Emerging Business Environment in Nepal

After the 90s great changes occurred in the political, economic, socio-cultural, and technological environment in Nepal. The government has adopted economic liberalization policy and many public enterprises have been privatized. Nepal has become a member of the World Trade Organization (WTO) which has totally changed the economic environment. The emerging business environment in Nepal are:-

1. The emergence of the open market economy.

Private enterprises and entrepreneurs have the freedom to choose the line of business on the basis of their interest with nominal administrative formalities and scope. Also, the government has privatized many public enterprises and also withdrawn the monopoly power of public enterprises.

2. The increasing role of private sectors.

The open market economy has increased the role of private sectors in economic activities. They invest not only in general lines but also involve in core areas of economic activities. The government terminated the monopoly power of public enterprises in hydropower, telecommunication, water supply, airlines, etc.

3. Private investment in infrastructural development.

The free-market economic policy of the government has also encouraged private investment in infrastructure development of the nation. The involvement of private entrepreneurs in infrastructure development helps to boost the economic development of the nation.

4. Development of information technology.

The rapid development of information technology (IT) has also affected the Nepalese business. The use of IT resources consisting of computer programs, e-mail, internet, network system, etc. increases the working efficiency of business organizations. At present, information technology has been taken as an important component of economic activities in Nepal.

5. The emergence of multinational companies.

The economic liberalization policy of the government has opened the door to multinational companies to perform business activities in Nepal. The development concept of globalization and agreement with WTO has created a great scope of business for multinational companies in Nepal.

6. The emergence of consumerism.

Liberalization policy has facilitated free excess of foreign goods and services in the Nepalese market and customers can purchase on the basis of their own choice. Nowadays the luxurious goods of the past like computers, refrigerators, motorcycles, cookers, washing machine, etc. have become the basic needs.

7. Growth of the service sector.

The business is diverted from the manufacturing business to the service sectors. New private enterprises have been evolved to perform business in the service sector. These service sectors have attracted huge investments in recent years.

Therefore the emerging business environment in Nepal has explained above.