Professional Documents
Culture Documents
2 , issue 2 pp 257-269
Introduction
Microenterprise is a very small business that produces goods or services for cash income. In general, microenterprises have
limited access to capital, have few employees, and are often home-based. Not all microenterprises are family operated, but
when family members do work for the business, they frequently do so without pay. Small cooperatives can also be
microenterprises. Microenterprises usually operate in the informal sector of a nations economy, not paying taxes and not
being tracked in official government statistics. Entrepreneurs in the informal sector are more likely to start their businesses
because of lack of alternative employment opportunities and are less educated on average. Informal sector entrepreneurs
employ fewer workers, are less likely to have permanent premises, and use less business financing than their formal sector
counterparts.
Micro, Small and Medium Scale Enterprises (MSMEs) are the starting point of development in the economies towards
industrialization. However, MSMEs have their significant effect on the income distribution, tax revenue, and employment,
efficient utilization of resources and stability of family income. The contribution of MSMEs to employment, growth and
sustainable development is now widely acknowledged. (UNCTAD: 2001). Their contributing to job creation and output
growth is now widely accepted in both developed and developing countries. It can also help to achieve a more equitable
distribution of the benefits of economic growth and thereby help alleviate some of the problems associated with uneven
income distribution. In many developing and least developed countries (LDCs) there are number of micro and small
enterprises which have played crucial role for the economic development of the country. According to the United Nations
Industrial Development Organization UNIDO, for developing countries, integration into the global economy through
economic liberalization, deregulation and democratization is seen as the paramount way to triumph over poverty and
inequality. Important to this process, is the development of an animated private sector, in which small and medium
enterprises can play a central role (Bies, 2002; Fida, 2008). MSEs face various challenges, however, they remain important
source of growth and development. MSEs are continuously depending on more expensive alternatives to traditional loan
than big businesses. All these demonstrate that there is a need to implement a plan of action aimed at creating conducive and
__________________________________________________________________________________________
Micro and Small Enterprises in Nepal : Prospects and Challenges
Page 1 of 12
supportive environment where MSEs could be promoted and expanded. The key to a successful strategy is to get the policies
right.
There is no single definition of micro, small and medium enterprises, and employee numbers may not be the sole defining
criterion. However, SMEs are generally considered to be non subsidiary, independent firms which employ less than a given
number of employees. This number varies across countries. The most frequent upper limit is 250 employees, as in the
European Union (UNCTAD). However, some countries set the limit at 200. Small firms are considered to be firms with
fewer than 50 employees, while micro-enterprises have at most ten, or in some country cases, five. These criteria are
influenced by the scale of economies, investment environment, government policy and to some extent it is influenced by the
external environment. SMEs in Asia can be generally characterized as the engines of growth, the backbone of national
economies, the highest employment-generating sector, a potential tool of poverty alleviation by creating self-employment
avenues, and significant contributor to a countrys industrial production, exports, national income and GDP. (Narain: ).
Importance of SMEs in economic development is highlighted by the UNCTAD Report that in Bangladesh and India, SMEs
sector has provided 80% of industrial employment and 5% of GDP in Bangladesh and 40% of industrial output of India has
been contributed from SMEs sector. In China the export of SMEs to GDP ratio is 30% and share of SMEs export on total
export is 40 60%. These figures are sufficient to support the significance of the SMEs in economic development. It doesn't
mean to underestimate the role of high scale industries. In the present global context, the sustained high growth of
economies with equitable income distribution is not possible without building the capacity of the low income families.
2.
Review of Literature
Micro and Small enterprises are not new phenomenon in the world and even in Nepal. These are as old as human
civilization. Numerous studies have been carried out in the field of the micro enterprises, small and medium scale industries
in the world. SMEs have been played pivotal role to the industrialization of the countries. Its contribution in economy
couldn't be underestimated. Various researches have been conducted on Nepalese micro and small enterprises sector.
