Challenges and Opportunities for Promoting Entrepreneurship and Youth Employment in Lalbandi Municipality, Nepal

Problem of youth unemployment: Youth unemployment continues to be an important socio-economic problem in Nepal, where it is worse in semi-urban towns such as Lalbandi Municipality in Madhesh Province. This paper investigates the constraints and opportunities for promoting entrepreneurship as a strategy for youth employment in this setting. A mixed-method approach was used to collect data from 75 youth respondents using a structured questionnaire and 20 stakeholders through interviews, and focus group discussions. The quantitative results reveal that a large number of youth remain unemployed or informally employed, without access to financial support, vocational training, or state-led entrepreneurship programs. Qualitative data also indicate cultural barriers, in particular for female youth, institutional shortfalls for program implementation, and lacking trust in public agencies. But it also recognizes richness in digital entrepreneurship, agri-business, and cooperative-driven support mechanisms. Many of the young expressed a willingness to sacrifice and turn to entrepreneurship, if support systems and resources were at their disposal. The results draw attention to the need for local and inclusive youth-centered policy responses. Suggested measures are to widen the provision of collateral-free lending, introduce practical training, improve outreach and institutional response, creating an enabling environment for gender sensitivity, and incorporate digital applications to promote entrepreneurship. These interventions can help unlock the entrepreneurial potential of Lalbandi’s youth and contribute to sustainable, community-based development.