Act should include the industrialists recommendations.

Responding the industrialists, the minister said that the Act would address the collective voice of industrialists. "It will include the recommendations from the private sector," he said, assuring them to bring it as soon as possible.

Recently, Ministry of Industry had forwarded the proposed Act to the cabinet

The government is preparing to introduce the new Act as an umbrella Act that will help implement the earlier industrial policy.

Industry secretary Krishna Gyanwali, on the occasion, urged all the stakeholders to take the ownership of the Act since it will benefit the whole industrial sector.

The delegation included higher officials of FNCCI, CNI, Federation of Nepal Cottage and Small Industries (FNCSI) and Federation of Women Entrepreneurs Association of Nepal (FWEAN).