Govt to expand micro-enterprise program

With a view to foster micro-enterprise development and self employment in rural areas, the government has decided to expand Micro-Entrepreneurship Development Program (MEDP) to 20 more districts.

At present, the program has been implemented in 25 districts with the support of United Nations Development Program (UNDP).

Although typically a government program, Ministry of Industry (MoI) has been implementing the programs in 15 districts through Cottage Industry Development Committee (CIDC) and in 10 districts through Federation of Nepal Cottage and Small Industries (FNCSI).

“CIDC and FNCSI will implement the program in 10 newly added districts each,” said Rishikesh Dhungel, under secretary at MoI.

MEDP, started in 2009 with public-private collaboration, is said to be one of the most effective entrepreneurship development programs run in the country. Its impact assessments have shown the program contributed significantly in development of business enterprises and self employment in rural Nepal.

“Hence, we decided to expand it to more districts, even though UNDP has decided to phase out its support to the program in December this year,” said Dhungel.

The government has even allocated Rs 250 million, almost double the budget provided last year, for its implementation.

CIDC will implement the programs in Tanahun, Baglung, Syangja, Solukhumbu, Illam, Taplejung, Rukum, Dhankuta, Darchula and Bajhang, while FNCSI will execute it in Morang, Siraha, Saptari, Dhanusha, Bara, Makawanpur, Palpa, Kailali, Nawalparasi and Kanchanpur. “CIDC and FNCSI will introduce the program in the new districts within this fiscal year,” stated Dhungel. He even added that the ministry has a plan to expand it to all 75 districts within the next two years.

Under the program, designed for the poor community, CIDC and FNCSI have been providing several packages to help unemployed people begin their own industry and pursue self-employment. The private sector representatives and technical experts first provide skill oriented trainings to the people in different business areas.

“Once the people get basic skill sets in running businesses, we help them start their own small scale business,” said Yam Kumari Khatiwada, joint secretary of MoI.

These agencies then provide the participants with materials support to begin their enterprises free of cost. “Such supports are provided to a group of 4 to 5 persons. The group is encouraged to save certain amount of earnings made from the business venture at local cooperatives for future investments,” said Khatiwada.