Shabda Gyawali's Blog

Here are few suggestion Establish ‘Single Window Clearance’ mechanism for starting a business, and establish time-bound processes for the same. Set up online information and application portal for processes relating to doing business. Permit self-regulation and self-compliance for businesses with turnover less than Rs 25 crore. Stringent penalties may be used to prevent potential misuse. Facilitate labour law reform and ease compliance norms with labour laws. This is essential in triggering entrepreneurial activity in core sectors. Ease investment and exit norms for equity investments into early stage ventures. Establish expeditious procedures for closing of businesses, thereby bringing down the time, cost and complexity of doing so. Source: StartupCentral 

You often hear Nepali MFIS blowing horns of their success by indicating their customer base growth rate MFIs needs to go beyond tracking -   Number of Customers reach to measure their social impact... Here is an excellent case study on social impact measuring metrics of MFIs............................ Click here to read 

" IFC works in countries all over the world with all sorts of political situation. This is not new to us. What is important is that small businesses thrive regardless of what´s going around them. The politics and the government do not matter much to them because they are focused on their own businesses. And on top of that they need money to grow. So investments in SMEs are really good investment." Click here to read more 

This news to me sounds like a fusion between United states sum prime crisis and India's micro finance crisis..  

Saturating customer base Mission Drift  Customers multiple financing and over leverage Profiteering mindset of MFIs Lack of  appropriate tools to measure social impact of access to finance  Unhygienic corporate governance standard  Lack of know-how to leverage technology to increase penetration and reduce cost of transaction     

" Business Oxygen (BO2) is a USD 14 Million Small and Medium Enterprises (SME) Ventures Fund, initiated by International Finance Corporation (IFC) and managed by a joint venture between beed and Bank of Kathmandu (BOK). The Fund will invest in SMEs in Nepal and open up, for the first time, access to finance outside the traditional realms of providing collateralized loansBusiness." Click here to learn more

"The UN Capital Development Fund (UNCDF) and  the United Nations Development Programme (UNDP) are launching a Request for Expressions of Interest (EoI) for the Access to Clean Energy for the Poor through Microfinance (CleanStart) programme in Nepal. The EoI is open to eligible financial service providers (FSPs) who have retail or wholesale  operations in Nepal.  The programme will award grants and technical assistance  to leading FSPs to create new financing models and expand their retail  or wholesale operations  in the  clean  energy  markets in particular to provide microfinance for clean energy  solutions  to low-income households and micro-entrepreneurs in areas which are underserviced at the moment.  CleanStart will operate over a period of four years (2012-2015) in Nepal, and provide business development support to up to three qualified financial institutions" Click here to read more

DoC plans co-op subsidy guidelines | National | Business | ekantipur.com Government decided to provided seed money to run co-operative run by the low-income and disadvantage population. Can this we considered impact investing ? " The programme has targeted the poor from underprivileged communities like Haliya, Kamaiya, Dom and Musahar. It has also targeted promotiung cooperatives operated by low-income people like rickshaw pullers and single women." .............................................................................................................................................. Related news from India - "   A venture capital fund, dedicated to promoting Dalit entrepreneurs, has been registered by market regulator Sebi, paving the way for creation of a corpus to support businesses owned by people from the Scheduled Castes." click here to read more 

The Himalayan Times : IFC for equity investment in Probiotech - Detail News : Nepal News Portal "A fter the agreement, the due diligence of Probiotech will finalise the equity per cent and capital the IFC will pump in, the sources claimed, adding that IFC might pump in around $200,000 but it will be finalised only after due diligence that will start from mid-January, if everything goes as planned.   According to International Finance Corporation norms, it cannot invest more than 25 per cent equity in a company." S imilar kind of private equity deal took place in India couple of weeks ago....  Temasek  holding bought 20% of the share in  Godrej Agrovet, a diversified agri-business company,that has interests in animal feed, oil palm plantations, agri-inputs and poultry.  Click here to read more  

"   सहरका विद्यालयले मोबाइल फोनमा प्रतिबन्ध लगाइरहँदा दैलेखका ग्रामीण विद्यालयमा त्यही मोबाइल भरपर्दो शैक्षिक सामग्री बनेको छ । पठनपाठनलाई प्रभावकारी बनाउन यहाँका अधिकांश विद्यालयले मोबाइल प्रयोग गर्छन् । केही विद्यालयले सुरु गरेको यो अभियानले सकारात्मक परिवर्तन देखाएपछि अन्य विद्यालयले पनि जेठदेखि मोबाइललाई शैक्षिक औजारका रूपमा प्रयोग गरिरहेका छन् । मोबाइल प्रयोगको ६ महिनामै विद्यार्धीको नतिजामा सुधार देखिएको छ । दैलेखका ५ सय १३ प्राथमिक विद्यालयका ५ सय २५ अंग्रेजी शिक्षकलाई मोबाइल फोन भरपर्दो पाठ्यसामग्री बनेको छ । कक्षा १ देखि ५ सम्मका अंग्रेजी विषयको पाठ्यवस्तु सबै अडियो (श्रव्य)मा राखिएकाले मोबाइलबाटै सुनाएर पढाइन्छ ।" Click here to read more 

