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FINAL REPORT
JULY 25, 2018
Submitted To
Mott MacDonald,
Kathmandu, Nepal
Submitted By
Nepal Development Research Institute Shree Durbar Tole, Pulchowk, Lalitpur
GPO Box: 8975, EPC 2201,
Kathmandu, Nepal
Email: [email protected]
Telephone: +977-1-5537362, 5554975
MICRO, SMALL AND MEDIUM ENTERPRISES OF CONSTRUCTION
MARKET IN NUWAKOT AND DHADING DISTRICTS, NEPAL
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Nepal Development Research Institute (NDRI) is pleased to be a part of Mott McDonald’s Micro,
Medium Small Enterprise project. We thank Mott McDonald for entrusting NDRI to carry out such an
important study. We express our sincere thanks to Mr. Howarth Simon E, Team Leader of PURNIMA
and Mr. Rabindra Bahadur Singh, Private Sector Development Lead, for extending requisite
administrative and management support in organizing and hosting the assessment.
We would like to thank all the participants for their kind participation in the study. We are grateful to all
the government stakeholders, Mayors and President of municipalities, ward chairpersons of the sample
municipalities, chief administrative officers, district leaders of FNCCI, FNCSI, District Contractor
Association, and business leaders for taking time out of their busy schedule for the study. NDRI also
acknowledges their contribution in this research. The interactions with each of them have contributed
significantly to develop the report.
Last but not the least, NDRI also offers gratitude to the entire research team: Prof. Dr. Punya Prasad
Regmi, Team Leader, Mr. Jeebanath Adhikari, Team Coordinator, and the field researchers Mr. Ram
Prasad Devekota, Rita Pandey, Manoj Karki and Sunita Dhital for their hard work from inception period
to project accomplishment.
Dr. Jaya Kumar Gurung
Executive Director
Nepal Development Research Institute
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Table of Contents Table of Contents .................................................................................................................................. 3
Abbreviation and Acronyms .................................................................................................................... 5
List of Tables .......................................................................................................................................... 6
List of Graphs and Figures ....................................................................................................................... 7
Executive Summary ................................................................................................................................ 8
CHAPTER ONE .................................................................................................................................. 10
INTRODUCTION TO STUDY ........................................................................................................... 10
1.1 Background .................................................................................................................................... 10
1.2 Objectives ................................................................................................................................. 11
1.3 Scope of the Study .................................................................................................................... 11
CHAPTER TWO................................................................................................................................. 12
RESEARCH METHODOLOGY ........................................................................................................ 12
2.1 Method and Tools ...................................................................................................................... 12
a. Desk Review ......................................................................................................................... 12
b. Site Selection......................................................................................................................... 12
c. Primary Data Collection ...................................................................................................... 13
d. Direct Observation ............................................................................................................... 13
e. Quick Survey: ....................................................................................................................... 14
f. Key Informant Interviews: ................................................................................................... 14
2.2 Field Monitoring, Management and Quality Assurance .......................................................... 14
Pre-testing of research tools and finalisation .............................................................................. 14
Recruitment and Orientation Training to Research Team: ....................................................... 14
2.3 Data Management and Analysis Plan........................................................................................ 15
2.4 Deliverables and Timelines ........................................................................................................ 16
CHAPTER THREE............................................................................................................................. 17
MAPPING OF SMALL ENTERPRISES ........................................................................................... 17
3.1 Construction Materials and Suppliers ...................................................................................... 17
3.2 Development of Markets in Nuwakot District .......................................................................... 18
3.3 Estimated Number of Small Enterprises of Construction Market in Nuwakot District .......... 20
3.4 Development of Markets in Dhading District ........................................................................... 20
3.5 Estimated Number of Small Enterprises of Construction Market in Dhading District........... 23
3.6 MSME Registration ................................................................................................................... 23
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3.7 Source of Investment for MSMEs in Construction Market ..................................................... 24
CHAPTER FOUR ............................................................................................................................... 26
FINANCIAL REQUIREMENTS AND ITS ARRANGEMENT ....................................................... 26
4.1 Willingness to Expand Business ........................................................................................... 26
4.2 Utilization of Fund to Expand Business .................................................................................... 27
