Factors Hindering Entrepreneurship Development in Nepal

Abstract

Micro enterprise is a very small scale enterprise which is established with the maximum capital of twenty
hundreds thousands rupees except land & building, annual turnover less than ten millions, and less than
nine employees including the micro entrepreneurs. Most of the micro enterprises are operating with a
little fund, local resources and local skills. The main objective of the study is to identify major problems
of micro enterprises in Baglung and Parbat districts. This study is based on mixed research design
(quantitative and qualitative research). Data and information is collected through primary sources and
secondary sources. Primary data are collected through structure questionnaires, focus group discussions,
observations and field visits. Secondary data are collected from the office of the Micro Enterprises
Development for Poverty Alleviation (MED-PA), district office of the Cottage and Small Industries
Development Board (CSIDB). Out of 4250 micro entrepreneurs, 361 entrepreneurs are selected for study
purposes. Purposive and random sampling methods are used for selecting enterprises and entrepreneurs
respectively. A few statistical tools such as percentage are used for data analysis. It is found that micro
enterprises have been facing various types of problems such as production or input related problems,
financial or economic related problems, marketing problems, technological related problems, personal
barriers, and other types of problems etc. Most of the micro enterprises were faced with marketing
problems, technological problems and production and operation related problems, more than 90 percent
of 361 respondents felt these types of problems.