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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

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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%

LanguageNepali: 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

Associations in 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

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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%

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 Status1974 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:

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Census Population size

2001 14%

2011 17%

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 lifestyleConsumer awarenessAwareness for equal opportunityEducation

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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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