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Business Climate Study
Study Team:
Team Leader : Dr. Raj Kumar Bhattarai
Statistician/GESI Expert : Dr. Manjeshwori Singh
Senior Economist : Mr. Kamal Raj Gautam
Research Associate : Mr. Nanda Kumar Maharjan
Submitted to:
Mott MacDonald
Sanepa, Lalitpur
Submitted by:
Nepal Development Research Institute
Shree Durbar Tole, Pulchowk, Nepal
Phone No. 977-1-5537362, 5554975
Website: www.ndri.org.np
And
Nepal Development Research Initiative Pvt. Ltd.
Pulchowk, Lalitpur
Email: [email protected]
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CONTENTS
List of tables .......................................................................................................................................... v List of figures ......................................................................................................................................... v List of appendices ............................................................................................................................... vi EXECUTIVE SUMMARY ................................................................................................................... ix ABBREVIATIONS ............................................................................................................................. xvi CHAPTER 1: INTRODUCTION ...................................................................................................... 1
1.1 Background ........................................................................................................................... 1 1.2 Objective of the study .......................................................................................................... 1 1.3 Methodology .......................................................................................................................... 2
1.3.1 Sampling strategy ......................................................................................................... 2
1.3.2 Identification of construction based MSMEs ............................................................ 3
1.3.3 Target Respondents .................................................................................................... 4
1.3.4 Sample size estimation and sampling techniques .................................................. 4
1.3.5 Data Collection ............................................................................................................. 6
1.3.6 Data analysis ................................................................................................................. 7
1.3.7 Approaches: .................................................................................................................. 8
1.4 Study limitations ................................................................................................................... 9 CHAPTER 2: KEY FINDINGS ...................................................................................................... 11
2.1 Enterprise demography ..................................................................................................... 11 2.2 Starting a business ............................................................................................................. 11
2.2.1 Legal commencement and formal operation .......................................................... 12
2.2.2 Informal payment: ....................................................................................................... 14
2.2.3 Harassments ............................................................................................................... 14
2.2.4 Information availability and clarity ............................................................................ 14
2.2.5 Regulatory and policy Constraints ........................................................................... 15
2.2.6 Gender specific limitation .......................................................................................... 15
2.2.7 Odds ratio .................................................................................................................... 16
2.3 Taxation ............................................................................................................................... 16 2.3.1 Types of taxes ............................................................................................................. 17
2.3.2 Tax payment process (time & costs) ....................................................................... 18
2.3.3 Information dissemination ......................................................................................... 19
2.3.4 Informal payments ...................................................................................................... 19
2.3.5 Cases of double taxation ........................................................................................... 20
2.3.6 Harassment ................................................................................................................. 20
2.3.7 Disproportionate impact of taxation ......................................................................... 20
2.4 Business permit/license ..................................................................................................... 21 2.4.1 Procedure of obtaining business permit/license .................................................... 21
2.4.2 Informal payments ...................................................................................................... 22
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2.4.3 Information availability and clarity ............................................................................ 22
2.4.4 Obstacles and regulatory constraints ...................................................................... 23
2.4.5 Gender specific issues .............................................................................................. 23
2.5 Access to finance ............................................................................................................... 23 2.5.1 Existing policies and products .................................................................................. 24
2.5.2 Average costs of credit .............................................................................................. 25
2.5.3 Challenges ................................................................................................................... 26
2.5.4 Constraints facing the women-led MSMEs ............................................................ 27
2.5.5 Economic and financial implications ........................................................................ 27
2.5.6 Odds Ratio ................................................................................................................... 28
2.6 Getting electricity ................................................................................................................ 28 2.6.1 Connection process and costs ................................................................................. 29
2.6.2 Information availability ............................................................................................... 30
2.6.3 Procedural challenges ............................................................................................... 31
2.6.4 Slowest and longest processes ................................................................................ 31
2.6.5 Load estimate and reliability of supply .................................................................... 32
2.7 Infrastructure and transportation route permit ............................................................... 32 2.7.1 Procedural constraints and costs ............................................................................. 32
2.7.2 Steps taken ................................................................................................................. 33
2.7.3 Informal payments ...................................................................................................... 33
2.7.4 Information dissemination mechanism .................................................................... 34
2.7.5 Effectiveness of transportation route permit........................................................... 34
2.7.6 Conditions of infrastructure ....................................................................................... 35
2.7.7 Added costs and time bore ....................................................................................... 36
2.7.8 Overlapping or duplication of transportation levies ............................................... 36
2.7.9 Disproportionate impact on women ......................................................................... 36
2.8 Land laws/property ownership.......................................................................................... 36 2.8.1 Steps involved to get land ownership ...................................................................... 37
2.8.2 Land ownership process ........................................................................................... 37
2.8.3 Time taken and costs incurred ................................................................................. 37
2.8.4 Clarity of laws at the local level ................................................................................ 38
2.8.5 Added cost bore by entrepreneurs .......................................................................... 38
2.8.6 Constraints relating to women .................................................................................. 38
2.9 Labor shortage and labor market regulation .................................................................. 38 2.9.1 Availability of skilled, semi-skilled, and unskilled workforce ................................ 39
2.9.2 Key skills gap .............................................................................................................. 40
2.9.3 Economic costs due to workforce shortage ........................................................... 41
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2.9.4 Safety and standard procedures .............................................................................. 41
2.9.5 Labor inspection authorities and their inspections ................................................ 42
2.9.6 Labor laws, rules, and regulations ........................................................................... 42
2.9.7 Labor laws and regulations restricting women....................................................... 42
CHAPTER 3: CONCLUSIONS AND RECOMMENDATIONS ................................................. 44 3.1 General conclusions and recommendations .................................................................. 44 3.2 Specific conclusions and recommendations .................................................................. 45 3.3 Business ethics specific conclusions and recommendations ...................................... 48 3.4 Indicators challenging the business climate ................................................................... 49 3.5 Likely issues for policy dialogues ..................................................................................... 49
REFERENCES ................................................................................................................................... 49 APPENDICES ..................................................................................................................................... 51
List of tables
Table 1.1: Classification of enterprises base on capital .............................................. 4
Table 1.2: Sample distribution in study districts ......................................................... 5
Table 1.3 Total number of sample for different data collection techniques ................ 6
Table 2.1: Odds ratios for challenges in enterprise registration ............................... 16
Table 2.2: Time and cost for paying taxes ................................................................ 18
Table 2.3: Procedure to obtaining business loan form commercial bank ................. 23
Table 2.4: Odds ratios for independent variable for financial challenges ................. 28
Table 2.5: Effectiveness of route permit for materials transportation ....................... 34
Table 2.6: Functional status of roads ....................................................................... 36
Table 2.7: Status of workforce .................................................................................. 39
Table 2.8: Geographic location of the workforce ...................................................... 40
Table 2.9: Average effect of workforce shortage ...................................................... 41
Table 2.10: Odds ratios for challenges in manpower shortage ................................ 42
List of figures
Figure 1.1: Sampling strategy flow chart .................................................................... 2
Figure 1.2: Map of the study area .............................................................................. 5
Figure 2.1: Flow chart for enterprise registration ...................................................... 12
Figure 2.2: Total days required for enterprise registration ........................................ 13
Figure 2.3: Total cost required for business registration ........................................... 13
Figure 2.4: Informal payment in enterprise registration ............................................ 14
Figure 2.5: Reasons for non-availability of required information for registration ....... 15
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Figure 2.6: Types of taxes and fees ......................................................................... 18
Figure 2.7: Feeling of constraints while paying taxes ............................................... 18
Figure 2.8: Mediums of taxation information dissemination ...................................... 19
Figure 2.9: Total days required for obtaining business license/permit ...................... 22
Figure 2.10: Total cost required for obtaining business license/permit ..................... 22
Figure 2.11: Clarity of information for business permit/license ................................. 22
Figure 2.12: Status of formal sources of credit ......................................................... 25
Figure 2.13: Average rate of interest (%) of financial institutions for business loan . 25
Figure 2.14: Implications of shortage of funds .......................................................... 26
Figure 2.15: Procedure for getting electricity ............................................................ 29
Figure 2.16: Time taken to get electricity connection / Figure 2.17: Cost of getting
electricity .................................................................................................................. 30
Figure 2.18: Electricity connection information accessibility ................................................. 31
Figure 2.19: Status of getting required electricity ..................................................... 32
Figure 2.20: Total cost incurred for transportation route permit ................................ 33
Figure 2.21: Time required to obtain route permit .................................................... 33
Figure 2.22: Difficulties due to transportation route permit ....................................... 35
Figure 2.23: Conditions of roads .............................................................................. 35
Figure 2.24: Process of obtaining land ownership .................................................... 37
Figure 2.25: Reasons to the shortage of skilled workforce ....................................... 39
Figure 2.26: Nature of skill gap ................................................................................ 40
Figure 2.27: Knowledge about industrial safety and standard .................................. 41
List of appendices
Appendix 1: Entrepreneurs' demography ................................................................. 51
Appendix 2: Number of responses on choosing business location .......................... 52
Appendix 3: District wise number of registered enterprises ...................................... 52
Appendix 4: Reason for not registering the business ............................................... 53
Appendix 5: Places/authorities for business registration .......................................... 53
Appendix 6: Process map for registration of enterprise ............................................ 54
Appendix 7: Number of responses on reasons for non-availability of required
information ............................................................................................................... 55
Appendix 8: Socio-cultural limitations for women entrepreneurs while the starting .. 56
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Appendix 9: Different types of taxes paid by entrepreneurs ..................................... 56
Appendix 10: Cost, time and distance travelled by entrepreneurs for tax payment .. 57
Appendix 11: Number of responses on constraints faced while paying taxes .......... 59
Appendix 12: Number of responses on reasons for unclear information about
taxation ..................................................................................................................... 59
Appendix 13: Number of responses on incident and reasons of harassments faced
by entrepreneurs ...................................................................................................... 60
Appendix 14: Procedure, time and costs of obtaining business permit/license ........ 61
Appendix 15: Information availability and clarity on obtaining permit/license ........... 62
Appendix 16: Obstacles and regulatory constraints faced by entrepreneurs for
obtaining business permit/license ............................................................................ 62
Appendix 17: Major reasons for inaccessibility of subsidized loans ......................... 63
Appendix 18: Average rate of interest for different banks......................................... 63
Appendix 19: Major hindrance while obtaining credit from formal financial sources . 64
Appendix 20: Source of finance for entrepreneurs ................................................... 65
Appendix 21: Connection process and cost in getting electricity .............................. 65
Appendix 22: Process map for getting electricity for enterprise ................................ 66
Appendix 23: Total cost and time for obtaining route permit .................................... 66
Appendix 24: Process map for obtaining transportation route permit ....................... 67
Appendix 25: Citizen Charter of land revenue office (both Nepali and English) ....... 68
Appendix 26: Total cost and time for obtaining land ownership ............................... 72
Appendix 27: Key skill gaps in the enterprises ......................................................... 73
Appendix 28: Reasons for noncompliance with safety and standard procedure ...... 73
Appendix 29: List of documents and time required to register industries according to
Enterprise registration Act, 2049 .............................................................................. 74
Appendix 30: Documents required for registration of enterprises in Cottage and
Small Industries. ....................................................................................................... 75
Appendix 31: Citizen Charter obtained from electricity authority, Gorkha ................ 76
Appendix 32: Documents required for registration of transportation enterprise ........ 78
Appendix 33: Documents required for registration of furniture enterprise ................ 79
Appendix 34: Documents required for registration as contractor .............................. 80
Appendix 35: List of key informants at national level ................................................ 81
Appendix 36: List of key informant at district level .................................................... 81
Appendix 37: List of participants during Focus Group Discussion at Nilkanth
Municipality, Dhading ............................................................................................... 82
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Appendix 38: List of participants during FGD at Gajuri Rural Municipality, Dhading 82
Appendix 39: List of participants during FGD in Bishauni Hotel, Gorkha Municipality
................................................................................................................................. 83
Appendix 40: List of participants during Focus Group Discussion in Palungtar
Municipality, Gorkha ................................................................................................. 84
Appendix 41: List of participants for FGD in Bidur, Nuwakot District ........................ 84
Appendix 42: List of Participants for Focus Group Discussion at Likhu Rural
Municipality, Nuwakot ............................................................................................... 85
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EXECUTIVE SUMMARY
Construction sector, with a contribution of 12% in GDP and using around 35% of annual
budget, is one of the fastest growing industries in Nepal. This growth has almost doubled as
the reconstruction and rebuilding efforts post-earthquake of 2015 accelerated. While the
mega earthquake brought catastrophic impact, it also brought an incremental opportunity to
the overall construction sector countrywide. However, the growth and expansion rate of
construction based micro, small and medium enterprises (MSMEs) is below par. Through this
study we aim to identify constraints impeding their growth and support in creating an
enabling business environment for MSME.
In all of the study districts, there was a genuine interest among individuals to become an
entrepreneur. Many of them were engaged in one or more businesses as per resource
availability, ease of market accessibility, support from the government, and so on. However,
constraints relating to enterprise registration, expectation of informal payment, lack of
proper information dissemination mechanisms were hindering the growth and expansion of
entrepreneurs, especially at the local level. The constraints were far deep rooted for MSMEs
like furniture manufacturers, stone crushing and sand washing plants as they had to abide by
environmental regulations.
Summary of actual time and cost of MSMEs in three districts are given in the figure below.
0
2000
4000
6000
8000
10000
12000
14000Starting a Business
Tax Regulaion
obtaining business Permit /licence
Getting Electricity
Micro Enterprise - Actual Time (days)
Dhading Gorkha Nuwakot
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0
5000
10000
15000Starting a Business
Tax Regulaion
obtaining business Permit / licence
Getting Electricity
Micro Enterprise - Actual CostDhading Gorkha Nuwakot
0
5
10
15
20
25
30
35
40Starting a Business
Tax Regulaion
obtaining business Permit /licence
Getting Electricity
Transportation Route Permit
Small Enterpise - Actual Time
Dhading Gorkha Nuwakot
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0
10000
20000
30000
40000
50000
60000
70000
80000Starting a Business
Tax Regulaion
obtaining business Permit /licence
Getting Electricity
Transportation Route Permit
Small Enterprise - Actual Cost
Dhading Gorkha Nuwakot
0
10
20
30
40
50
60
70Starting a Business
Tax Regulaionobtaining business Permit /
licence
Medium Enterprise - Actual Time
Dhading Gorkha
xii | P a g e
Business Registration
Based on study observation, while registering a business, the actual days incurred by MSMEs
were far higher than standards set by the government in all three study districts- Dhading,
Nuwakot and Gorkha. The enterprises subjected to Environment Impact Assessment like
stone crushing and sand washing plants underwent special scrutiny while registering as they
required stringent documentation and verification. This resulted in additional no. of days for
their registration in comparison to other construction MSMEs. Increased no. of days for
registration meant increased economic- documentation and travel- as well as opportunity
cost for the MSMEs. Even though the government’s stated cost of registration is minimal,
unclear information on specific requirements forced the entrepreneurs to hire
consultants/intermediaries while registering. Cost of hiring a consultant/intermediary ranged
from approx. Rs. 2,600- 68,000 depending on the scale and nature of the enterprise. This
involuntary hire of consultants was a major reason behind discrepancy in the actual cost
incurred by MSMEs and standard cost set by the government.
Obtaining permit/license
In addition to business registration, some of the construction MSMEs like transporters,
contractors, crushers and sand extractors need to obtain business permit/license for their
formal operation. Even though the procedure, time and cost of obtaining permits/license are
similar to registration, over 50% of the sample MSMEs reported unavailability of sufficient
information. While there was negligible difference between estimated and actual time while
obtaining permit/license for small enterprises, there was three fold discrepancies for micro
0
20000
40000
60000
80000
100000
120000
140000
160000Starting a Business
Tax Regulaionobtaining business Permit /
licence
Medium Enterprise - Actual Cost
Dhading Gorkha
xiii | P a g e
enterprises. Similarly, the cost discrepancy between actual and standard was low for micro
and medium enterprises. However, there was up to 91% discrepancy in actual and standard
cost of obtaining permits/licenses. A key contributor to the higher cost in reality was due to
striking prevalence of informal payments during the process. Similar to registration, the
provisions relating to Environment Protection Rule made it additionally difficult for furniture
manufacturers, sand washers and crushing plants to obtain permits/licenses.
Taxation
The study found that registered businesses were paying taxes at three- central, provincial and
local levels of government. This multiple layered taxes levied were allegedly creating
additional burden for entrepreneurs. Study showed that over 50% of entrepreneurs relied on
face-to-face inquiry with tax officials for information relating to taxation. Therefore, upon
asking for justification and clarification on payment procedures, the entrepreneurs, reported,
were often greeted with harassments from tax officials. Likewise, there were some
discrepancies in actual and standard cost of taxation. One of the key reasons was due to the
distance between an enterprise’s location and tax collection office. It was reported that some
of the entrepreneurs travelled all the way to Kathmandu or Pokhara just to pay the tax
amount from the study districts.
Access to Finance
Micro and small enterprises are considered to be heavily reliant upon informal source of
credit. The study however, revealed about 43% of construction MSEMs had access to formal
sources of finance. As the size of a business increased, it’s financial needs increased too. In
order to meet those needs, the MSMEs were found to be using loans from different financial
institutions. Meaning, their cost of finance varied as per the type of financial institution they
went to. For instance, the interest rates for micro-finances and cooperatives were much
higher than the interest rates charged by commercial and development banks. One of the
biggest dilemmas of the entrepreneurs while accessing finance was whether to go for hassle
free yet higher cost loans offered by cooperatives or lower cost but stringent documentation
required loans by commercial banks. . Almost 60% of sample entrepreneurs were inclined
towards obtaining loans from commercial banks.
Recently GoN introduced a subsidized loan targeting to different categories of which one was
women. But due to poor information dissemination mechanism, unfair processes and lack of
referral/bhansoon, only three female entrepreneurs in Dhading district had benefited from
such loan. Even though there were subsidies for female entrepreneurs, the systemic
requirements like necessity to have a male witness while obtaining loan made it more
complicate for female to obtain loans from formal sources.
Getting Electricity
Even though study showed supply of electricity for household consumption mainly used by
micro and small enterprises was not an issue, getting it connected within the government’s
allocated time and cost was not realistic. The variation in standard and actual time and cost
xiv | P a g e
was highest in Dhading among the three districts with the actual time and cost being twice as
high as the standard set by the government. On one hand, longer duration/time in getting the
connection was due to factors like demanded electricity power, household vs. three-phase
power supply, availability of resources at concerned offices and distance of the enterprise
from market areas. While on the other hand, a key contributor to higher cost than the
standard rates was due to requirements of informal payments. Similarly, connecting to the
three-phase electricity for small and medium enterprises like crossers, concrete blocks and
furniture with high voltage plants faced difficulties in getting the connection. One of the key
reasons behind the difficulty is lack high capacity transformers installed by Nepal Electricity
Authority at the local level.
