Title: EXPLORING ETHNIC ENTREPRENEURSHIP IN NEPAL: CULTURAL LEGACY AND ECONOMIC REALITIES
Authors:
Arjun Rai and Mandip Bhattarai
Abstract:
This study investigates the relationship between cultural identity, community support, and entrepreneurial dynamics among ethnic entrepreneurs in Nepal. The study population consists of diverse ethnic communities from Koshi Province, Nepal. The data was collected from four districts of Koshi province, viz. Morang, Sunsari, Jhapa. The research examines how traditional cultural heritage influences business opportunities while creating unique ethnic entrepreneurial challenges. The study uses a cross-sectional design. Primary data was collected from 110 ethnic entrepreneurs using a structured questionnaire, which was read to the ethnic entrepreneurs (for better comprehension), who were engaged in different businesses. The key findings revealed that cultural legacy serves as both a foundation for business creation and a potential constraint on market expansion. On the one hand, strong community networks provide essential support and resources; on the other hand, they may also limit access to broader economic opportunities. Notably, the research uncovers a paradoxical relationship where increased economic potential corresponds with heightened entrepreneurial challenges, suggesting that growth aspirations often encounter systemic barriers in mainstream markets.
These findings contribute to understanding ethnic entrepreneurship in developing economies by highlighting the delicate balance between cultural preservation and business scalability. The study highlights the need for policy approaches that recognize the value of cultural heritage and the structural obstacles facing ethnic entrepreneurs. Key gaps identified for future research include exploring digital adaptation strategies, examining women entrepreneurs’ challenges, and investigating comparative models across different multicultural contexts.
Keywords: Ethnic entrepreneurship, cultural identity, economic opportunity, entrepreneurial challenges, community support, ethnic enclaves, cultural preservation.
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