Bhutan is a small remote kingdom nestled in the Himalayas between India and China. While the public sector's hydropower industry has long been the main source of economic growth, the government recognizes that broad-based private-sector development is crucial and is taking steps towards diversifying the economy. Canadian companies looking to export or invest into Bhutan are challenged by an inefficient regulatory framework, pervasive non-tariff barriers and a rudimentary investment code. Opening the banking sector to more foreign partnerships has improved competition in the market, but the lack of access to financing is a serious constraint for potential entrepreneurs.