Transportation
Of the 35,000 transport trucks across Nepal, less than 30% were formally registered as
transporter. The study found that a normal duration of route permit is four months which
means, the transporters had to make frequent visits to concerned authorities. Since there
were no offices issuing permits at the local level, the long travel required further increased
the total cost. The Citizen’s Charter mentions one day to obtain route permit however, the
long distance added on to the time. Likewise, there also were cases where it took over a
month to obtain the route permit mainly due to lack of clear procedural information both on
registering the vehicles and obtaining permits for operation.
A detailed mapping of time and process showed that obtaining route permit in Gorkha took
five times more time and 26% more cost than the standard. The variation was due to
documentation, application fees, consultation charges, route permit fees and other
miscellaneous expenses.
Land Ownership
As majority of the sample entrepreneurs were running their businesses on rent or lease, they
were oblivious to the steps and procedures involved in land ownership transfer. Their
arrangements were based on mutual understanding between the land owner and the
entrepreneur. For the few entrepreneurs who have had land ownership transferred recalled
getting it done via land broker or legal service provider. While the time and cost variation for
micro enterprises were negligible, there were variation of around 33% for smaller enterprises
in all three districts.
Since there already is few female entrepreneurs in construction sector and the ones involved
use land on lease, none reported any difference to their business when the land on their name
or someone else’s.
Labor
As migration of Nepalese youth for employment continues apace, it has created a dearth of
labor across the country including earthquake affected districts. And the few youth remaining
in the district opted from doing low wage labor work as they sought benefits way above their
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competency. Hence, majority of enterprises in target districts were sustained by an influx of
labor from the Terai belts of Nepal and India. While availability of both skilled and unskilled
labor was a key constraint in all three districts, Gorkha was an exception with an abundance
of unskilled local labor. The scarcity of workforce adversely affected timely completion and
quality of work in addition to added overhead costs.
While on one hand the workforce demanded for improved benefits and pay scale. On the
other hand, the enterprises neglected even basic safety standard at their enterprises as they
considered it as an added cost.
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ABBREVIATIONS
BIS Business Information System
CNI Confederation of Nepalese Industries
CSIDB Cottage and Small Industries Development Board
DCSI Department of Cottage and Small Industries
DDS Decision Support System
DFID Department for International Development
FGDs Focus Group Discussions
FNCCI Chamber of Commerce and Industries
FNCSI Federation of Nepalese Cottage and Small industries
FWEAN Federation of Women Entrepreneurs’ Association of Nepal
GoN Government of Nepal
INGOs International Non-governmental Organizations
KII Key Informant Interview
MEDEP Micro Enterprise Development Programme
MSMEs Micro, Small and Medium Enterprises
NDRI Nepal Development Research Institute
NGOs Non-governmental Organizations
Rs. Rupees
SPSS Statistical Package for Social Science
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CHAPTER 1: INTRODUCTION
1.1 Background
The earthquakes of April and May 2015 killed approximately 9000 people and injured
22, 000 in Nepal (National Planning Commission, 2015). The cost of the damage to
homes and infrastructure, and the associated economic losses were estimated at $7
billion in the post disaster needs assessment. However, the devastating earthquake
has catalyzed a spark in the construction sector that has paved ways for Micro, Small
and Medium Enterprises (MSMEs) to flourish with spiking demand for construction
materials in earthquake affected districts.
In the post-earthquake context, Government of Nepal (GoN) along with I/NGOs has
made significant investment in reconstruction activities which have helped to revitalize
the construction-based MSMEs in the districts. However, limited access to finance,
lack of innovation, asymmetric market information, shortage of skilled human
resource, and unfavorable policies are some predicaments to flourish the construction
industries. In this context, this study targets to dive into specific business climate
constraints and analyze and evaluate their impact on the growth of the construction
sector MSMEs in selected earthquake-affected districts viz. Dhading, Gorkha and
Nuwakot.
This study is a part of Department for International Development (DFID) funded Post-
earthquake recovery project (named as Purnima) and commissioned by Mott
MacDonald. Confederation of Nepalese Industries (CNI) is the downstream partner for
the delivery of the project outputs. This study is an exploration of prevailing business
environmental constraints restraining the development of MSMEs in the study districts
and to recommend necessary interventions thereof.
1.2 Objective of the study
The main objective of this study is to support creation of an enabling environment for
the growth of MSMEs in the construction sector. The specific objective is to provide
evidence of the prevailing business climate and its implication on the MSMEs and their
business environment. The study activities regarding the MSMEs aim to:
determine the influencing factors while starting a business;
assess the tax regulations and practices;
evaluate the process of business licensing/operating permits;
examine the challenges facing by the enterprises while getting assess to
finance;
find the technical challenges in getting electricity;
analyze the procedural constraints of obtaining transportation route permits;
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assess the implications of existing land laws/property ownership practices on
construction business;
evaluate the effects of labor shortage and labor market regulations in the
construction industry.
1.3 Methodology
1.3.1 Sampling strategy
The business climate study was administered in three earthquake affected districts –
Gorkha, Dhading and Nuwakot of the mid hilly region to fulfill the given objectives of
the study. The overall sampling strategy adopted for the study is shown in Figure 1.1.
Samples were drawn from different types of markets of the three districts that were
roughly categorized—in absence of concrete basis for the districts’ construction
markets categorization—as major market, minor market and local market. The
samples were purposively selected for the representation of concerns MSMEs
consisting of producers, suppliers and other service providers in the construction
sector. Both formal (registered) and informal (unregistered) enterprises were
considered for this study.
Sample Districts: Gorkha, Dhading, Nuwakot
Stratification
Local Markets Major Markets Minor Markets
Representation of Producers, Suppliers and Services Providers
Qualitative Tools
FGD KII
Approaches:
Appreciative Inquiry
Feedback Survey
Gender & Social Inclusion
Selection of Target Respondents
(207 Entrepreneurs:
micro, small & medium)
Both Formal and Informal enterprises
Quantitative Tool Questionnaire Survey
Approaches:
Appreciatory
Participatory
Gender & Social Inclusion
Figure 1.1: Sampling strategy flow chart
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1.3.2 Identification of construction based MSMEs
The markets located in the district headquarters were considered as major markets.
The markets which are connected with the major markets and involved in the business
of construction materials within the district were considered as minor markets.
Local markets were identified as the market where the transaction of construction
materials is limited in a particular locality or area. During the preliminary visit, rapid
assessment, and key informant interview in all the study districts was conducted to
identify the major, minor and local markets/bazars (From each district, two
municipalities and three rural municipalities were purposively selected on the basis of
density of existing enterprises, connection with other local and national market and
volume of trade yielding 15 strata.
The selected municipalities and rural municipalities served as primary sampling units
(PSUs). In the lack of basic information about the number of enterprises in the study
districts, probability sampling technique was not feasible. Hence, 21 enterprises from
each municipality and 9 enterprises from each rural municipalities were randomly
Crushers and Sand
extractor
Brick kilns
Hallow Concrete block
producers and compressed
stabilized earth blocks
producers
Timber treatment
enterprises
Producers
Hardware enterprises
Metal enterprises
Stone cutting enterprises
Suppliers
Transport companies and
Individual transporters
Transporters
Contractor Mini contractors
Micro contractors
Nepal Rastra Bank
Cottage and Small Industries
Development Board (CSIDB)
Banks and finance companies
Microfinances
Cooperatives
Tax/revenue offices
Municipalities/village municipalities
Chamber of commerce and
Industries (FNCCI)
Federation of Nepalese Cottage
and Small industries (FNCSI)
Contractors’ Association
Transporters’ Association
Federation of Women
Entrepreneurs’ Association of
Nepal (FWEAN)
Quantitative
survey
Qualitative survey
Figure 1.2: Target respondents for qualitative survey and quantitative survey
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selected from each PSU covering all the geographical region so as to represent
producers, suppliers and service sector MSMEs. The selected entrepreneurs were
then categorized into micro, small and medium for interpretation.
Table 1.2). The major markets were prevalent in municipalities whereas minor and
local markets were operating in both the municipalities but more common in rural
municipalities.
1.3.3 Target Respondents
After identification of construction based MSMEs, further classification into micro,
small and medium was carried out according to the criteria defined by the Industrial
Enterprise Act 2073 (Table 1.1). The information regarding the existing MSMEs were
collected from local level government Department of Cottage and Small Industries at
district level.
Table 1.1: Classification of enterprises base on capital
Micro Enterprise Small Enterprise Medium Enterprise
The fix capital used in the business enterprise will be up to NRs. 500,000 excluding the land and buildings.
The enterprise which is other than micro and small enterprises and has fixed assets up to NRs. 100 million (10 Crore) of fixed capital.
The enterprise which has of fixed assets of amount from NRs. 100 million (10 Crore) up to NRs. 250 million (25 Crore).
Source: Industrial Enterprises Act, 2073, Government of Nepal
1.3.4 Sample size estimation and sampling techniques
For the quantitative survey, the total number of purposive samples were 207 MSMEs
for this study. The MSMEs in all the markets were not equally distributed since there
is high prevalence of MSMEs in major markets. Hence, 60 percent of the total sample
weight (124 MSMEs) was given to the MSMEs of the major markets while 40 percent
of the total MSMEs (83 MSMEs) were selected from the minor and local markets. The
details of sample distribution in all three districts are shown in From each district, two
municipalities and three rural municipalities were purposively selected on the basis of
density of existing enterprises, connection with other local and national market and
volume of trade yielding 15 strata.
The selected municipalities and rural municipalities served as primary sampling units
(PSUs). In the lack of basic information about the number of enterprises in the study
districts, probability sampling technique was not feasible. Hence, 21 enterprises from
each municipality and 9 enterprises from each rural municipalities were randomly
selected from each PSU covering all the geographical region so as to represent
producers, suppliers and service sector MSMEs. The selected entrepreneurs were
then categorized into micro, small and medium for interpretation.
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Table 1.2 and Figure 1.2.
Figure 1.2: Map of the study area
From each district, two municipalities and three rural municipalities were purposively
selected on the basis of density of existing enterprises, connection with other local and
national market and volume of trade yielding 15 strata.
The selected municipalities and rural municipalities served as primary sampling units
(PSUs). In the lack of basic information about the number of enterprises in the study
districts, probability sampling technique was not feasible. Hence, 21 enterprises from
each municipality and 9 enterprises from each rural municipalities were randomly
selected from each PSU covering all the geographical region so as to represent
producers, suppliers and service sector MSMEs. The selected entrepreneurs were
then categorized into micro, small and medium for interpretation.
Table 1.2: Sample distribution in study districts
District Market Local Unit (%) No. of MSME
s
No. of MSME
s
Gorkha
Gorkha Bazar Gorkha Municipality (Major Market)
20 42 21
Palungtar Bazar Palungtar Municipality (Major Market)
21
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Sulikot Bazar Sulikot Rural Municipality
13.33 27
9
Ajirkot Bazar Ajirkot Rural Municipality
9
Gandaki Bazar Gandaki Rural Municipality
9
Dhading
Dhading Besi Bazar
Nilakantha Municipality (Major Market)
20 42 21
Dhunibesi Dhunibesi Municipality (Major Market)
21
Gajuri Bazar Gajuri Rural Municipality
13.33 27
9
Khaniyabash Bazar
Khaniyabash Rural Municipality
9
Gangajamuna Bazar
Gangajamuna Rural Municipality
9
Nuwakot
Bidur Bidur Municipality (Major Market)
20 42
21
Belkotgadhi Bazar
Belkotgadhi Municipality (Major Market)
21
Tadi Bazar Tadi Rural Municipality
13.33 27
9
Dupcheshwor Bazar
Dupcheshwor Rural Municipality
9
Meghang Bazar Meghang Rural Municipality
9
Total 100 207 207
Table 1.3 Total number of sample for different data collection techniques
District Questionnaire
Survey KII (District) FGD
KII (National level)
Gorkha 70 5 2
Dhading 68 5 2
Nuwakot 67 5 2
Total 207 15 6 10
1.3.5 Data Collection
Both qualitative and quantitative techniques were employed for primary data
collection. KoBo Toolbox was used for collecting quantitative data. Following tools and
approaches were followed to gather both qualitative and quantitative information:
Desk research: The available documents, information and publications relevant to
this study (eg. different acts, regulations and directives, previous study reports,
literatures, etc.) were reviewed to get updated information regarding the business
climate of the country.
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Preliminary visit: A preliminary visit was carried out by the team of experts along with
a representative from CNI in Dhading, Gorkha and Nuwakot districts. The expert team
interacted with entrepreneurs, Mott MacDonald staffs at the district level and other
major stakeholders during the visit. The team also observed the operation and
promotion activities of existing MSMEs and the information gathered from the
interaction with the stakeholders benefited in mapping out the existing MSMEs in the
study districts. After the preliminary visit, an inception report was drafted and submitted
to CNI.
Questionnaire Survey: The structured questionnaire survey tool was employed in
three study districts for collecting qualitative information of the stakeholders. The
information gathered from the preliminary visit was taken into account while
developing the questionnaire for the study. The questionnaire was developed with the
active participation of a representative from CNI. The questionnaire tool was employed
for the survey on a common understanding with the Mott MacDonald and CNI team.
The data were reflecting the perception of the respondents. The estimate of costs and
time was the estimate of the respondents. The estimate, sometime known as standard,
of the respondents was not already available with them but they were estimating at
the time of questionnaire surveys.
Focus Group Discussion and Key Informant Interview: The checklist for Focus
Group Discussion (FGD) and Key Informant Interview (KII) were drafted during the
tools development phase with participation from CNI representative. Then, the
checklists were employed on common understanding with Mott MacDonald and CNI
team. Two Focus Group Discussions (FGDs) and five Key Informant Interviews (KIIs)
in each district and 10 KIIs at central level were conducted to gather qualitative
information on the existing business environment (Table 1.3).
The key stakeholders including representatives from the local government were
mapped as potential participants for FGD. Selection of participants was done in
coordination with Mott MacDonald, district office. The participants recommended by
the Mott and CNI were given top priority in the selection process. The selected
participants were informed two days prior to FGD. The FGDs in all the districts were
moderated by team leader. Note taking in written form and audio recording was
exercised during FGDs. The key informants were the representatives from various
agencies and associations relevant to construction-based business, representatives
from government employees and dynamic entrepreneurs. The factors affecting the
business environment were discussed in-depth during the process to generate,
assess and validate data/information and finding of the study.
1.3.6 Data analysis
Data Cleaning and processing: Data obtained from the questionnaire survey were
extracted from KoBo Toolbox server and prepared master sheet in excel for analysis.
8 | P a g e
Then, data were feed to SPSS version 23 for analysis purpose. The data were
checked for inconsistency and outlier data were validated from the respective
enumerators. All the blank cells were assigned ‘NA’ in each cells. The spelling for
‘Other’ option in questionnaire was checked and upper case and lower case was
adjusted according for consistency in font formatting. After cleaning of data, frequency
and percentage table according to districts and category of enterprises were extracted
using SPSS software. R programming software was used for binary logistic regression
model.
Binary logistic regression was used to examine the challenging factors while doing
construction-based business after controlling for possible confounding variables as
shown in the equation below:
In [Y
1 − Y] = a + 𝑏1𝑋1 + 𝑏2𝑋2 + 𝑏3𝑋3. . . + e
Where Y = probability of challenges faced while doing business by entrepreneurs, a
represents intercept term, bs are estimated by the maximum likelihood estimator
approach, X’s are combination of explanatory variables for challenges faced and e is
a error term. The study then used R programming software to perform binary logistic
regression on the surveyed dataset of all three districts.
Odds ratio was calculated for the above equation to quantify the strength of
association between different challenges faced while doing business with independent
variables. When odds ratio equals to 1, then two events are independent. But, odds
ratio greater than 1 depicts positive association between two variables. Conversely,
odds ratio less than 1 shows negative association.
1.3.7 Approaches:
The key approaches employed for primary data collection is discussed as follow.
Appreciative inquiry and feedback survey: Appreciative inquiry and feedback
survey tool were employed for KII and FGDs for accessing information mainly about
informal payments in different sectors of MSMEs, harassment and gender sensitive
issues. Similarly, feedback survey was conducted to identify obstacles and gaps
between the current status quo and the desired situations which were not be directly
apparent such as to evaluate gender specific issues on obtaining license and permit,
implications of the existing attempts of the governmental and non-governmental
organizations on the perception of the respondents about their business climate.
Respect to interviewee were taken into account while taking an interview with them.
Participatory: The participatory approaches and methodologies were adopted during
the interactions with different respondents. The informal entrepreneurs were also
consulted in order to map out the perception toward the business climate of the
9 | P a g e
construction sector. The obtained information from questionnaire was triangulated
through KII and FGD.
Gender and social inclusion: The gender equality and social inclusion in terms of
women and men and the poorest class within socially excluded communities was
taken into account while carrying out the study with the construction sector
entrepreneurs focusing on the issues such as normal gender roles (division of work
and access to and control over resources, access to finance, access to properties) in
the community.
1.4 Study limitations
The limitations of the study are as follows:
The study was limited to three earthquake-affected districts- Gorkha, Dhading
and Nuwakot. Hence appropriate caution should be taken while drawing
inferences for other earthquake-affected districts.
The information and statements in this report were based on KII and FGD. The
information carrying by the tables and figures were based on the questionnaire
survey. All the sections, tables and figures are reflection of the respondents’
opinion and there is no personal opinion of the researchers in any part of this
report except the recommendations.
The sample size for this study was limited to 207 entrepreneurs for all three
districts due to limited financial and time resources. Hence, the number of
representatives of producers, suppliers, transporter and contractors was limited
which restricted the representative interpretations of all the service providers.
Majority of the male entrepreneurs have poor knowledge about gender issues.
Hence, detailed information regarding gender issues was difficult to access for
gender-based analysis.
This study is strictly limited to the indicators specified by the Terms of
Reference.
The list of the existing enterprises and name of the entrepreneurs in the
municipality level is not updated. Hence, women entrepreneurs were identified
with snowball sampling techniques. Further, low number of women operating
and managing enterprises was observed. In this context, extreme caution
should be taken while drawing definitive conclusions on gender-related
constraints.
The qualitative data in this study were perceptions/opinions/feelings of the
respondents. The participants from FGDs and KII could be associated with one
or more federations or political organizations. Hence, there were some
tendencies to exaggerate and distort the information in their favor.
10 | P a g e
In the context of business registration, majority of the entrepreneurs hired
consultants to facilitate registration and other processes. Hence, majority of the
respondents were unaware of detailed time and cost incurred during different
stages of the process.
11 | P a g e
CHAPTER 2: KEY FINDINGS
2.1 Enterprise demography
In the pursuit of exploring business climate in Dhading, Gorkha, and Nuwakot districts,
the study found diversified entrepreneurs engaged in complex business of
construction industry. Involvement of both male and female entrepreneurs from
various age groups, caste and ethnicity having academic qualifications ranging from
simply literate to doctorate level in the industry was exemplary (see Appendix 1).
