Promoting innovation and inclusion in growth potential enterprises: Evidence from Nepal

Micro, small and medium-sized enterprises (MSMEs) face numerous challenges to their development and growth in Nepal. Given the importance of the MSME sector, the government has implemented innovation support programs to encourage the creation of enterprises. It has targeted these interventions to advance social development goals such as reducing poverty and creating employment for youth, women and marginalized communities. Access to finance, appropriate technology and training are examples of support services provided by the government. However, there are few robust studies demonstrating what works well and why, and whether the intended beneficiaries are indeed benefiting. 

This project examines two interventions to understand their impact on MSME development and promoting inclusive innovation. The research will focus on the Micro-enterprise Development Programme for Poverty Alleviation managed by the Ministry of Industry, Commerce and Supplies and the Youth and Small Self-employment Fund managed by the YSEF Secretariat. The findings will inform the development of new initiatives to support potential enterprises. The results of the study will contribute to both scholarly and public policy debates. Specifically, the project will devise evidence-informed recommendations on how these programs could be improved from an equity, diversity and inclusion perspective and identify potential entry points to promote a business innovation ecosystem that supports growth enterprises in Nepal.