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February 2007

  Visiting Business People

“Chambers in Nepal are really strong”

What is the background on HWK's association with the Pokhara chamber?

Rainer KuberaWe are one of the 53 members of the Chamber for Small and Medium Enterprises in Germany . One of our activities is the transfer of know-how. We met the board members of the Pokhara Chamber of Commerce and Industry (PCCI) in 1992/93 and talked about forming a partnership. They immediately agreed and this partnership started from 1994. Initially, we focused on strengthening the chamber and giving support to its members - the small and medium companies - and farmers. After six years, we felt that we should integrate more partners from this region. The PCCI too felt that it should share its experience with other chambers in the region. So we went to Baglung, Lamgunj, Tanahu and later to Nepalgunj and now there are five chambers in this partnership with the centre in Pokhara.

What have been the achievements of your activities with the PCCI so far?

Looking back, we can say there has been tremendous progress in the chamber movement in this region. You can say PCCI is one of the leading chambers in Nepal now and this is what we have achieved together. We contributed to this development. In the business community, there are many people trained under this programme in different fields: managers of enterprises, entrepreneurs, craftsmen, etc. We have also tried to improve the technologies in these fields. The PCCI executive members have travelled to India , China , Germany and other countries and this has broadened their horizons. So the whole atmosphere in Pokhara has changed.

What are the strengths of the PCCI?

The chambers here are involved in wider fields than our chamber in Germany . So they are leading institutions in economic, social and cultural life. They participate in all aspects of life in Pokhara. They don't concentrate only on industries and businesses; they are involved in the development of villages in the outskirts of Pokhara as well. So they are really open-minded and proactive and this is their strength.

What are the weaknesses?

The leadership changes too fast. Our president in Germany is selected for five years. Within this period, he can continuously develop and implement certain programmes. But presidents here are elected for two years so they cannot develop any programme within this short period. The first year runs fast and by the second year, the term is almost over.

What should the PCCI do in the future?

They should focus more on innovative activities. So far we have a lot of training in matters like double entry book keeping and salesmanship, but these are traditional fields. Entrepreneurs have to be developed to apply new ideas. That could be the role of the chamber in the future. Our programme in the coming three years will focus on this field.

How can PCCI and Nepali chambers be compared to their counterparts in other countries?

We have partnerships in places like Africa , Argentina , South Asia , Germany , France and Eastern Europe . I think that the chambers here are really strong because they are well integrated and accepted in the business community. Many people want to get involved in their activities. My personal view is that even after the political turmoil here, the chambers have become stronger because they are the only democratic institutions here. They have fair elections after which the president is elected.

Why did you select the PCCI to be your partner and not any other chamber?

When we came to Nepal , we had various choices. We went to Bhaktapur, Lalitpur, Biratnagar and some other chambers. When we came here, the then president and vice-president were quick in accepting our proposal. And it has indeed been a very good experience to work with the past and present PCCI leaders as they were and are people with good visions.

Are there any impediments to your progress in Nepal ?

It is not easy to find entrepreneurs who are open to training, new visions, and innovation because most entrepreneurs here are involved in trade -- it is easy and traditional. Of course it too has obstacles like in any other business but you only buy and sell if you are involved in trade. People have two or three employees and there is no need to be well-organised. When we started our training programmes, it wasn't easy to find participants. Now it is a bit easier but they are still not easy to find.

What are the problems of small enterprises?

The main problem with the small entrepreneurs is that they are not open for information. They do not have the latest information about business. In future, they will face competition from India and China . But I think they still continue in their dream because their business has always been running smoothly with some minor hiccups. They are sure that this will continue but I am not so sure about this.

This mindset has to change. However, it is the same in Germany . Small and medium sized enterprises are always in the day-to-day trade. Such people buy and sell goods and they do not have time for reflection. They are busy just counting the money. I think this is the main obstacle for their development. But they should be looking at some new products for imports and exports and study the market and introduce new products. This is lacking in places like Lamjung and Tanahu. This needs to be improved in Pokhara as well though it is a little more open here because tourists come to Pokhara and demand new products and services according to western standards.

What are the new plans for your partnership with PCCI?

There is the possibility of continuing our partnership here for another three years until the end of 2009. We will be focusing on innovative trainings/activities to bring entrepreneurs closer to world markets. The second thing is we will concentrate on rural and local economic development in some villages here. That is being done to bring new products. The farmers here only produce maize. They could at the same time change to products which are of higher value like vegetables, spices etc. We will also try to integrate new professions like IT for young people. University graduates here face problems because they finish college but have no practical knowledge or expertise. We are thinking of how to give them some practical expertise. We can even send some of them to Germany and give them some knowhow and practical knowledge.

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