Expanding horizons and tapping into the vibrant entrepreneurial ecosystems outside the Kathmandu Valley is essential for driving inclusive economic growth in Nepal. Between June 23 and 25, a joint delegation from the Swiss Agency for Development and Cooperation (SDC) and One to Watch (OTW) set out on an energizing regional field visit. Traveling through Pokhara, Chitwan and Bhairahawa, the team met with inspiring entrepreneurs to explore how the NIIC 2 program can better fuel regional innovation.

Here are the top strategic highlights and takeaways from the visit:

• Harnessing Core Regional Innovation

The field visit put a spotlight on the incredible ingenuity of regional business owners who are embedding smart technology into the fabric of their operations. From agri-tech entrepreneurs using specialized Internet of Things (IoT) sensors to automate climate controls in mushroom cultivation, to traditional manufacturing plants looking to build custom enterprise resource planning (ERP) platforms, the potential for digital transformation is massive. Moving forward, NIIC 2 is committed to sharpening its tech-enablement criteria to ensure technical assistance maximizes structural additionality for these forward-thinking enterprises.

• Bridging the Regional Financing Gap

One of the most valuable takeaways from the visit was understanding how to better align financial instruments with the needs of local businesses. The delegation encountered a strong appetite for collateral-free, cash-flow-based debt facilities among regional firms that possess robust operational capacity but lack traditional fixed assets. To turn this demand into reality, OTW is rolling out dedicated orientation and product sensitization sessions tailored specifically for local commercial bank branch managers. This proactive partnership aims to streamline credit underwriting and bridge the gap between regional potential and institutional capital.

• Unlocking Untapped Sourcing Channels

Every regional hub visited revealed unique economic strengths. Pokhara, in particular, stands out as a major innovation hub with a wealth of untapped potential for tourism-related tech and tech-enabled SMEs. To build an even stronger, dynamic pipeline of regional candidates, the program will expand its outreach networks. By building collaborative synergies with complementary development initiatives of partner private sector development projects, the program aims to seamlessly absorb high-potential regional leads into its ecosystem.

• Setting the Stage for a High-Impact Future

The insights gathered from this field visit will be pivotal in shaping the future trajectory of NIIC 2. To give early-traction regional firms the best chance at success, the team is extending its pre-loan engagement timeline, offering intensive guidance to ensure businesses are truly investment-ready. Furthermore, the program will actively champion Gender Equality and Social Inclusion (GESI) by intentionally prioritizing women-led and inclusive enterprises in future recruitment rounds.

By integrating these field-tested adjustments into the operational roadmap, the NIIC 2 team is ready to build a compelling case for deep market relevance and impact, paving the way for a strong future and an empowered regional tech sector.