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Socio Cultural Environment

Socio Cultural Components

Attitudes and beliefs of the people Demography Population distribution Religion Language Caste and ethnicity Economically active groups Labour force: availability of skilled manpower and migration Social Organizations and Pressure Groups Class Structure Social Change

Attitude and Beliefs

Responsible for work behavior, working hours, prestige associated to certain professions
Working hours, buying habits, availability of skilled and educated manpower are determined by the socio cultural structure of the given country or society


Risk taking ability Individualism-Collectivism Power distance High context culture-low context culture Corporate culture


Socio cultural factors can influence business practices but sometimes business can also influence them
Growing trends of TV culture, mobile culture, internet and chatting culture, fashion are influencing cultural practices of people around the world

Religion and Language (2001)

Religion: Hindu 80.6%, Buddist: 10.7 %, and Islam 4.2%

Language Nepali: 48.61% , Maithili: 12.3%, Bhojpuri: 7.53%, Tharu: 5.86%, Tamang:5.19%, Newar: 3.63%, Magar: 3.39%, Awadhi: 2.47%, Bantawa: 1.63%, Gurung: 1.49, Limbu: 1.47

Social Organizations

Family system: joint family responsibility for bread earners


Associations in common interest groups, communities, consumer groups and other pressure groups

Class Structure

Joint family system and nuclear family system Affluent class Middle class Lower, middle, and Poor

Caste System (2001)

Chhetri: 15.8%, Magar: 7.14, Tamang: 5.64, Muslim: 4.27, Gurung: 2.39, Bahun 12.74%, Tharu: 6.75, Newar: 5.48, Rai: 2.79, Limbu: 1.58

Pressure Groups
Labour unions Consumerism Environment Protection Human right groups


Education and Literacy

Five Universities: TU, KU, Purbanchal, Pokhara University and Mahendra Sanskrit University Literacy (2001): 53.73%, Chhetri: 60.11%, Bahun: 74.9%, Magar: 55.9%, Tharu: 47.12, Tamang: 45.04%, Newar: 71.22%, Muslim 34.74, Rai: 58.19, Gurung:59.79%, Limbu: 58.12%

Population Census of Nepal

Census Population Growth Rate

1971 1981 1991 2001 2011

11,55,5983 15,02,2839 18,49,1097 23,15,1423 26,620,809 2.25 % 1.40%


Population Growth


Demographic Structure of Nepal

Population Census 2011 Total Population: 26,620,809 Males: 12,927,431 Females:13,693,378


Population Census 2011

Highest Population of Kathmandu: 1,740,977 followed by Morang, Rupandehi, Jhapa and Kailali which has the population of 964,709; 886,706; 810,636 and 770,279 respectively. Manang constitutes the lowest population of 6527 followed by Mustang, Dolpa, Rasuwa and Humla that has population of 13,799; 36701; 43798 and 51008 respectively.


Poverty Status

Poverty Status

1984/85 1995/96 2003/04 2010/11

42.0 41.7 30.8 25.2


Census 2001

No. of Households: 5,659,984 Average Household Size: 4.70 Urban population:

Census 2001 2011 Population size 14% 17%



Regional Distribution of Population Mountain: 6.75% Hill: 43.10% Terai: 50.15%


Social Change
Changing attitude, values, beliefs of people Changing lifestyles and their effects on business


Socio Cultural Environment's Impact on Nepalese Business

Recently, significant demographic changes i.e. migration due to conflicts and in search of economic activities Urbanization and youths Class structure- rich, medium, lower medium and poor Increasing prominence of middle class Nuclear family and changing lifestyle

Socio Cultural Environment's Impact on Nepalese Business

Festivals, holidays, working habits, and changing consumption pattern Individualized lifestyle Consumer awareness Awareness for equal opportunity Education


Socio Cultural Environment's Impact on Nepalese Business

Impact on Business Culture: Family owned Conservatism/traditional values Lack of transparency Preference for job than entrepreneurial activities Power centralization, Hierarchy and Status orientation High context culture