Impact of Micro-Enterprises on Poverty Alleviation in Nawalparasi District, Nepal

Abstract

Poverty alleviation programs and projects in developing countriesare influenced by the western concept of poverty. Therefore, the empiricalconsequences of the western socially constructed concepts in the third worldare important. Nepal is the 10 th poorest nation in the world Thirty twopercent of the population live below the poverty line in Nepal. Nepal isfacing significant challenges in poverty reduction due to the alarmingpopulation growth and the sluggish nature of its economy. Its socio-economic condition is predominantly characterized by agriculture with lackof employment opportunities. The role of micro enterprises on povertyalleviation is crucial and it becomes vital especially for the countries likeNepal. To promote enterprises in Nepal, entrepreneurial culture among thepeople as to be stimulated and developed so that employment can be siftedfrom agricultural sector to the industrial sector. In this regard, MEDEP hasbeen promoting development of micro-enterprise amongst low-incomefamilies to generate employment and income opportunities for the povertyalleviation in Nepal. The universe of the study has been sampled in the MEDEP focusedarea in Nawalparasi District. Bamboo products, Fiber andTextile productsenterprises were sampled and sample size is 70 entrepreneurs who hadoperated their enterprises by taking loan from ADB with the support ofMEDEP. The study entitled "Impact of Micro-enterprises on PovertyAlleviation in Nawalparasi District, Nepal" is to analyze the impact of microenterprises on poverty alleviation in study area and the specific objectivesare: to compare income status of people before and after operation ofmicro-enterprises, to analyze the market accessibility of micro-enterprisesproducts, to analyze the trend of micro enterprises development and toexplain about the appropriate technology for improving micro enterprisesproduction system at local level in study area. The enterprises are based onlocally available rawmaterials. There were only a few enterprises usingsome materials purchases from the distant markets. The Bamboo products,the enterprises are found using the locally available raw materials andlooks into the market demand. Market is the foremost important elementwhich determines sustain of any enterprises. Findings revealed that the impact of poverty alleviation programmein study which is analyzed by using fundamental indicators such as: Socialstatus like education, health, literacy, food habits etc. and economic statuslike income sources, consumption pattern, employment and land size etc.and other production trend of the enterprises. The study is based on bothprimary as well as secondary sources of information. The secondary sources of data were collected basically published and unpublished documents fromindividual experts, article, newspaper, journal etc. related to poverty andmicro enterprises. The primary data was collected y using various methods.The researcher own-self participated to collection of primary data by usingdata collection techniques and tools like structure and semi structurequestionnaire, check list, observation sheet, focus group discussion, keyinformants, interviews etc. In the study area, the enterprises under the programme is found veryeffective to make a net income minimum Rs. 1200 to maximum Rs. 30000 permonth per enterprises. Adding this income to the average mean per capita isRs. 4841 per months after operation of micro-enterprise. From the study it wasfound that there were 54.28% entrepreneurs whose major income source ismicro enterprises and out of total sample enterprises there were found 226employer and also found to be change in education status, health status, skilldevelopment and economic situation of the people. It can be concluded that thepoor and medium classes have been benefited proportionately more from theprogram. In spite of its positive impact on raising the socio-economic status ofpeople to some extent updating MEDEP in some of its policy andimplementation aspect was realized for making it more pro-poor and bestapproach for poverty alleviation in Nepal.