Accepting the significance role of micro enterprises, Micro Enterprises Development Project (MEDEP) had been
implemented in the joint efforts of United Nations Development Fund and Government of Nepal. International Labour
organization also conducted indepth nationwide survey study in 2003 and published a report on the micro enterprises. Least
developed countries (LDC) like Nepal are suffered from low saving, low investment and low capital formation. However,
micro and small level industries require comparatively low amount of investment, low technology and small market than
medium and large scale industries. The importance of small and medium- sized enterprises (SMEs) in contributing to job
creation and economic growth is now widely accepted in both developed and developing countries.(UNCTAD). The
available evidence suggests that MSEs have played a major role in the growth and development of all the leading economies
in Asia. The Asian experience clearly shows that it is mainly the growth-oriented medium-sized enterprises among the
MSEs that have a high propensity to apply technology and training and serve specialized niche markets. According to the
report of Role of trade unions in micro and small enterprises in Nepal the growth of MSE sector in the urban areas
comprising of the manufacturing, construction, trade and hotels, transportation and communication is apparent from the fact
that the proportion of people involved in these sector, which was 7.2 percent in 1991, has increased to 17.2 percent in 1999.
Whereas, the rural based activities like agriculture, fishery, forestry, mining and quarrying and community and social
services have decreased from 92.8 percent in 1991 to 82.8 percent in1999. From the socio-economic development
viewpoint, SMEs provide a variety of benefits (Advani: 1997). According to Mukole, SMEs play significant contribution in
the transition of agriculture-led economies to industrial ones furnishing plain opportunities for processing activities which
can generate sustainable source of revenue and enhance the development process. SMEs shore up the expansion of systemic
productive capability. They help to absorb productive resources at all levels of the economy and add to the formation of
flexible economic systems in which small and large firms are interlinked.
i.
Nepal is famous on craftsmanship. Chinese travellers like Wanghunshe and Huansang in 648 AD have appreciated Nepalese
arts and crafts and the skills of Nepalese craftsmen and artisans in their travelogues. It is also described about the exported
product from Nepal in Kautilya's Economics during the time of Chandra Gupta Mouriya, in fourth century. From the
beginning up to the mid-nineteenth century, the rulers of the country promoted national industries and trade to various
measures of production, promotion and encouragement. To save the national industry commodities were not allowed to
imported except those which were not produced locally. Towards the end of the nineteenth century, Nepalese arts and crafts
industry and the entire home based industries in general suffered a great deal due to the general liberal import policy of the
government. Prior to the establishment of British regime over India and entering a peace treaty with Tibet in 1904 AD,
Nepal was interpreted as the main route to Tibet for external trade with other countries. Nepal also enter into the age of
industrialisation in the Rana regime.
Micro and Small Enterprises in Nepal: Prospects and Challenges Rabindra Ghimire
Page 2 of 12
History of industrialization in Nepal dates back to 1936. This year Jute Mill had been established joint venture with Indian
industrialist in Biratnagar. In 1940 Thirty Five new joint companies were established till 1951 but after that for one decade
not companies were established due to the social and political unrest. In Rana regime ( 1836 to 1951) Cottage Skill
Awareness Office (Gharelu Ilam Prachar Adda) was established in 1940. After formation of the elected government in
1958, new industrial policy was announced and government also realized that Nepal being a hilly topographic country,
small and cottage industries will have a play very important role in economy. For the promotion of cottage industries in
private sector, in various district Training Centre were established. During 1970 to 1990, cottage industries development
program initiated in different forms like industrial and technical service program, handicraft design program, village
industries program, sales management program, training program.( GON, 1970). To promote and foster various kinds of
cottage and small industries enhancing their industrial productivity increment along with making congenial environment for
industrial investment in accordance with policy, Department of Cottage and Small Industries (DCSI) have been constituted.
