Nepalese Entrepreneurship in Japan: A Growing Success Story

TOKYO, FEBRUARY 3: Japan is recognized as one of the world's most powerful economies, renowned for its advanced industrial production, developed financial system, and strong international trade. Over the years, Nepalese migrants in Japan have transitioned from seeking employment opportunities to establishing themselves as successful entrepreneurs across various industries.

Emerging Business Sectors for Nepalese Entrepreneurs

Initially arriving in Japan for employment, many Nepalese workers have overcome hardships and are now actively engaged in entrepreneurship. They have made substantial investments in sectors such as restaurants, Halal food, travel, remittance services, and real estate. According to Buddhiraj Ghimire, Secretary of the Nepalese Business Association in Japan, over 5,000 Nepalese entrepreneurs have collectively invested more than Rs 60 billion in various businesses. The number of Nepalese residing in Japan on study and work visas has now exceeded 200,000.

The Rise of Nepalese Restaurants

The restaurant industry remains the primary business sector for Nepalese entrepreneurs, accounting for approximately 80% of their investments in Japan. Major cities such as Tokyo, Osaka, Kyoto, Hiroshima, Nagoya, and Fukuoka host numerous Nepalese-owned food outlets. In Tokyo’s Shibuya and Shinjuku districts alone, there are more than 200 such restaurants.

The daily revenues of Nepalese restaurants in Japan range from Rs 200,000 to Rs 600,000, with some entrepreneurs owning multiple establishments. Over 20 Nepalese individuals manage more than ten restaurants each, while around 50 entrepreneurs operate at least five businesses.

Robin Sherchan, Vice President of the Non-Resident Nepalese Association, operates 160 restaurants across Japan. Before the COVID-19 pandemic, his business network was even more extensive, though he later leased some of his ventures due to the economic downturn (stemming from the pandemic).

Nepalese restaurants in Japan offer a variety of traditional dishes such as Chatpate,  Panipuri, and Dhido ( a thick porridge or mush made from cornmeal, millet flour or buckwheat flour with salt and water) alongside Indian and Japanese cuisines. Many have adapted their menus to incorporate Japanese flavours, for example, serving momos in the Japanese "Gyoza" style and blending Nepalese thukpa soup with Japanese noodle broth.

Expanding into Travel, Remittance, and Real Estate

Beyond the restaurant industry, Nepalese entrepreneurs have successfully established businesses in travel and remittance services, capitalizing on the growing Nepalese diaspora. Additionally, the halal food business has gained popularity, catering to Nepalese, Indian, and Bangladeshi communities. These stores offer essential products such as Nepalese rice, lentils, chickpeas, wheat, corn, buckwheat flour, and a range of traditional spices.

Some Nepalese entrepreneurs have also ventured into real estate, providing rental properties for residential and commercial purposes. The real estate industry in Japan has gained legal recognition, allowing Nepalese investors to offer housing solutions for foreign workers, including Nepalese, Indians, Bangladeshis, and Pakistanis.

Government Support and Business Opportunities

Japan’s government actively promotes entrepreneurship by offering various financial incentives and subsidies. Key benefits include are as follows:

• Grants for business establishment

• Tax exemptions for new businesses and startups

• Low-interest loans for small and medium-sized enterprises

• Training workshops on business management, marketing, and legal compliance

To start a business in Japan, a foreign investor must invest at least 5 million yuan and obtain a business visa. The visa process typically takes three months, during which the investor must submit a comprehensive business plan and establish a physical office.

Local governments in Japan further support new businesses by providing subsidies for essential expenses such as signage, counter machines, menus, computers, refrigerators, and website development. During the pandemic, government programs such as "Go to Travel" and "Go to Eat" provided financial relief to restaurants and travel businesses. Additionally, tax relief measures and low-interest loans were introduced to support small enterprises.

The Future of Nepalese Entrepreneurship in Japan

Although the history of Nepalese entrepreneurship in Japan is relatively recent, it has been marked by significant success. The Nepalese community began migrating to Japan in the 1990s, and with this influx, Nepalese-owned businesses, particularly restaurants, started to flourish in major cities.

Initially, many Nepalese workers were employed in Indian-owned restaurants, but over time, they established their own businesses. By the early 2000s, Nepalese restaurants had become prominent in key urban areas such as Tokyo, Osaka, and Kyoto. Notable establishments like Kantipur Restaurant in Shibuya and Bhetghat, Rato Bhale, Nanglo, Chautaro, and Baje Ko Sekuwa in Tokyo’s Shin-Okubo district have significantly contributed to the local dining scene.

Nepalese restaurants have played a crucial role in introducing Nepalese cuisine and culture to Japanese consumers. Popular dishes such as Dal-Bhat (Lentil Soup and Rice), Momos, Pickles, and Aloo Tama (Potatoes and Bamboo Shoot) curry have gained traction among Japanese customers and international tourists. Initially catering primarily to Nepalese immigrants, these establishments have now attracted a broader clientele, including Japanese diners. Some restaurants have even incorporated Japanese flavours into Nepalese cuisine, making dishes like Nepalese-style curry, Momos, and Thukpa (Tibetan noodle soup) widely enjoyed across Japan.

Beyond serving food, many Nepalese restaurant owners actively promote Nepalese culture by hosting cultural events featuring traditional music, dance, and art. These initiatives have helped create a deeper appreciation for Nepalese heritage among Japanese patrons, further strengthening Nepal-Japan cultural ties.

Conclusion

The Nepalese entrepreneurial community in Japan continues to thrive, contributing significantly to various industries, including restaurants, travel, remittance, Halal food, and real estate. With strong government support, evolving consumer preferences, and increasing Nepalese migration, Nepalese businesses in Japan are well-positioned for sustained growth. These businesses not only provide economic stability for Nepalese migrants but also foster cross-cultural exchange and strengthen Nepal-Japan relations.