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Micro-Enterprises, Development for Poverty Alleviation
Volume I
Micro-Enterprise Development Programme (MEDEP)/UNDP Ministry of Industry (MOI) 2010
Copyright © 2010 by Micro-Enterprise Development Programme (MEDEP)/UNDP All rights are reserved. No part of this edited volume may be reproduced by any means, nor transmitted, nor translated into a machine language without the written permission of the publisher. ISBN: 97899946-916-5-4
Published by:
Micro-Enterprise Development Programme (MEDEP)/UNDP Ministry of Industry (MOI), Kathmandu, Nepal Printed in Nepal at : Office Support Service Centre Chhapakhana P. Ltd. Teku, Kathmandu Tel.: 4240571
Email.: [email protected]
iii
About the Book Introduction
Micro-Enterprise refers to any economic unit engaged in the production and
distribution of goods and services at household level. It is primarily of self-employed
nature, employing him/her in the enterprise and sometimes some family members.
The enterprise runs on little amount of capital investment at a fixed market centre or
mobile business locations. This sector is identified with features like reliance on
indigenous resources, family ownership of enterprises, small scale of operation,
labour-intensive, adapted technology, and minimum skill. Micro–enterprise, therefore,
is particularly suitable for poor communities.
Micro economic enterprises play a vital role in poverty reduction in both rural and
urban areas, and reinforce urban-rural linkages for economic and social development
in Nepal. The linkages are essential not only for utilization of local resources but also
in acting as agents for the flow of goods and services between urban and rural areas.
Their roles are important since they possess the features like self employment
generation, employment to poor and women, use of local resources, meeting basic
needs of the poor, traditional enterprise/skill and craftsmanship, labour intensive, self
satisfaction on the job, entrepreneurship and innovative (skill learned through
apprenticeship method), and fair income distribution among the poor.
However, development and promotion of Micro-Enterprises in Nepal has been hindered
due to some major factors: First, lack of easy access to micro-credit is the most crucial
constraint and, therefore, Micro-Enterprises are unable to utilize the economic
opportunities available in the local area in sustainable and successful manner.
Promotion of micro informal enterprises is required in their overall productivity
enhancement considering resource allocation, i.e. credit facility. Secondly, Micro-
Enterprises lack knowledge and skills to produce the items as per market demand.
Therefore, promotion-based training is next important component, which should be
poor community -friendly and it should be provided to potential and interested
individuals to upgrade their knowledge and management of enterprising skill. Excellent
entrepreneurs will be produced only if trainings are provided at different stages and
levels. Monitoring is essential for validating and use of trainings. Thirdly, labour and
capital productivity and rate of surplus are other measures to promote Micro-
Enterprises. These include the considerations of skill up-gradation, management, and
technological improvement. Lastly, other constraints of micro enterprising
development include (i) limited backward and forward linkages, (ii) lack of market
chains and price chains of the products, and (iii) lack of market places for selling
within the cities. These necessitate due considerations.
The government agencies should play a crucial role to promote safeguard and manage
the micro economic activities. If managed properly, it will be one of the crucial
income sources for the local government units.
Micro-Enterprise Development Programme (MEDEP) is thus established to address all
the issues, problems and measures related to micro-enterprises. As a part of
dissemination, skill development, knowledge sharing, operational research
development, and constructive recommendations for further development of the
Programme, MEDEP since its inception in 1998 has initiated to assist students from
universities and campuses with scholarships to complete their research theses. This
volume intends to draw papers out of the theses and research reports duly submitted
to MEDEP.
Methods
Altogether 23 internship reports, theses and research reports this volume embraces.
These papers are prepared based on the standard formats that include components
like (i) abstract, (ii) introduction (rationale and problems statement), (iii) objectives,
(iv) review of literature, (v) materials and methods, (vi) results and discussions, and
(vii) conclusion and recommendations.
