Based on a study involving 28 different types of community-based forest enterprises (CBFEs), this policy brief summarises the important constraints affecting CBFEs in Nepal. It identifies key areas for intervention and suggests specific developmental and regulatory interventions for the government and other key organisations involved in promoting CBFEs.
The paper hails the development of CBFE’s as an ideal development intervention in poor forest communities as they have the potential to generate income and employment for the poor while supporting sustainable management of forest resources. The potential for the establishment of forest-based enterprises in Nepal increased with the enactment of Nepal’s Forest Act of 1993 and its Forest Rules of 1995 which institutionalized community-based forest management (CBFM) as the national platform for forest management. However, like any starting industry, the CBFEs face various constraints in business start-up and formalisation, increasing production, and achieving enterprise profitability and sustainability.
Key recommendations include: