Single Blog View

The term entrepreneurship refers to the efforts of an individual who takes on the likelihoods in translating a vision into a successful business enterprise. Entrepreneurship is the process setting up a commercially viable business enterprise in an innovative way with value by dedicating the necessary time and effort; assuming the associated financial, psychic, and social risks and uncertainties and receiving the resulting rewards of monetary and personal satisfaction. It involves the creation process which should have value to the entrepreneur and to the consumers for which it is developed. The audience can be market of organizational buyer for business innovation. Similarly, entrepreneurship requires the devotion of the necessary time and effort to create something new and make it functional.

The construction industry is a formation of a group of companies with similar activities involved in the construction of physical and social needs, including buildings, bridges, public and private infrastructure, as well as production of shelters and consumer goods. The construction industry is one of the major sources of economic growth in the country as built environment is a country’s most important asset. Most of the country’s GDP is generated through the construction industry. In the past, the source of innovation and country’s economic growth were assumed to be big companies, but in the recent time small and medium enterprises (SMEs) are also considered to be the sources of innovation and growth and are bases of employment for vast population group due to its labor-intensive nature. Construction industry is also considered as one of the most dynamic and reactive divisions in the overall of the country because of its strong back and forth linkage with other industries.

In context of Nepal, the construction industry started after 1951. The construction activities in country lift up automatically after the First Five Year Development Plan was started in 1956. Construction industry was declared as the “Priority Sector” industry by the Industrial Revolution 1957 adopted by the Government of Nepal. The first act which defined the “Contractor” was The Industrial Enterprises Act, 1974 which created provisions for the classification and registration of contractors. This also helped in the rise of many small entrepreneurs as well as the corporate entrepreneurs also known as intrapreneurs in construction industry. These construction entrepreneurs or construction companies are registered with the Ministry of Work and Transport in class A, B or C, contractors depending on the technical manpower, value and number of machinery and liquid assets available. 

The role that construction entrepreneurs play in national economic and social development is very evident as the construction industry has vast contribution to the GDP and employment and it is vital for the development of various other sectors. In Nepal, the construction industry is estimated to create employment opportunities to more than one million population of the country and this industry contributes about 10 percent of the GDP. The lack of efficient construction companies in developing countries extremely affects the efficiency of investments and the pace of economic development in setting out a case for the World Bank’s support for construction industry development. It was also observed that it is necessary to reduce the delays in the enactment stage by improving the capacity and efficiency of the domestic construction industries.