The theses and research reports integrate different academic levels. They include, for
instance, 12 Master’s level, 2 Post-Graduate Diploma, 3 Bachelor level, 5 Internships,
and 1 in project report. They cover different fields of studies like regional
development and management, rural development, sociology and anthropology,
gender and development, women studies, development studies, forestry, business
administration, and population. Researchers represent different universities and
development agencies like Tribhuvan University and its affiliated campuses,
Kathmandu University, Pokhara University, Purbanchal University, and Manchester
College, USA and MEDEP. They deal with the Micro-Enterprises of different fields of
studies, comprising NTFPs, women empowerment, impacts, local resources based-
products (beekeeping, Dhaka, ginger, and off-season vegetables), water resource,
market outlets, and social inclusion. These research works have been completed from
1991 to 2007. Fifteen researchers are female and eight males. There are 17 full-
fledged papers containing all components as stated above and remaining six are short-
note papers that do not contain literature review and references.
v
Acknowledgements
This book contains theses and research reports contributed by the students of
respective universities, colleges and other academic institutions. MEDEP owns all these
theses and research reports. Effort in this book has been made to produce research
papers out of those theses and research reports. All the papers contain the data
gathered and generated from the field surveys conducted by the authors across
different parts of Nepal. In broader term, the papers deal with concepts, issues,
contemporary theories and models, problems, prospects and policy measures of micro-
enterprises. These serve as complements and contribute to the development of micro-
enterprises. This book will be useful to development practitioners, policy designers,
students and researchers interested particularly in the roles of micro-enterprises in
improving livelihoods of the poor people and local economic development.
MEDEP management would like to express sincere gratitude to all the students, their
supervisors and head of the Universities, colleges and other academic institutions for
their interest in MEDEP particularly in Poverty Alleviation through Micro-Enterprise
Development. MEDEP management also expresses its heartfelt gratitude to Dr. (Prof.)
Pushkar Pradhan, Head, Central Department of Geography, Tribhuvan University for his
support in technical editing of this compilation and including this publication as one of
the reference books for the students studying Master Degree in Geography specialising
in Micro-Enterprises and Livelihoods in Urban Planning and Management. Finally, all
the entrepreneurs who provided the first hand information to the students and
professionals to make their research agenda successful also deserve high appreciation.
MEDEP Management
vii
FOREWORD
To address the dire need of a proven tool that could fight poverty in the county by
sustainably promoting entrepreneurship culture, particularly in the population living
below the poverty line, Micro-enterprise Development programme (MEDEP) was
launched as piloting phase in 1998.
Since then, MEDEP’s interventions in the activities of the target poor people, imparting
them need based training, skills and knowledge, access to micro-finance, access to
appropriate technology, shoring up startup support, establishing resource and market
linkage and research work support for scientific investigation and evaluation of the
process, impact, and lesson learnt have been continuously refurbishing MEDEP and
its tools, intervention process and methodologies rationalized in every phase, suitable
to the need and the demand.
Poverty reduction and achievement of Millennium Goal is not simply the tasks set forth
by the world governments and global communities, it is also the challenge facing the
local, regional, the central governments in the world map as well.
The United Nations, World Community and the donor agencies have been supporting
the least developed countries in their fights against the poverty. Many such projects
were funded and implemented in Nepal as well. Tremendous numbers of immediate
and long term researches, data collection and compilation of the important and
relevant information have already been conducted while implementing such different
development programmes. However, the researches and data collection is lost along
with termination of the programmes, hampering the free share and better utilization
of the valued information when needed for policy formulation, academic studies,
specialization and proper knowledge based management.
Learning lessons of the many of Multi-donor supported projects in Nepal, MEDEP came
up with a solution and initiated institutionalization of the knowledge management
after the MEDEP Project Board decided that huge data and information generated by
the project should be converted into knowledge management through academic
research and the cost effective way of doing so is by involving students of different
Universities, Colleges and Institution in Nepal and abroad to conduct their internships,
theses and dissertation. This decision opened the door for students studying in
academic institutions and started conducting their researches in the MEDEP related
fields through institutional linkages between MEDEP and academic institutions. By now
since 2006 more than 40 students have benefited with this knowledge management
mechanism and this is the first effort of MEDEP to compile the internship reports,
theses and dissertation based extracted from articles and publish them in Volume I
which will follow publication of Volume II.