During the Sixth Plan ( 1980-1985), emphasized has been given to cottage and small industries. The objective of this plan
was to reduce the income inequality by helping the low income people and increase the employment. The Eighth Plan had
focused on export promoting and import substituting industries specially emphasizing the role of cottage and small
industries. In Ninth Plan the contribution of industry sector in GDP was confined to 9.1% however the target was 14% set
for the Ninth Plan. Tenth Plan (2002-2007) also emphasized the development of industrial sector. Present Industrial policy
announced many more things to be improved in the industrial sector. Cottage and Small Industry sector is also kept on
priority sector. ( annex -3)
Now, garments and carpets, silk and Pashmina, Allo and Dhaka, metal craft, handmade paper, Thanka, ceramics, bamboo
and stone crafts are popular in Europe, Asia and America. (FHAN). Nepalese export markets fall into two broad categories:
mass-market exports driven by Indian markets and niche exports for markets in Europe and the United States. Now
Nepalese product is exporting to more than Seventies countries around the world.
ii
The population of Nepal is about 23.2 million ( CBS:2001) and its economy highly depends on agriculture, which employs
more than 78.1 per cent of the total workforce and account for about 39 per cent of GDP. The manufacturing sector is still
small but growing rapidly. It contributes about 10 per cent to the GDP. On the other hand, there are vast rural areas where
85.8 per cent of the total population of the country live. The development of infrastructure like road, communication,
electricity etc. is negligible in these areas, where people are largely dependent on agriculture. The technology used is
traditional and the investment is very low. Large number of the people of these areas are poor and illiterate. The economy of
this rural sector is, therefore, less-monetized and traditional. Although only 20 per cent of the land is arable, most of the
farmers are busy in farming only for few months during the year and dreaming idle the rest of the time. Cottage industry
could play an important role in solving this problem, as well as raising the national income and creating a sound basis for
industrialization by mobilizing idle resources and manpower in the agricultural sector. It could help to fulfill the local
demand for consumers goods, to raise production by fully utilizing the leisure time, to develop cottage industry and
handicrafts by collecting the skills scattered in the village and suburban areas, and to prepare the skilled and semiskilled
workers needed for industrialization of the country. Poverty is closely linked to the levels of underemployment and
unemployment in Nepal. Therefore, the strategy of reducing the poverty in the economic plans of the country has focused on
generating and improving self-employment through micro-enterprise development. UNDP Nepal funded a programme on
micro enterprise development (MEDEP) addressing the issues of poverty and employment through sustainable development
of micro enterprises among the rural households. However, it was realized by the mid-term review of the programme in
2000 that a conducive policy and regulatory environment is critical in the growth of micro enterprises.
The Nepal Labour Force Survey (1998/99) estimated that the employment in MSEs was 1.6 million people. However,
women are more likely to be employed in micro enterprises than men, while men are more likely to be employed in small
enterprises than women. The MSE survey conducted by ILO in 2005 found that there was an average of three workers per
MSE. However, when examining small enterprises alone, this number grew to 17.9 workers per enterprise. The
manufacturing sector was found to employ the most, followed by trade and services sectors. In the micro sector, the ratio of
self-employed was high at 75.4 percent compared to 17.5 percent in small enterprises. Micro enterprises have therefore
generated employment opportunities for those trying to seek self employment. A survey in 1999/2000 found that there were
87,342 small manufacturing establishments in Nepal. Up to 1990/91 total registered cottage industries under Department of
Cottage and Small Industries were 47,426 which reached 2,16,663 in 2009/10. Survey found that 60.3 percent of small
enterprises were found to be registered. It is estimated that about 6,00,000 micro enterprises are operating in rural and urban
area both registered and unregistered. Being a agrarian country, most of the micro-enterprises established so far are either
agro-based, forest-based, or livestock-based and rest of them are metal based, weaving, and somewhere shop and restaurant.
Micro and Small Enterprises in Nepal: Prospects and Challenges Rabindra Ghimire
Page 3 of 12
Nepal suffers from a lack of both internal and external investment. This stems from low domestic savings, a small domestic
market, a severe shortage of skilled labor, chronically corrupt and inefficient public administrations, high transport and
operating costs, the inadequacy of power resources and, increasingly, political instability. There have been recent attempts
to encourage investment and privatization through the Industrial Policy 2010 and Foreign Investment and One Window
Policy 1992, and the creation of industrial centers with governmental land and buildings on lease for private ventures.
