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Market Study to Understand Job Growth Potential in SMEs in Nepal (English)

This study of Nepal's SME sector is based on a survey of 932 firms located in 6 districts and spanning four sectors: agri-processing, manufacturing, tourism, and other services. The firm survey, conducted during May-July of 2019, sheds light on why entrepreneurs in Nepal started their business (for example, out of necessity, or to seize an opportunity), the main activities of these firms, the correlates of firm performance, and the factors impeding firms' capacity to expand and create jobs. The study examines the SME ecosystem, maps existing business support organizations in Nepal and the services they provide, and assesses the business climate, based in part on employer input through key informant interviews. The analysis finds that most surveyed entrepreneurs aspire to grow but are constrained by lack of information, lack of advice, inability to access appropriate and affordable finance, and lack of skilled workers. Improving access to business support and making it easier for firms to raise investment finance could make a considerable difference to their performance and to the economy.




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Market Study to Understand Job Growth Potential in SMEs in Nepal (English). Jobs Working Paper,issue no. 46 Washington, D.C. : World Bank Group.