Micro Enterprises Development programme in Rural Poverty Reduction (A case study of Dumrah VDC of Sunsari)

Abstract

This thesis entitled“Micro enterprises development programme in rural povertyreduction: A case study of Dumrah VDC of Sunsari” is anattempt to find therole of microenterprises development programme and to identify its impact on poverty reduction. Thisstudy is conducted on the basis of primary data collected from50respondents. Various challenges have been confronted to entrepreneurs. Seasonal problem and middleman, who determine the priceof product together with the flexibility of price system in thestudy area has acted obstacles,. In the same way, market seems to be the third challenge.Still farmers are exploited by higher classes of community and also by middle men. Out of respondentswho were participatedat MEDEP in Dumraha VDC of sunsari district,more than 40% are Janajati. In the second position Madhesi respondents are 28%.Similarly, among total respondents 24% of respondents are Dalit and 8% respondents arefrom Chhetri / Brahmincaste groups. Micro enterpreneurs show that the average age of people is 45. The minimum age ofentrepreneur (MEDEP member) is 18 while maximum age is 67. The data shows thatmaximum number of enterprenrurs is within the age group of 40-50. From 50 entrepreneurs where 11 were male and 39 women, all men were found to bemarried and womenalso were mostly married. Marriage is a source of comparison ship andoverall security rather than a ritual, social and sexual obligation in Nepalese society. Themaritalstatus of micro enterprises shows that overwhelming majority is married and only 6are unmarried. Through MEDEP small farmers and business men are earning money and progress to thebetter life. The major sources of cash income from MEDEP are livestock, meat, grocesary,vegetables venders and live animalas like chickens and pigs. Livestock based micro-entrepreneurs sell their pigs either to butcher or to middle-manwhocome from India,Bhutan, Kathmandu and Dharan. Live poultry and eggs are also selling to the middle man. V Vegetables are supplied to local markets andevenup to Kathmandu also. There is highdemand of live pigs and chicken due to quite high demands in the local markets too. From the study one-third of the total households are earning less thanNRs 10,000 profitannually. Likewise, 26 percent entrepreneurs earn 10-20 thousand annually. On the otherhand, dramatic fall of percentage can be seen of 20-30 thousand and 30,000 to 40,000.However, 22 percent gained profit annually more than 40,000. Overall, the table shows thata range of profit is quite different, and the household percentage is also not remainedstable. Small farmers not only are engaged only one income generation programme but alsoinvolve other income generation programme. Most of the entrepreneurs have theiralternative source of income. They easily run other activities along with main occupation soit is very supportive for poverty alleviation effort. In the family, some members especiallywomen are involved in livestock enterpriseand male members involved in driving otheractivities. From the studyit is known thatdifferent challenges of MEDEParein the study area. Marketis the most serious challenge among all and almost 36 percent of the entrepreneurs havefaced this problem.Second considerable challenge is middle man, who determine the priceof product and the flexible price system in the study area has acted as an obstacle. In thesame way, diseases seem to be another important problem whichshares about 10 percenttogetherwith seasonal problems by 20 percent. On the contrary, other problems such as skillmanpower, seeds, transportation seems to be the minimal among all the challenges.