However, the poor quality of local products has reduced their competitiveness and hampered the ability of rural people to
sell their goods beyond local markets. A large number of these enterprises are informal and unregulated, and therefore are
unable to take the opportunities available through linkages to proper marketing channels. They are also constrained by a
lack of value addition, technology and product supply capacity, as well as by the absence of a supportive policy and legal
framework. At present there are two types of micro-enterprises: formal and informal. Informal enterprises are generally
initiated by an individual family to earn money by means of their traditional craft skills, whereas formal enterprises are
either initiated by NGOs and government agencies as income generating programs for poor families and the marginalized,
or self-initiated by the rural people themselves. Formal enterprises are often supported by training and the allocation of
funds. Often, however, business counseling and market linkages are not considered and environment-impact considerations
are neglected.
Micro-enterprises are very small and family-based, they are generally operated from home. This can have an adverse impact
on the home environment, depending on the enterprise (e.g. poultry raising, wool carding, chemical dyeing, welding,
furniture repairing). Since this impact is originated at home, it is rarely documented. Despite these limitations, micro enterprises tend to be more profitable entities because of the non-valuation of family labour and reduced overhead. In
underdeveloped countries like Nepal, micro-enterprises are one of the most viable options to create employment
opportunities and consequently to reduce poverty. Moreover, since Nepalese society is characterized by social exclusion,
the development of such enterprises can provide employment to a relatively wider section of Nepal's population, thereby
narrowing down income disparities. A large number of small enterprises are situated in the informal sector. These
enterprises are not regulated under the various industrial acts of Nepal, although they are generating significant income and
local employment and are often ignored by the government. A study on the small-scale, informal, forestry sector enterprises
in the Banke, Bajhang, Humla and Dolakha districts undertaken showed that a significant proportion of the non-wood and
wood-based enterprises were in the informal sector and it was unlikely that their contribution was reflected in the official
statistics.
There is no common definition and common policy of defining micro enterprises over the world. It differs country to
country because of the size of economy. The European Union makes a general distinction between self-employment, micro,
small and medium sized businesses based on number of employees. Self employed has no additional employee, where as in
micro enterprises number of employees range from 2 to 9, in Small business 10 to 49, and in Medium size business 50 to
249. ( UNIDO and OECD).
As per Industrial Policy, 2010 Nepalese industries are divided in four categories as per following criteria.
Table 1 : Criteria of Types of Industries
Types of Industries
Fixed Assets
Turn over
Power used
Micro Enterprises
Rs. 20 Lakh
10 KW
Small Industries
Medium Industries
Large Industries
Micro and Small Enterprises in Nepal: Prospects and Challenges Rabindra Ghimire
No.
of
Employees
Less than 10,
self
employed
and
self
managed.
Page 4 of 12
Generally, micro enterprises are managed by the investors him/herself and numbers of employees should not be more than
9. Besides micro enterprises, other industries are not clearly define their turnover, no. of employees working in the
industries and power they used.
Government has realized the importance of the MSEs, various supportive programs have been carried out through
government agency and non-governmental and private sector. Bank and financial institutions, cooperatives and FINGOs
also conducted micro finance program which ultimate goal is to encourage deprived and target community to start micro
enterprise activities and empower them financially. Synopsis of these program are mentioned in table 2.
Table 2 : MSEs Support Program
Program & Organisation
Coverage
Duration
75 Districts, each
beneficiary
2006 to date
1992 to date
to date
Department of Cottage and Small Industries regularly organizes various training program to initiate small scale business in
75 Districts through District office. Every year such types of training program being conducted and numbers of potential
entrepreneurs participated different sort of training.
3.
Research Focus
This is an exploratory research. Attempt will be made to explore the present situation of the micro enterprise and small
industries. Economic development can not be possible without proper development of industrial sector. MSEs is a part of
the industrial development. Given the study objective, the following research questions were explored:
There are basically two objectives to be focused on the following area:
i. To trace out the present policy and existing status of the MSEs and government initiatives, and
ii. To explore the contribution of micro and small enterprises for the economic development of the country?
4.
5.
Analysis
Government has not sufficient and reliable statistics of various enterprises and industries. Micro enterprises are so
common that they are found each and every road side and street. They are easily established and under the roof. At least
one member of the house operates the micro business but due to the lack of the proper management of database of
MSEs activities it is quite difficult to assess the present status and also hard to measure their contribution the economy.
