Development of Micro-enterprises; Ilam and Bhojpur District, Nepal

The present study, based on field-level data from the Illam and Bhojpur districts of Eastern Nepal, Attempts to assess the growth, potential, and constraints of micro-enterprises in different product lines with a view to drawing implications for development strategies, policies, and programmes to promote the development of micro-enterprises. The findings of the study suggest that the level of development in agriculture and infrastructure are two key factors in the growth of micro-enterprises in primarily agricultural and relatively inaccessible mountain areas. At the same time, non-availability of credit and marketing arrangement poses important constraints for the expansion of individual micro-enterprises operating in the region. The existing situation, support mechanisms, and institutional arrangements are found to be deficient in this respect. The study, therefore, also makes some suggestions for policy, programmes, and interventions for the promotion of micro-enterprises.