4.3 Availability of Capital to Expand Business ............................................................................... 27
4.4 Source of Capital to Expand Business ....................................................................................... 28
4.5 Problems in the Source of Loan................................................................................................. 29
4.6 Required Size of Capital for Business Expansion ..................................................................... 31
CHAPTER FIVE ................................................................................................................................. 33
CONSTRAINTS OF MSMEs ............................................................................................................. 33
CHAPTER SIX.................................................................................................................................... 36
CONCLUSION AND RECOMMENDATIONS................................................................................. 36
6.1 Conclusion...................................................................................................................................... 36
6.2 Recommendations .......................................................................................................................... 37
Annex –I: Situation Analysis of Sample Municipalities and Market Area in Dhading ..................... 39
Annex – II: Situation Analysis of Sample Municipalities and Market Area in Nuwakot.................. 41
Annex – III: Data Collection Format in Municipality and District ................................................... 43
Annex – IV: Area of Data Collection and Respondents in Districts .................................................. 44
Annex – V: Sample Respondents in Districts ..................................................................................... 45
Annex VI: Quick Survey Questionnaire for Supply Side Actors ....................................................... 46
Annex VII: KIIs for Financial Intermediaries ................................................................................... 48
Annex VIII: KIIs Questionnaires for Municipality ............................................................................ 49
Annex IX: Observation Notes on Market Prospects .......................................................................... 50
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Abbreviation and Acronyms
BFIs: Bank and Financial Institutions
CFUG: Community Forestry User Group
CSEB: Compressed Stabilized Earth Blocks
DCCI: District Chamber of Commerce and Industries
DDC: District Development Committee
DFID: Department for International Development
DRR: Disaster Risk Reduction
GDP: Gross Domestic Product
GoN: Government of Nepal
HCB: Hallow Concrete Block
KII: Key Informant Interview
MSMEs: Micro, Small and Medium Enterprises
MSD: Market System Development
MOI: Ministry of Industry
NAMDP: Nepal Agriculture Market Development
NBSM: Department of Nepal Bureau of Standard and Metrology
NDRI: Nepal Development Research Institute
NPER: Nepal Post Earth
NRA: Nepal Reconstruction Authority
OPC: Ordinary Portland Cement
PPS: Probability Propionate to Sample
PSD: Private Sector Development
PURNIMA: Post Earthquake Recovery Project NAMDP: Nepal Agricultural Market Development Programme
SMEs: Small and Medium Enterprises
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List of Tables Table 1: Division of MSMEs based on the fixed capital and other factors ............................................... 11
Table 2: Study tools and sample distributions ........................................................................................ 13
Table 3: List of different MSMEs present in Nuwakot District ……………………………………………………………….19
Table 5 Different enterprises present in Dhading District ....................................................................... 22
Table 5: Loan capital requirements for MSMEs to expanding business………………………………………………….31
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List of Graphs and Figures Figure 1: District Map, rivers, and roads passes in Nuwakot District ........ Error! Bookmark not defined.
Figure 2: Estimated MSMEs in Nuwakot district ................................................................................... 20
Figure 3: district map, rivers, and roads passes in Dhading district ......................................................... 21
Figure 4: MSMEs in construction market in selected municipalities in Dhading district ......................... 22
Figure 5: Total MSMEs in Dhading district ........................................................................................... 23
Figure 6: Number of registered and non-registered business ................................................................... 24
Figure 7: Source of loan for business establishment by business............................................................. 25
Figure 8: Source of loan for business establishment by municipality ...................................................... 25
Figure 9: Business expansion in near future, by business........................................................................ 26
Figure 10: Business expansion in near future in municipality ................................................................. 27
Figure 11: Own capital to expand business ............................................................................................ 28
Figure 12: Own capital to expand business by enterprises ...................................................................... 28
Figure 13: BFIs source of loan for business expansion in near future...................................................... 29
Figure 14: Old saving as a source of loan for business expansion in near future ..................................... 29
Figure 15: Problems in the source of loan .............................................................................................. 30
Figure 16: Problems in the source of loan .............................................................................................. 30
Figure 17: Average size of loan demand for MSMEs in rural and urban municipalities .......................... 31
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Executive Summary
The reconstruction process is lagging behind in Nepal. Studies have revealed that current market
system has not been able to deliver construction materials sufficiently and services efficiently to
earthquake victims in rural areas. Private Sector´s development therefore is the key task to
support on reconstruction processes. Information about Micro, Small, and Medium Enterprises
(MSMEs) of construction market is very important for economic growth and improving
livelihood through post-earthquake recovery. The market system development approach seeks to
identify the key constraints of market and practical solution.
