Journal Press India®

Impact of Micro-credit Services on Operation of Small Enterprises in Nepal

Vol 9 , Issue 2 , July - December 2020 | Pages: 49-57 | Research Paper

Author Details ( * ) denotes Corresponding author

1. * Bharat Ram Dhungana, Associate Professor, School of Business, Pokhara University, (
2. Ramkrishna Chapagain, Lecturer, School of Business, Pokhara University, Nepal,

This paper aims to examine the impact of micro-credit services on the operation of small enterprises in Nepal. The research is based on a survey research design at Tanahun district of Nepal. The survey design was administered to 255 microentrepreneursintermentioned by microfinance institutions for the last 5 or more years, based on a stratified random sampling technique, consisting of 75 from Dalit, 85 from Adhabashi and Janajati, and 95 from an upper caste. Both descriptive and inferential statistics have been used to analyse the data.  The results show that microfinance has contributed a significant role in micro-enterprises growth and expansion as the volume of sales, range of profit, and the value of assets increased after the intervention of microfinance services. The government and supporting institutions need to focus on the expansion and growth of micro-enterprise to increase employment opportunity, reduce cultural and caste disparities.


Micro-credit; Micro-enterprise; Microfinance

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