Two criteria are taken to analyse the MSE contribution: foreign currency earnings and employment creation.
i Foreign Currency Earnings:
Cottage industries are good vehicle of foreign currency earnings. Except few years, the amount of export is increasing
constantly. So that we can say that it provides foreign currency in a reliable way.
Table -3: Export of Handicrafts Goods for FY 1982/83 to 2009/10
Rs. Ten Million
Micro and Small Enterprises in Nepal: Prospects and Challenges Rabindra Ghimire
Page 5 of 12
F.Y.
1982/83
1983/84
1984/85
1985/86
1986/87
1987/88
1988/89
1989/90
1990/91
15.99
19.07
1991/92
Export
2.50
3.99
6.18
9.12
3.73
5.68
9.73
F.Y.
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/2000
2000/01
2001/02
Export
56.75
52.65
57.23
62.86
70.94
90.02
129.58
716.27
682.32
271.96
F.Y.
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
Export
255.30
257.18
284.95
288.06
271.64
537.49
569.31
34.23
2009/10
555.07
Export has multi faceted influence to the economic growth. It earns foreign currencies and reduces the trade deficit.
Export based form creates the employment opportunities. Most of the raw materials used by the handicraft exporting
cottage industries are domestics. MSEs export to total export ratio ranges from 1% to 14%. In 1999/01, handicrafts
goods export increased to 14% of total trade. Export was increased by 453% form 1999/2000 to 2000/01. The share of
export also increased from 4% to 14%. At the same time total export was increased by 40%. Figure 1 exhibit the share
of handicrafts goods on total export.
Figure 1: Share of handicraft goods export to total export ( in percentage)
16%
14%
12%
10%
8%
6%
4%
2%
2009/10
2008/09
2007/08
2006/07
2005/06
2004/05
2003/04
2002/03
2001/02
2000/01
1999/2000
1998/99
1997/98
1996/97
1995/96
1994/95
1993/94
1992/93
1991/92
1990/91
1989/90
1988/89
1987/88
1986/87
1985/86
1984/85
1983/84
1982/83
0%
Unit
Total Rs.
Investment
Rs.
1,45,25,00,00,000
Per Firm
6,70,405
Micro and Small Enterprises in Nepal: Prospects and Challenges Rabindra Ghimire
Page 6 of 12
No
2,16,663
No. of Employment
No.
18,43,908
8.5
400
350
300
No. of
Employme
nt ( in
Thousand)
250
200
150
100
50
Continent
Europe
Micro and Small Enterprises in Nepal: Prospects and Challenges Rabindra Ghimire
Page 7 of 12
2
3
4
5
31%
22%
2%
0.23%
100%
Conclusion
Cottage industries are not new for Nepalese society. Due to the fast liberalization process most of the existing industries
are severely affected because of their inability to compete with consumer goods being freely imported after the
withdrawal of quantitative restrictions and the drastic reduction of import tariffs. There are challenging facing by the
SMEs. In the age of globalization, every local product should compete with the global product. Cost is first challenge of
the SMEs and quality also comes together. Lack of technical know how, lack of marketing strategies, lack of financing
are some examples facing by our MSEs. It is found that most of the micro enterprises are still operating their activities
in informal sector. Government is small efforts doesn't success to transmit them in the mainstream of the economy.
Lack of sufficient fund to MSEs also another challenges. Micro finance program has limited resources and do not cover
the whole country. Technology used by the MSEs is very simple, indigenous and low productive so that it hardly
compete with the medium and large scale industries. Most of the enterprises are run by the uneducated people so that
they have lack of proper management skill and knowledge. Marketing of the goods and services is another challenges.
Quality of product also a major issue. Most of the micro enterprises are established as a last alternative, until owner
receive the other alternative. Data shows some of the old firms are being discontinued due to various reasons.
There are tremendous opportunities with the challenges. Agriculture provides only seasonal employment for the rural
population, which constitutes 88 per cent of the total population. Hence, off- season and off- farm activities such as
weaving, knitting, basketry, teashops and roadside shops complement rural incomes. In addition, informal rural
microenterprises have the opportunities to supply goods and services to local manufacturers using traditional
technologies.
