Mapping the Entrepreneurial Ecosystem of Nepal

Nepal’s entrepreneurial ecosystem (EE) is still emerging and faces several challenges, including limited access to capital, restricted market entry, and regulatory complexities. This study uses a mixed methodology to identify solutions for advancement and policy recommendations. Relational network data is gathered using respondent-driven sampling and face-to-face questionnaires, while the Entrepreneurial Ecosystem Diagnostic Toolkit is utilised to assess entrepreneurship barriers. The findings show that while the business sector plays a substantial role in Nepal’s entrepreneurial landscape, entrepreneurs often rely on personal ties and social networks for support. By partnering with academic institutions, businesses have the opportunity to foster innovation and drive economic growth. Additionally, technological advancements enable informal businesses to establish smooth communication with their clients, partners, and suppliers. However, corruption remains a significant impediment to Nepal’s EE, with diverse economic and business consequences. This study also delves into the significance and efficacy of EE initiatives. It builds upon previous research by mapping the EE and emphasising the importance of stakeholder relationships. The study is the first comprehensive analysis of its kind in a low-income country with institutional voids. It describes the composition of the EE and its intricate interaction system within a specific geographic area.