There were, three categories of MSMEs—micro (41%), small (56%), and medium
(3%)—based on their capital, doing business in local, minor, and major markets of the
districts. Ownership pattern of the enterprises was sole proprietorship (85%),
partnership (23%), and private limited (4%). The business was running on rental
(43%), lease (12%), and own (45%) property. Most of the entrepreneurs (85%) were
from the same locality. Some of the entrepreneurs (16%) were returnees from foreign
employment.
The entrepreneurs were employing full-time (83%) and part-time (17%) employees.
Both male and female employees were working for full-time and part-time. Full-time
male and female employees were 66% and 17% and part-time male and female
employees were 15% and 2% respectively. Total number of people engaged in the
enterprises was 2,791 in which a few enterprises like brick factories, sand extractors,
stone crushing plants, and so on were employing many people.
Many enterprises (173) were working with people of single digit and some enterprises
(93) were working with less than 5 number of people. In the total number of people,
the number of managerial/administrative personnel was 353 out of which 50 (14%)
were female and 253 (86%) were male. The number of managerial/administrative
personnel were the owners, family members, and paid persons involved in the
business.
Notwithstanding, construction business was more seasonal business in the region.
There was no more construction works from mid-June to mid-November because of
monsoon and festive seasons.
2.2 Starting a business
Traditionally the small businesses in Nepal run informally, hence, registration of the
business is relatively new phenomenon. Lately, government, including local
government is keen on getting the business registered and bring them into their radar.
However, there are still many enterprises which are running informally. In fact, though
it is very difficult to access exact number of MSMEs running informally in the project
districts, the number may be well above the registered enterprises. One of the reasons
for the lackluster in the business registration is the lack of awareness among the
MSMEs about the importance and benefit of the registration. Many see it as
government’s trap to bring them into its radar and extort tax from them. Moreover,
12 | P a g e
there are administrative, procedural and the policy hurdles, which add cost and time
for the registration and deter many from registration all together. The study accessed
the hurdles and their impact (in terms of time and cost) in starting a business, which
is discussed in the following section.
2.2.1 Legal commencement and formal operation
Enterprise registration can be done at various government institutions such as,
Company Registrar, Municipalities, Ward (local government) and Department of
Enterprise is registered within the day when required documents are submitted
Deposit amount:
Fixed capital up to 5 lakh – Rs 1,000
Fixed capital up to 10 lakh – Rs 2,000
Fixed capital up to 25 lakh – Rs 4,000
Fixed capital up to 50 lakh – Rs 7,000
Fixed capital up to 1 crore - Rs 10,000
Fixed capital more than 1 crore – Rs 20000
B.
Re
gis
tra
tio
n
A.
Do
cu
me
nta
tio
n
Application form for enterprise registration
Enterprise project plan
Entrepreneur’s citizenship photocopy and stamp of Rs 10.
Land ownership certificate with recent receipt of land tax and minimum 6 years contract if leased or rented
Recommendation from local government
The
re is n
o s
tand
ard
co
st
and t
ime fo
r d
ocu
me
nta
tio
n.
The
co
st
and tim
e d
ep
en
d u
po
n t
he n
atu
re o
f e
nte
rprise
If the furniture related enterprise is outside Municipality, the source of timber, blue print map and certification of distance from the nearest forest by District Forest Office
Furniture related
enterprise.
For construction enterprises, requirement of machineries certified by mechanical engineer and his/her bio-data, VAT bill, insurance, technical officers and finance officers bio-data along with the commitment to work in the enterprise
Construction enterprise
For partnership firm, partnership contract need to be submitted.
Partnership
firm
Figure 2.1: Flow chart for enterprise registration
13 | P a g e
Cottage and Small Industries (DCSI). However, registration of micro and small
enterprises at DCSI is higher at 83 percent and 86 percent respectively. The flow chart
for the business/enterprise registration at DCSI presented in Figure 2.1 detailed about
the required documents and cost for registration of the enterprises.
The cost and time required for the registration of the enterprise varies as per the nature
and size of the enterprise. There is no standard or prescribed days for documentations
and the days varies according to the nature of enterprises. For registration of the
crusher, large brick kilns and furniture and timber enterprises, there is need of
Environmental Impact Assessment (EIA) for the governmental authority which
requires more days for registration than other enterprises.
However, as per the government – it should not take more than one day after
submission of required documents while cost for registration varies according to the
capital of the business. Conversely, the actual time and cost bore by entrepreneurs
for the registration was found significantly higher than the government norms.
The following charts Figure 2.2 and Figure 2.3 depict the actual number of days and
cost involved in registering different types of enterprises. On an average, 13 days, 24
days and 52 days was required for micro, small and medium enterprises to get
registered. The increased time was attributed by the requirement of business
proposal, certifications and recommendations, memorandum of association and
articles of associations, description of annual transaction details during registration
process. Likewise, cost for registration has also increased along with the size of the
enterprises in all three districts.
The study team found few entrepreneurs who processed the registration by
themselves. About 20 percent of micro enterprises, 31 percent of small enterprises
and 68 percent of medium enterprises were involving consultants for their enterprise
registration. About one third of the entrepreneurs found the registration process too
0
10
20
30
40
50
60
70
Micro Small Medium
DA
YS
Dhading Gorkha Nuwakot
Figure 2.2: Total days required for enterprise registration
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
Micro Small Medium
Dhading Gorkha Nuwakot
Figure 2.3: Total cost required for business registration
14 | P a g e
complicated, hence, hired a consultant (intermediaries – which normally have
knowledge about the registration process and have good contacts with the
government officials) for registration of their business.
2.2.2 Informal payment:
About 9 percent of total enterprises (17
enterprises) have made informal payment for
enterprise registration. The share of informal
payment was very high in increasing the cost
of the registration (Figure 2.4). It was as high
as 83 percent of the total cost for the medium
enterprises. For the micro enterprises, the
share of the informal payment to the total cost
was relatively low (16%). The informal
payment is exceptionally high for the
enterprises like crushers, brick kilns and large
scale timber, and timber treatments whereas
lower for enterprises like hardware suppliers,
metal enterprises, and hollow concrete block
producers.
The informal payment includes, bribery (money), political support, jobs to relatives,
lunch, dinner, refreshments, and distinct kinds of personal favors.
2.2.3 Harassments
Though no respondent reported the harassment based on caste ethnicity, social status and gender, however, about 7% respondent reported delays in the registration process because of absence of the personal contacts or referral.
2.2.4 Information availability and clarity
The information on the steps and documents required for enterprise registration are
found in the citizen charter of the concerned authorities. However, 14 percent of the
respondent were unaware about the citizenship charter while 30% respondents were
finding difficulties to understand the terms/words; 22% respondents were not clear
where to go and meet to whom; 18% could not find the information provider at the
concerned authority; and 16% wanted to be more clear about the registration process
but they were not finding right person for further clarification (Figure 2.5 and).
Micro
Small
Medium
Figure 2.4: Informal payment in enterprise
registration
15 | P a g e
Figure 2.5: Reasons for non-availability of required information for registration
The entrepreneurs also have less access and lack of clarity about the registration
information due to low level of education as well. About 66 % of the entrepreneurs
interviewed have low level of education.
2.2.5 Regulatory and policy Constraints
Some policies and regulatory constraints are also contributing in delaying the
registration process and making it expensive for the entrepreneurs. The followings are
some of the constraints highlighted by the respondents (FDG, KII and Survey),
Environment Protection Rule, 2055- the policy is practically impossible to
comply with. It has hugely impact on the crushers, sand refineries, and furniture
(timber enterprises).
Hence, it is promoting the informal practices – as the result – the registration of
the crushers/sands enterprise is very expensive.
The provision of Sarjamin (field/land verification), recommendation and
certification from different agencies (municipality and local level government) –
its not only impractical, is adding extra cost and time to get enterprise
registered.
Many find the provision of having intermediate level pass and /or bearer of a 10
years old driving license to register the transport business is impractical.
The provisions like finding a mechanical engineer with curriculum vitae and
academic certificate of intermediate level pass and his/her commitment of
providing services continuously to the entrepreneurs who was wishing to
register as a construction firm/contractor were making the registration process
more challenging for contractors.
2.2.6 Gender specific limitation
The gender-based limitation regarding the registration of the business were not noted
during the study. In fact, government has subsidized the registration fee for the female
entrepreneurs to encourage to get the enterprise registered in their name. The
provision has encouraged few enterprises registered in female’s name however they
have minimum or limited roles in running and managing the enterprise.
0%
10%
20%
30%
40%
Difficult tounderstandterms andprocess
Unclear aboutperson and
place tocontact
Absence ofinformation
provider
No provisionfor further
clarification
Gap betweenstandard and
actual
Others
16 | P a g e
Followings are the reasons for small number of females in the enterprises
Lack of awareness about the government provisions – more than 50 per of
entrepreneurs are unaware about the various provisions offered to them
The females are primary responsible for taking care of the families (65 %).
Hence, they are unable to balance household chores and business activities.
Acceptance of female entrepreneurs in the society is low (34 %) particularly in
the construction business.
Working the male co-works is also one of the constraints for female
entrepreneurs, especially, while maintaining business relationships and during
long distance travel and mobility for any kind of administrative matters.
2.2.7 Odds ratio
A binary regression model was run to determine the likely impact of the above
constraints on the enterprise registration. The odds ratio presented in Table 2.4
indicates the probability of different determinants in increasing enterprises registration
challenges. Based on the result, the odds of entrepreneurs facing different forms of
harassment have 5.95 times greater change of facing challenge in business
registration than entrepreneurs without facing harassment during registration process.
The result also showed that the odds of lack of information availability and clarity of
registration process were 68 times greater in increasing registration challenges than
the entrepreneurs with clarity in registration process. All these determinants were
statistically significantly associated with increasing registration challenge in all three
districts. The model also showed that there is no significant effect in increasing
enterprise registration challenge when the process is initiated by either male or female
in the study districts. This supports the fact that consultants are making the registration
process easy regardless of gender.
Table 2.1: Odds ratios for challenges in enterprise registration
Independent variables Odds Ratio (95% CI)
Male entrepreneurs 0.34 (0.05 , 1.48)
Informal payment for registration 0.95 (0.24 , 3.69)
Harassment faced during registration process 5.95 (1.37 , 42.66)*
Information available and clarity of process for registration 0.32 (0.16 , 0.6)***
2.3 Taxation
After registration of MSMEs, entrepreneurs have to pay several types of taxes
including Value Added Tax (VAT), property tax, income tax, house rent tax at various
levels of government- local, provincial and central. This payment of multiple taxes at
multiple places was more taxing for the entrepreneurs. Nevertheless, the respondents
were paying the taxes, but they were not comfortable with the payment procedure and
behavior of the tax personnel. The tax officers always assumed that
turnover/transactions and incomes of the entrepreneurs increase continuously years
17 | P a g e
by years. The government was also deliberately setting tax collection targets
continuously increasing. In fact, amount of tax to be paid depend on the business
transactions/incomes and the business transaction/income depend on the market
forces.
Tax payers were not getting valid answer to their question—why they should pay taxes
to the governments of three levels? Reporting was no motivation to pay the taxes but
feeling of compulsory burden of it. There was charge of involvement of tax officers in
invading taxes for the sake of their personal benefits.
Next complain was not enough workforce at the tax offices of the region. The auditors
and intermediaries between tax officers and tax payers were also contaminating the
cannons of taxation.
2.3.1 Types of taxes
The entrepreneurs were paying varieties of taxes. Value Added Tax (VAT), income
tax, property tax, house rent tax, toll tax, land tax, and vehicle tax were major category
of the taxes. However, all the entrepreneurs were not under the net of taxation (Figure
2.6). The entrepreneurs were not keeping their books of accounts more accurately to
reflect the exact places and amount of taxes and fees they were paying (see Appendix
9). Thus, the study noticed a common tendency of evading taxes.
65
78
37
18
21
13
3
3
99
51
52
53
32
23
14
14
6
6
3
6
3
1
Renewal fees
Income tax
Land tax
VAT
Property tax
House rent tax
Toll tax
Vehicle tax Micro (N=66) Small (N=108) Medium (N=6)
18 | P a g e
Figure 2.6: Types of taxes and fees
One of the reasons of evading taxes was
feeling of burden of varieties of taxes.
There was no motivation for paying taxes
among the entrepreneurs. The blames
like tendency of the governments and
their officials only of squeezing
entrepreneurs in the name of taxation
was another reason of avoidance.
Along with central and provincial
government, the local governments
(municipalities) were collecting varieties
of taxes from construction MSMEs.
Construction material transporters were
paying taxes and rates in every
municipalities in their transit. The payment
of taxes was not free from confusions and constraints (Figure 2.7). Feeling of
constraints while paying taxes was higher in Dhading when compared with Nuwakot
and Gorkha districts. Some of the constrains like unclear and unpleasing taxation
policy, intentional delay from the tax officials, traditional methods of tax collection, and
multiple agencies (local, provincial, and central) for tax collection were major
constraints facing the entrepreneurs (see Appendix 9).
2.3.2 Tax payment process (time & costs)
The entrepreneurs were paying taxes in distance from their locations. Some were
paying in Kathmandu and some were paying in Pokhara in addition to the payments
at local-level. Unnecessary costs of transportation and accommodation was making
the tax payment process longer and discouraging in absence of locally available tax
receiving authority. However, the time taken, distance travelled, and price paid (beside
the tax) in paying taxes was less than the expectation of the entrepreneurs (Table 2.2;
see Appendix 10).
Table 2.2: Time and cost for paying taxes
Particulars Enterprises
Micro Small Medium
Auditing/documentation/transaction process (hours in average)
Estimated 25 13 12
Actual 22 29 8
Difference 3 -16 4
Auditing/documentation/transaction process (Rs. in average)
Estimated 8161 11473 33750
Actual 8485 11505 35000
Difference -312 -32 -1250
25 %
17 %
10 %
Dhading (N=63) Gorkha (N=58)
Nuwakot (N=59)
Figure 2.7: Feeling of constraints while
paying taxes
19 | P a g e
2.3.3 Information dissemination
There were trying of increasing urgency and awareness about tax payments in the
region. Information dissemination efforts were in effect through website, radio,
television, and print media. However, face to face conversation was more effective in
comparison with other means/mediums of information dissemination (Figure 2.8).
Figure 2.8: Mediums of taxation information dissemination
About 13% of respondents were in favor of the statement ‘availability of tax related
information’. Similarly, about 46% respondents were in favor of the statement that the
available information were clear and sufficient (see Appendix 11).
An assessment on the reasons for unclear information about taxation, 28% responded
as difficulty in understanding the provisions and process of taxation, 25% no provision
for further clarification; 25% as their unawareness about the person and places to
contact (see Appendix 12).
In an inquiry of having information about specific provision of tax relaxation for women
entrepreneurs, 48% respondents responded their unawareness.
2.3.4 Informal payments
There was practice of making informal payment while paying taxes. In an assessment,
micro enterprises were paying Rs. 750, small enterprises were paying Rs. 35,361 and
medium enterprise were paying Rs. 50,000 as informal payment in an average.
A furniture enterprise in the study region said in anonymity that he registered his
enterprise under Company Registration Act during 2068 but it took for about 15 days
to register. The registration fee was about Rs 3,000. Lack of knowledge and tedious
process of registration forced him to hire a middleman by paying an extra amount of
Rs 25,000 as service charge for quick registration. After the registration, he had to pay
a hefty amount to the community forest committee to get timber.
The informal payments, sometime known as Ghoos, was shaping the business climate
differently. There was tendency of appreciating those who were paying and receiving
0
10
20
30
40
50
60
Website ormobile app
Face toface
Publiceducation
Email/text Radio/TV Others
8
59
16
96 8
29
47
23
11
2 04
51
10
0 1
11
Dhading
Gorkha
Nuwakot
20 | P a g e
the informal payments i.e. the receivers were appreciating the payers and the payers
were appreciating the receivers. There was more dispute between law enforcers and
adapters where there were no informal payments.
2.3.5 Cases of double taxation
Most of the entrepreneurs were not clear about the term ‘double taxation’. In most of
the cases, they were considering multiple taxes like VAT, income tax, property tax,
and similar other taxes as double taxation. In fact, there was no double taxes except
some charges imposed at various stages of its supply/value chain.
However, there were complains of various taxes and charges imposed on various
activities of the entrepreneurs for the cause of governments’ revenue. All the services
like certification, recommendation, registration and renew were subject to taxes and
charges. There was blame that the government at every level intends to suck the
entrepreneurs for nothing.
There was still confusion in payment and collection of taxes. For instance, the taxes
like property tax, land revenue tax, vehicle tax and business tax was under the purview
of local level but some of the entrepreneurs were respondent as paying the land tax,
property tax and house rent tax to central government and provincial government as
well (see Appendix 9).
2.3.6 Harassment
There was no more harassment while making tax payments; however, there were few
reporting of it (see
Appendix 13). According to the respondents, 6 micro enterprises, 5 small enterprises
and 1 medium enterprise faced incident of harassment. Two major reasons were
absence of relationship with tax officials and poor social status of the entrepreneurs.
There was reporting of fear and lack of self-respect in running business. Even after
paying taxes and meeting every regulatory requirement, fear of intention of the various
levels of government officials was still there what would be the next. They were
questioning this researcher—“who says there is congenial business climate where
genuine entrepreneurs are always losing their self-respect due to ill-intention of
politicians, unethical business doers, and government officials?” However, the officials
were not ready to accept the charges; instead, they were charging the entrepreneurs
of not meeting their requirement.
2.3.7 Disproportionate impact of taxation
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The entrepreneurs were exceedingly small and fighting for their survival all the times.
Imposition of taxes in every aspect of their business was pushing them to unnecessary
financial burden, delay in operation, inconvenience, and discouragement.
Following are some of the disproportionate impact of tax regulations:
The incentives and supports extended by the government were not effective to
boost up the confidence of the entrepreneurs. For instance, the government
granted concessions and rebate in registration fees and taxes to female
entrepreneurs. As a consequence, the enterprises are registered in the name
of women but operated and managed by male.
According to Industrial Enterprises Act 2016, there is provision of 20% income
tax relaxation for manufacturing industries. There is a provision of minimum 5
years income tax free for cottage industries. The study districts, Gorkha,
Dhading and Nuwakot, were listed as less developed districts where there was
a provision of 70 percent subsidy in income tax for 10 years from the
commencement of manufacturing industries. Despite such provisions, there
was no more prosperity of entrepreneurs in the region.
2.4 Business permit/license
After commencement of the business, obtaining business permit/license and its
renewal is also necessary for MSMEs. Industries were renewing their business for the
first time in five years. After five years, entrepreneurs had to renew the enterprise
every year. But due to the lack of proper Business Information System (BIS) in the
study districts, this provision was creating confusion among the owners that they
assumed to renew their business in five years.
2.4.1 Procedure of obtaining business permit/license
Merely registration of business was not enough to run the business. Obtaining
business permit/license and renewal of the same was also necessary. The
government granted renewal holiday for the first five years of business establishment.
