---
title: "Startup after graduation; risks and challenges"
subject: "Organization and Management"
chapter: 8
key: "semester_7/organization_and_management:startup-after-graduation"
source: https://www.bctengineer.com/q/semester_7/organization_and_management/startup-after-graduation
site: BCT Engineering
---

# Startup after graduation; risks and challenges

Organization and Management · Chapter 8: Motivation, Leadership and Entrepreneurship

- Asked in: 2074 Chaitra, 5+3 marks
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/organization_and_management/startup-after-graduation
- Whole chapter: https://www.bctengineer.com/md/semester_7/organization_and_management/chapter-8

## Question

Describe why you would or would not undertake a startup after graduation. What are the risks and challenges for an aspiring entrepreneur in Nepal society?

## Short answer

I would start a startup after graduation, given Nepal’s market gaps and low entry costs in IT, to create jobs and apply my skills. However, risks include scarce capital, bureaucratic hurdles, infrastructure gaps, social pressure for secure jobs, and policy instability.

## Answer

I would undertake a startup after graduation, preferably after a short period of work experience, because it gives independence, learning, and the chance to build something of my own.

#### Why I would start
1. **Opportunity:** Nepal has gaps in IT services, agriculture technology, tourism and renewable energy.
2. **Low entry cost:** Software and online business need small capital.
3. **Job scarcity:** Limited quality jobs; creating one's own job also employs others.
4. **Growth potential:** Successful startups like Pathao, Foodmandu and Khalti show that Nepal's market can support new ideas.
5. **Skills and passion:** Engineering knowledge can be turned into products.
6. **Government support:** Startup funds, concessional loans, incubators.
7. **Staying in the country** contributes to national development.

#### Risks and challenges for an aspiring entrepreneur in Nepal
1. **Financial:** Lack of seed capital and collateral; banks demand land as collateral; limited venture capital.
2. **Market risk:** Small domestic market and low purchasing power; strong competition from imports.
3. **Legal and bureaucratic:** Complex registration, taxes, licensing, delay and corruption.
4. **Infrastructure:** Power cuts, poor internet and transport in some areas; limited payment gateways for international business.
5. **Political instability** and policy change; strikes.
6. **Social attitude:** Families prefer secure jobs or foreign employment; fear of failure and social stigma.
7. **Skill shortage and brain drain:** Hard to hire and retain talent.
8. **Lack of mentoring and experience.**
9. **Technology and foreign exchange limits** for importing equipment or sending money abroad.

To reduce risk I would begin with a lean product, validate the market, keep a backup income and seek mentors.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. What stance does the answer take?
   A. Never start a startup
   B. Start after a short period of work experience
   C. Start before studying
   D. Only work abroad
   Answer: B. It prefers a startup after graduation, preferably after a short job. (Key point: Stance and timing)

2. Which business type needs small capital according to the answer?
   A. Heavy manufacturing
   B. Hydropower
   C. Software and online business
   D. Mining
   Answer: C. Software and online business have low entry cost. (Key point: Low entry cost)

3. Which is a financial challenge in Nepal?
   A. Lack of seed capital and collateral, with banks demanding land as collateral
   B. Too much venture capital
   C. No taxes
   D. Free loans
   Answer: A. Seed capital and collateral are major hurdles. (Key point: Financial challenge)

4. How does the author plan to reduce risk?
   A. Borrow heavily
   B. Start with a lean product, validate the market, keep backup income and seek mentors
   C. Quit job at once
   D. Skip market study
   Answer: B. Lean start, validation, backup income and mentors reduce risk. (Key point: Reducing risk)

## Related in Organization and Management

- [Case study: Nepal Electricity Authority / Telecom](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Acase-study-nea-nt) — Organization and Management, chapter 9
- [Creativity and conducive environment](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Aentrepreneurship-environment) — Organization and Management, chapter 8

## Related in other subjects

- [Internal/external risks; Nepal; hydropower](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Arisk-internal-external-nepal-hydropower) — Project Engineering, chapter 5
- [Government support and startup policy in Nepal](https://www.bctengineer.com/question.md?key=semester_7%2Fentrepreneurship_development%3Astartup-policy-government-support-nepal) — Entrepreneurship Development, chapter 8
- [Need and challenges of irrigation in Nepal](https://www.bctengineer.com/question.md?key=semester_6%2Firrigation_and_drainage_engineering%3Anepal-irrigation-need-challenges) — Irrigation and Drainage Engineering, chapter 1, asked 9×
- [Challenges and hydropotential of Nepal](https://www.bctengineer.com/question.md?key=semester_7%2Fhydropower_engineering%3Achallenges-hydropotential-nepal) — Hydropower Engineering, chapter 1