The overall objective of this study is to assess MSMEs of construction market in Nuwakot and
Dhading districts. The specific objectives are to map out the MSMEs, identify financial
requirements and major constraints limiting MSMEs.
The methodology used both the quantitative and qualitative approaches. Questionnaire survey
was conducted with the hardware enterprises, crushers, brick suppliers/Kilns, Compressed
Stabilized earth block/Hallow concrete block producers, stone cutters, sand extractors,
Furniture/timber treatment enterprises, transporters, contractors, and metal worker/grillers.
Altogether, 116 quantitative surveys, 12 in-depth interviews, 10 field observations, 24 key
informant interviews were conducted.
The current reconstruction process is lagging behind mainly due to the market supply gap of
construction materials. The presence of construction based MSMEs are highly concentrated
around the headquarter cities and major roads around the rivers, while the presence of these
MSMEs is very poor at the rural hilly areas. Therefore, construction based MSMEs are largely
affected by headquarter based government institutions, prevailing river with local raw materials,
and development of road networks. As compared with the urban municipalities, rural
municipalities have more supply constraints of construction materials along with topographical
difficulties and lack of market information.
A large number of mini contractors were not legally registered in construction markets. The
functional existence of BFIs and Cooperatives were adequate in headquarter and urban cities
followed by a good presence of road access. In contrast, their poor presence was observed in the
rural area. Majority BFIs have used separate loan product to flow out their loan to MSMEs. But
problems such as insufficient source of income, high cost of capital, process barriers, inadequate
collaterals, lack of proper business plans and low level education of customers were some of the
constraints in providing loan to such enterprises. Therefore, commercial banks offer limited loan
in general category rather than commercial ones. An overwhelming proportion of MSMEs
respondents (82%) reported that they wish to expand their business with financial support of
BIFs, however, they did not have required amount of own funds and capital to invest in their
businesses. Such barriers were prevailing in both policy and operational levels for the
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establishment of MSMEs. Based on key findings, following policy and operational
recommendations are provided:
(a) Recommendations for construction market development: Local level development
affects positively on construction market. Therefore governments should have plan of
physical infrastructure development such as roads, electricity, communication, etc. to
address the constraints of the rural area through the private sector. Governments have to
address these problems through a broad based and inclusive market development
approach. Market supply gap on construction materials should be filled in support of
government entities. There is a frequent problems of high price and monopoly power
exerted by the few suppliers working on the sand and concrete pebbles. Hence,
Government and other authoritative bodies should provide subsidies and other incentives
to construction based MSMEs to expand the construction market. Also, the locally
produced materials have to be extracted in such a balance way that reconstruction as well
as local construction will have an adequate supply along with the protection of
environment. Governments should have a balanced tax and royalty approach to address
the local demand and for utilization of locally produced materials. Governance reform
can be the better practice for the supply of local needs. Those existing local level
enterprises should also be locally registered/informed as the registration of micro and
mini contractors and transporters were missing at the local level. Local governments have
to reduce the cost of registration and compliances and procedurals. Some institutional
problems such as low level of education and problems in existing MSMEs expansion
should also be addressed.
(b) Recommendations on access to finance: Government bodies should develop long terms
plans and policies to encourage new BFIs branches which focus on small and micro
enterprises (SME) loan in rural areas. The supply side reforms should be: (a) increase the
proportion of MSME business loan, (b) adopt digital technologies such as cloud
computing, distributed ledger technology, artificial intelligence that can reduce the
transaction cost of BFIs significantly, (c) decrease the lengthy procedures of lending and
documentation, (d) include rural social aspects in the risk mitigation measures- scoring
matrix of BFIs, (e) enlarge the scope of assets in the list of collaterals, (f) reduce the cost
of credit information among MSMEs, (g) educate MSMEs on business development plan
and strategies. The demand side recommendations are: (a) increase the payment capacity
of MSMEs, (b) reform in the practice of credit transaction of MSMEs, (c) reduce the cost
related to the business registration, audit reports and tax compliance (d) reduce the cut
throat competition among MSMEs, (e) establish the credit market infrastructures, (f)
orient MSMEs and credit market information, (g) develop the local level physical
infrastructures of development, etc.