Annual renew was necessary for the business for rest of the period of post-holiday.
0
5
10
15
20
25
Micro Small Medium
Day
s
Dhading Gorkha Nuwakot
0
5000
10000
15000
20000
25000
30000
35000
40000
Micro Small Medium
Dhading Gorkha Nuwakot
22 | P a g e
The term (route) permit was appropriate for transportation business. Transport route
permit was valid for four months.
Figure 2.10: Total cost required for obtaining business license/permit
The procedure, time, and costs of obtaining business permit/license was similar as of
business registration. The cost and time required for entrepreneurs while obtaining
business license and permit is presented in Figure 2.9 and Figure 2.10 respectively.
The days for obtaining permit varied from 8 days for medium enterprise in Gorkha
district to the maximum of 20 days for medium enterprises in Dhading district.
However, the time required to obtain business permit/license for micro and small
enterprises does not show great variation in the study districts. Regarding the cost
required for obtaining business permit/license, micro enterprises showed less variation
while there was great variation among
small and medium enterprises in the
study districts.
2.4.2 Informal payments
Role of informal payment was noteworthy in obtaining business permit/license as of
business registration. Share of informal payment in total costs of obtaining the
permit/license was 4%, 43%, and 73% in case of micro, small, and medium
enterprises. Similarly, the share of informal payment in renewal of the permit/license
was 9%, 11%, and 77% in case of micro, small, and medium enterprises, respectively
(see Appendix 14).
Informal economy was well-established in the region. About 80% of economic
activities were beyond the purview of national accounts. Major places of informal
payments were named as registration, permit and license offices, tax offices, forest
office, district administration office, and municipalities. The activities demanding more
amount of informal payment were associated with the recommendations, verification,
certifications, registration, permit/licenses issuing renewing thereof.
2.4.3 Information availability and clarity
Publicly available list of information and
documents necessary for obtaining business
permit/license and renewal were quite
insufficient. About 58% respondents were
reporting insufficiency of such information.
Similarly, the clarity of publicly available
information was also questionable that 51%
(105) respondents were reporting no clarity of
such information at the districts (Figure 2.11). Figure 2.11: Clarity of information for
business permit/license
3747 42
6353 58
0
20
40
60
80
Dhading Gorkha Nuwakot
Yes (%) No (%)
Figure 2.9: Total days required for obtaining business license/permit
23 | P a g e
2.4.4 Obstacles and regulatory constraints
There was reporting of no more obstacles and regulatory constraints while obtaining
business operating permit/license and renewal except some cases of furniture and
crushing plants. About 82% respondents were feeling free of obstacles and
constraints. Procedural delays (13%), inspection difficulties (9%), and documentary
difficulties (8%) were major obstacles and constraints among others (see Appendix
16).
There was reporting that compulsory of route permit for transport vehicles with black
number-plate and absence of such provision for vehicles with red number-plate.
Respondent perceived that free mobility of red-number plate vehicles without route
permit and constrained mobility of black number-plate vehicles with rout permit as
unfair.
The entrepreneurs were asking that why renewal of business was necessary when
one was paying taxes and charges, preparing audit reports annually, and continuing
the business under the laws of the land. Some of the respondents were not convinced
with the provision of periodic firm renewals.
2.4.5 Gender specific issues
There were no reporting of gender specific issues facing the women entrepreneurs
while obtaining business permit/license and renewal of it in the districts.
2.5 Access to finance
Access to finance was easy for richer but difficult for poorer. Financial institutions were
collateral friendly but not idea friendly. There was no more practice of project financing.
Banks and financial institutions were tending to be more secured at the cost of the
borrowers. Referrals and guarantees were instrumental in getting access to finance in
addition to the other documents. Even the banks, in some cases, were meeting their
target of priority sector investment by making false arrangements with their large
customers.
Interest rate was arbitrary i.e. either based on directives of central bank or discretion
of lender itself. There is no relationship between interest rate and expected rate of
risks/return of the borrowers and lenders.
Table 2.3: Procedure to obtaining business loan form commercial bank
SN Procedure Time to
complete
Cost to complete
(NPR)
24 | P a g e
1
Inquiry about Purpose of Loan and general
inspection of file regarding criteria regarding loan
and Collateral (Bank Part).
1 day 0
2
Site Inspection of Business status and Collateral Positioning. (Bank Part)
Loan application form and bank related documents are provided which is to be filled by customer (Bank Part).
2 days 0
3 Internal valuation of collateral is proposed to the
certified valuator. 4 days Size of valued property (up to
Rs 20,000)
4
Required documents like Stock statements,
insurance policy, net worth position of client, multi
banking declaration etc, are obtained from
customers.
1 Day 30,000
5
Audited financial statements and projected reports
are obtained from client to justify the financial
position of business.
3 Days 10,000
6 Documents approval and filling are done 2 days 0
7 Approval of loan based on authority of Branch. 3 days 0
8 If loan amount exceeds the given authority file is
forwarded to regional or central office 7 days 0
8 Stayed Order and Mortgaged deed of proposed
collateral are done.
1 day
30,000(Includes Processing Charge and
other banking expenses )
9 Other legal documents like Internal deeds, Personal Guarantees, Letter of consent etc are made to be filled by client and approved by branch manager.
10 Loan Disbursed from system and offer letter provided to client.
Loan application processing time was taking week(s) due to documentations, field
visits, and loan approval processes in commercial banks (Table 2.3). This process
was comparatively shorter of about a week in case of cooperatives and microfinances.
There was no more effectiveness of subsidized loans as it could be due to
unawareness and perception of cumbersome processes of it.
2.5.1 Existing policies and products
The Government of Nepal has made provision of few subsidized loans scheme to
encourage entrepreneurs, especially women entrepreneurs, in coordination with
commercial banks. Some of these program include Youth and Small Entrepreneur Self
Employment Fund (YSEF), Rural Self Reliance Fund (RSRF), Economic
Rehabilitation Fund (ERF), and Women Entrepreneurship Development Fund
(WEDF), which are being operated under the Ministry of Cooperative and Poverty
Alleviation, to provide unemployed youths and women with subsidized loans to start
small business. In addition, majority of entrepreneurs believed that subsidized loan
would be instrumental in increasing the performance of the business. But, the difficulty
in loan processing, lack of initiatives taken by commercial banks due to fear of bad
25 | P a g e
debts, unclear policy and monitoring mechanism by Central Bank and lack of
information dissemination on the process and procedure had made the subsidized
loan inaccessible to ordinary entrepreneurs. Even though, on an average 68 percent
of entrepreneurs in all three districts were aware of subsidized loans, only 3
entrepreneurs had been benefitted from the subsidized loan. The major reasons for
inaccessibility of subsidized loans were unfair process (25%) and lack of
referral/bhansoon (26%). Majority of entrepreneurs (41%) in all three districts stated
that they do not have access to the subsidized loan (see Appendix 17).
2.5.2 Average costs of credit
The commercial banks were the major sources of finance for entrepreneurs with the
highest share of lending of about 60 percent (Figure 2.12). In comparison, access to
micro finance and cooperatives was easy for the entrepreneurs but those institutions
were charging quite higher rate of interest (microfinance-19% and cooperative-16% in
an average) along with 1.5 percent service charge. However, the average interest rate
of commercial banks was 13% in an average along with 1 percent service charge
(Figure 2.13).
Getting loan from cooperatives and microfinance was easier when compared with
commercial banks but interest rate was too high. In some cases, difference between
disclosed cost of capital including interest and actual cost of capital crosses ten
percentage points.
There were multifold of costs due to the difficult access to finance. Small amount of
capital was enough to get product for their sale if there was no practice of credit sales.
However, the products brought on cash had to sale on credit. When credit sales
increased, there was decrease not only of cash but commodities for sale as well.
3 %
59 %15 %
10 %13 %
Micro finance Commercial Banks
Development cooperatives
Governmental
Figure 2.12: Status of formal sources
of credit
11.5
13
13
14
17.5
0 10 20
Development banks
Government Banks
Commercial banks
Micro finance
Cooperatives
Figure 2.13: Average rate of interest (%) of
financial institutions for business loan
26 | P a g e
Without cash there would be no materials at the shop. If there would be easy access
to finance then the entrepreneurs could be able not only to run smoothly but also to
maintain stock and expand their business. About 18 percent of respondents were
unable to expand their business because of poor access to finance in the region. It
was very difficult to obtain loan and they had a fear of extremely higher amount of
installments if it could be obtained by any means.
2.5.3 Challenges
The construction-based business in earthquake-affected districts had already reached
to the peak of their sales. During the study period the sales was coming down as
completion of most of the reconstruction works and majority of entrepreneurs were
stating the decline of demand for construction materials and services over time.
Consequently, 43% entrepreneurs were reporting of no added capital requirement as
their business had been declining over time.
Nevertheless, there were reporting of specific implications of shortage of funds while
getting materials, keeping stocks of materials, parts, and commodities among others
(Figure 2.14).
Some of the challenges while accessing finance from the financial institutions are as
follows:
Commercial banks were not ready to go to rural/remote areas. Respondents
said that existing practices of granting loans based on transaction was
impractical.
The financial institutions were doing their business with conventional products
with minor modification. They were not accepting land/building as collateral,
which was not accessible by road. Their policy required at least one side of the
7
23
47
47
43
15
26
41
52
57
33
33
67
67
33
0 10 20 30 40 50 60 70
Cannot maintain plants and machineries
No sale promotion activities
Could not develop physical facilities
Cannot maintain sufficient stock
Not getting materials of my choice
Medium (%) Small (%) Micro (%)
Figure 2.14: Implications of shortage of funds
27 | P a g e
land/building linked to motorable road to consider for collateral property.
Moreover, there was complain of low valuation of collateral property by the
banks; and the property of 25 meter far from the highway was not suitable for
such collateral too.
Higher rate of interest and lack of good collateral property were major
hindrances and cost drivers while obtaining loan from the formal sources, more
specifically for micro and small enterprises. In addition, the low valuation of the
property by banks has further curve down the credit threshold of entrepreneurs.
Additionally, the entrepreneurs reported that complicated administrative
process was one of the major hindrances and cost drivers of their capital (see
Appendix 19).
2.5.4 Constraints facing the women-led MSMEs
Selling products on credit was common practices and it was amazingly easy job but
collection of money from the debtors was more challenging for women entrepreneurs
then their male counterparts. In fact, the compulsion of buying the materials and items
on cash and selling the same on credit is leading to the shortage of working capital.
Moreover, going to the field/site was common practices but it was difficult for women
entrepreneurs to go to the field and deal with the male. Moreover, male were unable
to understand the problems of female. Male were not hesitating to go for drink heavily
during the evening for business deal but it was not comfortable for female. In some
cases, it was difficult to work with the workers coming from distance with different
culture, language, and tradition; therefore, the female entrepreneurs were unable to
assign the job of credit collection to such workers.
2.5.5 Economic and financial implications
Cooperatives were reaching door to door of their customers. Their presence was also
in rural villages. The cooperatives were more female friendly. Their services were
comparatively easier than the services of commercial banks. However, their interest
rate was higher. Female borrowers were more disciplined than male borrowers.
There was reporting of unhealthy competition like negotiation on interest rates,
relaxation on documentations, and use of informal relationships among the financial
institutions. The institutions were trying to meet their targets at any means. Some of
the borrowers were borrowing money not for their own use but for others’ use. One
borrower was moving around different lenders and borrows from one institution and
pays already taken loan from other institutions. There was no matching of the purpose
of borrowing and lending in most of the cases.
The borrowers were reporting higher amount of borrowing costs due to informal
payments in relation to property valuation, documentation and borrowing process.
However, the borrowers and lenders were not telling the exact amount of their informal
payments.
28 | P a g e
There was reporting of exhibited superiority from bankers that they had to extend their
pity to the entrepreneurs who were begging for money from them.
Micro and Small enterprises were heavily relying on informal sources of finance.
During the study, about 43 percent of entrepreneurs had access to formal sources of
finance. Similarly, 43 percent of entrepreneurs (61 % for micro enterprises, 29 % small
enterprises and 33 % medium enterprises) did not require finance either from informal
or formal sources. However, 34 percent of micro enterprises, 56 percent of small
enterprises and 66 percent of medium enterprises had access to formal sources of
finance (see Appendix 20). This showed that as size of enterprises increased as
increased in access to the formal sources of finance.
2.5.6 Odds Ratio
A binary regression model was run to derive a model using independent variables for
determining the challenges faced by entrepreneurs while accessing finance from
formal sources. The odds ratios were tabulated for independent variables to determine
the odds or chance of independent variables in determining challenges to obtain
finance for running the enterprise.
Table 2.4: Odds ratios for independent variable for financial challenges
Independent variables Odds Ratio (95% CI)
Male 0.15 (0.00 , 21.70)***
Age 1.04 (1.00, 1.11)
Local resident 0.71 (0.14 , 1.93)***
Registered enterprises 0.73 (0.10 , 2.24)***
Faced financial obstacles 1.93 (0.95 , 7.57)
Subsidized loan increase business 0.28 (0.02 , 0.54)
*** denotes level of significant at 1 percent
The odds ratio presented in Table 2.4 depicted the determinants in increasing
challenges while accessing the finance for the entrepreneurs in study districts. The
table depicted that there is a greater chance of increasing challenge while obtaining
finance for the female entrepreneur (85 % higher as compared to male), migrant
entrepreneurs (29% higher as compared with local entrepreneurs) and unregistered
entrepreneurs (27% higher as compared to registered entrepreneurs). All the
constraints while accessing finance are significant at 1 percent level.
2.6 Getting electricity
The formalities of getting electricity connection and the costs of it were acceptable to
the respondents. However, there was quite difficulty in getting electricity connection in
chosen areas with capable transformer installed and three-phase electric meter.
29 | P a g e
2.6.1 Connection process and costs
Figure 2.15: Procedure for getting electricity
Process of getting electricity
Documentation Cost Time
Application form
Copy of citizen and land
ownership documents
If land is rented, approval from
the land owner
PAN or VAT certificate
Recent passport size photo one
copy
For enterprise/industries,
certification of registration.
Construction Completion
Certificate or recommendation
from local government
Consumers = Rs 50
Others = Rs 100
For electricity connection without connection material
a) Consumer (5 to 15 Amp) : Rs 100
b) Consumer (to 30 Amp): Rs 200
c) Up to 60 Amp: Rs 300
d) 3 phase: Rs 500
Other consumers
a) Up to 10 KVA: Rs 700
b) More than 10 KVA: Rs 1000
c) T.O.D Meter: Rs 1000
For pole connection a) Single phase per
pole: Rs 200 b) Three Phase per
pole: Rs 300
Consumers: 7
days
Others: 35
days
Electricity line should be in appropriate distance
No prior incident of illegal electricity leakage or disrupt of electricity due to illegal reason
All the wiring work should be completed
If the transformer is overload, the line would be provided after capacity enhancement of it.
30 | P a g e
There were 15% respondents getting electricity connection in recent times and rest of
85% had connection of it since along. The process and costs of electricity connection
for micro, small, and medium enterprises were similar (Figure 2.15). However, the
districts were different in terms of time and costs of electricity connection.
The variation between expected and actual time of electricity connection was
extremely higher (1.83 times) in Dhading while the same variation was 60% in Gorkha
and 12% in Nuwakot. Total costs variation was 55% higher in Dhading, 3% higher in
Gorkha, and 0.08% higher in Nuwakot. The share of informal payment in total costs
incurred was about 42% in Dhading, 8% Gorkha, and 35% in Nuwakot (see Appendix
21 and Appendix 22).
Connection process and costs were dependent on electricity requirement of the
entrepreneurs. About a week was necessary for 15 ampere meter connection, and
costs was about Rs. 3,000. Three phase connection was needing more time
depending the capacity of transformer installed in the region and availability of meter
for such connection. Minimum cost of such transformer was about Rs. 300,000.
Figure 2.16: Time taken to get electricity connection Figure 2.17: Cost of getting electricity
2.6.2 Information availability
Information about electricity connection were available at the offices of the electricity
authority. Access to information was easy for about 67% entrepreneurs in Gorkha,
64% in Dhading, and 40% in Nuwakot (Figure 2.18). The information were available
in various format at different locations including the organization’s websites, citizen
charter, and notice board. Some of the entrepreneurs were not proficient to surf
internet to get access to the information and some others were not paying attention to
the citizen charter and notice board. They were directly going to ask the people who
were sitting at the front desk of the electricity office.
0
5
10
15
20
25
30
Dhading Gorkha Nuwakot
Require Days Micro Require Days small
0
10000
20000
30000
40000
50000
60000
70000
80000
Dhading Gorkha Nuwakot
Require Cost Micro Require Cost small
31 | P a g e
2.6.3 Procedural challenges
There were no more challenges as such in getting electricity connection except some
of the procedural delays, field visits and estimation. More specifically, longer process
and necessity of multiple documents (6%), absence of personal relationship and
referral (6%), absence of enough materials and manpower at the electricity offices
(4%), and other miscellaneous factors (6%) were the challenges. However, three
phase electric meter was not available locally; therefore, getting it from central office
was quite challenging.
2.6.4 Slowest and longest processes
The process of getting electricity connection for normal use and getting 3-phase
electricity connection for heavy use was distinctly different. There were different
criteria, steps, and procedure for getting 3 phase electricity in the study districts. The
days and time of getting three phase electricity connection depended on the availability
of required load in the area. There was necessity of survey and test for the feasibility
of the load. Similarly, if there was availability of transformer and meter suitable for 3
phase connection, then there was possibility of connection with public transformer and
the steps and procedure could be quite simple and shorter. If not the case, the
entrepreneurs had to buy oneself the transformer, necessary poles, and accessories
for connection. This process was taking weeks and months for it.
40 %
67 %
64 %
Dhading Gorkha Nuwakot
Figure 2.18: Electricity connection information accessibility
32 | P a g e
2.6.5 Load estimate and reliability of supply
Getting electricity continuously
was not a major problem in the
districts. During the study period,
there was continuity in electricity
supply. However, due to technical
reason, a few irregularities were
obvious. Such irregularities were
not affecting the entrepreneurs
adversely except some
exception. Such irregularity was
affecting the crushing plants and
washers more when compared
with other MSMEs. However, the
irregularities were manageable
for the firm as well. In fact, there
was no problem about electricity
in Nuwakot district but problems
like three phase connectivity and irregularity in electricity supply were more in Dhading
than Gorkha (Figure 2.19). After all, due to the irregularity and fluctuations in power
supply, there was still loss records of about Rs. 16,429 in an average due to low
capacity use, delay in delivery time and wastage of time by 6 days each and increased
in repair and maintenance costs by Rs. 10,000 in an average. The amount of monetary
loss, costs, and wastage and delay time were estimates of the respondents in the
year.
2.7 Infrastructure and transportation route permit
Transport infrastructure consisted the roads, vehicles repair and maintenance
workshops, facilities for transport workers, health and safety, accident reporting and
rescuing facilities as well as monitoring mechanism installations.
