The COVID-19 pandemic has been a sudden and growing threat for most businesses in the country. The situation is particularly dire for start-up businesses which are getting overwhelmed by a number of challenges.
With lease agreements for most start-up businesses to stay at the Startup centre expired and currently no income at all, start-up businesses in Thimphu say they are in a dilemma. Considering the situation, the government recently extended the lease period for three more months.
A few months back, when the COVID-19 pandemic hit the country, difficulties in obtaining the necessary funding and raw materials were some major challenges faced by young entrepreneurs in the country.
However, these challenges were resolved after the government was able to make some arrangements.
Despite all this, with most businesses relying largely on foreign tourists as customers, business has still remained bleak.
With the future unsure, an Entrepreneur, Sushanta Sharma of Sushi candles, who runs a candle shop at the centre, decided to close down her business, at least for now. “Government has been very supportive because even if we want to bring raw materials, they have been very supportive. I brought my raw materials. I thought I will make some candles. At least I wouldn’t stay idle. But I have no market, as my products are usually supplied to hotel and resorts. So even if I get to sell, it is just 300, 400 or 500, that’s it,” she shared.
11 startups whose lease period to stay at the centre expired appealed to the government for an extension.
The government approved their request considering the situation but shared they will not be making any changes to the incubation period to stay at the centre.
“Those who are in the start-up, this is also the place where government creates a place for them to come there and try their things, try their market and graduate. It’s like college. They have to graduate from there. If they don’t graduate, then that’s not our business. They will have to go somewhere and then make themselves a businessman. That’s the period where they can do their trial. So they have to leave the startups. Two years in start-up, I am sure is adequate enough because, by two years time, they already have a product in their mind. Coming there, making their product and finding a market must be a possibility in normal time,” said Loknath Sharma, the Minister for Economic Affairs.
The centre facilitates aspiring entrepreneurs for two years on a shared space with subsidised rent before they move out.
Samten Dolkar