I am confident; MEDEP’s initiation to bring about positive changes in the lives of
hardcore poor can have tremendous support and invaluable inputs from many
stakeholders, sectors, and academia. The collection of research papers prepared by
the promising university students will certainly contribute much to enhance the
knowledge of the resources and demand of the people living below the poverty line in
rock hard geographic, socio-economic, and political situation in Nepal.
The conclusions deduced by some of the theses and study reports presented in this
book are anticipated to be useful to all those who have a burning desire to understand
the prospects and challenges Nepal has been facing for its poverty alleviation and
economic development. Fortitude with natural and human resources, Nepal is still
known as one of the poorest countries in global map. Poverty begets adversities;
attributing to economic, social, and political anomalies, the poor countries are facing.
Consorted efforts to shatter the vicious circle of poverty for achieving prosperity
through micro-enterprise development may be the panacea the country is in need for
its holistic development. This book is just the beginning.
Dhundi Raj Pokharel
Joint Secretary, Ministry of Industry
And National Programme Director, MEDEP
24 December 2010
ix
Table of Contents
About the Book iii
Acknowledgements v
Foreword viii
Title Page
CHAPTER I: INTRODUCTION TO MICRO-ENTERPRISE DEVELOPMENT IN NEPAL Introduction to Micro-Enterprise Development Model and its Achievements in Nepal
Lakshman Pun………………………………………………………………………………………………………………….... 1
CHAPTER II: FACTORS AND ROLES
Micro-Enterprises and Household Income in Nepal: A Case Study of Parbat District
Ajay Thapa……………………………………………………………………………………………………………………….... 25
Assessing Forest Based Micro and Small Enterprises and their Contribution to Rural
Development in Kabhrepalanchok District, Nepal
Dil Bahadur Purja Pun…………………………………………………………………………………………………….... 36
Factors Influencing Entrepreneurship Ability: A Case Study of Parbat District
Gyanu Maya Pun………………………………………………………………………………………….………………….... 47
Role of Micro Finance in Developing Micro-Entrepreneurship: A Study of Ceramic
Enterprise in Gadhawa VDC, Dang District
Rumina Khanal………………………………………………………………………………………………….…………….... 60
CHAPTER III: IMPACTS Study on the Off-Season Vegetables Farming and its Impact on Socio-Economic Development: A Case Study of Rasuwa District Bimal Prajapati……………………………………………………………………………………………………………….... 69
Impact of Micro-Enterprises on Poverty Alleviation in Nawalparasi District, Nepal
Chakra Bandhu Pandey………………………………………………………………………………….……………….... 79
Impact of NTFP-Based Micro-Enterprise on Poverty Alleviation of Janajati Community: A Case Study of MEDEP in Nawalparasi District Sanju Koirala………………………………………………………………………………………………………….……….... 91
Impact of Micro-Enterprises on Socio-Economic Contion of the Enterpreneurs:
A Case Study of Udayapur District
Dinesh Kumar Lama……………………………………………………………………………………………………….... 101
CHAPTER IV: LIVELIHOODS AND TECHNOLOGY
Micro-Enterprise – Way to Enhance Livelihoods of Community through Beekeeping:
A Study of Dang District
Rashmi Pandey……………………………………………………………………………………………………………….... 111
Change in the Livelihoods of Rautes through Micro-Enterprise Development Initiatives
Sangini Rana…………………………………………………………………………………………………………………….... 121
Study on Improved Water Mill in Nuwakot District, Nepal NPSO/MEDEP…………………………………………………………………………………………………………………….... 130 CHAPTER V: EMPOWERMENT AND INCLUSION Economic Empowerment of Women: An Impact Study of Micro-Enterprises in Nuwakot District Babita Adhikari…………………………………………………………………………………..………………………….... 138
Women Empowerment through MEDEP: A Case Study of Nuwakot District Durga Prasad Dhakal……………………………………………………………………………………………………….... 148
Impact of Micro-Enterprise Development Program on Women: A Case Study of
Sunsari District
Sabita Sitoula………………………………………………………………………………………………………………….... 155
Social Inclusion of Dalits through Micro-Enterprise: A Case Study MEDEP in
Nawalparasi District
Sarika Gurung………………………………………………………………………………………………………………….... 164
CHAPTER VI: MARKETING AND FINANCE Study of the Existing Marketing Outlets of Micro-Entrepreneurs Development Programme and Enhancing their Effectiveness Madhu Thapa and Vikash Shrestha……………………………………………………………………………….... 173
Products Marketing by Entrepreneurs: A Case Study of MEDEP in Dhanusha District