There was an estimate of 35,000 transport trucks in the country but only about 10,000
transport trucks registered as transporter. Similarly, there were about 800 red number
plate trucks engaged in transportation of materials, but registration of those trucks was
for private use not on hire/freight.
2.7.1 Procedural constraints and costs
The constraints and costs of obtaining transportation route permit widened the time
and costs variation. The time variation was 14% lower in Dhading, zero percent in
Nuwakot, and 5 times higher in Gorkha. Similarly, the costs variation was 18% lower
in Dhading, 43% lower in Nuwakot, but 26% higher in Gorkha. Variation in time was
due to the variation in total days included in documentation and application process.
Figure 2.19: Status of getting required electricity
60%
67 %
100%
Dhading (N=10) Gorkha (N=6) Nuwakot (N= 14)
33 | P a g e
Variation in costs was due to the variation in document charges, application fees,
consultation fees, route permit fees, and other miscellaneous expenses (see Figure
2.20 and Figure 2.21).
There was an incident that father-in-law cut a tree of his ownership and gave the logs
to his son-in-law. The son-in-law was in custody for more than three weeks under a
charge-sheet of transporting logs without permit. The key informants were feeling such
incidents as unnecessary constraints and costs.
It was quite difficult to obtain route permit to run the vehicles in chosen areas. If
obtained at any costs, it had to renew in every three months. The owners of vehicles
had to go with their vehicles to the same state/zonal office of its registration for renewal
and/or sale. The provision of taking the vehicle at the place of its registration is not
fair.
Figure 2.21: Time required to obtain route
permit
2.7.2 Steps taken
An inquiry on the process of obtaining transportation route permit to find the slowest
and longest step resulted no distinctly different steps i.e. edges of the steps were too
blurred. Some transporters were obtaining permits in a day and some were waiting for
more days. In an exception, there were two cases in Gorkha that one case of waiting
for a month and another was waiting for three months.
2.7.3 Informal payments
There were no informal payments from 77% (17) transporters while obtaining
transportation route permit, but it was from 23% (5) of them. Altogether, the number
of enterprises involved in transportation of construction materials was 22 (17
transporters + 5 producers and suppliers) in the study. There were two micro
enterprises paying Rs 2,575 each for the permit in Dhading. One small enterprise in
the same district was paying Rs. 33,000 for it. In the same line, one small enterprise
70550
46413
69000
0
10000
20000
30000
40000
50000
60000
70000
80000
Gorkha Dhanding Nuwakot
0
1
2
3
4
5
6
Gorkha Dhanding Nuwakot
Figure 2.20: Total cost incurred for
transportation route permit
34 | P a g e
had paid Rs. 1,600 in Gorkha and one small enterprise in Nuwakot had paid Rs. 6,200
for the permit.
2.7.4 Information dissemination mechanism
Information dissemination mechanism about route permit were citizen charter,
friends/relatives, and face to face inquiry at the transport office. The citizen charter
was main source of finding information about transportation route permit for about 10%
respondents. Friends/relatives (45%) and face to face inquiry (45%) were main
sources of the information for remaining respondents.
2.7.5 Effectiveness of transportation route permit
There was mix response about the overall effectiveness of transportation route permit.
The feeling of overall effectiveness refers the process of obtaining permit and renewals
of it in addition to the materials transportation. About 56% respondents considered the
provision of route permit effective enough and about 44% considered not effective
enough. In the same line, the provision of Patake permit was not practical. There was
no office of issuing such permit at local level and it was difficult to travel distance for
such permit. Overall, the provision of route permit was effective in case of materials
transportation (Table 2.5)
There were some additional comments on the provision of road permit like frequent
visits to the transport office, very short period of 4 months’ duration, and no guarantee
of getting business during the period of permit. Similarly, there were some of the
difficulties reported during the study—difficult to transport materials to and from distinct
locations, delay in delivery while obtaining route permit, unnecessary stoppage at
check points, and so on (Figure 2.22).
Table 2.5: Effectiveness of route permit for materials transportation
Particulars Dhading Gorkha Nuwakot
High Low Not at all
High Low Not at all
High Low
Not at all
Ensures smooth mobility of materials
5 2 0 5 0 0 2 0 0
Possibility of on time delivery
7 0 0 5 0 0 2 0 0
Maintains standard load of vehicles
1 4 1 5 0 0 2 0 0
Provides statistics of materials
1 4 1 5 0 0 2 0 0
Maintains security of the roads, materials, carriers, and the staff
2 5 0 5 0 0 2 0 0
35 | P a g e
Figure 2.22: Difficulties due to transportation route permit
2.7.6 Conditions of infrastructure
Monsoon season was unfavorable for construction MSMEs mainly because of muddy
or bad roads. More specifically, poor condition of roads was adversely affecting the
quarry-based business such as sand-washers and stone-crushers.
An assessment on the status of roads found three categories of roads—earthen,
graveled, and blacktop. Only the blacktop roads were all season road and graveled
roads were serving for about 6-8 months altogether except some exceptions i.e.
somewhere the road was serving for longer period as well. However, earthen roads
were not working in monsoon season. The study found some monetary losses
recorded by the entrepreneurs in relation to the bad road conditions. Nevertheless,
there was negligible reporting of worst roads condition.
63
25
38
25
38
67
50
67
17
67
67
33
Difficult to transport material to differentlocation
Delay in delivery while obtaining route permit
Unnecessary stopage at checkpoints
Reasons for seeking informal payments
Increase transportation cost unnecessarily
Dhading Gorkha Nuwakot
1
2
2
1
3
2
4
2
5
5
5
2
4
4
4
2
3
3
2Road Conditions
Road Design itself
Parking Space
Public Toilet
Traffic sign and road marks
Workshops
Security/accident reporting facilities
Excellent Good Fair Poor Worst
Figure 2.23: Conditions of roads
36 | P a g e
2.7.7 Added costs and time bore
Poor road conditions were damaging construction materials including blocks and
bricks while transporting. There was no loss and damage of construction materials
reported while transporting through blacktop roads whereas such loss and damage
was happening during the materials transportation through the earthen, graveled and
under construction roads (Table 2.6).
Table 2.6: Functional status of roads
Particulars Dhading Gorkha Nuwakot
Earthen road Functional (Months) 7 7 7
Loss (Rs) 142,500 152,500 60,000
Gravel Road Functional (Months) 7 6 8
Loss (Rs) 43,333 42,500 46,000
Under construction
road
Functional (Months) 7 6 2
Loss (Rs) 50,000 30,000 20,000
Average
Average functional
(Months) 7 6 6
Average loss (Rs) 78,611 75,000 42,000
2.7.8 Overlapping or duplication of transportation levies
There was feeling of overlapping or duplication of transportation levies among the
transporters. In fact, different municipalities were imposing levies of same/similar type
on the transported goods i.e. when a truck passes through two or more municipalities,
it may pay tolls at two or more points of two or more municipalities.
2.7.9 Disproportionate impact on women
The study found only one female respondent in transportation business in the study
districts. She had no specifically mentionable impact of transportation route permit on
her business. When asked to others, in general, about the reasons of minimum or
insignificant number of women in transportation business, the respondents had no
exact idea about the reasons of not starting transportation business by women.
However, they were making a guess that the women had to handle household chores,
but transportation business can take them too far from their home. Some respondents
termed that, transportation business was not for women”.
2.8 Land laws/property ownership
The steps involved in getting land ownership certificate—Laal Purjaa is presented in
Figure 2.24 . However, the informal costs were fueling the fear of unknown like what
37 | P a g e
next if not paid. Comparable situation was prevailing in getting vehicle ownership
certificate—Blue Book. There was no specific provision for obtaining ownership
certificate as such in case of other properties like plant and machineries installed in
the industry. There were concessions for women in land registration fees. In general
no more significant constraints found that were relating to women entrepreneurs.
Figure 2.24: Process of obtaining land ownership
2.8.1 Steps involved to get land ownership
Most of the respondents were unaware about the steps involved to get land ownership
certificate because they were running their business on lease or rent. When asked
whether they had obtained it or aware about it, 27% respondents were aware of
necessary steps. There were entrepreneurs recently buying land for their own
business purpose. If anyone was doing so, had no memory of exact steps involved in
the process.
2.8.2 Land ownership process
Land ownership was not a big issue among the entrepreneurs. Most of the
arrangements were based on mutual understanding between the land owner and the
entrepreneurs. Ownership of land was not necessary as such to start and run a
business. Lease or rent agreement paper was sufficient for it.
2.8.3 Time taken and costs incurred
There were cases of micro and small enterprises involved in leasing/renting land for
their business purpose. Time variation was zero in case of micro enterprises, but the
Documentation Registration Process
38 | P a g e
variation was 33% higher in case of small enterprises. Similarly, the costs variation of
micro entrepreneurs was negligible of about 0.1%, but such variation was about 33%
in case of small enterprises (see Error! Reference source not found.).
2.8.4 Clarity of laws at the local level
The laws about land and property ownership were sufficiently clear. The entrepreneurs
were seeking help of land brokers or legal services providers if they wanted to get land
for their use. There were no more reporting of loss or damage or problems due to
unclear land/property laws in the districts.
2.8.5 Added cost bore by entrepreneurs
There was no coverage of the respondents about the added costs bore by the
entrepreneurs because of land/property laws. There was no more reporting of informal
payment made for obtaining land ownership certificate. No entrepreneurs were
bearing added costs due to the legal provisions about land ownership and land
transfer.
2.8.6 Constraints relating to women
Land laws had granted concession and rebates to the women instead of posing
constraints to them. There was no coverage of the respondents about the constraints
relating to women about land laws. Women entrepreneurs had no difference in their
business because of having land registered in their name or in the name of others
2.9 Labor shortage and labor market regulation
There was no workforce planning in the region. Local labors were in foreign countries
and foreign labors were in local enterprises.
Main source of labor was Terai. Substantial number of labors were coming from India
and a few are from Bangladesh as well. Local labors were not opting to work in their
own locality. If hired, they were too expensive in terms of cash, kinds, facilities, efforts,
and duties. In some cases, local labors reported as problem creators by asking for
rights and facilities beyond the ability of the entrepreneurs.
The region of post-earthquake was accommodating a flood of multiple agencies
including INGOs and NGOs. Huge inflow of cash and kinds from foreign government
and donor agencies could not be instrumental to make the socio-economic status of
the districts stable. The agencies offered lucrative benefits for local workers/labors,
owners, and suppliers. As the agencies completed their jobs in the region, the lucrative
benefits expected from the local MSMEs as well.
For example, lower-level workers were getting a laptop, scooter/motor bike,
mobile phone and similar other facilities on top of about Rs. 50,000 salary per
39 | P a g e
month. In the same line, the house owners were getting more than twenty-five
times higher rent for their home/room. Those practices increased prices of
everything in the region, which was affecting normal business even after four
years of the earthquake.
2.9.1 Availability of skilled, semi-skilled, and unskilled workforce
The construction business had required both skilled and unskilled workforce. The
MSMEs were working with shortage of workforce (Table 2.7) with one exception of
unskilled workforce in Gorkha. The shortage was ranging from unskilled to highly
skilled workforce.
Table 2.7: Status of workforce
Distric
ts
Skilled workforce Semi-skilled workforce Unskilled workforce
Requir
ed
Availab
le
Varian
ce
Requir
ed
Availab
le
Varian
ce
Requir
ed
Availab
le
Varian
ce
Dhadin
g 1156 674 (-) 482 384 29 (-) 355 19 15 (-) 4
Gorkha 262 256 (-) 6 197 182 (-) 15 30 51 21
Nuwak
ot 989 954 (-) 35 772 215 (-) 557 117 27 (-) 90
Total 2407 1884 (-) 523 1353 426 (-) 927 166 93 (-) 73
The tendency of people going abroad or away from home in search of job was one of
the principal reasons of shortage of workforce in the reasons. Unrealistic status
consciousness among the people i.e. doing work in and around home location means
damaging the social status was another reason of such shortage. Preference to leisure
and pleasure (seeking more wages/benefits, holidays, events, festivals, etc.) at the
cost of quality work outcomes was instrumental in widening the shortage (Figure 2.25).
Figure 2.25: Reasons to the shortage of skilled workforce
2 2
14 14
511
34
13 16
28 25
50 52 53
2 4
1914
9
23
Seeking wagesand facilitiespost quake
Statuspreference
Events andfestivals
No skill trainingfacilities
Poor wage SeasonalVariation
Foreignemployment
Dhading Gorkha Nuwakot
40 | P a g e
The MSMEs were working with a diverse workforce. Geographic location of the
workforce was one determinant of the diversity (Table 2.8). Harmonious relationship
among the diversified workforce was exemplary in the region. The diversity was not
only in knowledge and but also in language, religion, and culture. In any circumstance,
there was no reporting of mischievous and unwanted behavior of the workforce at their
workplaces in the name of diversity.
Table 2.8: Geographic location of the workforce
Particulars Dhading Gorkha Nuwakot Total
Local Skilled 204 107 200 511
Semiskilled 17 87 105 209
Unskilled 20 11 22 53
Country Skilled 206 130 375 711
Semiskilled 238 128 175 541
Unskilled 30 76 3 109
Neighboring country
Skilled 120 39 26 185
Semiskilled 24 19 15 58
Unskilled 5 19 3 27
2.9.2 Key skills gap
There was key skills gap in every enterprise (Figure 2.26 and see Appendix 27).
However, there was practice of making new-comers trained by the existing ones in
most of the MSMEs. The practice of at least a minimum level of skills transfer to new-
comers or juniors was minimizing the adverse impact of skills shortage.
High employee turnover was also widening key skills gap in the industries. When
employee become skillful, either they wanted more benefits or left the jobs. The case
would be quite favorable if local labors could be employed because, at least, they
would be staying in the same locality even after retiring from the job.
Figure 2.26: Nature of skill gap
10
6
4 45 5
12 2
1 1 11
56
8
2 2
6
3
1 1 1 1 1
67
6
12 2 2
1 12
Dhading Gorkha Nuwakot
41 | P a g e
2.9.3 Economic costs due to workforce shortage
Shortage of workforce adversely affected the work completion time and output level in
addition to the added overheads costs (Table 2.9). Expectation of higher wage rate
and wage variation across the MSMEs was causing multiple imbalances in labor
market. There was compulsion of entrepreneurs to pay higher wages to the workers
because of work culture of the local workers and post-disaster wage surge in the
region. Higher demand for wages and low market prices of goods and services (due
to inferior and imported goods and services) were severe problems of the
entrepreneurs.
Table 2.9: Average effect of workforce shortage
Districts Delay in work completion (%) Added overhead costs (%)
Output gap (%)
Dhading 25 25 12
Gorkha 11 15 5
Nuwakot 20 19 7
Labors’ preference was for daily wages because it was higher wages than the division
of monthly salary. This tendency was not assuring continuous workforce availability
for months and years. High labor turnover was adding labor costs and causing delay
in products delivery. Thus, there was difficulty in implementation of insurance and
social security policies for labors.
2.9.4 Safety and standard procedures
The entrepreneurs were partially meeting
the provisions of Labor Act 2017 of Nepal
concerning working conditions, health
and safety, insurance and social security,
and employment conditions in the region.
In an assessment on the knowledge of
entrepreneurs about industrial safety and
work place standard procedure, Dhading
district was in forefront (Figure 2.27).
However, the compliance aspect of the
safety and standard procedures were not
effective enough due to unavailability of
information to the workers at workplace
(23%), low priority for the safety and
standards (20%), perceived added costs (16%), absence of monitoring (11%), and
carelessness (7%) among others (Appendix 28).
31%
21%
16%
Dhading Gorkha Nuwakot
Figure 2.27: Knowledge about industrial
safety and standard
42 | P a g e
2.9.5 Labor inspection authorities and their inspections
There were labors coming from neighboring countries—mainly, from India and
Bangladesh. Some workers were refugees from Bhutan and Myanmar as well. There
was no exact number of foreign workers with and without work permit. However, there
was reporting of occasional monitoring from the law enforcement authorities in the
districts.
2.9.6 Labor laws, rules, and regulations
There were more than a dozen of acts, rules, and regulations directed toward the
workforce of construction MSMEs. The Labor Act 2017, Child Labor (Prohibition and
Regulation) Act 2000, Children’s Act 1992, Bonus Act 1973, Trade Union Act 1992,
Labor Regulations 2075, Trade Union Regulations 2050, Bonus Regulations 2039,
Immigration Rules 2051, Foreign Employment Policy 2068, Trade Union Election
Directives 2052, Occupational Safety and Health (OSH) Standard for Noise and Light
at Workplace, among others. However, the entrepreneurs were almost unaware about
how those laws were affecting their business.
2.9.7 Labor laws and regulations restricting women
There were no more laws and regulations that were restricting women workers at the
workplace. Instead, there were laws, awareness programs, and efforts from social
organizations in against gender-based discrimination.
A binary regression model was run to derive a model using independent variables
determining increase in manpower shortage. The odds ratios were tabulated for
independent variables to determine the odds or chance of independent variables in
determining challenges due to manpower shortage for running the enterprise.
The Table 2.11 depicted the determinants for manpower shortage in the study districts.
Based on the table, significance factor affecting manpower shortage in all three
districts was the prevalence of poor wages (seeking higher wage by the labors). The
enterprises providing poor wages to the labor have 2.47 times greater chance of facing
manpower shortage. Further, the table also showed that enterprises registration,
business competition and training to labor can potentially reduce the challenge of labor
shortage but was found statistically non-significant.
Table 2.10: Odds ratios for challenges in manpower shortage
Independent variables Odds Ratio (95% CI)
Local resident 1.92 (0.77 , 5.3)
Registered enterprises 0.64 (0.26 , 1.56)
Business competition 0.8 (0.41 , 1.58)
Absence of training 1.37 (0.67 , 2.78)
43 | P a g e
Attraction to foreign employment 1.03 (1 , 1.09)
Status preference 1.7 (0.71 , 4.16)
Poor wages 2.47** (1.24 , 4.96)
Due to festival 1.41 (0.69 , 2.84)
** denotes level of significance at 5 percent level
44 | P a g e
CHAPTER 3: CONCLUSIONS AND RECOMMENDATIONS
The study concludes with a statement—business climate is captive of informality
within formality. The informality refers the informal relationships and informal
economic activities whereas formality refers formal relationships and the regulatory
requirement necessary to comply with the existing policies, acts, rules, regulations,
and directives. General conclusions and recommendation and specific conclusions
and recommendation as well as remarks on business ethics are presented below.
3.1 General conclusions and recommendations
General conclusions Recommendations Key agencies
There is entrepreneurial spirit among the people. They want to become an entrepreneur and engaged in one or more types of business subject to the compatible business climate.
Highly diversified entrepreneurs are engaged in complex business of construction industry. Involvement of both male and female entrepreneurs from various age groups, caste and ethnicity having academic qualifications ranging from simply literate to doctorate level in the industry is exemplary.
