Unlocking Opportunities for the Private Sector in Nepal Promoting greener and more inclusive growth

Page 74

Mott MacDonald | Unlocking Opportunities for the Private Sector in Nepal Promoting greener and more inclusive growth

Key Takeaways: barriers to growth disaggregated by sectors 1.79% in 200918. The international bandwidth per internet user was 21 kbit/second in 201719.Limited internet connectivity discourages tourists from staying in the area for a longer period. Furthermore, it hinders marketing effort and the set-up of online payment system that could benefit Nepalese enterprises instead of Indian and Chinese operators. Inadequate business development services: Accounting services, advertisements, and market information services were the most used and appreciated services. Uptake of strategic services was generally low. Training for workers did not fully meet expectations of companies. Inconsistent coverage of financial services: Enterprises were satisfied with the services from the banks. Financial services of other types of financial services providers did not fully meet expectations of companies.

6.1

Agribusiness: barriers to growth

This section provides a detailed description of the constraints faced by businesses for the agriculture sector. 6.1.1

Customs and trade regulations

All women-owned enterprises and exporters rated customs and trade regulations as “serious problem.” Majority of the agribusinesses in Lumbini and arnali considered it a “serious problem.”

Figure 30. Extent that customs and trade regulations hinder business growth of Agribusinesses

18

https://data.worldbank.org/indicator/IT.NET.USER.ZS?locations=NP

19

https://www.itu.int/en/ITU-D/Statistics/Dashboards/Pages/Digital-Development.aspx

February 2022

53


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Figure 39. Extent that limited internet connectivity hinders growth of tourism enterprises

1min
page 99

Figure 38. Extent that decline in tourist spending / tourist volume hinders growth of businesses in the Tourism Sector

1min
pages 97-98

Figure 37. Extent that high tax rate hinders business growth in the Construction Sector

2min
page 94

Figure 36. Extent that getting a business license is a problem for enterprises in the Manufacturing Sector

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page 87

Figure 35. Extent that corruption hinders business growth of enterprises in Manufacturing Sector

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page 86

Figure 32. Extent that insufficient supply of raw materials hinders business growth of Agribusinesses

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page 78

Figure 33. Extent that limited access to storage facilities hinders business growth of Agribusinesses

1min
page 80

Figure 34. Extent that customs and trade regulations hinder business growth in the Manufacturing Sector

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pages 84-85

Figure 31. Extent that lack of testing laboratories hinders business growth of Agribusinesses

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page 77

Figure 30. Extent that customs and trade regulations hinder business growth of Agribusinesses

3min
pages 74-76

Figure 23. Extent that high cost of transportation hinders business growth in the three provinces

2min
page 65

Figure 26. Extent that high cost of power utilities hinders business growth

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page 68

Figure 29. Indicative value added per worker per province

4min
pages 70-73

Figure 25. Extent that unreliable electric utilities hinder business growth

1min
page 67

Figure 17. Breakdown of respondents in manufacturing sector by number of workers, 2017 & 2021 35 Figure 18. Breakdown of respondents in the Tourism Sector by annual sales: 2017, 2019, and 2020

3min
pages 57-59

Figure 24. Extent that poor accessibility hinders business growth

1min
page 66

Table 9. Number of enterprises located in Province 2 by focus sector, 2018

4min
pages 43-44

Figure 3. Distribution of Construction and ICT enterprises by province

1min
page 30

Figure 5. Breakdown of respondents by major market

1min
page 34

Figure 10. Percentage contribution of each province to GDP, 2019/20

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page 41

Figure 9. Providers of financial services

2min
pages 38-40

Figure 8. Sources of funds for business expansion

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page 37

Figure 7. Sources of funds for purchase of fixed assets

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page 36

Figure 6. Sources of working capital

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page 35
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