Bimala Subedi………………………………………………………………………………………………………………….... 183
Financial Analysis of Allo Based Micro-Enterprise and Its Impact on the Livelihood of
Rural Community in Parbat District
Punam Thapa………………………………………………………………………………………………..….…. 193
CHAPTER VII: SHORT ARTICLES – Prospects of Local High Value Products
A Market Study of Ginger in Deurali VDC, Nawalparasi
Anu Joshi and Neeta Shrestha……………………………………………………………………………………….... 205
Market Study of Allo (Nettle) and Hemp in Nepal
Deewa Shrestha……………………………………………………………………………………………………………….... 211
A Market Study of Honey in Nepal
Heidi Arnaudon……………………………………………………………………………………………………………….... 213
Market Study of Ginger at International Market
Heidi Arnaudon……………………………………………………………………………………………………………….... 216
Strengthening Dhaka Enterprises in Tehrathum District
Pooja Siwakoti……………………………………………………………………………………….……………………….... 218
Present Status of Chyuri Trees: Its Availability, Use and Possible Intervention for
Economic Development in Dadeldhura
Shyam Adhikari, Chet Raj Bhatta and Lakshman Pun……………………………………………….... 223
164
Social Inclusion of Dalits through Micro-Enterprise A Case Study MEDEP in Nawalparasi District
Sarika Gurung
1
This study has made an effort to analyze the impacts of Micro-Enterprise
Development Programme on raising economic condition of Dalits, the most
marginalized and oppressed groups in terms of access to resources and
development activities in rural Nepal. The study was carried out in
Nawalparasi district, one of the MEDEP districts. A total of 129 Dalit
entrepreneurs were selected from five different program locations of the
district.
Dalits entrepreneurs have been involved in undertaking micro-enterprising
activities in Nawalparasi district by MEDEP since 1998. The economic activities
based on locally available resources have provided opportunities to them to
earn income. Training on skills and enterprising development and credit
support were provided to them by MEDEP. After undertaking of the micro-
enterprises, some positive impacts on the Dalit entrepreneurs and their
families in the fields of education, health, accumulation of household assets
have appeared. They participated in group formations, community discussions
and meeting, local development activities, and access to public offices
without hesitation; all these were the parts of inclusion process. However,
support programmes for improving economic, social and political activities of
the Dalits should be continued for some years.
1. Introduction
1.1 Background
Social exclusion is described as a process by which certain groups are systematically
disadvantaged because they are discriminated on the basis of their ethnicity, race,
religion, sex, etc. Social exclusion is a multi-dimensional concept, which involves
economic, social, political and cultural aspects of disadvantage and deprivation. One
of the major reasons for social exclusion of Dalits in Nepal is the caste system.
Nepalese society is caste-based. According to the Hindu religion system, the castes
have been divided into different hierarchical groups such as Bahun, Chhetri, Bhaisa
and Sudra. Brahmin was considered the most respectable whereas a Sudra called
untouchable or Dalit was considered the most despicable.
1 Ms Gurung is a Master’s degree student of Regional Development Planning and Management,
South Asian Institute of Technology, Purbanchal University, 2007. The author is grateful to her thesis supervisor Dr Pradip Upadhyay.
165
In Nepal, the social and economic condition of the Dalits is very poor. Forty-six
percent of them are living below poverty line, compared to the national poverty of 31
percent. Majority of the Dalits are deprived of their basic needs. Many do not have
access to sufficient amount of food, education, health, housing etc. In the rural areas,
Dalits often live at the periphery of main village and are prohibited from fetching
water from the community well, entering into the temples, or eating in the public
restaurants. Also the Dalit children are prohibited from entering the schools. As the
Dalits do not have access to public services, they have limited opportunities for long-
term economic, social and human development. Further the result of constricted
access to employment, social benefits and services, and to various aspects of cultural
and community lives lead to unemployment, poor skills, low income, poor housing, bad
health etc.
