MAKING SOMETHING FROM NOTHING

Surya Karki

Country Director and Co-founder, UWS Nepal 

Sales and Marketing Director, Delish Dairies

Co-founder and Business Development Director Bloom Nepal School

Surya Karki’s journey is one of hope, perseverance and the power of education. He struggled against many odds to not just build his own life but to create an ecosystem of goodwill and good work. Young and enterprising, he will leave no stone unturned to innovate and thrive.

Raised by a single mother in rural Chiraite in Sankhuwasabha, Surya Karki, Country Director of UWS Nepal and Sales and Marketing Director of Delish Dairies, says his childhood was financially quite challenging. “It was difficult for my mother to even put food on the table and, in fact, one of my siblings passed away because we didn’t have the money to afford his treatment,” he shares, adding, “I was made aware of the need to be financially sufficient from a small age.”

“However, my mother believed education was necessary and she ensured that I got a good education despite all the problems,” Karki says. “Today I am proud to state that despite all the challenges I have started to make a name for myself in Nepal. It’s all due to my mother.” 

In this issue of Business 360, we spoke to Karki about his entrepreneurial journey and the aspects that have made him a successful person today.

Could you please tell us about your early years? 

I was born into a very poor family, and the only way out for me was to receive a proper education, which I was lucky to get. After completing high school at Budhanilkantha School, I got the opportunity to study in Venezuela through a scholarship from Late Himalaya Shumsher and the United World Colleges before studying on a full scholarship at the College of the Atlantic and the Schwarzman Scholars in China at Tsinghua University. This experience laid the foundation for my journey into entrepreneurship.

My entrepreneurial journey started when I was 17 years old. Co-founding Nepal’s first free private school, where parents worked on a farm in exchange for their children’s education, was a solution to a critical problem I had witnessed in my early years. I saw the struggles of families like mine, who couldn’t afford education, and this experience inspired me to innovate and create a sustainable solution.

As I progressed, I pursued education in the United States, facing significant challenges along the way. Yet, my determination and problem-solving mindset persisted. When I was 21 years old, around 2013-14, I was felicitated by King Charles of the United Kingdom for my work. This recognition, especially for our free school concept, instilled in me an even stronger entrepreneurial spirit.

Throughout my early years, I had always believed in problem-solving. Whenever I encountered a challenge or issue, I would immediately start thinking of solutions. This mindset not only led to the founding of my first school but also guided me in starting various ventures. While in the US, in 2014, I co-founded a real estate company in the US and a foundation related to education, agriculture, and sustainable energy. In the same year, I became associated with Bloom Nepal School, a unique interest-based education model, aimed at making learning exciting and tailored to children’s passions.

So, my early years were marked by a journey from poverty and limited access to education to the inception of innovative educational solutions and sustainable ventures, all driven by my relentless dedication to problem-solving and a desire to make a positive impact. This journey of entrepreneurship remains deeply rooted in my early experiences and the challenges I encountered.

What were the initial entrepreneurial challenges?

Nepal presents a unique set of challenges for entrepreneurs. The most daunting aspect has been understanding and navigating the intricate web of policies, laws and regulations. These are often at odds with practical implementation and can pose significant hurdles for businesses.

Upon my return from the US, I naively underestimated the difficulties ahead. The primary obstacle I encountered was dealing with government officials, who play a pivotal role in Nepal’s entrepreneurial ecosystem. Here, it’s not merely about what you know; it’s often about who you know. This realisation taught me that connections can outweigh knowledge.

Furthermore, policies, which are intended to streamline operations, sometimes have the opposite effect. Conflicting policies from different ministries can lead to confusion, and the ever-changing nature of these policies makes long-term planning a challenge.

Another substantial challenge is the lack of available funding. Without established industrial connections or access to investors, I had to rely on institutions for financing. For those without these connections, it can be an arduous process. Moreover, collateral is often a prerequisite for loans, and the time it takes to arrange collateral can render it irrelevant due to policy changes.

In Nepal, policies can change abruptly, but not always in favour of entrepreneurs. Policymakers seldom consider the ease of doing business from our perspective, which can be frustrating.

Over my journey in Nepal, I’ve been involved in four different ventures, with varying levels of success. One crucial lesson I’ve learned is the value of patience. Unlike the US, where time is money and urgency is paramount, in Nepal, we progress steadily, and patience is an asset in overcoming these initial entrepreneurial challenges.