There is no doubt that SMEs play a fundamental role in utilising and adding value to local resources. In addition,
development of SMEs facilitates distribution of economic activities within the economy and thus fosters equitable
income distribution. Furthermore, SME technologies are easier to acquire, transfer and adopt.
Micro and Small Enterprises in Nepal: Prospects and Challenges Rabindra Ghimire
Page 8 of 12
REFERENCES:
Advani, A. (1997). Industrial clusters: A support system for small and medium-seized enterprises, the private sector
development. World Bank Occasional Paper No. 32, Washington DC.
Available online at http://www.academicjournals.org/AJBM
Bies SS (2002). Credit availability for small business. Federal Reserve Bank of New York, Buffalo Branch, Buffali, NY.
CBS (1996b). Nepal Living Standard Survey Report: Main Findings, Vol. I. National Planning
Central Bureau of Statistics (2004). Nepal Living Standard Survey, 2003/04, Statistical Report, Volume II, Kathmandu.
Chapagain, D. (2008). MSE Policy Review in Nepal: Current Reform Process in Government.
National Planning Commission Secretariat, HMG Nepal, Kathmandu.
Department of Economics, Tribhuvan University (unpublished) Kathmandu, Nepal.
Effective Policies for Small Business: A Guide for the Policy Review Process and Strategic Plans for Micro, Small and
Medium Enterprise Development (2004), UNIDO and OECD.
Fida BA (2008). The Role of Small and Medium Enterprises (SMEs) in Economic Development. Enterprise Development,
Free Online Library, December. Micro Enterprise Policy 2064
ing and the role of SMEs in economic development, African Journal of Business Management. Vol. 4(11), pp. 2288-2295, 4
September, 2010
International Labour Office in Nepal (2003).A Report on Micro and Small Enterprise Policy Review in Nepal Kathmandu,
International Labour Office.
Ministry of Finance (MOF). 2000. Economic Survey of Nepal. Government of Nepal, Bag Darbar, Kathmandu, Nepal.
Ministry of Finance/GoN, Economic Survey, 2000/01
Narain, S. ( ). Institutional Capacity-Building For Small And Medium-Sized Enterprise Promotion And Development.
National Planning Commission (NPC). 1998. Ninth National Plan. Government of Nepal
National Planning Commission (NPC). 2010 .Three Year Plan Approach Paper (2010/11 - 2012/13)
Nuno, C. & Branco C. (2003). A Critique of SME-led Approaches to Economic Development
Rajkarnikar, P.R. (2009). Trade Facilitation and SMEs in Nepal. Regional Policy Forum on Trade Facilitation and SMEs in
Times of Crisis, 20-22 May 2009, Beijing, China
Shrestha PD (1998). Current macroeconomic policy and performance of Nepal. Central
Study of Small Industries Sector in Nepal. Kathmandu, Nepal.
Swiss Development Cooperation, Nepal and Small Business Promotion Project (1995). Report on
UNCTAD. (.). GROWING MICRO AND SMALL ENTERPRISES IN LDCs
Volume 8 (2004) Small-Scale Industries in India, The Journal of Business in Developing Nations
World Bank and UNDP (1991). Nepal Poverty and Theories. Kathmandu, Nepal.