Non life insurance companies will offer insurance products for paddy, vegetables,potato,poultry, fruits and livestock  "  Crops insurance will cover production cost involved in farming of all crops and horticulture until the time they are ready for harvest. This includes cost involved in purchase of seedlings and fertilizers, and labor charge, among others. However, insurance coverage will not be provided in case plantations are done on less than eight aanas (2,738 sq ft) of land in hilly region and one kattha (3,645 sq ft) of land in the Terai" " On the other hand, livestock and poultry insurance will provide coverage to all types of cows, oxen, buffalos, yak, female yak, sheep, goat, swine, chicken and ducks based on sum insured fixed by the Insurance Board. For instance, maximum sum insured for high-breed dairy cow and buffalo are Rs 150,000 and Rs 125,000, respectively. This means those who have purchased cow and buffalo insurance policies cannot claim for more ...

Over the recent years increasing number of  private hospitals have cropped up around the country ... Even though the number of hospital beds have increased over the years, access to affordable healthcare still remain  a challenge..... Economist Kancha sees   tremendous opportunities to invest in heath care sector- particularly in single specialty chain and diagnostic laboratories.   Why Potential Investors should look into investing  in ----- Single Specialty Afforable Chains of Dailysis centers  one in every 10 Nepali people suffers from kidney problem and around 27,000 patients need renal transplants  There are only 140 dialysis machines in 25 hospitals and private clinics across the country, which are able to provide the service to only around 1,000 kidney patients. Click here to see  interesting healthcare  business model...

For the first time last week, I heard the word-" Impact sourcing" form a article in HRB. According to the article the definition is " A small but growing industry known as “impact sourcing” is addressing that need head-on by hiring people at the bottom of the pyramid to perform digital tasks such as transcribing audio files and editing product databases. Essentially, it’s business process outsourcing aimed at boosting economic development." click here to read more  ................................................................................................................................................................... Finding this idea very interesting, did some research to explore  opportunities for the similar kind of concept in Nepal ....During the research learned about a company called Cloud Factory,which has been operating  from Nepal for the past couple of year and was 'doing' impact sourcing .. Beg...

IFC helps Nepal develop payment system MYREPUBLICA.com - News in Nepal: Fast, Full & Factual, POLITICAL AFFAIRS, BUSINESS & ECONOMY, SOCIAL AFFAIRS, LIFESTYLE, SPORTS, OPINION, INTERVIEW, INTERNATIONAL, THE WEEK news in English in Nepal

Source: Myrepublica  "The government has prepared a draft of the new Agriculture Enterprises Promotion Act that among other, envisages to pave the way for contract or lease farming and promises incentives to insurance companies to sell farm insurance policies. The draft prepared by the Ministry of Agriculture Development (MoAD) in association with the Agro Enterprise Center (AEC) of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) will soon be circulated among local stakeholders in the different development regions for feedback, said a senior government official. Keeping in view the large swaths of land being left fallow by landlords, the government came up with the legal provisions to make sure that proper use of cultivable land through contract and leasing system is introduced in the country. “Though we have large tracks of land abandoned without farming across the country by landlords, we are still dependent on imports...

Pvt sector calls for apt farm policy | National | Business | ekantipur.com

Taking m-commerce to the next level | National | Business | ekantipur.com Company I am following in Financial Inclusion.... 

VCs are no competition threat to existing banks .. they complement each another .................VCs can use banks for deal origination and to provide there investee companies with  working capital loan ..... Reasons how VCs will help Banks...... Help prop up bad loans  VCs have hands on management in their  investee companies,therefore will  help bank to reduce write-off risks... Source: Dalberg research and analysis

So ..so ...  finally after 20 years of economic liberalization,Nepali government has realize that existing policy for private sector development sucks and it need to be revamped ....The Government has started consultation with    private sector umbrella bodies (FNCCI &CNI) to brain storm on ideas  on what kind of private sector development policy  will create long term sustainable economic growth...Employment data from early 1990s to 2010 suggests that it is  not the large scale  industries that help create more jobs and social harmony , but it the SMEs ......... If government objective is to create a sustainable economy  than development of entrepreneurial eco- system  and growth in SMEs should be the focus of  the new private sector development policy............................. Here are two suggestion fo...