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Wednesday, December 15, 2010

MAJOR PROBLEMS FACING BUSINESS IN NEPAL

MAJOR PROBLEMS FACING BUSINESS IN NEPAL

There are many problems that businesses are facing in Nepal they are as follows.

  1. Interference: Intereferen is the main problems of management in Nepal. Government and political leaders interfere in the management of public enterprises of Nepal. Similarly members of greater share holders family interfere in the management of private firm. Such interference is found in all the managerial functions like planning, organizing and controlling.
  2. Lack of finance: The other management problems of major industries is the lack of necessary financial resource. It is difficult to get loan from bank for industry. Banks provide loan only by taking good security. As good loan proposal is to be prepared, copy of feasibility study is to be attracted with and complex process is to be fulfilled.
  3. Small market: Nepal's market is small and limited. There is no access to all parts of the country. As small quantity of goods is to be produced for small market, the production cost reaches high.As a result the price of the goods also goes high.Since Chines and Indian goods enter Nepal at lower price, Nepalese industries cannot compete with the Chines and Indian goods.This also has shrunken the market of Nepalese industries.So small market is also a problem for management.
  4. Lack of mutual trust: There is dearth of mutual trust in Nepal. Mutual trust cannot be found even among the departments, levels and employees of the organization. Due to lack of trust authority is not delegated to the lower levels.Such mistrustful environment becomes detrimental to the industries. Similarly such mistrust is found between public and private sectors.The government plays only the role of controller rather than helper. So lack of trust has remained as great problem of management.
  5. Lack of efficiency manpower: Efficient and skilled manpower cannot be found in Nepal's labour market. Labour is supplied from the crowed of unskilled and inefficient people.This creates a problems in management.Only traditional labour from agriculture sector is supplied to industrial sectors.Totally inexperienced and unknown persons are to be employed and make them experienced. So this is also a management problem.
  6. Lack of technical knowledge: The manager working in organization should have technical knowledge. But the manager working in the business of Nepal have not got technical knowledge. Because of the absence of technical knowledge in other employees, except the related ones, organizational performance cannot be effective.So the lack of technical knowledge in employees is also a great problem for management.
  7. Labour problems: Labour organization gives pressure on management to fulfil their interest by holding demonstration, calling for strike, locking up, sit in etc. As the leaders of labour organization are affiliated to political parties and leaders, the labour organization becomes strong. The ,management is compelled to compromise with the labour organization even against interest of the enterprise or organization.
  8. Lack of infrastructure:The infrastructure such as transport, communication, electricity, water supply etc become necessary for industrialization.But these infrastructure are not available properly.So this is also a great problems for management.

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