Influencing Factors for Women Entrepreneurship in Mahalakshmi Municipality Lalitpur, Nepal

Abstract

This study explores the factors influencing women‘s entrepreneurship in Mahalakshmi Municipality, Lalitpur, Nepal, focusing on social demographics, economic conditions, and the status of women entrepreneurs. Adopting a post positivist approach with a quantitative research strategy, the study uses a deductive approach to examine these factors. Data was collected through structured questionnaires, key informant interviews, and observations, with a total of 120 women entrepreneurs surveyed—60 from agriculture and 60 from service sectors. Secondary data was sourced from reports, policies, and municipal records. The findings indicate that a significant proportion of women entrepreneurs migrated from Bagmati Pradesh, with the highest migration rates occurring within the province. The majority of women entrepreneurs are aged between 25 and 44 years, are married, and belong to the Janajati ethnic group. Most respondents have secondary education, while a smaller percentage have higher education. The primary sectors of entrepreneurship for women in this region are agriculture and service-related industries, with agriculture being more prominent in rural areas and services dominating urban areas. Furthermore, the study reveals that women entrepreneurs receive targeted training relevant to their businesses, which has contributed to their success. Economic factors, such as family income, expenditures, and familial support, emerge as significant influences on women‘s entrepreneurial ventures. However, the study also highlights the limited involvement of women entrepreneurs in formal financial systems, such as tax-paying, and the widespread reliance on middlemen in product distribution, which diminishes their profit margins. The study concludes that entrepreneurship plays a crucial role in driving economic growth and social change, with migration, age, education, and marital status being key factors influencing women‘s entrepreneurial success. Younger women tend to be more innovative, while older women bring valuable experience. Tailored skill training has proven motivational, but the misuse of government policies by elite groups undermines their effectiveness. Addressing these challenges can facilitate a more favorable environment for women entrepreneurs in Nepal. The study emphasize the importance of family support, educational opportunities, and access to finance in empowering women entrepreneurs. Additionally, challenges such as low income levels, limited formal education, and societal and familial barriers significantly hinder women‘s entrepreneurial potential. The insights gained from this study are valuable for policymakers, educational institutions, and development organizations to design targeted interventions that support the growth of women entrepreneurship in Nepal.