Impact of Small and Medium Scale Enterprises in the Generation of Employment in Nepal
For an underdeveloped nation uplifting economy is a challenge.
Raising economy in such context must have accelerated growth and development that
improves quality of life. Small and medium scale enterprises are provisions for
fast growth and fulfillment of economic prosperity by any nation. The economic reform
in the early 1990s in Nepal pulled the attention of the private and joint investment
to seek the financial sector. National development strategies, the strategies towards
poverty reduction of individual member countries should underline the importance
of commercial sector promotion. In this research the total of 200 copies of the
questionnaires to be administered. The instruments to be used are gathering information
for this study includes questionnaires and interview. Two different statistical
methods are to be employed to analyze data for the study. The tools are simple percentage
and chi square test. The results of the study reveal that the most common constraints
hindering small and medium scale business growth in Nepal are lack of financial
support, poor management, corruption, lack of training and experience, poor infrastructure,
insufficient profits, and low demand for product and services. SMEs expansion boosts employment more than large firm growth because
SMEs are more labour intensive thereby subsidizing SMEs may represent a poverty alleviation tool, by promoting SMEs and individual countries and the international community
at large can make progress towards the main goal of halving poverty. Entrepreneurial
development is therefore important in the Nepalese economy which is characterised
by the following heavy dependence on agricultural production, high unemployment,
low utilization of industrial capacity, high inflation rate, and lack of industrial
Key words: Youth, Employment, Economic growth, Small and medium
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