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National Economic Census 2018 Analytical Report Analytical Report GOVERNMENT OF NEPAL National Economic Census 2018 Analytical Report Informal Sector Informal Sector National Planning Commission Central Bureau of Statistics Kathmandu, Nepal March 2021 GOVERNMENTGOVERNMENT OFOF NEPAL NationalNational EconomicEconomic CensusCensus 20182018 AnalyticalAnalytical ReportReport Food aInformalnd Bevera Sectorge Industry NationalNationa Planningl Planning CCommissionommission CentralCentral BureauBureau ofof StatisticsStatistics Kathmandu,Kathmandu, NepalNepal MarchMarch 2021 Published by: Central Bureau of Statistics Address: Ramshahpath, Thapathali, Kathmandu, Nepal. Phone: +977-1-4100524, 4245947 Fax: +977-1-4227720 P.O. Box No: 11031 E-mail: [email protected]; [email protected] ISBN: 978-9937-0-8822-0 iii ivLY v YL vii YLLL Government of Nepal National Planning Commission Central Bureau of Statistics Director General Director General ACKNOWLEDGEMENTACKNOWLEDGEMENT ItIt is is my my pleasure pleasure toto release release AnalyticalAnalytical Report on Informal SectorSector of of National National Economic Economic Census Census 2018. 2018. CentralCentral BureauBureau ofof StatisticsStatistics (CBS)(CBS) conducted thethe firstfirst NationalNational Economic Economic Census Census 2018 2018 (NEC2018) (NEC2018) from from AprilApril toto JuneJune 2018, coveringcovering the the entire entire territory territory of ofNepal. Nepal. Its Itsmain main objective objective was wasto know to know the nature the nature of the of theeconomic economic char characteristicsacteristics on the on Nepalese the Nepalese economy. economy. CBS has CBS already has a releasedlready released National National Report Series Report Series1,2, and 1,2, 3, andProvincial 3, Provincial Summary Reports, Reports, National National Summary Summary Reports Reports in Nepali language,language, National National Profile Profile seriesseries 1,1, 2,2, andand 3,3, AnalyticalAnalytical Report No.1 andand No.No. 2,2, WardWard Profile Profile Series Series 1 1a andnd 2 2for for the the users. users. This This reportreport contains contains detaildetail analysisanalysis on informal business sectors sectors with with the the focus focus on on number, number, employment, employment, and and financialfinancial statusstatus basedbased onon thethe resultsresults of Economic CensusCensus 2018. 2018. It It is is hoped hoped that that the the analysis analysis on on informal informal sectorsector withwith diversediverse characteristicscharacteristics will bebe beneficial forfor variousvarious users users to to grasp grasp the the economic economic situation situation of of informalinformal industries.industries. I Iwould would likelike toto thankthank Dr.Dr. HemHem RajRaj Regmi,Regmi, Deputy DirectorDirector General,General, economiceconomic statistics statistics division division of of the the BureauBureau forfor hishis valuablevaluable contributioncontribution and leadinleadingg rolerole inin thethe census.census. Mr. Mr. Anil Anil Sharma, Sharma, and and Mr. Mr. Mahesh Mahesh ChandChand Pradhan,Pradhan, DirectorsDirectors of the economic censuscensus sectionsection deserve deserve special special thanks thanks for for their their lead lead role role in in thethe reportreport andand drivingdriving thethe overaoverallll censuscensus planning, implementation,implementation, datadata processingprocessing and and data data disseminationdissemination activities.activities. I also would like to thank Mr.Mr. PrakashPrakash Pokharel,Pokharel, Mr. Mr. Bikash Bikash Malla, Malla, statistics statistics officersofficers ofof thethe Economic CensusCensus section section for for supporting supporting census census administration administration and and management. management. I Iwould would like like to to thank thank all all members members ofof EconomicEconomic Census Steering ComCommittee,mittee, Technical Technical Committee, Committee, Joint Joint CoordinatingCoordinating Committee,Committee, Media Campaign Committee, andand DistrictDistrict EconomicEconomic Census Census Coordination Coordination Committee,Committee, whichwhich provided support forfor thethe implementationimplementation of of the the NEC2018. NEC2018. I Iwould would like like to to thank thank all all respondentsrespondents forfor providingproviding invaluableinvaluable information duringduring thethe censuscensus enumeration.enumeration. I Iheartily heartily appreciate appreciate districtdistrict censuscensus officers andand their their team, team, all all the the staff staff of theof theBureau Bureau and andNational National Planning Planning Commission Commission who whohad hadextended extended support support in this in national this national endeavor. endeavor. I I gratefullygratefully acknowledgeacknowledge technicaltechnical