Kathmandu – Ken Shimizu has highlighted the critical role of Small and Medium Enterprises (SMEs) in Nepal’s economic transformation, stating that the sector contributes nearly 22 percent to the country’s GDP and supports around 1.8 million jobs nationwide.
Addressing the session on “Investment and Financing Pathways for SME Expansion” during Growth Forum Nepal 2026, Shimizu emphasized that SMEs are central to inclusive economic growth, innovation, employment generation, and the development of resilient agrifood systems in Nepal.
The event, organized by Embark College, brought together policymakers, development partners, financial institutions, entrepreneurs, and private sector representatives to discuss strategies for strengthening Nepal’s entrepreneurial ecosystem.
During his keynote address, Shimizu stressed the urgent need to improve access to finance, expand blended investment mechanisms, promote digital innovation, and strengthen ecosystem partnerships, particularly for youth, women, indigenous communities, and persons with disabilities.
Representing Food and Agriculture Organization (FAO), he reaffirmed the organization’s commitment to supporting investment-ready SMEs through various global and national initiatives. These include the Hand-in-Hand Initiative, One Country One Priority Product, Digital Village Initiative, Youth Food Lab, and blended finance partnerships aimed at transforming agrifood systems and strengthening rural economies.
Shimizu noted that Nepal’s SMEs possess significant transformative potential but require stronger institutional support, innovative financing models, and collaborative partnerships to scale sustainably.
He further stated that building a resilient and inclusive SME ecosystem would require coordinated efforts among governments, financial institutions, private sector actors, and development partners.
“Together, we can unlock the transformative potential of Nepal’s SMEs for a more sustainable and prosperous future,” he said.
The forum also underscored the growing importance of entrepreneurship and digital innovation in Nepal’s evolving economic landscape, with participants calling for policies and investments that empower small businesses to compete and grow in both domestic and international markets.