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CHAPTER ONE
INTRODUCTION TO STUDY
1.1 Background
National Reconstruction Authority (NRA) was established under the “Act relating to
Reconstruction of the Earthquake affected Structure, 2015”1 on December 2015 with an aim to
facilitate overall reconstruction process and build resilient settlement and prosperous society in
earthquake affected districts. However, current reconstruction process of Nepal is lagging
behind. In addition to several other constraints, studies have revealed that current market system
has failed to deliver construction materials and services to earthquake victims in rural areas2.
Market is a powerful and autonomous institution/mechanism that ensures delivery of
construction materials and related services for the earthquake victims. However, barriers that
limit supply of construction materials and related services have to be addressed through an
external supportive mechanism to facilitate reconstruction process in the earthquake affected
districts. Market System Development (MSD) Approach 3 emphasises ‘flexibility’ and
‘creativity’ as an essential part in complex market system. It aims to improve efficiency by
incorporating all relevant sectors and through a broad based inclusive model. Market
strengthening strategies and steps are developed on a need-based approach that facilitates access
to basic services and livelihood development of the poor and marginalized people. MSD
Approach focuses on the relevancy, opportunity, and feasibility to stimulate change in the market
system for the potential pro-poor.
Private Sector Development (PSD) component of UKAID funded, Post Earthquake Recovery
Project (PURNIMA), is tasked with working with 200 Small, Medium and Micro (MSMEs)
enterprises in construction sector for generating economic growth and improving livelihood. The
PSD component has adopted a market systems development (MSD) approach in the design and
implementation of activities. The approach seeks to identify the key constraints of the market
and remove them through catalytic actions. It is setting up solution to generate ideas to improve
the access of micro, small, and medium enterprises (MSMEs) to finance, which has been
identified as one of the key constraints. It has planned for a quick assessment of MSMEs in
Nuwkaot and Dhadhing districts.
1An Act Made to Provide for reconstruction of Earthquake affected structures with legal provision on the establishment of National Reconstruction Authority. 2 Forthcoming report of NDRI, UNOPS and DFID on titled “A Detail Study on Poverty and Vulnerability in Four Earthquake Affected Districts” 3 http://blogs.lse.ac.uk/southasia/2017/10/18/understanding-the-economics-of-inclusion-a-perspective-on-nepal/
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1.2 Objectives The overall objective of this study is to assess MSMEs of construction market in Nuwakot and
Dhading districts. The specific objectives are:
I. To map out existing MSMEs of construction market.
II. To understand financial requirements and arrangements of MSMEs.
III. To identify major constraints that are limiting the business of the MSMEs.
1.3 Scope of the Study The assessment covered the construction sector´s market MSMEs at the district level and local
levels in urban and rural municipalities in Nuwakot and Dhading districts. The scope of this
study was to map out MSMEs with information of total numbers and operational status, volumes
of business transaction and expansion plan, needs of financial arrangements and requirements,
and market constraints that limit to MSMEs for the development of construction market
businesses. The industrial classification for the MSMEs according to Industrial Act, 2073 (first
amendment) has following requirements:
Micro Enterprise Small Enterprise Medium Enterprise
- The fix capital used in the business
enterprise will be up to NRs. 500,000
except the land and buildings.
- Entrepreneur himself/ herself involves
in the operation and management of
enterprises.
- Maximum number of employees will
be 9 including the entrepreneur
- The annual transaction of the enterprise
will be less than NRs. 5 millions.
- Maximum level of energy consumption
will be less than 20 KW for those
which uses the machinery or
equipment in the enterprise
- The enterprise which is
other than micro and
small enterprises and has
fixed assets up to NRs.
100 million (10 Crore) of
fixed capital.
- The enterprise which
has of fixed assets of
amount from NRs. 100
million (10 Crore) up
to NRs. 250 million
(25 Crore).
