Nepal’s micro and small industry registrations plunge 75 percent in five years despite policy push
Summary
Registrations of micro, cottage, and small enterprises in Nepal have dropped nearly 75% over five years despite government initiatives, hindered by limited access to finance and market, and benefits favoring politically connected entrepreneurs.
Key Points
- Registrations of micro, cottage, and small enterprises in Nepal declined by nearly 75% in five years from fiscal year 2020-21 to the last fiscal year.
- Government policies and programs aimed to promote the sector have not fully succeeded, with many entrepreneurs unaware of formal registration benefits.
- Limited access to finance, poor market access, and political favoritism have discouraged formal operation of these businesses.
- Micro, small, and medium enterprises represent 99.8% of all business establishments in Nepal but face economic and political instability affecting their growth.