Tell us about United World Schools.

We began United World Schools (UWS) in 2015, establishing our first school in Mude, Sankhuwasabha. The primary objective was to provide quality education to underserved rural areas, without charging fees. My award from King Charles provided essential contacts who became donors, and fundraising efforts in the UK with UWS and the US paved the way for the first school, a major challenge.

An early lesson was that good intentions don’t always align with local perception. It took seven months of effort to gain community trust in the school’s benefits. Convincing donors of progress during the interim was another challenge. I questioned my return to Nepal but persisted. The first school’s success made establishing others easier.

Currently, we operate 76 schools serving 13,000 children, a feat I wouldn’t have believed in 2016. Nepal often values trust over facts, and we tend to discuss others’ successes or failures rather than focusing on hope and possibilities, a trend I aim to change.

Motivation comes from the desire to transform Nepal. I want quality education for children, job opportunities post-graduation, and a passport as valuable as any developed nation’s. My entrepreneurial ventures are driven by these dreams.
While I’ve given my all, some days I question my presence seeing people leave the country. But I’m on a mission to create a prosperous Nepal where dignity, prosperity, and equal opportunities prevail.

UWS provides education up to grade eight and supports girls beyond that. I also founded Bloom Nepal School, currently offering education up to grade 10, with plans for grade 11 and 12 expansion. We have two campuses in Itahari and Lubhu, Kathmandu.

What motivates you to be in the education sector? 

I work in primary education because that’s where the major problem lies. Having personally faced the challenges of our education system, it was the primary driving force that brought me back to Nepal to focus on the education sector. The struggles I encountered in my own education journey triggered a strong desire to make a difference in this field.

In Nepal, the statistics are disheartening; out of 100 children enrolled in grade one, only 32 make it to higher education. This is a shocking reality. Sixty-eight per cent of our workforce hasn’t completed primary education, yet they support 33% of our economy through remittances. If this 68% had the opportunity to continue their education, they might not have left school early.

These numbers are grounded in research. The 32 children who reach grade eight go on to pursue undergraduate studies, based on our tracking. So, the question we’re trying to answer is, how can we ensure that a majority of children who complete primary education continue into secondary education? United World Schools (UWS) Nepal focuses specifically on primary education, and our success is evident in our 98% retention rate. We guide 98% of our children to reach grade eight and beyond, into grade nine as well. We’ve tracked their progress, and we take pride in our moderate success in delivering a solution that makes education enjoyable, offers quality teaching, and ensures that children love learning.

Could you elaborate on the operation model of UWS? 

At UWS, we provide free education. We work with the local government to build and run schools. We build the infrastructure ourselves which are made of concrete and are earthquake-resistant. The schools we build are one-storey with the possibility of going up to three stories. The local government supports 30% of the funding with the community and when I say funding, I must clarify that we do not take cash. They support with local materials and land to build the school, and the local government is required to commit to funding the model after five years.

So, we are not an organisation that stays in the community for perpetuity but builds something sustainable for the local communities to lead once they are capable. We stay there with the community for five plus three years. The first five years we build the model and showcase our work, and the next three years we are there monitoring whether it works or not with them. We are trying to transform the education model of the country one school at a time.

We currently work with 19 local governments and all of them absolutely love and admire us. In fact, we also make sure that our schools include a playground and a disabled-friendly toilet.

Since our schools have classes till grade eight, we need one teacher for each grade but teachers are not trained to do multi-grade teaching. And the government policy says you get one teacher for every 20 students, so naturally the number of teachers a school gets goes down. It is here, we come in again with the funding. We provide the teachers but we also tell the concerned local government they will have to match fund for the salary. So, if we give Rs 10,000 the government provides Rs 10,000 and we fund the teachers together. It isn’t just about money but about ownership and accountability. Then after five years, they are required to fully fund the teachers that we collectively select.

We also have a special programme called UWS Nepal Teaching Fellowship where we select the young graduates and place them in schools, whereby they will have to go and live in local communities there for two years to help implement the UWS education model in collaboration with the government teachers and the teachers that the government and we select together. All of these happen with the community in the centre, especially through creation and mobilisation of mothers. So, we create mothers’ groups which are critical to the success of our education model.

