A report on micro and small enterprise policy review in Nepal

This report presents the findings and recommendations of a project entitled “Micro and Small Enterprise Policy Review in Nepal (MSE-PR)”.

Chapter 1 of the report describes the MSE Policy Review project and presents a background to the promotion of MSEs in Nepal, this report describes the key findings and recommendations that have emerged from the project.

Chapter 2 describes the state of the MSEs in Nepal. Drawing from a survey of MSEs conducted for this project and a variety of secondary information sources, this chapter provides important evidence on the features of the MSEs in Nepal. It includes profiles on the size, operations and key challenges facing MSEs, as well as an overview of employment that is generated by MSEs. Finally, the institutional framework for MSE promotion is outlined.

Chapter 3 outlines the main findings of the policy review project and the possible policy reforms for MSE development in Nepal. Three main issues are detailed in this chapter: (1) how the Government can become better informed about the MSEs; (2) how the Government can improve its efforts in MSE promotion; and (3) how the Government can regulate the MSEs better. This chapter contains strategic outlines of the recommendations proposed by the policy review project.

The final chapter, Chapter 4, briefly describes the steps that should be taken to implement changes to the policy framework. These changes will help the Government to respond to the development challenges it currently faces and to mobilise the substantial resources of the MSEs.