assistance providedprovided byby thethe GovernmentGovernment of of JapanJapan via via Japan Japan InternationalInternational CooperationCooperation Agency (JICA)(JICA) inin thethe ProjectProject onon capacitycapacity development development for for the the implementation implementation ofof Economic Economic CensusCensus 20182018 in Nepal. Special thank gogoeses toto Prof.Prof. NobuoNobuo HIROHATA HIROHATA and and Prof. Prof. Kazuhiro Kazuhiro FUKUYO,FUKUYO, JICAJICA consultantsconsultants for supportsupport inin preparingpreparing this this report. report. Our Our deep deep thanks thanks are are due due to to Mr. Mr. Fumihiko Fumihiko Nishi,Nishi, ChiefChief AdviserAdviser and other experts ofof thethe Project,Project, whowho made made all all the the best best efforts efforts in in preparation preparation of of the the reportsreports andand in successfulsuccessful implementatimplementationion of of NEC2018. NEC2018. CBSCBS alwaysalways welcomeswelcomes comments andand suggestionssuggestions fromfrom usersusers whichwhich wouldwould be be valuable valuable for for the the improvementimprovement ofof our futurefuture publications.publications. MarchMarch 20212021 Nebin Nebin Lal ShresthaLal Shresth a Email: [email protected], Phone No: 01-4229406, Fax: 01-4227720, Web: www.cbs.gov.np Thapathali, Kathmandu ix Email: [email protected], Phone No: 01-4229406, Fax: 01-4227720, Web: www.cbs.gov.np Thapathali, Kathmandu x NATIONAL ECONOMIC CENSUS 2018 Contents Page MESSAGE........................................................................................................ iii FOREWORD .....................................................................................................v PREFACE........................................................................................................ vii ACKNOWLEDGEMENT...................................................................................ix Contents ...........................................................................................................xi List of Tables....................................................................................................xv List of Figures..................................................................................................xv Map of Nepal by District ................................................................................. xxi Figures at a Glance ...................................................................................... xxiii Outline of National Economic Census 2018 (NEC2018) of Nepal................ xxv Chapter 1 Informal Sector .............................................................................. 1 1-1 Concept of Informal Sector ............................................................... 1 1-1-1 Informal Sector ................................................................................ 1 1-1-2 Dilemma of the Informal Sector....................................................... 2 1-1-3 Definition of the Informal Sector...................................................... 3 1-2 Concept of Informal Economy........................................................... 4 1-2-1 Decent Work.................................................................................... 4 1-2-2 Informal Employment ...................................................................... 5 1-2-3 Informal Economy ........................................................................... 6 1-2-4 Non-Observed Economy................................................................. 8 1-2-5 Transition from the Informal to the Formal Economy...................... 8 Chapter 2 Registration ................................................................................. 10 2-1 Establishment and persons engaged.............................................. 10 2-1-1 Number of registered establishments ........................................... 10 2-1-2 Number of persons engaged in registered establishment ............ 10 2-2 Scale ............................................................................................... 12 2-2-1 Number of registered establishments by scale ............................. 12 2-2-2 Number of not registered establishments by scale ....................... 13 xi NATIONAL ECONOMIC CENSUS 2018 2-2-3 Registered or not registered establishments by scale .................. 14 2-2-4 Number of persons engaged in registered establishment by scale ................................................................................................................ 15 2-2-5 Number of persons engaged in not registered establishment by scale........................................................................................................ 16 2-2-6 Persons engaged by registered
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