How do you incorporate technology into the education you offer? 

We recognise the importance of technology in education and have actively started investing in this domain. It’s not just about acknowledging technology but also implementing it effectively. At UWS, we’ve initiated technology-aided learning, particularly through the establishment of computer labs in our schools. These labs operate offline but are equipped with a comprehensive set of tools and resources that support the curriculum.

In remote areas of the country, attracting highly educated individuals to live and teach can be a challenge. However, our computer labs help address this issue. Each lab is equipped with 20 workstations, and the entire curriculum is digitised. Importantly, we haven’t had to develop these resources from scratch, as they are readily available through open learning exchange school labs.

This technology-aided approach ensures that children’s education remains uninterrupted. Even with just one teacher, it becomes possible to manage the entire school, as the teacher’s role primarily involves addressing students’ questions.
As internet access gradually extends to nearly all parts of Nepal, we are taking a step further by piloting a programme where a teacher in Kathmandu can teach students in a remote village. However, we emphasise the importance of students maintaining physical interaction with teachers in the school space. This interaction fosters essential interpersonal skills, which are equally vital.

It’s worth noting that technology adoption has both advantages and drawbacks. Timing is crucial when introducing it, and we have already established approximately 150 computer labs. We are working on creating an ecosystem to ensure that no child in any remote village of the country is deprived of the opportunity to access 21st-century education. Our ongoing efforts in this direction receive support from various donors, and we are committed to making this vision a reality.

How do you measure the impact and success of your initiatives?

UWS and Delish Dairies are two separate ventures operating in different spaces. For UWS, success is primarily about reversing the trend of children dropping out of primary school. In this context, success means that if any child begins their education in grade one, they should continue studying until grade eight.

To assess the achievements of our students, we have developed specific metrics. We maintain detailed data for all 13,000 children we serve, allowing us to track their progress comprehensively. Progress isn’t solely measured in terms of academic performance; we also focus on developing their interpersonal skills and their ability to interact confidently. Children from rural areas often display timidity and hesitate to engage with outsiders. Our goal is to reverse this trend, fostering expressiveness, and improving their reading and counting abilities, empowering them to interact with people from diverse backgrounds.

Our tracking of students is continuous throughout their primary education journey. If 90% of the 13,000 students successfully transition into secondary education, that would signify a significant achievement for us.

How did Delish Dairies happen?

My journey into agriculture began in Venezuela, where I studied this field. However, it wasn’t a path I wished to pursue for life. Growing up in a farming family, I witnessed my mother’s struggles to provide for my sister and me. We often didn’t have enough food on the table, and I vowed to secure a proper education, with farming as the last thing on my mind.

After the establishment of United World Schools, I found myself pondering if education alone could solve all our challenges. Education can indeed be a game-changer, but its impact is enhanced when it’s coupled with economic opportunities. We serve 13,000 children through UWS, but the risk of them discontinuing their education loomed if their parents couldn’t access economic opportunities. Ultimately, a person’s decisions are heavily influenced by their ability to provide for their family.

In 2018, while UWS was taking shape, the idea for Delish Dairies was born. Three friends, including me, sat down over coffee and discussed the need for our country to undergo a transformation, one that could be driven by innovative entrepreneurship. Agriculture was a topic frequently discussed, but it wasn’t at the centre of our economy; it merely sustained people’s livelihoods. During my time in the US, I had experienced Greek yogurt, such as Chobani, and so had my other two friends who found it fascinating. We proposed the idea of starting a similar company in Nepal. We observed that we were heavily reliant on imports, even for agricultural products like butter, ghee, cheese and yoghurt. This realisation prompted us to ask how we could catalyse a transformation in a traditional sector like agriculture. The dairy sector in Nepal had long been stagnant, devoid of innovation.

Hence, we embarked on the journey of Delish Dairies with the goal of creating an industry that utilised local raw materials produced by farmers. We aimed not only to establish our company but also to uplift the farmers’ livelihoods.

Currently, we collaborate with over 1,200 farmers in Chitwan, and we’ve recently launched our second factory in Fikkal, which is specifically dedicated to cheese production. In Nepal, cheese is a significant import because locally produced cheese often doesn’t meet international standards. We believe that a Nepali company can produce high-quality cheese, potentially for export. In about six months, we plan to work with another 1,200 to 1,500 farmers in Fikkal. As it stands, agriculture is my primary focus in business, while education remains my passion.

