Study to Determine the Special Needs of Women in the Micro-Enterprise Development Sector
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STUDY TO DETERMINE THE SPECIAL NEEDS OF WOMEN IN THE MICRO-ENTERPRISE DEVELOPMENT SECTOR Study commissioned by: Micro-Enterprise Development Programme (MEDEP) 2000 TABLE OF CONTENTS EXECUTIVE SUMMARY....................................................................................................................................5 1. INTRODUCTION .............................................................................................................................................8 2. RATIONALE OF THE STUDY ......................................................................................................................9 3. OBJECTIVE OF THE STUDY .......................................................................................................................9 4. METHODOLOGY ............................................................................................................................................9 5. LIMITATIONS ................................................................................................................................................11 6. DISTRICT PROFILE .....................................................................................................................................11 7. SOCIO-ECONOMIC BACKGROUND OF WOMEN COVERED BY THE STUDY .............................13 8. MAJOR FINDINGS .......................................................................................................................................15 8.1 SOCIAL – ECONOMIC ISSUES ...........................................................................................................15 8.2 ENTRY RELATED ISSUES FOR POTENTIAL ENTREPRENEURS................................................26 8.3 CONTINUITY RELATED ISSUES FOR WOMEN OWNED ENTERPRISES..................................30 9. MAJOR PROBLEMS AND STRATEGIC INTERVENTIONS.................................................................35 9. SYNOPSIS OF MICRO-ENTERPRISE RELATED ISSUES AND STRATEGIC INTERVENTIONS46 Annex A ..............................................................................................................................................................50 SSI CHECKLIST FOR POTENTIAL ENTREPRENEURS ..........................................................................50 Annex B ..............................................................................................................................................................52 CHECKLIST FOR CASE STUDY ...................................................................................................................52 Annex C ..............................................................................................................................................................53 Checklist for Semi Structured Interviews for MEDEP Partners and Other Key Informers ...........53 Annex D-1 ..........................................................................................................................................................54 NAWALPARASI ................................................................................................................................................54 Work Plan of Nawalparasi district....................................................................................................................54 Annex D-2 ..........................................................................................................................................................56 LIST OF PARTICIPANTS ................................................................................................................................56 Annex D-3 ..........................................................................................................................................................61 CASE STUDIES.................................................................................................................................................61 Annex E-1...........................................................................................................................................................65 NUWAKOT .........................................................................................................................................................65 Annex E-2...........................................................................................................................................................67 List of Participants ..........................................................................................................................................67 Annex E-3...........................................................................................................................................................72 CASE STUDIES.................................................................................................................................................72 Annex F ..............................................................................................................................................................76 SSI with Partner Organisations at the National Level ............................................................................76 Annex G..............................................................................................................................................................77 REFERENCES...................................................................................................................................................77 2 ACKNOWLEDGEMENTS The Micro Enterprise Development Programme wishes to thank Alliance Nepal for Social Mobilization which was commissioned to conduct the study. The Programme would also like to thank professionals and individuals that helped in the process of successfully completing this study. The Programme would would like to acknowledge the invaluable support of all the programme staff who were involved in the preparation of this report along with Ms. Bidula Shrestha, Marketing Specialist and Ms.Geeta Pandey, Gender and Training specialist. The objective of the study was designed to identify the special needs of women in the micro- enterprise development sector with particular reference to MEDEP's terai and hill districts locations such as Nawalaparasi, and Nuwakot. The aim of the study was to analyze ways to increase women’s participation in micro-enterprise development as well as their share of benefits. Two districts were chosen to assess constraints faced by women as well as opportunities, which might be available to them based on their skills, interest and knowledge. The purpose of the research was also to provide a basis for the programme to monitor its progress in reaching its goal of mainstreaming gender equity. The study would not have been successful without the rightful response and support from the programme's district staff as well as all women respondents who gave their time and effort in sharing their problems and prospects for the study. The programme hopes that the findings of the study will be able bring about benefits to numerous women entrepreneurs who seek to upgrade their livelihood through their involvement in micro-enterprises. Dr. Lakshman Pun Niranjan Baral National Programme Manager National Programme Director 3 ABBREVIATIONS ADB/N Agricultural Development Bank CBOs Community Based Organisations CSIDB Cottage and Small Scale Industry Development Board DCSI Department of Cottage and Small Industries DDC District Development Committee DPM District Programme Manager EDF Enterprise Development Facilitator EDS Enterprise Development Supervisor FNCCI Federation of Nepalese Chamber of Commerce & Industries FNCSI Federation of Nepalese Cottage and Small Industries IEDI Industrial Enterprise Development Institute MEDEP Micro-enterprise Development Project NBC New Business Creation Training NFE Non-formal Education NGO Non-government Organisation PDDP Participatory District Development programme SLC School Leaving Certificate SSI Semi-structured interview VDC Village Development Committee WDO Women Development Officer 4 EXECUTIVE SUMMARY Enterprise and entrepreneurial development in Nepal has not picked up well though there is much hidden potential. The CBS report (1993) shows that only 8.9 percent of women and 25.07 percent of men are engaged in non-farm activities. Being an agricultural economy, agro-based enterprises are slowly expanding and profiting. However, other sectors are not picking up relatively well. Women have a big role to play in developing the micro-enterprise sector of this country because they are not only the backbone of agriculture, but they also have the ability to develop other types of micro-enterprise products such as home based food stuffs, handicrafts, garments and many others. The aim of MEDEP is to increase women’s participation in micro-enterprise development as well as their share of benefits. To ensure that women’s needs are determined and that the programme achieves its target of 70% participation by women, this study was carried out to report on factors affecting promotion of women-owned enterprises. The study was conducted in two districts Nawalparasi and Nuwakot and in each district, two market centres were chosen. The major findings of the study have been divided into three parts. The socio-economic issues, the entry related issues and the continuity issues that women entrepreneurs face to be involved in micro-enterprise activities