Socio Cultural

Environment

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 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
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 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

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Contd

Risk taking ability

Individualism-Collectivism

Power distance

High context culture-low context culture

Corporate culture

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Contd.
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

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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

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Social Organizations

Family system: joint family higher

responsibility for bread earners

Associationsin common interest groups,

communities, consumer groups and
other pressure groups

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Class Structure

Joint family system and nuclear family

system
Affluent class

Middle class

Lower, middle, and Poor

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Caste System (2001)

Chhetri: 15.8%, Bahun 12.74%,

Magar: 7.14, Tharu: 6.75,
Tamang: 5.64, Newar: 5.48,
Muslim: 4.27, Rai: 2.79,
Gurung: 2.39, Limbu: 1.58

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Pressure Groups
Labour unions
Consumerism

Environment Protection

Human right groups

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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%

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Population Census of Nepal
Census Population Growth Rate

1971 11,55,5983
1981 15,02,2839
1991 18,49,1097
2001 23,15,1423 2.25 %
2011 26,620,809 1.40%

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Population Growth

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Demographic Structure of Nepal

Population Census 2011

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

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 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.

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Poverty Status
Census Poverty Status
1974 36.2%
1984/85 42.0
1995/96 41.7
2003/04 30.8
2010/11 25.2

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Census 2001
No. of Households: 5,659,984
Average Household Size: 4.70
Urban population:
Census Population size
2001 14%
2011 17%

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 Contd.

Regional Distribution of Population

Mountain: 6.75%
Hill: 43.10%
Terai: 50.15%

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Social Change

Changing attitude, values, beliefs of

people
Changing lifestyles and their effects on
business

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 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

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 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

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 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

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