why do startups in Nepal fail

Why do Startups in Nepal fail?

While there are no reports that state how many startups in Nepal fail, people anticipate that most of them do. In Global statistics, about 80- 90% of them fail (here’s why), so it is safe to assume that the statistics would be similar if not worse in Nepal. 

I could go on talking about how useful it would be if we had a startup to cater to the research and statistics needs of Nepal but that’s for another day.

Here’s a list of reasons for Why do startups in Nepal fail?


why do startups in Nepal fail

Not led by a Visionary Leader

Great businesses are built by great entrepreneurs. Period.

The amount of entrepreneurial opportunity in Nepal right now is unimaginable. While it is a mistake to associate the success of a business to its leader entirely but in the case of our country, it is one of the major factors. 

 People face obvious problems that could be solved by startups yet most of them fail to deliver. That is because they are not led by knowledgeable, disciplined, and visionary entrepreneurs who understand entrepreneurship and genuinely want to solve a problem and put in the effort it takes to make a business grow.

Lack of Market Research and Idea Validation

The culture of lack of market research is also embedded deep into the entrepreneurs and it is fatal to success. The apparent need of the market that you can see might not be the most feasible business unless you understand the consumer need and do the research to understand the number of things that affect the business. There’s a proper way to judge a idea and validate it and this is one of the biggest reasons as to why startups in Nepal fail.

why do startups in Nepal fail

Not Having a Plan/strategy

Now, just to be clear, you do not have to plan where you will be in 5 years. Nobody can predict that. You will probably set the bar ridiculously high or low. It will contain your growth to a certain standard you set without knowing too much.

Make smaller plans. Daily, weekly, monthly, quarterly plans can be the best way to keep productivity and passion in check. The best way to move forward is to have a vision and move close to it every day. Going with the flow is also a good plan as long as you know where you are headed.

Not Listening to The Customers

Nepalese customers are pretty vocal about their needs and the kind of user experience they need. However, businesses- big or small fail to understand their needs and create a product or service that could be cherished and praised by the customers. Excellent customer service is the only thing that will assure you success. If you give them what they want, they keep coming back to you. Keep the feedback loop on every step of the way.

why do startups in Nepal fail

lack of Capital/Investment

Lack of capital could be a brutal business killer but most times it isn’t. If you have an amazing product/service, with proper planning and decision making you are most likely to never face this problem. You only need to know which doors to knock for investment at what stage. This article might help.

lack of Knowledge

Reading is one habit common in all the greatest entrepreneurs in the world.

The only people who succeed in the business world are those who understand it well. People do not give a lot of time and effort to gain knowledge and understand things that come as a crucial element for success among entrepreneurs. It is fairly simple, you have got to put in the efforts to know more about your industry and business more than anybody else in the world. Also, if you love what you do, it is not difficult to read and research about it.

why do startups in Nepal fail


Competition is a huge factor that kills startups in other countries but since we are a relatively younger nation when it comes to entrepreneurship, we do not have domestic players to share the market. However, several Indian and Chinese players have their products deep into our market and it can be difficult for startups in Nepal to offer those products/services at the same price.

However, it is something that be solved with innovation, better quality, and a kickass marketing campaign. 

These were the major reasons why I feel most startups in Nepal fail. The success of a business is entirely dependent on the entrepreneur – on his passion, knowledge, hard work and talent to get things done. The one who puts the effort in the right direct comes out creating a business that succeeds. 

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