Table 1: Division of MSMEs based on the fixed capital and other
factors
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CHAPTER TWO
RESEARCH METHODOLOGY
Market system development approach was administered by NDRI to map out MSMEs in
Dhading and Nuwakot districts. Construction market players were surveyed to identify the
existing situation of MSMEs and map them in terms of their business volume in Nuwakot and
Dhading districts. We explored complex market realities, more specifically, the structural
constraints and impediments in the market incentive mechanisms. Local economic situation,
trade linkages, factor market environment and goods and services of the construction industry
were taken into considerations (For more details, please see the Annex-I & II). The respondents
were the owners of micro and small enterprises working in the supply side of construction
materials in Dhading and Nuwakot districts. In addition, NDRI conducted a quick quantitative
assessment survey with sample MSMEs of construction market. NDRI developed format (For
more details, please see the Annex-III) and organized the Key Informant Interviews (KIIs) with
ward chairperson of each ward of five municipalities sites in Nuwakot and Dhading districts. In
addition, information were gathered from other relevant informants such as business leader of the
market participants, municipality officials, and representatives of professional organizations,
including the respondents of bank and financial institutions and cooperatives, etc. (For more
details, please see the Annex-IV)
2.1 Method and Tools
a. Desk Review
Prior to field plan, scope of study was identified based on desk review of market polices
guidelines, commodities act, program documents of Mott Macdonald, and information related to
the construction market in Nuwakot and Dhading districts. Based on review of market system
development approach and earlier practices in Nepal, an analytical framework, preliminary
research hypothesis, and a general checklist were developed. Both inductive and deductive
approaches were adopted to explore in-depth insights on real market players and information on
the construction materials at the major market, minor market, and rural market in the districts.
b. Site Selection
NDRI in consultation with the team of Mott Macdonald purposively selected sample
municipalities (For more details, please see the Annex-V) to get information of the districts.
Similarly, the markets were identified for research site after consultation in each district. With
district´s information samples were collected from supply side market forces of construction
industry. NDRI in consultation with the team of Mott Macdonald considered the participants of
supply side market. Information of real market participants was also considered from the supply
side forces. We randomly picked each respondent on their availability in each level of market.
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The research team employed probability proportional to sample size (PPS) tools to select
required numbers of sample from each selected market area.
Area Bidur Belkotgadhi Tadi Likhu Dupcheswor Total
Questionnaire
Survey 35 5 11 4 2 57
KIIs 5 2 2 2 2 12
Interview 2 1 1 1 1 6
Observation 1 1 1 1 1 5
Area Nilkantha Dhunibesi Sidhhalek Benighat Gajuri Total
Questionnaire
Survey 21 14 11 13 10 69
KIIs 5 2 1 2 2 12
Interview 2 1 1 1 1 6
Observation 1 1 1 1 1 5
c. Primary Data Collection
116 quick quantitative surveys were conducted within the supply side construction market
players in the sample area. The research team considered the major and minor market areas of
the sample districts. Survey was conducted in each district with producers and traders involved
in the construction market. 10 qualitative interview with selected respondents of business and
political leaders, market chain suppliers and 22 KIIs were conducted with the respondents from
bank and financial intermediaries (For more details on format, please see the Annex-VII) who
were involved in flowing out loan in each selected area. NDRI considered only those
respondents who had in-depth understanding on both policy and practical barriers on the smooth
function of market. Snow ball sampling approach was used to select the supply chain
respondents. Not only linear marketing chain, research team conducted interview with other
market intermediaries such as government local bodies, ward chairpersons, transport agencies,
etc.
d. Direct Observation
Along during the survey, direct observation was conducted on the development of physical
infrastructures, flow of migration and changes in market, development of the rural market
centers, supply of construction materials including the enterprises trading construction materials
as the producers, wholesaler and retailers. We observed position and prospects of those various
supply side actors with the prospects and challenges of market expansion, and changes in
economic and socio-demographic situation in near future (For more details on format, please see
the Annex-IX). Quantitative data related to quality of stocks, availability and regularity were also
obtained from direct observation and their internal documents.
