IFISE Magazine - August 2017 FED Report

FED REPORT August 2017
1. Lack of True Spirit of Entrepreneurship
Majority of the entrepreneurs in Bhutan lack the true spirit of entrepreneurship. The
idea of businesses are more driven by the desire to accumulate profits. Business ideas
are short-sighted without long term visions. The idea of customer care is lacking in
most of the entrepreneurs. There are no proper marketing strategies in place in most of
the business units.
2. Access to Finance
Like in many countries of the region, access to finance remains to be a major challenge.
Banks in Bhutan only provide collateral based loans that too at a very high interest
rates. There are some venues of getting small grants through government and NGO
schemes but they cater to only few selected entrepreneurs.
3. Lack of Proper Training Institutions on Entrepreneurship
At present there no training institute in Bhutan that offers related trainings on
entrepreneurship development. The only few trainings that are rendered are facilitated
by the Ministry of Labour & Human Resources. There is no in-house expertise to also
conduct the trainings.
C. ENVISAGED INTERVENTIONS
Following are the envisaged interventions given the current challenges and
situations in Bhutan:
• There is need to come-up with entrepreneurship-friendly funding mechanisms
by the Banks in Bhutan to fund business plans that have capacity to generate
employment and improve the economy of Bhutan.
• The government of Bhutan under the Ministry of Economic Affairs need to institute
a separate Department of Entrepreneurship Development. The Department
should then be mandated with the particular job of conducting training to the
entrepreneurs of Bhutan also carry out research and market studies to help and
guide the entrepreneurs.
• The government of Bhutan could create a separate revolving fund to fund aspiring
and talented Bhutanese entrepreneurs to fund projects without having to secure
mortgage requirements.
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