1.2 Statement of the Problem
Dalits are the most vulnerable and backward caste group in Nepal. They are socially,
economically, and politically backward. The exclusion of Dalit community from the
society has serious consequences in the sustenance of Dalit living. They are facing
different kinds of problems like untouchability, poverty, social prejudice,
inaccessibility to resources, lack of participation in decision making, etc.
Economically, they lack access to land for cultivation. Their desire of entrepreneurship
work is limited due to lack of access to credit sources (formal and informal). Most
Dalits lack skills and therefore they are not being able to shift their traditional
occupations into modern one. Being poor, they lack collateral assets for taking loans.
They have no options but to continue their traditional occupation or low wage
activities, which barely adequate for supporting their livelihood. Socially, they are
constantly being discriminated based on the caste system.
Most Dalits are not aware about their rights due to poor and illiteracy. They are unable
to raise voice against the exploitation being made on them and demand for equal
right. The Dalits require to be empowered with providing access to income
opportunities.
1.3 Rationale
Available studies have focused mainly on the socioeconomic conditions of Dalits. Few
studies are available dealing with the ways of involvement of the excluded groups
including Dalits in income generating activities, with the assumption that such
activities would help them in raising their social status. However, the existing studies
do not provide adequate information about the formulation of policies toward
empowering them. MEDEP has particularly focused on raising living conditions of
marginalized groups like Dalits through supporting the establishment of micro-
enterprises. If so, then to what extent the Programme has been able to influence on
the socio-economic spheres of Dalits’ life. This study has therefore been carried out to
examine the micro-enterprising activities undertaken by the Dalits and their inclusion
in the social arena.
2. Objectives
The overall objective of the study is to assess the impact of MEDEP in social inclusion
of Dalits in Nawalparasi District. Specifically, this study attempts to assess the change
in the socio-economic status of Dalit micro-entrepreneurs and analyse the level of
empowerment and social inclusion.
3. Literature Review
The Dalits were officially called Achhute or untouchable until 1951. They now call
themselves Dalit or 'oppressed'. The term Dalit is used to designate communities that
in practice continue to be treated as Pani Nachalne, Chhoi Chhito Halnu Parne (water
from such groups or castes is not accepted and if touched that requires sprinkling of
water by the so-called high castes). The word ‘Dalit’ according to Bishwakarma (2002)
means a person emerged from a swamp. NHDR (2004) has defined ‘Dalits’ as those
communities who by virtue of atrocities of caste-based discrimination and
untouchability are the most backward in social, economic, educational, political and
religious fields and are deprived of human dignity and social justice. Studies have
identified 205 forms of commonly practiced caste-based discriminations in Nepali
(GSEA 2004).
The Constitution-1990 reiterates the universality of human rights, equality among
Nepalese citizens in respect to rights and responsibilities and also declares
discrimination on the basis of caste punishable. Despite these reform measures, little
has changed in Nepal’s social structures, norms and practices, including the attitudes
and behaviours of non-Dalits towards Dalits, or among Dalits themselves (Bhattachan
et. al 2001). After 1990, Dalits have received some attention to address their problems
and formulate measures to empower them. In 1996, a committee called ‘Uppechhit
Utpidit Dalitbarga Bikas Samiti (Depressed, Oppressed, Dalit Group Development
Committee) under the Minister of Local Development was established for advancement
of the Dalits. The Ninth Plan (1997-2002) stated for the first time in Nepalese history
that Dalits had occupational abilities, knowledge and skills to raise the country’s GDP.
In 2001, the government promulgated an eight-point program for mainstreaming the
Dalits in national development process. In 2002, a high level called ‘National Dalit
Commission’ was set up to look at the issues related to the welfare of Dalit
communities (NHDR 2004).