Table 2: Study tools and sample distributions
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e. Quick Survey:
Quick quantitative survey of 116 MSMEs was conducted on the supply side informants such as
hardware enterprises, crushers, brick suppliers/ Kilns, CSEB/HCB producers, stone cutters, sand
extractor, furniture, transporter, contractor, and metal worker/griller (For more details on format,
please see the Annex-VI). We considered urban and rural market areas in each of five
municipalities in two selected districts. Based on discussion with Mott Macdonald´s team and
scope of analytical framework, survey questionnaires were finalized. Each supply side actors of
the construction market were interrogated on the defined question as developed in consultation
with Mott Macdonald or as per availability and relevancy, and based on the scope of
information. Simple random sampling was utilized in each of the market to select the
respondents. In order to revive gender disaggregated data, survey were administered with female
respondent as far possible.
f. Key Informant Interviews:
KIIs were conducted with selected informants of supply side actors to inform on the supply of
construction materials in terms of types, volume and location in Dhading and Nuwakot districts
(For more details on format, please see the Annex-VIII). In addition, financial intermediaries
were interviewed on the loan market. Quantitative data related to the MSMEs of construction
market were obtained from direct field visits, observation and through their internal documents.
With the mutual consent and understanding of Mott Macdonald, NDRI selected respondents
from selected market, municipalities, FNCCI, FNCSI and respondents who had in-depth
understanding on construction market suppliers including their volume with municipality level
disintegration in Dhading and Nuwakot districts. Policy and practical barriers for smooth
functioning of market were explored. The information received on KIIs was verified in the field
level experiences. Not only with the linear marketing chain, we conducted KIIs with other
market intermediaries, such as financial institution to obtain information on access to capital,
supply of loanable fund, problems of loan market, etc.
2.2 Field Monitoring, Management and Quality Assurance
In order to refine the survey question, KII guidelines and interviewing technique, detail
consultation within project team and research team was carried out.
Pre-testing of research tools and finalisation: Pre-tesing of Questionnaire and checklist were
conducted in Bidur Municipality area. The received feedbacks from pre-testing were
incorporated in final questionnaires.
Recruitment and Orientation Training to Research Team: We administered 4 qualified field
researchers in each district for quick quantitative survey. One-day interaction session on 7th July
2017 was organized to orient about the research project to all field research team members. It
covered overall plans, ethics and field data collection process, precaution to be taken during the
data collection, and possible strategies to deal with the potential issues during the course of field
research. Orientation also covered research ethics and do-no-harm policy topics. Altogether five
experienced researchers were mobilized for KIIs and quantitative survey in the field.
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Field Work: The team was mobilized to collect data in the field during 01 – 12 July, 2018. The
team comprises of 5 members consist of economist as leader and 4 field researchers. Quality
assurance of survey process was ensured through data collection tool, monitoring and
supervision, which were assessed right during data collection, etc. Since, data were gathered
from different research tools, team leader/coordinator triangulated data and interpret findings.
Leader cross checked information collected from enumerators through informal discussions, and
critical observations on researchers’ interpretations4. Further, different entry points for research
were adopted to get access to heterogeneous group of respondents to gather a wide range of data
and perceptions.
2.3 Data Management and Analysis Plan
Data systematizing: Since, the KIIs and interview were conducted in Nepali language, field
notes recorded interviews and other information were translated into English language and the
contents were edited. Translated and edited contents were categorized according to the identical
themes and sub-themes. Those major themes were coded according to the survey objective and
question through self-made tags to understand its content for analysis part. The important and
powerful words, lines and meanings from the dataset were transformed as the topics, sections
and themes for analysis. The refined data were shaped by identifying different alternative
explanations and themes. These dataset were then interpreted based on literatures, contemporary
issues, findings of past and the proposed concepts and practices. Quantitative data obtained from
paper based questionnaire survey were entered into SPSS to check out the missing in the first
phase.
Analyzing data: Analysis was done from initial phase of fieldwork. We analyzed data set with
the literatures on NRA guidelines, market system development approach, successful case-
studies, policy gap and policy and practices in gaps in marketing of construction materials. All
the analysis was presented and arguments were drawn for justifying the conclusion to meet
proposed objectives of the assignment. When all these steps were carried out, data set was
shaped through back and forth linkages, developing alternative ideas, preparing drafts, correcting
and rewriting the content, backup by data and arguments and important cases. Finally, all
analysis was transformed into understandable and meaningful interpretation and presented as
output of this study. Based on available data, we conducted mapping of market suppliers based
on their location, financial requirements and arrangements, business expansion plan including
the business constraints.