Micro and Small Enterprises in Nepal: Prospects and Challenges Rabindra Ghimire
Page 9 of 12
Handicrafts
Total
1982/83
113
2%
1983/84
170
2%
1984/85
274
2%
1985/86
1707
1%
1986/87
301
1%
1987/88
411
1%
1988/89
10
419
2%
1989/90
16
516
3%
1990/91
19
739
3%
1991/92
34
1371
2%
1992/93
57
1723
3%
1993/94
53
1929
3%
1994/95
57
1764
3%
1995/96
63
1988
3%
1996/97
71
2264
3%
1997/98
90
2751
3%
1998/99
130
3568
4%
1999/2000
716
4982
14%
2000/01
682
5565
12%
2001/02
272
4694
6%
2002/03
255
4993
5%
2003/04
257
5391
5%
2004/05
285
5871
5%
2005/06
288
6023
5%
2006/07
272
5938
5%
2007/08
537
5927
9%
2008/09
569
6770
8%
2009/10
555
7468
7%
Micro and Small Enterprises in Nepal: Prospects and Challenges Rabindra Ghimire
Page 10 of 12
Country to Export
SN
Country to Export
USA
6,39,902
23
China
14,289
Japan
2,49,846
24
Czech Republic
13,357
Germany
2,40,354
25
Turkey
10,258
UK
2,23,894
26
New Zealand
10,143
Italy
2,05,909
27
Malaysia
8,290
Canada
1,93,111
28
Portugal
8,267
France
1,67,288
29
Pakistan
7,496
Tibet
1,33,340
30
UAE
7,157
Switzerland
63,921
31
Hungary
5,669
10
Netherlands
61,768
32
Thailand
5,533
11
Spain
51,401
33
South Africa
5,487
12
India
51,361
34
Bhutan
4,289
13
Denmark
49,031
35
Brazil
4,106
14
Australia
47,552
36
Greece
3,593
15
Taiwan
35,934
37
Finland
3,317
16
Sweden
29,153
38
Ireland
3,274
17
Hong Kong
24,015
39
Ukraine
2,965
18
Belgium
23,535
40
South Korea
2,787
19
Russia
18,092
41
Slovenia
2,673
20
Norway
16,888
42
Mexico
1,964
21
Austria
15,697
43
Israel
1,893
22
Singapore
14,600
44
Latvia
1,576
SN
Country to Export
SN
Country to Export
45
Lithuania
1,418
67
266
46
Croatia
1,344
68
Qatar
261
47
Luxembourg
1,188
69
Indonesia
246
48
Poland
970
70
Slovak
212
49
Lebanon
918
71
Mauritius
193
50
Sri Lanka
878
72
Bulgaria
190
51
Vietnam
786
73
Romania
178
52
Egypt
725
74
Kuwait
174
53
Chile
724
75
Puerto Rico
158
54
Armenia
718
76
New Caledonia
109
55
Cyprus
662
77
Iceland
105
56
Bahrain
591
78
Macau
82
57
Belarus
574
79
Saudi Arabia
80
58
Mongolia
540
80
Jorden
28
59
Oman
517
81
Afghanistan
26
60
Estonia
514
82
20
61
Philippines
454
83
Maldives
12
62
Argentina
378
84
Iran
11
63
Fiji
335
85
Georgia
64
Morroco
333
86
Colombia
65
Uruguay
304
87
Others
Total
Micro and Small Enterprises in Nepal: Prospects and Challenges Rabindra Ghimire
4
13,872
27,16,384
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Annex 3: Special Policy of Government of Nepal to promote the micro, cottage and small scale industries:
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)
Build infrastructure and organizational structure, form legal provision to promote, develop and extension of the
micro, cottage and small scale industries.
To extend and make effective to the existing Micro, Cottage and Small Scale Industries Development Fund to
improve the competitiveness, market access and market extension.
On the basis of the availability of the natural resources, human resources and investment opportunities in
coordination with local authorities District Industrious and industrial development plan will be prepared and
implemented phase wise basis.
Focus will be given to the target community and motivate them and build capacity to operate the Micro, Cottage
and Small Scale Industries.
To deliver Business Development Service to production base industries in rural area, Community and Cooperative
Micro, Cottage and Small Scale Industries industrial cluster will be developed.
Identify the One Village One Product in each village and promote the appropriate product "Product Development
Centres" will be established and priority will be given to industrial promotion through Product Specific Industrial
Clusters.
To recognize the product of Micro, Cottage and Small Scale Industries assist to use Collective Mark and help to
promote the product.
Provide integrated and capable institutional provisions for the protection of the intellectual property and encourage
to proper protection and use of this property to Micro, Cottage and Small Scale Industries.
Suitable Information Technology will be provided to Micro, Cottage and Small Scale Industries to produce and
market promotion.
Priority will be given to social mobilization tools to promote, development and extension of Micro, Cottage and
Small Scale Industries.
Provide financial access through equity fund, credit guarantee fund, rural self reliance fund.
Micro and Small Enterprises in Nepal: Prospects and Challenges Rabindra Ghimire
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