Indeed, Dalit groups are skilful in their traditional occupations. But due to lack of
resources and access to finance, it is becoming increasingly difficult to them to make a
living on the sole income out of their artisan (NNDSWO 2005). Dalits have limited
access to farm land, the ownership of which in Nepal has social prestige. The so-called
upper castes therefore tend to own as much land as possible. Dalits own only 1
percent of Nepal’s total cultivated land; about 15 percent of the hill Dalits and 44
percent of the Tarai Dalits are landless. Unlike other groups, Dalits have limited
167
opportunities to employment. Over 54 percent of the Dalits have derived their
livelihood from agriculture, though they are marginalized farmers; another 20 percent
in wage-earning and the rest 16 percent in services (NHRD 2004). Even if they rear
livestock they cannot sell the dairy products, because of untouchability. Seasonal
unemployment, minimum wage, subsistence farming, etc are the basic problems of the
Dalits.
With 2.9 million population, Dalits share 12.9 percent of the total population of Nepal,
but they continue to suffer from discrimination and human rights abuses by reason of
their low caste. Legal protections for Dalits have been poorly implemented and
discrimination against Dalits is still very much a part of everyday life in Nepal (NHDR
2004). Dalits’ educational attainment is extremely poor; two-thirds remained
illiterate; a study by Save the Children US (1993) in five districts of Nepal revealed
that over 90 percent Dalit males and 97 percent Dalit females were illiterate. The low
level of education attained by dalits reduces their access to job opportunities. The
infant mortality rate shows 116.5 per 1000 live births, compared to 52.5 per 1000
among the Bahuns (NHDR 2004).
Social inclusion is often defined as socio-economic and political empowerment of the
particular groups who have been victimizing by the stark discrimination, distinction,
segregation and exclusion. Social inclusion is the removal of institutional barriers and
the enhancement of incentives to increase the access of diverse individuals and groups
to development opportunities (Bennett 2002). The Eighth Plan attempted to target
particular caste and ethnic groups. Primary school scholarships for Dalit children were
the first program to target disadvantaged group, but never been initiated. The Tenth
Plan recognized social exclusion as a factor contributing to Nepal’s poverty and has
special programs targeted to the excluded groups such as women, Dalits and Janajatis.
The PRSP has mentioned strategies for Dalit inclusion. But it has used the 'deprived
communities' rather than specifically naming Dalit/Janajatis groups identified as
having low educational and economic status (DFID 2005).
Micro-enterprise and micro-finance development have emerged as major strategies to
combat the twin issues of poverty and unemployment that continue to pose a major
threat to the polity and economy of both the developed and developing countries.
While micro-finance as a means to empower poor has been quite successful in many
countries, the utilization of credit for adequate income and employment generation is
a cause of concern for most of the stakeholders. Moreover, there is a growing concern
that micro-enterprise development programmes are not successful to a desired extent
because of lack of adequate and timely availability of credit.
Small businesses and micro-enterprises provide more than 75 percent of all private
sector employment in most countries. The micro-enterprise development intervention
should target towards raising rural incomes by increasing the sustainable production
and value of products from local resources and raw materials.
169
4. Research Methodology
4.1 Sampling Design
Nawalparasi district has a total of 323 Dalit entrepreneurs, of which 129, accounting
for 40 percent representing different program locations were selected for
questionnaire survey. They included five major Program locations having larger
number of Dalit entrepreneurs like Sunaul, Gangabasti, Triveni, Arunkhola and
Gaidakot. The questions were both close and open-ended. In addition, direct
unstructured interview with key informants like MEDEP Project Officers, Group Leaders
and personnel of the Partner Organizations of MEDEP in the district was carried out to
acquire information that completed to the questionnaire survey. The secondary data
were collected from both published and unpublished materials of governmental and
non-governmental organizations.
The primary data has been analyzed by the Excel programme. Descriptive statistical
tools such as percentage, frequency, and mean and tables have been used in relevant
contexts.
5. Results and Discussions
Features of Dalit Entrepreneurs
The 129 entrepreneurs with 92 women and 37 men have age ranged from 19 to 75
years. The largest number of respondents with 72 (56%) fell into the age group of 25–
42, followed by 36 in the age group of 43–60, and 11 in the age group of 61–78. The age
group of 19–24 contained 10 entrepreneurs. The average family size was 5.4. Among
the Dalit entrepreneurs, 48 were Bishwakarma, 24 Sunar, 19 Pariyar (Damai and
Nepali), 17 Sarki, 6 Harijan, 3 Chamar and 12 others. The number of literate Dalit
entrepreneurs was 96 (76%) that included both read and write and school/college
attendants. This literacy is encouraging, as compared to the national level. The
literate rate of their families was 53 percent. However the drop-out rate among the
school going children was 47 percent, which seems quite large. Access to toilet was
about 46 percent, whereas the drinking water facility reached to about 82 percent of
the entrepreneurs.
