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Legal and Policy Frameworks

Nepal has adopted the following legal frameworks, strategies, and vision documents related to social innovation:

Social Entrepreneurship
Social Innovation
Social Businesses
Social [and Solidarity] Economy
Welfare sector
SDG

Current stage of implementation:

Stage2: Welfare sector
Stage5: SDG

with

Stage1: “No Policy or Recognition: No formal recognition, discussion, or policy exists. The sector operates informally or without government involvement.”;
Stage2: “Initial Discussions & Awareness: The government acknowledges the sector and has started discussions or consultations, but no formal policy framework or regulation exists.”;
Stage3: “Draft Policy or Framework in Development: A draft policy, strategy, or regulatory framework is currently being developed. The government may be conducting research, stakeholder consultations, or legislative drafting.”;
Stage4: “Pilot Programs or Limited Implementation: Some initiatives, pilot projects, or partial government-backed programs exist, but full implementation has not yet been achieved. Policies may be tested in select regions or for specific groups.”;
Stage5: “Policy Adopted but Not Fully Implemented: A formal law, policy, or regulation has been passed, but it has not been fully implemented, enforced, or funded. Gaps in execution may still exist.”;
Stage6: “Policy in Effect & Actively Implemented: The policy is fully enacted and actively being implemented. There is clear government support, funding, and enforcement mechanisms in place.”;
Stage7: “Policy Reviewed & Strengthened: The existing policy has been evaluated and improved over time based on feedback, data, or evolving needs. New funding, incentives, or structural reforms may have been introduced.”; and
Stage8: “Leading in Policy Innovation: The country is recognized as a leader in this policy area, with best practices, strong regulatory frameworks, and incentives that actively promote and support the sector.”

More details

https://www.npc.gov.np/images/category/SDG_Status_and_Roadmap_(2016-2030).pdf

Ecosystem Actors

Key Actors in the Ecosystem

The leading actors driving social innovation in Nepal include government ministries, social enterprises, NGOs, philanthropic institutions, academia, and other ecosystem builders. The top three most influential actors are:

Government entity (ministries/agencies)
Social entreprises & social innovateurs (Impact hubs)
Corporations with strong ESG focus

Education and Capacity Building

Formal and informal education programs that support social innovation exist in the following forms in Nepal:

Limited or informal programs:“ Some training programs, workshops, or university courses are available, but they are not widespread or systematically integrated into the education system
Government-supported training programs:“ The government has launched or funded capacity-building programs, incubators, or skill-development initiatives to support social innovation
Private sector or NGO-led programs:“ Non-governmental organizations, incubators, or private sector actors actively run training, mentorship, or acceleration programs for social innovation.

Coordinating Bodies

A centralized body responsible for coordinating social innovation efforts across sectors exists in Nepal.

Ecosystem Communication

The level of communication and coordination among key actors in Nepal’s social innovation ecosystem is currently Moderate:“ some collaboration, but existing gaps in coordination.

Support Mechanisms for Policy and Finance

Policy Incentives and Support Mechanisms

To support social innovation, Nepal has implemented the following incentives and mechanisms:

Tax benefits for social enterprises and impact-driven businesses,B
Fiscal advantages for impact investors,I
Government-backed funding programs (e.g., grants, subsidies, social impact funds),J
Low-cost or preferential financing options (e.g., social bonds, impact investing incentives),L
Social security measures for social businesses,R
Public-private partnerships to foster innovation,S
Public/private crowdfunding/lending platforms

Financing Mechanisms

Social innovation in Nepal is financed through a variety of mechanisms including:

International funding (e.g., EU/bilateral/multilateral funds)
Public subsidy and grants,Public investment funds (e.g., dedicated social impact fund),Private sector investment (e.g., corporations, ESG-driven financing)

Impact

Flagship Programs and Achievements

International Collaborations

Tech for Good Innovations

Impact Measurement Frameworks

Economic Contribution of Social Innovation

Reports on Social Impact

Stage2: Welfare sector Stage5: SDG

Stage2: Welfare sector
Stage5: SDG