What was starting Delish Dairies like?

The inception of Delish Dairies was marked by three energetic, passionate young individuals eager to innovate in our home country, Nepal. However, our initial enthusiasm faced a reality check during the early days. We encountered discouragement from people, including those who had already established industries, who deemed launching a company in Nepal as one of the worst decisions I could make.

Entering a traditional sector in Nepal comes with enormous challenges. The initial market entry was a Herculean task. We aspired to build a factory, but the dearth of support for such endeavours was disheartening. Basic infrastructure was a significant concern, and we realised that obtaining the necessary high-voltage electricity was an uphill battle. We had to invest in a transformer, electric poles, and wiring just to power our factory. In developed countries, these fundamental infrastructure needs are met without question, which contributes to their thriving economies.

Another challenge revolved around sourcing milk, our primary raw material. While the milk industry may seem appealing from the outside, a closer look revealed complications. The milk industry was rife with tampering, making it difficult to obtain high-quality milk. Additionally, the Covid 19 pandemic struck during our factory construction, causing delays to our planned launch. Despite the challenges, we pressed on, even living alongside construction workers at the factory site during the pandemic lockdown.

Securing machinery from abroad posed another hurdle in the process. Once the factory was established, we faced the difficulty of finding the right individuals to produce the specific type of Greek yogurt we aimed for. Consistency in product quality was paramount.

Throughout the journey, we’ve faced numerous challenges, but we’ve worked diligently to overcome them. It’s essential to note that we began as bootstrappers in 2018, and we continue to operate with a bootstrap mindset. However, the results have been encouraging. In the fiscal year ending in July 2023, we generated satisfactory revenue, a significant milestone for a startup like ours. We’ve also received funding from NIBL, our private equity partners, underscoring the success of our bootstrapping strategy.

Nevertheless, the challenges persist for entrepreneurs worldwide, from assembling the right team to finding committed individuals who will stay the course. Securing shelf space in stores is another unique challenge, particularly for a new company with an innovative product. The trust factor comes into play, and supermarkets and marts often allocate shelf space based on profit margins. Startups, especially home-grown ones, struggle to offer high margins. We are grateful to partners like Nina and Hager for recognising the quality of our brand and supporting our products. Additionally, the unwavering support of individuals like Prithvi Bahadur Pande has been invaluable, who continues to stand by Delish.

Besides UWS and Delish, we learnt that you also have a keen interest in politics and once mentioned that you want to be the youngest Prime Minister of Nepal. Tell us about that.

I made that statement during my fellowship with Daayitwa when I had the privilege of working closely with politicians. The experience of interacting with politicians daily led me to question, “Why do we always criticise politicians? Is there anything I could do as an alternative?” Every time I voted, I encountered the same familiar faces, and I began to wonder if there was an alternative candidate. Did I have any influence over the candidate selection process? Unfortunately, no. So, in 2014, when I made that statement, I was certainly in that frame of mind, and that sentiment still resonates with me. However, my perspective has matured since then.

If the opportunity to become the youngest Prime Minister were to present itself, why wouldn’t I consider it? Why wouldn’t I take that chance? I’m genuinely interested in doing so. However, making politics my career is a decision I must contemplate seriously. It’s not a choice I should make on my own. The answers should come from the people.

I hail from Sankhuwasabha, and it’s crucial that the people in my own village and district believe I’m the right person to lead them toward a positive change in their history. Without their trust, I shouldn’t be attempting to convince people in other districts that I’m the right leader for them. This is a lesson that applies to all.

At the moment, I feel like the youngest “education minister” because I continue to support approximately 13,000 children. Even the official education minister might not engage at this level.

Currently, the political landscape in our country doesn’t always align with my focus on putting people and prosperity first, while creating an enabling environment for both. The established political parties and their traditional mindsets still dominate. They often peddle unattainable dreams. Until our parliament functions as a true representation of the people, individuals with my mindset may struggle to gain political traction.

I leave this trajectory to the people, just as I did eight years ago. I will do what is necessary. People may not have initially believed in my ability to deliver on education commitments, and yet here I am today, sitting with you and the people of Nepal, saying that we’ve transformed the education landscape and set it on the right path. People trust it, the government recognises and supports it, and it has become a model for change.