Small Business In Nepalese Economy

         

       Nepal is a least developed country.It is also land locked and mountainous.Small business are the backbone of Nepalese economy.The growth of small business has been a continuous procees in Nepal.

       Ancient and medieval Nepal witnessed the growth of small business related to arts,crafts, and cottage industries.During the Rana Rule their growth was slow and haphazard.They were related to rice,oil,food,furniture,soap,textile,bricks etc.The era of planned growth since 1956 facilitated their growth in various activities.

      Industries with fixed assets not exceeding Rs 30 million are defined as small industries in Nepal. Fixed assets consist of specified movable and immovable assets.

       The importance of small business in Nepalese Economy  are:-

• Economic backbone-Small business is the backbone of Nepalese economy.About 90% of manufacturing establishment are small businesses.
• Employment creation-Small manufacturing establishments account for about 60% of industrial employment.They are largely labour-intensive.They create self-employment and employment to others.
• Entrepreneurship development-Small business are the stepping stones for entrepreneurship development in Nepal most entrepreneurial ventures start as small business.
• Complementary-Small business supply inputs to large business and distribute their products.Global companies and big houses have interdependency with small businesses.
• Exports-Small businesses have an important share in exports of Nepal.They are playing a major role in exports of woolen carpets,handicrafts,garments, and agricultural products.