The Dynamics of Microenterprises: Implications on Poverty Reduction in Nepal

Abstract

Microenterprises are very small formal and informal non-agricultural activities operated by individuals or micro-organizations encounter different challenges due to changes in resources, market, technologies, know-how, and so on. To survive in such complex and changing entrepreneurial environment, microenterprises need be capable of coping with dynamics of resources, market, technologies, and know-how meanwhile fighting against the poverty they are muddling through. In this context, using primary data enumerated from 160 microentrepreneurs from control and experimental local environments from Parbat and Kaski districts in the Gandaki province of Nepal, this study has analyzed the microenterprises taking dynamics of technologies, resources, market and know-how for their implication to poverty alleviation. On average, there is an increase environment conducive to microenterprise operation. Despite the products, technologies, and know-how being basically outdated, the dynamics of resources, market, and know-how appear having significant positive effects on microenterprises. There is an improvement in employment status, economic status, access to education, access to health services, access in communication, household assets, the capacity to spend more on celebrating socio-cultural festivals and livelihood of the family members over the period after being involved in microenterprises, hence, microenterprise dynamics have confirmed significant positive implications in poverty reduction in Nepal.

Int. J. Soc. Sc. Manage. Vol. 11, Issue-3: 43-57.