The role of the government towards business can be viewed in three categories:

  1. As a business promoter
  2. As a business regulator
  3. As a business caretaker
  1. Promoter : Government promotes business in following ways:
    1. Infrastructure and manpower development: Government provides the facilities like transportation‚ information technology‚ communication, water supplies‚ waste disposal‚ civic amenities facilities‚ etc. Besides‚ the government also conducts different educational and training program for the development of technical and professional manpower in nation. These activities facilitate business development.
    2. Public enterprise: Government establishes different trading and manufacturing organization to deal in essential goods and services. They play and entrepreneurial role in setting up industries.
    3. Source of information: Since‚ the government is the largest organization in a country‚ it has abundant information which can be used in business. Thus‚ government acts as a source for information and provides to the business.
    4. Financial Assistance: Government provides low cost finance through its financial institutions like Nepal Rasta Bank‚ Provident fund‚ Citizen Investment fund‚ Agriculture development bank etc. for industries.
    5. Incentives and  subsidies:   Government   facilitates   business   by providing subsidies to the growing and sick industries. It also provides incentives to the business producing essential goods and services to maintain low cost to the people.

b. Regulator: As a regulator government formulates different rules and regulation to operate the business smoothly. Businesses much comply with such regulation. The different business related regulations in Nepal are: Private Firm Registration Act‚ Trade union Act‚ Company Act‚ Labour Act‚ Food Act‚ Foreign Exchange Regulation etc. Besides ‚there are different policies such as Monetary Policies‚ Fiscal Policy‚ Trade Policy‚ Industrial Policy‚ etc government enacted for the development of business.

c. Caretaker: As a caretaker government provides protection from the political risk factors such as: extortion‚ band‚ unrest etc. Apart from that‚ it formulates and implements strict rules and regulation to protect intellectual property rights.