Market study to understand job growth potential in SMEs in Nepal

David Irwin and Nada Ibrahim

No 32149232, Jobs Group Papers, Notes, and Guides from The World Bank

Abstract: This report identifies and quantifies Nepal's key jobs challenges and the implications for future job creation, job quality and gender disparities. The diagnostic examines the slow pace of structural transformation, the existing distribution of jobs by work status, productivity level and worker characteristics, and the role of migration in absorbing excess labor supply. The analysis of private sector labor demand finds that most firms are micro-sized, and the pace of wage job creation – although increasing – is insufficient to absorb job seekers, especially women. A new SME survey conducted for this study concludes that small firms struggle to compete and access credit, and they lack the capacity to obtain the skills and other inputs necessary to increase their product quality, ultimately limiting their growth capacity. Nepal's business environment and labor regulations create further impediments to dynamic, job-creating economic growth. A set of policy recommendations is offered to mitigate labor demand and supply challenges to achieve better labor outcomes in Nepal.

Keywords: entrepreneur; small and medium enterprise; Market Studies; market study; Micro, Small and Medium Enterprise; job growth; higher level of education; know how; sales revenue; use of technology; business support; high skilled labour; access to finance; full time equivalent; number of technologies; venture capital fund; reliance on foreign; high school education; job creation potential; business environment constraints; introducing new products; limited liability company; proportion of woman; parameter of interest; existing knowledge; tourism sector; market opportunity; economic census; agricultural product; rural business; retained earnings; value added; average employment; rural location; urban location; employment option; focus group; firm size; domestic demand; skilled labor; constituent assembly; total sample; other sectors; income supplement; industrial sector; daily wage; labour market; firm growth; microfinance institution; educated entrepreneur; Higher Education; postgraduate qualification; high employment; low risk; female entrepreneur; sole proprietorship; sampling frame; future research; new job; micro firms; Market Intelligence; trade mission; trade fair; financial readiness; financial packaging; networking event; seed capital; informant interviews; government representative; population profile; survey design; financial matter; sensitive topics; financial question; longer period; Food Services; company registration; population figures; new market; local development; employment opportunities; employment opportunity; rural setting; urban market; skilled people; solving problem; regression analysis; labour productivity; salaried employment; productivity increase; temporary worker; tourism business; quality improvement; passive attitude; business interest; external market; primary focus; international market; domestic consumer; international demand; in work; working capital; primary source; loan finance; additional saving; secure future; exporting firms; young people; Basic Education; piece rate; temporary labour; labour law; investment level; import product; food processor; foreign market; positive correlation; carpet manufacturer; international sale; tourism services; access market; Doing Business Reports; internal communication; stock control; Technical Training; production process; skilled operator; manufacturing technology; import tariff; market potential; modern world; business finance; entrepreneurship support; SME sector; overall assessment; research method; private consumption; considerable difference; innovative start-ups; labour intensive; investment finance; support for entrepreneur; affordable finance; investment climate; International Trade; outward migration; basic skill; unemployment rate; economic diversification; cultural elements; knowledge network; market failure; SME support; high-risk venture; industrial job; work force; industrial establishments; food processing (search for similar items in EconPapers)
Pages: 118
Date: 2019-09-01
New Economics Papers: this item is included in nep-ent and nep-sbm
References: Add references at CitEc
Citations:

Downloads: (external link)
http://documents.worldbank.org/curated/en/30866159 ... ial-in-SMEs-in-Nepal

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wbk:jbsgrp:32149232

Access Statistics for this paper

More papers in Jobs Group Papers, Notes, and Guides from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC.
Bibliographic data for series maintained by Selome Assefa Hailemariam ().