Seventy-one percent of the entrepreneurs were resided in squatter settlement.
Majority of the entrepreneurs were very small landholders; 75 of them had owned less
than 0.68 ha, of which 49 had landholding below 0.34 ha. Eighty-seven entrepreneurs
did not have adequate foods from their land.
Enterprising Development
(i) Access to Institutional Loan
Eighty-four percent of the entrepreneurs had got access to credit to undertake micro-
enterprises; 9 percent was in the process of obtaining loan; and 7 percent did not need
loan who established enterprises on their own. The agencies that provided loan to
those under the supervision and coordination of MEDEP included Gramin Bank and
Nirdhan.
(ii) Training
Prior to undertaking micro-enterprises,
13 percent of the entrepreneurs had
access to trainings provided by
different organizations, while 87
percent had not any access to such
trainings before they run their
enterprises. Most of them had taken
trainings after involving in micro-
enterprises as per the need and type of
enterprise.
(iii) Enterprising types
The 129 entrepreneurs have been
divided into three major enterprising
types such as trading, manufacturing,
and services. They shared 55.8, 36.4,
and 7.8 percent respectively (Table 1).
In trading, 59 entrepreneurs were
involved in pig and goat raising for
selling, which was the largest, followed
by Dhaka weaving (manufacturing
sector). Other important activities
included copper utensils making,
broom making, garments, bamboo
crafts, fruits vendors, and so on.
Among the enterprises, 42 percent
were opened during 2- 4 years, while
30 percent were opened between 6-8
years (Fig. 1).
Economic Impacts
(I) Income Status
The income levels of the
entrepreneurs per month have been
divided into three broad classes, such
as below Rs. 2,000, Rs 2,000–5,000
and above Rs 5,000. After undertaking of micro enterprises, the number of the
entrepreneurs earning below Rs 2,000 per month was 49 decreased from 74, while that
in the earning group of Rs 2000–5000 was 44 up from 23. Likewise, there were 7
Table 1: Distribution of enterprise type
Enterprise type No %
(i) Trading sector Retails 2 1.6 Leaf collection 2 1.6 Vegetables 4 2.3 Fruits 5 3.9 Pig raising & selling 18 14.0 Goat raising & selling 41 31.8 Sub-total 72 55.8 (ii) Manufacturing sector Supo mat 2 1.6 Furniture 3 2.3 Garment 7 5.4 Bamboo crafts 5 3.9 Bag making 3 2.3 Broom making 7 5.4 Dhaka weaving 12 9.3 Copper utensils 8 6.2 Sub-total 47 36.4 (iii) Retail service sector Gold ornaments 4 3.1 Mixed repairing 2 1.6 Tailoring 3 2.3 Blacksmith 1 0.8 Sub-total 10 7.8
All total 129 100.0
Source: Field Survey, 2007
30%
42%
10%
18%
<2 Years (2- 4) Years (4-6) Years (6-8) Years
Fig. 1: Operation of the enterprises by year
171
entrepreneurs who earned over Rs 5,000, increased from 3. In addition to this, the
income of the families earning Rs 2,000-5,000 per month represented 60 percent,
those earning above Rs 5,000 accounted for 28 percent, and the rest 12 percent fell
into below Rs 2,000. Taking into consideration of Rs 44,800 per capita income2, 88
percent of the entrepreneurs fell below poverty line and 12 percent whose income
with above 90,000 was above poverty line.
(ii) Saving
Saving is progressed among the entrepreneurs. Compared to the previous saving, which
was 11 percent, the saving after the undertaking of micro enterprises was 81 percent.
