IEDC COMMITTEE

Today, IEDC is represented by a committee formed by the Secretary of Ministry of Industry (Chairman), Representative of Ministry of Finance (Member), President of FNCCI (Member), President of ACSCI (Member), and the Executive Director of IEDC (Member Secretary).

"The purpose of involving FNCCI and ACSCI in the committee is to promote and develop cordial relations between the center and business chambers and small cottage industries in Nepal," says Kapil Ghimire former executive Director. "We realize that IEDC cannot function alone on government aid. Therefore, it is necessary to shift responsibilities between the private and government sector and introduce comprehensive goals that can be met by entrepreneurs in the country. In fact, most developing countries today depend on private enterprises for fulfilling economic and social needs. It is estimated that 80% to 90% of economic growth is rendered by the private sector."

"Today we wish to strengthen the role of private entrepreneurs in the country and conduct market studies to control inflation and create more job opportunities. The committee hopes to encourage competition and promote entrepreneurial skills among individuals and organizations. Our experience with SBPP has taught us that spoon feeding creates dependency among entrepreneurs rather than developing their skills and individuality. The committee is encouraging entrepreneurs to be less dependent on IEDC and work for the most, on their own."

"In a developing country like Nepal proper market research and analysis is needed. Keeping this in mind, the committee will be organizing surveys that will keep entrepreneurs well informed on changing market trends and consumers' needs. We also hope to strengthen infrastructural growth whereby entrepreneurs may have easy access to raw materials, technology, and human development skills."

Rudolf Guthier who was appointed by GTZ (German Agency for Technical Cooperation) as Advisor to IEDC says, "The need for competitive entrepreneurs in the country is great, therefore the committee is focusing on the needs of target groups and providing courses in production management, marketing, accounting, and personnel management and development. To encourage entrepreneurial competency projects that encourage new business creation are identified and selected. Today, the committee's database supports entrepreneurial development and business feasibility studies. Every year 160 potential entrepreneurs are trained while 210 receive trainings in accounts, general management, marketing, finance, production, and salesmanship. By the end of each year 200 are provided small business consultancy services. Until now 125 former NBC training participants have been contacted to evaluate their progress and find out the difficulties they may be facing. These follow up programs play an integral part of IEDC for through such services we can assess the performance of entrepreneurs and our own staff."

The committee receives funds from HMG, foreign governments, organizations, and individuals. However, before accepting cash, goods or other services from these sources prior permission is required from HMG. "It is in our best interest to utilize the money for business entrepreneurial trainings and consultancy services," continues Guthier. "Today efforts have been made to establish a sound costing and pricing system for NBC and SBC trainings. Amounts received for industrial enterprise development are not frozen and usually depending on the economic conditions of target groups, services are levied to recover full or partial cost of programs."

"The committee's income and expenditure are recorded according to the policies adopted by HMG who may examine the accounts during any time in the year," says Guthier. " HMG has the power to audit the committee's finances if it provides more than 50% of grants. If more than 50% of funds come from other donor agencies the committee is allowed to appoint an auditor (who may also represent a company) from the income tax department to perform such duties. However, the same individual or company cannot be nominated for more than three years in a row."

"The committee meets four times in a year and the date, time, place are determined by the Chairman. However, during emergencies one third of the committee members may ask the Member Secretary to call for a meeting after he/she receives permission from the Chairman. Until now this system has worked well as decision making powers are indirectly distributed among members and problems that require immediate attention are efficiently dealt with. Other important functions of the Member Secretary is to provide committee members with a detailed agenda of forth coming meetings and notify members of the committee's decisions."

"The chairman presides over all meetings and in his absence members select among themselves an individual who will take the place of the Chairman and perform his/her duties. Usually issues are decided on a majority basis. But in case of a deadlock the Chairman casts a decisive vote. Only when 50% of members are present during a meeting is a quorum fulfilled."

"Today, the committee has several sub-committees working under its main body. Usually when the committee is overloaded with responsibilities it delegates all or some of its power to members, the Executive Director, and the sub-committee. This has helped the center to perform well and keep up the standard of training programs and workshops," explains Guthier who is satisfied with the committee's performance so far. Today the committee works with HMG through the Ministry of Industry.

Appointment of the Executive Director

HMG will appoint an Executive Director on the recommendation of the committee. The individual should have five years of experience in the field of industrial enterprise and hold a masters degree in business management, commerce and public administration. The term of office for the executive director is four years and his/her salary, duties, power, and service conditions are determined by HMG.