Employers’ associations/organization like FNCCI, FNCSI, CAN, WEAN, and similar others are helping the entrepreneurs in many ways. Additionally, intermediaries/consultants are simplifying the tasks of the enterprise registration, obtaining business permit/license, paying taxes, and getting access to finance.
Complete information and documentation are urgency of this age. However, ignoring the role of digital connectivity in optimization of information and documentation, either regulator or regulated wish to have completeness in their decisions and actions than that only invites unnecessary stress and frustration between both the regulators and regulated.
There is high expectation of the entrepreneurs from the governments of every level. They want to see more business opportunities, few taxes and charges, and prompt service delivery. Complete awareness about the government services, easy access to required information, and clear road-map of service delivery in every aspect of governance is essential. A well-established Business Information System (BIS) is urgent in the districts.
Provision of one window policy for activities like enterprise registration, obtaining business operation license/permit and renew of it, payment of taxes, and documentation including certification and recommendation at local level.
Enhancing coordination in the policies and practices among the employers’ associations/organizations.
Establishment of a state-of-the-art Business Information System (BIS) and Decision Support System (DSS) capable of linking all the regulating and regulated establishments of public and private sectors.
Acceleration of every efforts of bringing informal economy under the purview of formal economy.
Revisit the practice of using Upabhoktaa Samiti to promote the activities of construction companies i. e encouraged for the involvement of registered construction enterprises in construction activities at local level.
Concerned Ministries and Departments of Central and Provincial Governments.
Employers’ Associations.
MSMEs
45 | P a g e
Increasing influence of informalities in every aspect of business is damaging the beauty of meritocracy, equity, and fairness. The informalities are fueling the informal/underground economic activities in the districts.
Tendency of relying on informal payments and informal relationship are promoting informal economy in the districts.
3.2 Specific conclusions and recommendations
Indicators
Conclusions Recommendations Key agency
Starting a business
Majority of sampled enterprises are registered, however, there are still about 13% were operating their enterprises without registering.
However, legal costs and procedures of registering and running industrial enterprise has been quite taxing for the entrepreneurs. Regulatory and policy constraints and degree of information availability and clarity thereon have been burning issues, more specifically in furniture, hollow concrete blocks, stone crushing, and sand extracting and washing businesses.
Attention and involvement of multiple authorities at local, provincial, and central level in enterprise registration, licensing, taxation, and regulation are incredibly good practices. But, the attention and involvement stay only to impose taxes and charges on the business enterprises instead of becoming a valid source of entrepreneurial enthusiasm.
Existing industrial standard specification for industry establishment are selectively impractical for selective enterprises—mainly, the stone crushing plants, sand extractor/washers, and furniture.
Unfair business practices were not only from entrepreneurs but also from the regulators and law enforcement agencies. Low quality products are entering from the custom points.
Provision of one window policy for activities like enterprise registration, obtaining business operation license/permit and renew of it, payment of taxes, and documentation including certification and recommendation at local level.
Establishment of industrial zones in each district. The zone may include one or more types of industries. New industries should be established only in respective industrial zones. Existing industries should be encouraged to shift to the industrial zones.
Modification of existing specification for industry establishment, operation permit/ license and renewals.
Enhancement of materials quality testing facilities/laboratories in each district.
Ministries and Departments of Central, Provincial and local Governments
Employers’ Associations.
MSMEs
46 | P a g e
Unfair and unethical business practices are not only polluting the business climate but also adversely affecting the revenue mobilization in the country.
Taxation Laws are complex by nature—either the tax laws or non-tax laws. The laws need not to be the source of manipulation and corruption. The government at every level needs revenue and enterprises have to pay for it. At any cost, the government and its officials need to assume that promotion of business and industries is their one major responsibility along with the collection of rates and taxes.
The taxpayers want to know, in fact, where their money is going and how much their payments is being instrumental in facilitation and protection of their business interest. When one does not know the answer, he/she tend to evade the taxes. In the same line, every enterprise need to know the difference between a firm genuinely meeting regulatory requirement and another firm intentionally violating the requirement.
The regulators’ commitments is useful to promote confidence of the entrepreneurs. The government officials, at any cost, must not be the source of corruption and manipulation. Both the entrepreneurs and regulators need to release the business climate from the captivity of informal relations and informal activities.
More emphasis on implementation and monitoring thereon of existing rules and regulations. Focus on acceptability, enforceability, predictability and sustainability of policies, laws, and regulations.
Revisit the different taxes/charges imposed by local authorities as well as province and central level authorities.
Ministry of Finance
Department of Inland Revenue.
Employers’ associations
MSMEs
Business permit/license
Inadequate information availability and clarity concerning compliance and reporting measures and practice of informal payments for obtaining business operation permit/license forced to draining out the precious time and money of the MSMEs.
Establishment of a state-of-the-art BIS and DSS.
Operationalization of industrial zone.
Adoption of one window policy.
Ministries and Departments of Central, Provincial and local Governments
Employers’ Associations
MSMEs
The conventional banking practice does not help best in the region.
Rapid adaption of e-procurement and e-
Ministry of Finance
47 | P a g e
Assess to finance
Financial institutions need not to transfer all the risks to the borrowers i.e. in the name of risks, interest rate and service charges must not be adjusted in all the cases. Focus on documents and transaction volume do not make adverse impact on large business as those do make impacts on MSMEs.
Inflow of cash and kinds from foreign governments and organizations has not been instrumental for socio-economic stability of the region. The system of materials, manpower, money, and methods of multiple agencies needs integration with the local requirements.
governance systems in as many areas as possible. Enhancement of monitoring and grievance handling mechanisms of Nepal Rastra Bank, government, and law enforcement authorities at local level to ensure that there is equity, fairness, and justice in the functioning of MSMEs, financial institutions, and regulatory agencies.
Revisit the service charge and interest rate imposed by different financial institutions in view of their rationality and transparency.
Nepal Rastra Bank
Financial Institutions
Employers’ Associations
MSMEs
Getting electricity
Electricity connection and continuity in power supply is not a problem in the region. However, 3-phase electricity power connection is a bit of challenge in terms of time consuming and costlier top.
Establishment and operationalization of industrial zone where basic facilities and utilities for industry are available.
Nepal Electricity Authority
MSMEs
Infrastructure and transportation route permit
Condition of roads is not good in all the seasons. Loss and damage of materials while transportation is obvious.
Capacity of roads and capacity of transport trucks is not compatible.
Vehicles registration/renewal offices, pollution check-points and vehicle-tax collection centers are limited only in few major areas of the country.
Road-capacity and transport truck-capacity requires to make more compatible.
Extension of vehicles registration and renewal offices, pollution check-points and vehicle-tax collection centers to the local level.
Department of Roads.
Department of Transport.
Transporter’s Associations.
MSMEs
Land laws/property ownership
Land and property laws are not influencing the entrepreneurial spirit. The entrepreneurs are doing their business on rent, lease, or own property, which were in congruence with the existing laws.
Effectiveness in implementation of existing laws.
Department of Land Reform and Management
Local Government
Labor shortage and labor market regulation
Attitude towards work among the local workforce is unfavorable for the enterprises. Local labor does not like to do a particular work in his/her locality, but he/she does the same job in other districts or in foreign country. Similarly, local labors are less competent and more problematic when compared with labors from distance or neighboring countries. There are foreign workers working in the districts but no practices of
Beginning of workforce planning at the local level to ensure the workforce is available for the local enterprises.
Construction of at least a few high-rise buildings in a district that are enough to accommodate about 150-200 families for home/land less/needy people to ensure labor sufficiency in the region.
Department of Labor and Occupational Safety
Local and Provincial Government
MSMEs
48 | P a g e
keeping statistics of such workers. Shortage of skilled, semi-skilled, and unskilled workforce in the district is one of the challenges of the entrepreneurs. Nevertheless, there was no more discrimination in doing business on the basis of gender, caste/ethnicity, language, any other form.
Buildings close to the industrial zone serves the industries at its best.
3.3 Business ethics specific conclusions and recommendations
Conclusion Recommendation Key agencies
There were reporting of under-invoicing and over-invoicing practices. For an instance, an item of Rs. 28 was under-invoiced to Rs. 8 and an item of Rs. 15 was over-invoiced to Rs 26.
Relationship and influence of the enterprise owner(s) were two major elements of doing business in the region. Ordinary owner in absence of relationship with the regulators, politicians, bankers, and suppliers were experiencing complications right from the start of their business registration. If the owner was a politician or influencing personality in the locality or relative of politician/influential person than he/she was experiencing concessions but not complications. The owners, keeping good personal relationship with the bankers, regulators, police, business organizations and professional associations were also enjoying more concessions in the business process. The concessions consisted favors of several types like better services, low costs, less efforts, and best opportunities.
Most of the owners of construction equipment like excavators, back hoe loaders, tipper trucks were either politicians or their relatives/activists. They had influence not only in mobilization of public funds for construction projects but also in decision-making like where to deploy construction machines at which rate. Similarly, they were the owners of hardware shops, crushing plants, sand washing plants, furniture factories and other construction MSMEs. In a few respondent’s opinion, the government employees and police personnel were directly and indirectly involved in construction business. Involvement of all of them was questioning the ethical standards of doing business in the districts.
In some cases, firm registration was in the name of local person but operation of the firm was from foreigner(s).
There were reporting of illegal transaction and theft of timber in furniture business
Formation of ethics committee in each municipality. Provision of ethical audit of both the regulator and regulated making policy research and policy audit as an integral part of business ethics.
Availing a common venue for regular discourses about the concerns of the regulators, entrepreneurs, pressure groups and consumers.
Provincial and Local Governments
Nepal Bureau of Standards and Metrology
Employers’ Associations
MSMEs
Pressure Groups like Consumer Forums, Environmentalists and so on.
49 | P a g e
Quantity of materials: Weight of iron rods and cement bags and volume of sand and aggregate was less at site delivery than it would be. There was no convenient access to materials for stone crushing and sand washing plants because the main sources of the materials was river from where MSMEs were not allowed to extract; however, the case was quite opposite for those construction companies that were involved in the project of national pride.
Quality of materials: Inferior quality of sand, mainly because of unsuitable particle sizes and soil content with it.
3.4 Indicators challenging the business climate
Based on the result of the binary logistic regression, this study has arranged the indicators
from most challenging for business climate as mentioned below.
1. Starting a business
2. Labor shortage and labor market regulation
3. Access to finance
The other indicators were selectively influencing the decisions and actions of the MSMEs.
3.5 Likely issues for policy dialogues
1. Establishment and operationalization of industrial zones in the districts. Construction
of high-rise buildings.
2. Designing and developing BIS and DSS. Rapid adoption of e-procurement and e-
governance system.
3. Extension of quality tests and controls facilities to the local level. Facilitation for quality
certification and its adoption.
4. Formation of ethics committee at provincial and local level. Initiating the practice of
public policy audit.
REFERENCES
Bonus Act. (1974). Retrieved from Department of Labour and Occupational Safety:
http://dol.gov.np/ckeditor/kcfinder/upload/files/bonus%20act%201974%20enlish.pdf
Child Labor (Prohibition and Regulation) Act. (2000). Retrieved from Department of Labour
and Occupation Safety: http://dol.gov.np/ckeditor/kcfinder/upload/files/child-labor-
prohibition-act-english2057.pdf
Children's Act . (1992). Retrieved from Nepal Law Commission:
http://www.lawcommission.gov.np/en/archives/category/documents/law-
archives/statutes-acts-law-archives/childrens-act-2048-1992
50 | P a g e
Environment Protection Rules. (2055). Retrieved from Nepal Law Commission:
http://www.lawcommission.gov.np/en/wp-content/uploads/2018/09/environment-
protection-rules-2054-1997.pdf
Foreign Employment Policy. (1992). Retrieved from Nepal Law Commission:
http://www.lawcommission.gov.np/en/wp-content/uploads/2018/09/foreign-
investment-and-one-window-policy-1992.pdf
Immigrant Rules. (1994). Retrieved from Department of Labour and Occupational Safety:
http://dol.gov.np/ckeditor/kcfinder/upload/files/immigration-rules-english%202049.pdf
Industrial Enterprise Act. (2073). Retrieved from Nepal Law Commissoin:
https://www.ilo.org/dyn/natlex/docs/ELECTRONIC/105921/129637/F2020732780/NP
L105921%20Npl.pdf
International Organizaiton for Migraiton. (2016). Barriers to Women's Land and Property
Access and Ownership in Nepal. 768/12 Thrimbam Sadak, Baluwatar – 5.
Labor Act. (2053). Retrieved from http://www.lawcommission.gov.np/en/wp-
content/uploads/2018/10/labour-act-2048-1992.pdf
Labour Rules. (1993). Retrieved from http://dol.gov.np/ckeditor/kcfinder/upload/files/labour-
rules-2050-english.pdf
National Planning Commission. (2015). Post Disaster Needs Assessment Vol. B: Sector
Reports. Government of Nepal.
Occupational Safety, Health and Environment. (2006). Retrieved from International Labor
Organization:
https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uac
t=8&ved=2ahUKEwi44YSIt67jAhVJiXAKHWqfDnAQFjAAegQIAxAC&url=https%3A%
2F%2Fwww.ilo.org%2Fdyn%2Flegosh%2Fen%2Ff%3Fp%3DLEGPOL%3A503%3A
6271660841605%3A%3A%3A503%3AP503_REFERENCE_ID%3A146
Trade Union Act. (1992). Retrieved from
http://www.lawcommission.gov.np/en/archives/17998
Trade Union Regulation. (2050). Retrieved from
http://dol.gov.np/ckeditor/kcfinder/upload/files/Trade%20union%20rules%20english%
202050.pdf
51 | P a g e
APPENDICES
Appendix 1: Entrepreneurs' demography
Type Characteristics Gorkha Dhading Nuwakot Total
N (%) N (%) N (%) N (%)
Gender Male 69 99 64 94 60 87 193 93
Female 1 1 4 6 9 13 14 7
Education status Literate 20 25 68 39 58 46 146 39
Under SLC/SEE 23 29 51 29 27 22 101 27
12 Class 23 29 28 16 21 17 72 19
Under Graduate 11 14 19 11 11 9 41 11
Post Graduate 1 1 7 4 7 6 15 4
Doctorate 1 1 1 1 1 1 3 1
Caste/Ethnicity Brahmin 31 44 35 51 25 36 91 44
