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.
Details
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Document Date
2020/06/01
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Document Type
Working Paper (Numbered Series)
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Report Number
149845
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Volume No
1
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Total Volume(s)
1
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Country
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Region
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Disclosure Date
2020/06/19
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Disclosure Status
Disclosed
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Doc Name
Market Study to Understand Job Growth Potential in SMEs in Nepal
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Keywords
small and medium enterprise; job growth; entrepreneur; market study; Market Studies; Micro, Small and Medium Enterprise; higher level of education; sales revenue; use of technology; business support; full time equivalent; access to finance; privileges and immunity; parameter of interest; number of technologies; introducing new products; reliance on foreign; proportion of woman; business environment constraints; existing knowledge; venture capital fund; job creation potential; high school education; high skilled labour; market opportunity; economic census; rural business; agricultural product; tourism sector; average employment; value added; rural location; firm size; SME sector; focus group; urban location; employment option; educated entrepreneur; Higher Education; high employment; microfinance institution; postgraduate qualification; industrial sector; daily wage; income supplement; domestic demand; total sample; constituent assembly; informant interviews; survey design; labour market
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Citation
Market Study to Understand Job Growth Potential in SMEs in Nepal (English). Jobs Working Paper,issue no. 46 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/441621592596897607/Market-Study-to-Understand-Job-Growth-Potential-in-SMEs-in-Nepal