Background
Markets fuel societies, businesses drive markets, and people sustain businesses — an interconnected cycle that underpins socio-economic growth but is vulnerable to natural and human-induced disasters, with climate change intensifying risks. Nepal, with its fragile geology, faces frequent disasters including earthquakes, floods, and landslides, threatening economic stability, especially for small and medium-sized enterprises (SMEs). The 2015 Gorkha Earthquake highlighted these vulnerabilities, shaking Nepal’s economy to its core. While immediate disaster response is vital, long-term resilience through proactive disaster risk reduction (DRR) and business continuity planning is essential. Within this, Public-Private Partnerships (PPPs) play a key role in bridging sectors, mobilizing resources, and strengthening Nepal’s resilience for the future.
Key Challenges
Key challenges to building business resilience include inadequate disaster preparedness and business continuity planning, particularly among MSMEs that lack the knowledge and resources to mitigate risks. Gender Equality and Social Inclusion (GESI) considerations are often overlooked, limiting the development of equitable resilience strategies. Additionally, Corporate Social Responsibility (CSR) funds remain an untapped resource for DRR due to unclear policies, leading to fragmented and ineffective investments. The absence of well-documented success stories further hampers efforts to scale sustainable resilience practices, leaving businesses without proven models to follow.
Proposed Solutions
Building business resilience requires collective action from business associations, financial institutions, and development partners. Recognizing and rewarding businesses that adopt sustainable and inclusive disaster risk reduction and management (DRRM) strategies, through awards and public acknowledgment. can inspire wider adoption. Similarly, financial institutions should offer incentives like preferential loan terms for businesses implementing Business Continuity Management, GESI strategies, and DRRM plans. Policy reforms are also essential, with governments streamlining regulations and introducing tax benefits to encourage resilience investments. Lastly, stronger collaboration between development agencies and the private sector can also integrate disaster resilience into broader socio-economic strategies, ensuring long-term sustainability.
Scope of Public-Private Partnerships in Building Resilience
PPPs offer a powerful pathway to strengthening business and community resilience in Nepal through structured collaboration. Businesses can drive community preparedness by investing in disaster awareness campaigns and emergency training, equipping local populations with life-saving skills. Partnering with the government, they can also support resilient infrastructure projects, such as flood defenses and emergency shelters, safeguarding critical assets. By adopting sustainable business practices, companies can further mitigate disaster risks while fostering long-term environmental and economic resilience, creating a future where both businesses and communities thrive.
Benefits of Private Sector Engagement in Building Resilience
Private sector engagement in resilience-building brings transformative benefits, from resource mobilization to innovation and reputation enhancement. Businesses contribute financial resources, technical expertise, and logistics that, when aligned with government strategies, strengthen emergency preparedness, response, and recovery. By investing in early warning systems and supply chain risk assessments, companies can help boost national resilience. As innovators, businesses can also use AI-driven risk analytics, satellite monitoring, and digital platforms to improve disaster response, while industries like insurance and construction can create tailored risk financing and resilient infrastructure. Championing DRR enhances corporate reputation, building trust and loyalty, while integrating DRR into CSR strategies safeguards assets and fosters long-term brand value. Thus, it is a win-win for both sides.
Challenges and Opportunities for PPPs and Private Sector Engagement
Awareness and capacity building are essential challenges and opportunities for PPPs in disaster resilience. Many businesses, especially Micro, Small, and Medium Enterprises (MSMEs), lack awareness of disaster risks and their role in DRR. To bridge this gap, structured training programs are crucial to equip businesses with the skills to identify risks, plan for preparedness, and implement resilience strategies. By conducting targeted workshops, industry-specific training, and integrating DRR into business school curricula, stakeholders can foster a culture of preparedness and empower businesses to contribute to national resilience while ensuring their own sustainability.
Effective disaster resilience also hinges on strong collaboration between businesses and government agencies, as the private sector often operates in isolation from national DRR frameworks. Establishing Public-Private Dialogue Platforms will create spaces for businesses, government, and civil society to exchange strategies and best practices. Encouraging businesses to align their risk mitigation plans with national disaster management frameworks will thus enhance coherence and efficiency. Further, offering incentives like tax breaks and regulatory support for businesses that integrate DRR into their operations will foster long-term commitment and strengthen public-private coordination.
Monitoring and evaluation (M&E) poses another challenge in disaster resilience. Without clear benchmarks, many businesses struggle to assess the effectiveness of their resilience-building efforts. To address this, businesses should adopt standardized, measurable indicators to evaluate resilience, preparedness, and recovery. Regular assessments and annual DRR reports will ensure transparency and drive continuous improvement. Finally, collaboration between the private sector and government to create a centralized database for tracking resilience indicators will also enable ongoing monitoring and progress.
Conclusion
Integrating DRR into business strategies offers a powerful opportunity for Nepal’s private sector to play a pivotal role in building resilience. Through collaboration between businesses, government, and local communities, Nepal can strengthen its ability to withstand future disasters. Engaging the private sector in resilience efforts is not merely a responsibility — it’s a chance for sustainable development that benefits everyone involved. A well-crafted PPP for resilience can ensure that both Nepal’s businesses and communities not only survive but thrive, even in the face of future challenges.
(*The document is based on the discussions and outcomes of various episodes of “The Bamboo Series” organized by the NET Consortium where the author is one of the organizer and change agents.)
Mr. Shyam Sundar Jnavaly (62) is a seasoned development professional with extensive experience in humanitarian and development agencies focused on sustainable development programs. His expertise encompasses community development, natural resource management, disaster risk reduction, climate change, risk management, and humanitarian assistance. He possesses a comprehensive background in project management, business development, logistics, and supply chain management for emergency response. With over 40 years of experience in project development, program operations, training moderation and facilitation, monitoring and evaluation, policy research, advocacy, and networking, Mr. Jnavaly has established himself as a leader in his field. He currently serves as the Executive Director of the National Disaster Risk Reduction Centre (NDRC) Nepal and acts as an advisor to DPNet Nepal.