Dalit 8 11 3 4 5 7 16 8
Newar 10 14 14 21 10 14 34 16
Janjati 18 26 12 18 20 29 50 24
Terai Madesh 3 4 4 6 9 13 16 8
Average age 39 ±11 38 ±11 35 ±10 37 ±11
52 | P a g e
Appendix 2: Number of responses on choosing business location
Particulars
Dhading Gorkha Nuwakot Total
Dhading Gorkha Nuwakot Total
Dhading Gorkha Total
Micro Small Medium
Market center 17 9 17 43 29 29 19 77 3 2 5
Nearness to my residence
12 22 19 53 31 31 23 85 1 2 3
Convenience 7 1 10 18 19 19 13 51 3 1 4
Personal relation/connection
4 2 6 12 15 15 9 39 1 0 1
My own property 7 10 8 25 8 8 7 23 0 1 1
Others 1 1 1 3 0 0 2 2 0 0 0
Appendix 3: District wise number of registered enterprises
Districts Number of Registered Enterprises Unregistered enterprises
N % N %
Dhading 63 35 5 19
Gorkha 58 32 12 44
Nuwakot 59 33 10 37
Total 180 100 27 100
53 | P a g e
Appendix 4: Reason for not registering the business
Particulars
Dhading Gorkha Nuwakot Total
Dhading Gorkha Nuwakot Total
Micro Micro Micro Small Small Small
Procedure cumbersome 3 1 7 11
0 5 1 6
Burdensome/costly 2 2 5 9 0 2 0 2
No knowledge about procedure
4 0 3 7 0 5 1 6
Reporting and renewal cumbersome
1 4 1 6 0 2 1 3
Reg. Not necessary 1 1 1 3 0 4 0 4
Appendix 5: Places/authorities for business registration
Particulars
Dhading Gorkha Nuwakot
Total
Dhading
Gorkha
Nuwakot
Total
Dhading
Gorkha Total
Micro Micro Micro Small Small Small Medium
Medium
Registration of business
Yes 18 24 24 66 (78)
42 31 35 108 (93)
3 3 6 (100)
No 5 6 8 19 (22)
0 6 2 8 (7)
0 0 0 (0)
DCSI Avg. Yr of Reg
2069 2070 2072 2070 2071 2068 2070 2070
2072 0 2072
Number 13 20 22 55 (83)
32 29 32 93 (86)
1 0 1 (17)
Company Registrar
Avg. Yr of Reg
2069 2072 2070 2070 2071 2069 2072 2071
2070 2071 2071
54 | P a g e
Number 9 14 5 28 41 3 9 53 3 3 6 (100)
R/ Municipality
Avg. Yr of Reg
2073 2070 2072 2072 2073 2072 2073 2073
2073 2071 2072
Number 11 6 14 31 (47)
20 11 21 52 (48)
2 1 3 (50)
Ward Avg. Yr of Reg
2073 0 2066 2070 2073 0 2062 2068
2072 0 2072
Number 2 0 1 3 10 0 1 11 1 0 1
CSIDB Avg. Yr of Reg
2069 2062 2071 2067 2071 2060 2061 2064
2072 0 2072
Number 10 2 5 17 22 2 3 27 1 0 1
Appendix 6: Process map for registration of enterprise
Particulars Dhading Gorkha Nuwakot
Total Dhading Gorkha Nuwakot
Total Dhading Gorkha
Total Micro Small Medium
Documentation days
Actual 4 7 8 6 7 10 23 13 30 32 31
Cost for preparation of documents Actual 2810 1356 1506 1891 5053 1252 2419 2908 42500 45000 43750
Registration time Actual 7 10 4 7 8 11 13 11 8 33 20
Registration Fee Actual 4157 4750 5324 4744 15782 11771 12224 13259 50000 32000 41000
Consultation fee Actual 500 NA 2075 2575 6650 7750 26179 40579 66667 1000 67667
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Appendix 7: Number of responses on reasons for non-availability of required information
Particulars
Dhading Gorkha Nuwakot Total
Dhading Gorkha Nuwakot Total
Dhading Gorkha Total
Micro Micro Micro Small Small Small Medium Medium
Difficult to understand terms and process
5 1 14 20 9 13 12 34 0 0 0
No clarity about person and place to contact
6 1 7 14 11 10 4 25 0 0 0
No information provider
2 1 10 13 4 12 3 19 1 0 1
No provision for further clarification
5 0 5 10 9 4 5 18 0 0 0
Gap between standard and actual
4 1 2 7 7 6 3 16 1 0 1
Others 0 0 0 0 2 0 0 2 0 0 0
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Appendix 8: Socio-cultural limitations for women entrepreneurs while the starting
Districts MSMEs Assuming business as a career
Maintaining partner with male businessman
Working with male coworkers
Taking care of family
Others
Dhading Micro 11 1 6 14 1
Gorkha Micro 2 4 4 12 0
Nuwakot Micro 13 7 3 23 2
Total 26 12 13 49 3
Dhading Small 11 4 19 35 1
Gorkha Small 17 11 17 29 1
Nuwakot Small 14 11 5 17 3
Total 42 26 41 81 5
Dhading Medium 2 0 2 2 0
Gorkha Medium 1 0 2 3 0
Total 3 0 4 5 0
Appendix 9: Different types of taxes paid by entrepreneurs
Particulars
Micro (n = 66)
Total
Small (n = 108)
Total
Medium (n = 6)
Total
Dhading Gorkha Nuwakot Dhading Gorkha Nuwakot Dhading Gorkha
Vat at Central level
9 14 5 28 41 3 9 53 3 3 6
Income tax Central 12 0 15 27 38 1 16 55 3 3 6
Provincial 1 19 1 21 1 13 2 16 1 0 1
Local 10 1 2 13 18 3 7 28 1 0 1
Property tax Central 4 0 0 4 9 0 0 9 1 1 2
Provincial 0 2 0 2 0 3 1 4 1 0 1
Local 4 9 7 20 5 11 9 25 1 1 2
House rent tax
Central 0 0 0 0 0 0 0 0 0 0 0
Provincial 0 0 0 0 0 0 0 0 0 0 0
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Local 3 7 4 14 3 14 6 23 0 1 1
Toll tax Central 0 0 0 0 3 4 0 7 0 0 0
Provincial 0 0 0 0 0 5 0 5 0 0 0
Local 0 6 1 7 4 15 1 20 1 3 4
Land tax Central 0 0 0 0 0 0 0 0 0 0 0
Provincial 0 0 0 0 0 0 0 0 0 0 0
Local 8 19 11 38 11 26 15 52 1 2 3
Renewal fees
Central 9 14 5 28 41 3 9 53 3 3 6
Provincial 1 21 1 23 8 23 0 31 0 0 0
Local 14 8 24 46 28 17 30 75 2 1 3
Vehicle tax Central 1 0 1 2 5 1 0 6 0 0 0
Provincial 1 1 1 3 9 5 2 16 0 0 0
Local 1 0 0 1 8 4 1 13 1 1 2
Appendix 10: Cost, time and distance travelled by entrepreneurs for tax payment
Particulars Micro Small Medium
D G N D G N D G
Auditing/documentation/transaction process (hours)
Required 19 3 3 8 9 21 14 9
Actual 12 6 4 17 37 33 7 9
Auditing/documentation/transaction process (Rs)
Required 5300 986 1875 22605 2114 9700 50000 17500
Actual 5300 1352 1833 23313 2855 8347 50000 20000
Auditing/documentation/transaction office distance (km)
Required 12 122 9 42 106 7 46 110
Actual 12 122 8 42 105 12 46 110
Vat payment time (hrs) Required 5 2 2 5 36 3 11 2
Actual 4 5 2 7 50 3 8 3
Vat payment time (Rs) Required 3840 NA 51500 163320 407112 155000 600000 NA
Actual 3840 NA 35233 152767 407112 241889 600000 NA
Vat payment time (km) Required 15 NA 17 36 94 22 47 NA
Actual 17 NA 15 36 95 22 47 NA
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Income tax payment (hrs) Required 5 1 4 5 1 2 13 NA
Actual 5 8 6 10 5 3 13 NA
Income tax payment (Rs) Required 4500 NA 5556 121338 2500 17179 NA NA
Actual 4500 NA 5469 118283 2200 30119 NA NA
Income tax payment (km) Required 13 NA 14 48 68 16 19 NA
Actual 15 NA 16 48 68 17 19 NA
Property tax (hrs) Required 3 NA 1 1 1 1 9 NA
Actual 3 NA 1 1 1 3 9 NA
Property tax (Rs) Required 1750 NA 550 NA 1200 1567 NA NA
Actual 1750 NA 867 237500 1200 2050 NA NA
Property tax (km) Required 10 NA 5 1 1 6 10 NA
Actual 10 NA 5 1 1 6 10 NA
House rent tax (hr) Required 2 NA 2 2 1 1 1 NA
Actual 2 NA 2 2 1 2 1 NA
House rent tax (Rs) Required 5000 NA 6000 NA 4500 2000 NA NA
Actual 3500 NA 6000 NA 6000 2000 NA NA
House rent tax (km) Required 4 NA 2 2 1 5 1 NA
Actual 4 NA 1 2 1 7 1 NA
Inland tax (hr) Required 4 2 2 2 3 2 1 4
Actual 5 5 2 4 5 2 NA 4
Inland tax (Rs) Required 608 1336 521 425 1024 794 NA NA
Actual 342 1442 546 563 1257 845 NA 5400
Inland tax (km) Required 2 1 4 8 13 3 2 NA
Actual 2 1 5 8 13 4 2 NA
Toll tax actual (Rs) Required UA UA UA UA UA UA UA UA
Road tax (Rs) Required 1500 NA NA 1050 200 2000 NA NA
Actual 500 NA NA 6883 208 10000 NA NA
Vehicle tax (Rs) Required 20000 NA NA 25667 22250 20000 NA NA
Actual 20000 NA NA 24000 21200 38000 NA NA
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Appendix 11: Number of responses on constraints faced while paying taxes
Districts
MSMEs
constraints faced during tax payment
Unavailability of Tax officer
Intentional delay during the process
Traditional way of collection
Unclear policy regarding tax at local level
Multiple tax collection agencies
Others
Yes No
Dhading Micro 5 13 2 4 0 2 1 0
Gorkha Micro 3 21 0 1 1 1 1 0
Nuwakot Micro 0 24 0 0 0 0 0 0
Total 8 58 2 5 1 3 2 0
Dhading Small 8 34 2 4 3 5 1 1
Gorkha Small 7 24 2 5 4 6 3 0
Nuwakot Small 6 29 0 3 3 3 1 1
Total 21 87 4 12 10 14 5 2
Dhading Medium 3 0 0 1 2 3 0 0
Gorkha Medium 0 3 0 0 0 0 0 0
Total 3 3 0 1 2 3 0 0
Appendix 12: Number of responses on reasons for unclear information about taxation
Particulars Dhading Gorkha Nuwakot Total Dhading Gorkha Nuwakot Total Dhading Gorkha Total
Micro Micro Micro Small Small Small Medium Medium
Tax information clear and sufficient
Yes 3 19 7 29 21 16 13 50 1 3 4
No 15 5 17 37 21 15 22 58 2 0 2
Unaware about person and place to contact
2 4 9 15 10 14 5 29 1 0 1
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No information provider
5 2 7 14 8 11 9 28 1 0 1
Limited information available
6 1 6 13 7 10 11 28 1 0 1
Difficult to understand term and process
5 2 5 12 10 14 12 36 2 0 2
No provision for further clarity
10 2 3 15 13 4 11 28 2 0 2
No education and awareness program
6 0 6 12 14 1 5 20 1 0 1
Others 1 1 2 4 3 0 1 4 0 0 0
Appendix 13: Number of responses on incident and reasons of harassments faced by entrepreneurs
Districts
MSMEs
Harassment by tax officials
No referral
My Gender
No relationship with officials
Caste/ethnicity Social Status
Others
Yes No
Dhading Micro 5 13 1 0 1 1 3 0
Gorkha Micro 0 24 0 0 0 0 0 0
Nuwakot Micro 1 23 1 0 1 0 1 0
Total 6 60 2 0 2 1 4 0
Dhading Small 4 38 1 0 4 0 0 0
Gorkha Small 0 31 0 0 0 0 0 0
Nuwakot Small 1 34 0 0 0 0 0 1
Total 5 103 1 0 4 0 0 1
Dhading Medium 1 2 1 0 1 0 0 1
Gorkha Medium 0 3 0 0 0 0 0 0
Total 1 5 1 0 1 0 0 1
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Appendix 14: Procedure, time and costs of obtaining business permit/license
Particulars Micro Small Medium
Dhading Gorkha Nuwakot Dhading Gorkha Nuwakot Dhading Gorkha
Documentation (Days) 10 3 3 8 4 8 19 1
7 3 4 7 6 7 5 1
Cost of document preparation (Rs) 3256 1250 1400 8477 800 8477 20000 1000
2830 1400 1007 7244 1606 12556 20000 15000
Renewal fees (Rs) 2700 3800 1880 8118 2560 8118 85000 NA
3288 3800 3538 9021 3541 9021 15000 3000
Permit fees (Rs) 2620 1250 7000 6380 3000 6380 20000 NA
2520 1500 3813 5780 4333 5780 0 NA
Consultation fees (Rs) 1250 NA 3000 2000 500 2000 25000 NA
1250 NA 1750 3000 4250 3000 0 NA
Effort made (Days) 7 2 3 9 24 9 24 NA
15 10 10 14 12 14 13 8
Informal payment (Rs) 1250 NA NA 5750 NA 5750 200000 NA
500 NA NA 22167 NA 22167 200000 NA
Miscellaneous 1340 NA NA 3070 1250 3070 NA NA
1367 1875 2000 5308 3750 5308 NA 7000
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Appendix 15: Information availability and clarity on obtaining permit/license
District
Information availability and clarity on obtaining route permit
Yes No
N % N %
Dhading (N=63) 23 37 40 63
Gorkha(N=58) 27 47 31 53
Nuwakot (N=59) 25 42 34 58
Total 75 42 105 58
Appendix 16: Obstacles and regulatory constraints faced by entrepreneurs for obtaining business permit/license
Particulars
Dhading Gorkha Nuwakot Total
Dhading Gorkha Nuwakot Total
Dhading Gorkha Total Micro Micro Micro Small Small Small Medium Medium
Obstacles faces for renew/permit
Yes 8 0 3 11 7 5 10 22 1 0 4
No 10 24 22 56 35 26 25 86 2 3 5
Procedural delays 6 0 1 7 4 4 7 15 1 0 1
Delay in inspection 1 0 0 1 4 0 1 5 1 0 1
Difficult to fix the inspection date
0 0 0 0 5 0 4 9 1 0 1
Lack of required staff in offices
0 0 0 0 1 4 1 6 0 0 0
Unnecessary document formalities
4 0 0 4 4 3 2 9 1 0 1
Others 2 0 2 4 1 0 2 3 0 0 0
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Appendix 17: Major reasons for inaccessibility of subsidized loans
Particulars
Dhading Gorkha Nuwakot Total
Dhading Gorkha Nuwakot Total
Dhading Gorkha Total Micro Micro Micro Small Small Small Medium Medium
Don't need loan for business
5 2 6 13 10 6 4 20 0 0 0
No access to subsidized loan
10 12 11 33 14 22 14 50 0 0 0
No referral 2 17 5 24 9 18 2 29 0 0 0
Not eligible for Loan
3 0 0 3 6 3 0 9 1 0 1
No idea about subsidized loan
7 3 13 23 10 20 13 43 0 0 0
Unfair process 3 2 8 13 15 5 15 35 3 0 3
Others 1 7 3 11 2 8 4 14 0 3 3
Appendix 18: Average rate of interest for different banks
Particulars Rate of Interest (%) Average rate of interest (%)
Government Banks Max 13
13 Min 13
Commercial banks Max 14
13 Min 12
Development banks Max 12
11.5 Min 11
Micro finance Max 16
14 Min 12
Cooperatives Max 19
17.5 Min 16
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Appendix 19: Major hindrance while obtaining credit from formal financial sources
Particulars
Dhading Gorkha Nuwakot Total Dhading Gorkha Nuwakot Total Dhading Gorkha Total Micro Micro Micro Small Small Small Medium Medium
Obstacles while accessing finance (formal sources)
Yes 16 6 16 38 17 18 20 55 3 0 3
No 7 24 16 47 25 19 17 61 0 3 3
Condition of providing loan against collateral instead of plan
5 3 7 15 5 10 7 22 0 0 0
Low valuation of property
0 2 5 7 4 15 3 22 1 0 1
No collateral 4 3 4 11 1 11 0 12 0 0 0
High service charge 1 0 0 1 5 3 1 9 0 0 0
Need of regular income
1 1 1 3 2 7 4 13 0 0 0
High interest rate 8 3 5 16 8 13 7 28 2 0 2
Complicated administration process
5 1 3 9 6 4 7 17 1 0 1
Others 0 0 0 0 1 0 1 2 0 0 0
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Appendix 20: Source of finance for entrepreneurs
Particulars
Dhading Gorkha Nuwakot Total
Dhading Gorkha Nuwakot Total
Dhading Gorkha Total
Micro Micro Micro Small Small Small Medium Medium
Informal source 2 6 2 10 3 14 4 21 0 0 0
Formal Source 4 13 6 23 19 29 13 61 2 2 4
No finance required
17 16 26 59 22 8 22 52 1 1 2
Appendix 21: Connection process and cost in getting electricity
Particulars Dhading Gorkha Nuwakot
*Cost (Rs) Expected 5703 5833 12646
Actual 14762 6000 12662
Total time (Days) Expected 12 5 17
Actual 30 8 19
Informal payment (Rs) Expected 10667 500 6800
Actual 10667 500 6800
Total cost (Rs) Expected 16370 6333 19446
Actual 25429 6500 19462
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Appendix 22: Process map for getting electricity for enterprise
District Unit Connection (including application) Technical (field works) Informal payment
Total
Dhading
Estimated days 12 12
Actual days 30 30
Estimated Cost (Rs) 2703 3000 10667 16370
Actual Cost ( Rs) 12387 2375 10667 25429
Gorkha
Estimated days 5 5
Actual days 8 8
Estimated Cost (Rs) 4333 1500 500 6333
Actual Cost ( Rs) 4500 . 500 6500
Nuwakot
Estimated days 17 17
Actual days 19 19
Estimated Cost (Rs) 10813 1833 6800 19446
Actual Cost (Rs) 9571 3091 6800 19462
Appendix 23: Total cost and time for obtaining route permit
Particulars Dhading Gorkha Nuwakot Average
*Total days Expected 7 4 4 5
Actual 2 5 2 3 #Cost Expected 49563 64567 43000 52376
Actual 46413 70550 69000 61988 Note: *Total days includes documentation preparation days and time taken for application
#Cost includes cost incurred while documentation, application fees, renewal fees, consultation service charges, route permit cost and miscellaneous
cost.
Informal payment is negligible in case of obtaining route permit
Significant number of transporters in Gorkha are unknown about procedure in obtaining route permit. Hence, the time taken days was high in this
district.
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Appendix 24: Process map for obtaining transportation route permit
Particulars Gorkha Dhading Nuwakot
Documentation (Days) Standard 1 3 2
Actual 5 2 2
Cost of preperation of Docs. Standard NA 963 7000
Actual 3733 838 4000
Application time (Days) Standard NA 3 2
Actual 2 2 2
Application fees (Cost) Standard 500 500 500
Actual 567 500 500
Renewal fees Standard 4000 17000 5000
Actual 6250 9325 14500
Cosultation fees (Rs) Standard 500 NA NA
Actual 500 NA 500
Route permit cost (Rs) Standard NA 30000 NA
Actual 60000 35750 50000
Application steps (Number) Standard NA 3 NA
Actual NA 3 3
Application efforts (Days) Standard NA 2 NA
Actual 6 2 2
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Appendix 25: Citizen Charter of land revenue office (both Nepali and English)
SNo. Type of
Service
Procedure and evidence to be fulfilled by service
recipient Service Charge Time
Responsible
Officer/ Branch /
Unit /Section
Remarks
1. Registration Original land owner certificates
Original and copy of citizenship of both
buyer and seller
Tax paid receipt for latest fiscal year
For house, present the land clearance
and resignation letter
As per stated in the
Economic Act every
fiscal year
Same day Registration unit
/section
2. Ownership
Transfer
Original land ownership certificate
Tax paid receipt for latest fiscal year
Relationship verification certificates
Death certificate
In case of multiple claimer, approval
letter from all
Recommendation letter from concern
municipality or VDC
Except for the deceased’s husband / wife
and son/daughter an inspection report of
public announcement
No cost within 35
days of death, then
after Rs. 10 only.
After
completion
of process
Ownership transfer
unit/ section
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3. Land
Registration
Land registration documents at the time
of origin including field book, map,
recommendation letter from concern
municipality and VDC
Relationship certificate between
deceased and the applicant
Relationship verification letter from the
concern municipality or VDC
Public announcement related to claim of
the land
Citizenship certificates and other
necessary certificates.
Rs. 10 for
registration of
ownership transfer.
Land tax paid receipt
since the beginning
to current fiscal year
After
completion
of process
Land registration
unit /section
Field inspection
report on the
land usage by
officer level
4.
Birta land (
Tax free
land)
Pota Birta document
Application needed as per the act
Land user’s ( Jotaha) statement
Field book, field map, if possible no. 7
form of Land improvement (Bhumi
sudhar 7 Phantbaari)
Recommendation letter from the concern
municipality or VDC where land is
located
Penalty upto Nrs.
100 to Nrs 1000 , if
ownership
transferred after 35
days of death of
owner additional Nrs.
