Read the following case and answer the questions given below: The priority of Government of Nepal seems to be in local resource based entrepreneur development so the target of government, 'balanced…

Read the following case and answer the questions given below:

The priority of Government of Nepal seems to be in local resource-based entrepreneur development so the target of government, 'balanced regional development', can be met.

Experience shows that big business houses or industries especially established in foreign direct investment are creating conflict in Nepal. It is so because Nepal is a poor country and FDI providers are from financially and economically strong countries. They lobby for undue policy influence and take more undue benefits than local industries. They use the political power of host country to get more concession, rebates and benefits. Policy influence is the major problem of multinational companies.

Considering to all these factors, Government of Nepal prioritizes in local entrepreneurship development. Government has provided skill enhancing trainings to the youths of remote and village areas. CTEVT has provided basic level of training like computer repair, and mobile repair, etc. through other Non-governmental organizations (NGOs) and local offices and International non-governmental organizations also working in the field of training and development of entrepreneurship.

In the collaboration of Ministry of industry and United Nations Development Programme (UNDP), a project entitled 'Micro Enterprise Development Programme (MEDEP) has been established. It is working in the low-income family and disadvantaged and backward communities. It supports financially and technically to deprived communities to develop micro enterprises. As well, ELAM (Occupation), a poverty reduction project of Swiss development Agency (Helvetas), is also working in the field of enterprise development. It is especially working in terai region. It has provided training to those who want to start their own business. It gives training to entrepreneurs or persons who intends to develop knowledge on business plan preparation, marketing, account keeping, product development, and productivity improvement.

Government also has managed the institutions to support entrepreneurs. Some institutions are Ministry of Industry, Department of Industry, and Department of cottage and small industries, Industrial promotion Board, Nepal Industrial Development Finance company, National productivity and Economic development centre, Cottage and Small Industries Development Board, Industrial Enterprise Development Institute and IT Park.

Even though all these arrangements have been made by the government of Nepal and international agencies, the set up and development of enterprises is not encouraging in Nepal.

Questions a) What may be the cause of slow development of enterprises in Nepal? b) Why do entrepreneurs need institutional support? c) Do you think local resource-based enterprises are more suitable to Nepal compared to big enterprises which obtain FDI? Explain. d) Suggest the best ideas for the development of rural and local resource-based enterprise in Nepal?