Those 19 percent without saving was due to loss in their business. The entrepreneurs
with saving responded that they have been able to spend on the needs of their
children and families. Little improvement found on living houses from 11 to 15 percent
of the entrepreneurs; the mud houses have been upgraded into brick houses.
Health Impact
Health improvement has been measured in terms of consumption of meat, vegetables
and other nutritious foods. Majority of them consumed meat at every two weeks.
Though 59 entrepreneurs owned livestock (pig and goat) for selling purpose, they also
got to consume meat sometimes of pig and goat by sharing among the communities.
Dalits also used to raise chickens for meat and eggs, in addition to selling. They also
became capable of consuming vegetables from buying, or growing from their kitchen
garden. Some of the entrepreneurs have been capable of private clinics for the
treatment of diseases.
Empowerment and Social Inclusion
Empowerment and social inclusion of Dalits have been measured in terms of knowledge
on Dalit rights, participation in local development activities, accessing to or exercising
of their rights for service delivery agencies, human treatment, etc. With increasing
income, the Dalit entrepreneurs have been aware about their right. There has been an
increase in the knowledge about Dalit rights, from 27 to 40 percent after participating
in the enterprising activities. They also have been aware through different awareness
programmes organised by different agencies. Sixty-five percent entrepreneurs got to
participate in local development activities like children schools, etc. Approaching to
police, court, schools, local groups, and local government offices by them has been
gradually increased from nine to 28 percent.
There has been an increasing trend in social activities. Social inclusion can be
indicated that 83 percent entrepreneurs and their families had got respectful
treatment from non-Dalits in fetching water from public taps, temples, ponds and
other’s home. Almost three-fifths entrepreneurs got cooperation from neighbours or
non-dalits in their activities. Sixty-four entrepreneurs were invited in the feast or
2 The national per capita poverty line income for family is Rs 8,000. The average family income
below poverty line is 44,800 (8,000 x 5.6 mean family size).
other social gatherings. Interaction between the entrepreneurs and neighbours in
terms of visits has also been increased. Seventy-nine entrepreneurs visited the
neighbours upon invitation, whereas 64 percent visited them by neighbours. 6. Conclusion and Suggestions
6.1 Conclusion
Dalits, the marginalized and excluded groups in terms of access to resources and
development activities, have been involved in undertaking micro-enterprising activities
in Nawalparasi district by MEDEP since 1998. The micro-economic activities based on
locally available resources have provided opportunities to them to earn income.
Training on skills and enterprising development and credit support are two essential
aspects for Dalits to undertaken micro enterprises, which have been possible through
MEDEP. Providing income generating and employment generation opportunities to
Dalits by means of micro-enterprises is itself significant for them. The Dalit
entrepreneurs have got to participate in group formations, community discussions and
meeting, local development activities, and access to public offices without hesitation
were parts of the inclusion process. However, support programmes for improving
economic, social and political activities of the Dalits should be continued for some
years and initiated in other Dalit areas, too. Following suggestions are provided to
further improvement of Dalits:
Enterprise development trainings like leadership, personality development, skill-
based, public speaking should be provided to Dalits to increase their confidence
and ability
Access of Dalits to credit and technology requires to be provided with efficient and
convenient manner
Social awareness raising programs should be imparted often to both Dalits and non-
Dalits for several years.
References
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Bhattachan, K. Hemchuri, B, Gurung, Y.B. and Bishwakarma, C.M. (2001), Existing Practices of Caste-Based Untouchability in Nepal and Strategy for a Campaign for its Elimination. Kathmandu: Action Aid/Nepal.
Bishwakarma, H, (2002), Dalits of Nepal: Their Movement Now and Then. In: Dalits of Nepal: Issues and Challenges. Lalitpur: FEDO.
DFID (2005), Reducing Poverty by Tackling Social Exclusion: A DFID Policy Paper, Department for International Development.
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MEDEP (2001), Micro-Enterprise for Poverty Reduction: Annual Report. MEDEP, Lalitpur.
NHRC (2003), Human Rights in Nepal: A Summary Report 2003, National Human Rights Commission: 26-27.
NNDSWO (2005), Envisioning an Equitable Society: Annual Report 2005. Kathmandu: Nepal National Depressed Social Welfare Organization (NNDSWO).
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