10 should be
included , tax receipt
from 2016 to current
fiscal year
After
completion
of the
process
Land registration
Unit / section
Field inspection
report by officer
level regarding
the land uses
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If ownership is transferred according to
Rai. Pa. registration then relationship
verification certificate
Death certificates
Recommendation from the
municipality/VDC of permanent
residency/location
Public announcement claim notice and
other necessary documents
5. Birta land in
terms of
Jotaha
Application registration Rai.Pa. within
2053 Asadh end
Jotaha record (Nissa) ,if possilbe
Appendix land Improvement no. 2
Recommendation letter from concern
municipality or VDC
If ownership is transferred according to
Rai. Pa. registration then relationship
verification
Death certificates
Public announcement claim notice and
other necessary documents
For registration 10 %
of government rate
Rai. Pa. charge, 10
times more charge
of Service charge
After
completion
of service
Land registration
unit
Field inspection
report by officer
level regarding
the land uses
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6. Filing and
cancellation
(Dakhila
Khareji)
(Ka) Mohi filing and cancellation land
improvement’s decision and informative
letter
Original land ownership certificate,
citizenship and other necessary proof
As per Act Possibly the
day of
application
Filing, cancellation
and
implementation
unit / section
7. Amendment Changed in name ( land ownership
certificates, citizenship certificate, in
case of differences in name and caste,
recommendation letter from municipality
or VDC
Inspection notice and other necessary
proof
As per Act After the
completion
of process
Amendment Unit /
section
8. Cancellation
of Records
Original written document of approval
Decision paper
2 passport size photo and physical
presence of concern person along with
thumb stamps
No charge Generally
same day
Moth
(Documentation)
Unit
9. Pasting
Photos
Original land ownership certificate,
citizenship certificates, certified photos
along with three generation verification
No charge Generally
same day
Moth
(Documentation)
Unit
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Recommendation from municipality or
VDC of permanent residence
Documents indicating ownership transfer
and other necessary proof
10. Three-
generation
detail
Original land ownership and citizenship
certificate
Recommendation letter with photo from
municipality or VDC indicating three-
generation details
Source of the ownership and other
necessary proof
No Charge Generally
same day
Moth
(Documentation)
Unit
Appendix 26: Total cost and time for obtaining land ownership
Particulars MSMEs
Micro Small
Total time (days) Expected time (Days) 13 9
Actual Time (Days) 13 12
Cost Expected Cost (Rs) 8955 2560
Actual Cost (Rs) 8967 3397
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Appendix 27: Key skill gaps in the enterprises
Particulars Micro Micro Micro Total Small Small Small Total Medium Medium Total
Dhading Gorkha Nuwakot Dhading Gorkha Nuwakot Dhading Gorkha
Accountants 1 0 2 3 9 1 5 15 0 0 0
Carpenters 4 3 4 11 2 2 2 6 0 0 0
Engineers 0 0 0 0 0 1 0 1 1 0 1
Electrician 0 0 0 0 1 1 0 2 0 0 0
Masons 3 1 0 4 1 5 1 7 0 0 0
Overseers 0 0 0 0 0 0 0 0 0 0 0
Pumblers 0 0 0 0 2 1 0 3 0 0 0
Metal welders 4 1 2 7 1 1 0 2 0 0 0
Painters 1 0 0 1 1 1 0 2 0 0 0
Receptionist 0 1 1 2 0 0 0 0 0 0 0
Supervisors 0 1 0 1 0 2 1 3 0 0 0
Sanitary fitters 0 0 0 0 0 1 0 1 0 0 0
Mechanics 0 0 2 2 4 2 0 6 1 0 1
Drivers 1 1 0 2 3 7 0 10 0 0 0
Security guard 0 0 0 0 0 0 1 1 0 0 0
Sales persons 0 0 1 1 1 6 1 8 0 0 0
Others specify 9 14 20 43 14 5 26 45 1 2 3
Appendix 28: Reasons for noncompliance with safety and standard procedure
Particulars Micro Micro Micro Total Small Small Small Total Medium Medium Total
Dhading Gorkha Nuwakot Dhading Gorkha Nuwakot Dhading Gorkha
Unavailability of information
8 1 13 22 2 8 10 20 0 0 0
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Safety is not prioritize
1 6 6 13 0 14 8 22 0 1 1
Carelessness 2 5 2 9 0 1 3 4 0 0 0
Additional cost 1 6 2 9 1 14 5 20 0 0 0
No monitoring by officials
0 1 7 8 1 5 6 12 0 0 0
Others 0 2 6 8 0 0 2 2 0 0 0
Appendix 29: List of documents and time required to register industries according to Enterprise registration Act, 2049
Services Necessary documents Required time
Revenue Focal Person For complain
Registration of industries a/c to Industrial Enterprise Act, 2049
Application form for enterprise registration With the day for submission of required documents
According to capital
Section officer of Industry Administration
Chief Industry Officer
Enterprise project plan (scheme)
Entrepreneur’s citizenship photocopy and stamp of Rs 10
Land ownership certificate with recent receipt of land tax
Recommendation from Local Government
Document informing about no negative impacts of proposed industry towards public place, temples, schools, neighbors and environment should be approved by at least 4 person residing four directions- east, west, north, south- of the same area.
Minimum 6 years contract should be agreed if house or land is rented.
Copy of citizenship of land or house owner
If the enterprise related to agriculture and livestock, the recommendation from Agricultural Department
Passport size photo 3 copies and quotation of machineries or receipt.
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If the furniture related enterprise is outside Municipality, the source of timber, blue print map and certification of distance from the nearest forest by District Forest Office
For construction enterprises, requirement of machineries certified by mechanical engineer and his/her bio-data, VAT bill, insurance, technical officers and finance officers bio-data along with the commitment to work in the enterprise
For partnership firm, partnership contract need to be submitted.
If a company is to be register as industries, citizenship of shareholders along with regulation of the company should be submitted.
Industries related with health, tourism, communication, construction, recommendation from relevant department should be obtained
If the enterprise is related to training, curriculum along with certificate of the trainer should be submitted
For renew of firm
Original certificate of Enterprise registration
Annual progress report
Receipt of the tax paid to Inland Revenue Department during previous financial year
Application and necessary revenue fee
Within the day of submission of documents
A/c to capital
Section officer of Industry Administration
Chief Industry Officer
Appendix 30: Documents required for registration of enterprises in Cottage and Small Industries.
S.no Documents
1. Entrepreneurs citizenship photocopy and Rs 10 ticket/stamp 2. Land ownership certificate and receipt of current fiscal year tax payment 3. Related R/Municipality recommendation letter
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4. EIA if necessary, confirmation or permission by 4 people regarding industries location far from public places such as temples, schools, community people. Document informing about no negative impact of the proposed industry towards temple, public place, schools, neighbors and environment need to be approved by at least 4 people residing four direction -east, west, north and south- in the same area.
5. If house or land is rented, the contract of minimum 5 years of the same 6. Citizenship copy of land owner 7. 3 Passport size photos along with quotation of the machineries to be used 8. Recommendation from related department for veterinary and agricultural technical service 9. If the furniture related enterprise is outside Municipality, the source of timber, blue print map and certification of distance
from the nearest forest by District Forest Office 10. For construction enterprises, requirement of machineries certified by mechanical engineer and his/her bio-data, VAT bill,
insurance, technical officers and finance officers bio-data along with the commitment to work in the enterprise
Appendix 31: Citizen Charter obtained from electricity authority, Gorkha
Service Necessary documents Cost Time Remarks
New meter connection
a) Application form according to Annex I
b) Copy of citizenship c) Copy of Land Ownership or
documents according to Annex II d) Construction Completion Certificate
or recommendation according to Annex (In case of Rural municipality, need recommendation accordingly)
e) If land is rented, approval according to Annex III.
1. According to application a) Consumer = Rs 50 b) Others: Rs 100 c) Application for other purpose: Rs 5 For electricity connection (without materials cost) a) Consumer (5 to 15 Amp) : Rs 100 b) Consumer (to 30 Amp): Rs 200 c) Up to 60 Amp: Rs 300 d) 3 phase: Rs 500 Other consumers a) Up to 10 KVA: Rs 700
Consumers: 7 days
Others: 35 days
Electricity line should be in appropriate distance
No prior incident of illegal electricity leakage or disrupt of electricity due to illegal reason
All the wiring work should be completed
If the transformer is overload, the line would be provided after capacity enhancement of it.
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f) For enterprise/industries, certification of registration.
g) PAN or VAT certificate h) Recent passport size photo one
copy
b) More than 10 KVA: Rs 1000 c) T.O.D Meter: Rs 1000 For pole connection (kf]n h*fg ug{"
k/]df) a) Single phase per pole: Rs 200 b) Three Phase per pole: Rs 300
Increase or decrease of meter capacity
i) Application according to Annex 16 j) Necessary note to increase or
decrease the electricity load k) A/c to industries categories,
recommendation should be taken from relevant department of board
Application fee: Rs 5 a) Single phase:
To increase capacity Rs 200
To decrease capacity: Rs 100 b) 3 phase:
Increase capacity: Rs 200
Decrease capacity: Rs 200
If all the conditions are fulfilled, then within 1 week of application
All the electricity bill should be cleared
No prior incident of legal action against electricity leakage
Necessary materials should be managed
No increase or decrease of electricity load within one year
Sealing the meter
a) Detailed application 1. Seal in the box a) Application cost: Rs 100 2. sfof{non] km]nf kf/]df b) Terminal Seal: Rs 300 c) Reading seal d) CTPC Seal: Rs 1000
Within 3 days
All the electricity bill should be cleared
No prior incident of legal action against electricity leakage
There should be approved capacity MCB used.
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Appendix 35: List of key informants at national level
Appendix 36: List of key informant at district level
S.No Name Position Organization
1 Mr. Netra Prashad Pathak
Vice-President Federation of Nepalese Cottage and Small industries
2 Mr. Roshan Dahal Secretary General
Federation of Contractors’ Association of Nepal
3 Mr. Bishnu Gyawali Director Department of Industry
4 Mrs. Mina Shrestha Deputy Director General
Chamber of commerce and Industries
5 Mrs. Ramila Sthapit Office Manager Federation of Women Entrepreneurs Association of Nepal
6 Mrs. Ishwori Ji Tax officer Inland Revenue Department
7 Mr. Samir Hari Sharma
Assistant Director
Nepal Rastra Bank
8 Mr. Rajendra Bikram Baniya
Secretary General
Federation of Truck Transporter Entrepreneurs in Nepal
9 Mr. Ravi Jha Loan officer Rastriya Banijya Bank
10 Mr. Sumit Bajracharya Charter Accountant
J. B. Rajbhandary & DiBins
S.No Name Position Organization
Dhading District
Mr. Gokarna Duwadi Manager Sahara Mahila tatha Bachat Rin Sahakari, Nilakantha , Dhandingbesi
1. Mr. Kedar Kumar Khadka
Chief Enterprise Officer
Department of Cottage and Small Industries, Nilakantha, Dhading
2. Mr. Hari Shankar Gidel Magar
Technical Officer Nepal Electricity Authority, Dhading
3. Mr. Surendra K. Shrestha
Branch Manager Muktinath Bikash Bank, Nilakantha Dhading
4. Mr. Sushanta Shrestha Manager Mero Micro Finance, Dhading
Gorkha District
1. Mr. Anil Pathak Sub-engineer Nepal Electricity Authority, Gorkha
2. Mr. Manoj Kumar Shah Sc. Enterprise Development Facilitator
Department of Cottage and Small Industries, Nilakantha, Gorkha
3. Mr. Rajendra Khanal Loan Officer Agricultural Development Bank, Palungtar, Gorkha
4. Mr. Ram Saran Adhikari
Proprietor Dudhpokhari Hardware Suppliers and Transportation Service, Bhachek
5. Mr. Sitaram Koirala Proprietor Koirala Furniture Udhyog
Nuwakot District
1. Mr. Ganga Bahadur Rokka
Branch Manager Global IME Bank, Bidur Branch
2. Mr. Kiran Kumar Pant Chief Accountant Chautari Bachat tatha Rin Sahakari, Bidur
3. Mr. Lakhan Lal Shah Engineer Nepal Electricity Authority, Nuwakot
4. Mr. Suman Adhikari Chairperson Federation of Contractors’ Association, Bidur
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Appendix 37: List of participants during Focus Group Discussion at Nilkanth
Municipality, Dhading
S.No Name of the participant
Affiliation Designation
1. Ashita Gole NDRI Enumerator
2. Bheshraj Rijal FNCCI, Dhading Chairperson
3. Deepak Kumar Kandel Tribeni Grill and Shutter Udhyog Proprietor
4. Dhan Narayan Shrestha Manakamana Furniture Udhyog Proprietor
5. Kaji Man Shrestha Shree Mandali Block Udhyog Proprietor
6. Krishna Narayan Shrestha
Janahit Concern and Construction Service
Proprietor
7. Rajendra Khatri NDRI Researcher
8. Rajkumar Shrestha FNCCI, Dhading Senior Chairperson
9. Raju Giri NDRI Enumerator
10. Ramesh Adhakari FNCCI, Dhading Purnima Project Coordinator
11. Rudra Bahadur Khatri FNCCI, Dhading Chairperson
12. Saroj Budathoki Pranisha Tar Jali Udhyog Proprietor
Appendix 38: List of participants during FGD at Gajuri Rural Municipality, Dhading
S.No Name of the participant
Affiliation Designation
1. Ashita Ghole NDRI Researcher
2. Ashmita Dahal NDRI Researcher
3. Bishesh Shrestha Gajuri Grill Udhyog Manager
4. Chandra Rai NDRI Researcher
5. Deepak Bikram Basnet
Entrepreneur Entrepreneur
6. Dinesh Kumar Bhujel Dinesh Furniture Udhyog Manager
7. Hari Bahadur Magar Gajuri Forest Department Officer
8. Jayaram Shrestha Shrestha Enterprise Proprietor
9. Kiran Neupane Department of Agriculture, Dhading District
Agriculture Technician
10. Pabitra Regmi Gajuri Rural Municipality Legal facilitator
11. Rajak Neupane Entrepreneur Entrepreneur
5. Mr. Sushanta Shrestha Manager Mero Micro Finance, Dhading
6. Mrs. Samikshya Adhakari
Business Helpdesk Officer
Skill Training Center, Nuwakot
7. Mrs. Sangita Ghimire Section officer Department of Cottage and Small Industries, Gorkha
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12. Rajendra Bikram Basnet
Gajuri Rural Municipality Chairperson
13. Raju giri NDRI Researcher
14. Saroj Prasad Adhikari Jaya Shree Najraj Grill Udhyog Proprietor
15. Shiva Subedi Avisha Enterprise Managing Director
16. Sujat Rokka Dhading Marble and Sanatary Suppliers Managing Director
17. Suman Rai Chandeshwori Block Udhyog Manager
Appendix 39: List of participants during FGD in Bishauni Hotel, Gorkha Municipality
S.No Name of the participant Affiliation Designation
1. Dr. Raj Kumar Bhattarai Nepal Development Research Institute (NDRI)
Study Coordinator, Business Climate Study
2. Atit Krishna Gurung Om Development Bank Loan Officer
3. Bhai Chandra Shrestha Chamber of Commerce, Gorkha Chairperson
4. Bishnu Kumari Dawadi Mott MacDonald CFFO
5. Dhiraj Bahadur Maskey FCA, Gorkha Former Chairperson
6. Jeevan Jyoti Shrestha FNCCI, Gorkha Chairperson
7. Kul Bahadur Kunwar Gorkha-2 Ward Chairperson
8. Manoj Kumar Shah Department of Cottage and Small Industries, Gorkha
Senior Enterprise Development Facilitator
9. Nanda Kumar Maharjan NDRI Researcher
10. Narayan Bhatta Nabil Bank Limited, Gorkha Officer
11. Padam Shrestha Gorkha Bricks Private Limited Proprietor
12. Satyaman Shrestha Satyaman Nirman Sewa Proprietor
13. Sitaram Koirala Koirala Furniture Udhyog Proprietor
14. Sophiya Mahajan CNI Program Officer
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Appendix 40: List of participants during Focus Group Discussion in Palungtar
Municipality, Gorkha
S. No
Name of the participant
Affiliation Designation
1. Dr. Raj Kumar Bhattarai NDRI Study Coordinator, Business Climate Study
2. Er. Biraj Aryal Palungtar Municipality
Engineer
3. Er. Deepak Raj Kadel Palungtar Municipality
Mayor
4. Nanda Kumar Maharjan NDRI Researcher
5. Ram Prasad Devkota NDRI Researcher
6. Sophiya Maharjan CNI Program Officer
7. Vej Raj Pandey Palungtar-9 Ward Chairperson
Appendix 41: List of participants for FGD in Bidur, Nuwakot District
S. No
Name of the participant Affiliation Designation
1. Dr. Raj Kumar Bhattarai NDRI Study Coordinator, Business Climate Study
2. Ankita Thapa NDRI Enumerator
3. Bhairab Bahadur Pyakurel Sundardevi Block Udhyog Proprietor
4. Chakrapani Timalsina Mott MacDonald EDC
5. Geeta Amatya NCCI, Nuwakot Senior Vice Chairperson
6. Geeta Thapa Cotage Entrepreneur Association, Nuwakot
Chairperson
7. Ghanshyam Gurung FNCCI, Nuwakot Program Coordinator
8. Kiranrupa Magar NDRI Enumerator
9. Manoj Karki NDRI Researcher
10. Mukta Bahadur Bogati Nuwakot Forest Officer Vice Chairperson
11. Rajendra Khatri NDRI Researcher
12. Rajendra Shrestha NDRI Enumerator
13. Rajendra Shrestha NCCI Senior Vice Chairperson
14. Rasik Maganati United Aluminum Manager
15. Sanikshya Adhakari NCCI Business Help Desk Officer
16. Shakantala Thapa NCCI EDF
17. Sophiya Maharjan CNI Program Officer
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Appendix 42: List of Participants for Focus Group Discussion at Likhu Rural
Municipality, Nuwakot
S. No
Name of the participant Affiliation Designation
1. Narahari Pandey Likhu, 1 Ward Chairperson
2. Madhav Prashad Likhu, 1 Contractor
3. Pradip Neupane Likhu, 1
4. Krishna Kumar Guruwacharya
Likhu, 1
5. Hari Prashad Gajurel Likhu, 1
6. Ram Bahadur Thapaliya Likhu, 1
7. Sandesh Dhakal Likhu, 1
8. Lakshman Lamichhane Likhu, 1
9. Machindra Bahadur Thapa
Likhu, 1
10. Keshal Dhakal Likhu, 1
11. Rajendra Shrestha NDRI Enumerator
12. Kiranrupa Magar NDRI Enumerator
13. Ankita Thapa NDRI Enumerator
14. Manoj Karki NDRI Researcher
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Glimpse of Focus Group Discussion in the Study Districts
Glimpse of Focus Group Discussion in the Study Districts
Glimpse of Focus Group Discussion in the Study Districts
Glimpse of Focus Group Discussion in the Study Districts
Glimpse of Focus Group Discussion in the Study Districts
Glimpse of Focus Group Discussion in the Study Districts
Glimpse of Focus Group Discussion in the Study Districts
Glimpse of Focus Group Discussion in the Study Districts
Glimpse of Focus Group Discussion in the Study Districts
Glimpse of Focus Group Discussion in the Study Districts
Glimpse of Focus Group Discussion in the Study Districts
Glimpse of Focus Group Discussion in the Study Districts
Glimpse of Focus Group Discussion in the Study Districts
Glimpse of Focus Group Discussion in the Study Districts
Glimpse of Focus Group Discussion in the Study Districts
FGD during inception visit, Dhading
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Sand Crusher plant, Dhading
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Sand Crusher plant, Dhading
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Sand Crusher plant, Dhading
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Chamber of commerce, Dhading
Nuwakot District
Nuwakot District
Hollow block industry, Dhading
Nuwakot District
Nuwakot District
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FGD, Nuwakot
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
Nuwakot District
FGD Nilkanth, Dhading
Nilkanth, Dhading District
Nilkanth, Dhading District
Nilkanth, Dhading District
Nilkanth, Dhading District
Nilkanth, Dhading District
Nilkanth, Dhading District
Nilkanth, Dhading District
Nilkanth, Dhading District
Nilkanth, Dhading District
Nilkanth, Dhading District
Nilkanth, Dhading District
Bidur Municipality, Nuwakot
Gorkha Municipality, Gorkha
FGD in Gorkha Municipality, Gorkha District
Gorkha Municipality, Gorkha District
FGD in Gorkha Municipality, Gorkha District
Gorkha Municipality, Gorkha District
FGD in Gorkha Municipality, Gorkha District
Gorkha Municipality, Gorkha District
FGD in Gorkha Municipality, Gorkha District
Bidur Municipality, Nuwakot
FGD in Bidur Municipality, Nuwakot District
Bidur Municipality, Nuwakot District
Bidur Municipality, Nuwakot District
FGD in Bidur Municipality, Nuwakot District
Bidur Municipality, Nuwakot District