Ethics of Research: All the ethical consideration was maintained throughout the research
process and practices. Following considerations were taken into account:
4 Denzin, N. K., (1978). The research act: A theoretical introduction to sociological methods. New York:
McGraw-Hill.
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I. Protection of the personal information: Personal information was not disclosed directly
from the exact identification of the respondents, as the activities may hamper in the life and
business of the respondents. Name and other identification were decoded to protect the
confidentiality during the analysis as required.
II. Voluntary participation and informed consent: Mechanisms to guarantee that all
participants chose to participate in the study of their will were established. They were fully
informed about the procedures of the research project and any potential risks. Both verbal
and written information were provided to the potential participants and written consent hall
be sought, where possible. If written consent could not be obtained (due to the literacy status
of the participants) verbal consent was sought. Additionally, it made clear that participants
were not forced to answer the questions, if they were uncomfortable or they did not want to
answer, and that they could stop their participation anytime. Full participation was
encouraged nonetheless. Permission to audio-record the KIIs were sought with the
participants.
III. Confidentiality and anonymity of the participants: Mechanisms to protect confidentiality
and anonymity of the participants were established. The participants were de-identified.
Codes, rather than participant’s details were used, to identify participants during data
collection and analysis. During transcription it was ensured that any text/ content containing
information that is pertained ‘identifying’ were de-identified or deleted as felt appropriate
during analysis.
IV. Reliability of data: We mobilized highly qualified economist to monitor the activities and
field researchers to collect the field data. Field researchers were exclusively trained to
accurately measure the response of the respondents. We utilized the standard software SPSS
or Excel to process and analyze the data collected from the field.
2.4 Deliverables and Timelines
The key deliverable of the assignment is the final report of findings summarized around the key
thematic areas, disaggregated by gender, municipality, market, and districts. The assignment was
completed within 4 weeks, starting from 27 June, 2018.
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CHAPTER THREE
MAPPING OF SMALL ENTERPRISES The mapping of the business indicates the concentration of MSMEs in the districts. The chapter
includes the construction materials and suppliers, development of markets, estimated number of
small enterprises, registration of MSMEs, and source of investment of MSMEs.
3.1 Construction Materials and Suppliers
Construction Materials: Overall imported and locally produced construction materials were
available in Nuwakot and Dhading districts.
Imported Construction Materials: Construction materials such as iron rod, Galvanized Iron
Sheet, cement, and brick block, CSEB and aluminum were imported from manufacturing
industry and mostly they were brought from outside of district and country. In addition, other
supporting materials like painting enamel, electric, plumbing and sanitation wares were also
brought from manufacturing industry.
Locally Produced Construction Materials: Materials such as stone, timber, gravel, sand and
pebbles were available in nearby areas. Either they were supplied by local suppliers or people
used to directly bring it from source with certain payment of tax at local level.
Construction Markets: Three types of markets existed in each district. Major markets were
located at district headquarters, where there was a presence of large number of suppliers.
Relatively small numbers but with a large scale of business transaction, construction materials
suppliers were located around the high-way markets. Minor markets were located in seasonal
roads (that often close in rainy seasons) which connect few rural municipalities and rural wards.
Contractors: Based on the nature and area, study team observed two different types of
contractors working in survey districts. The first type of contractors were registered contractors
(For more details, please see the Annex-X) who usually contract for large scaled construction
activities and frequently undergo through the tender process to get the bid; the second type of
contractors included contractors who were not legally registered in any of authority but involved
in individual´s home construction activities. These unregistered contractors were large in
numbers in urban, semi-urban and rural areas. The unregistered contractors were migrated
construction worker and locally available construction workers. They individually or in support
with the local elites deal with local people for construction agreement. They have better skill for
constructing rural home and can supply construction labors. However, they were not allowed to
take part in tender process or contracting with government´s construction activities. The
presences of migrated contractors were more concentrated in urban and semi-urban area while
local contractors were limited in the rural level construction.
Material Suppliers: There are three major rivers cross Nuwakot district, namely, Trishuli River,
Likhu and Tadi Rivers. Crushers and sand suppliers are largely located at the bank area of these
rivers.
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Construction materials are largely produced in Trishuli River (in both districts), followed by
Likhu and Tadi Rivers in Nuwakot district. At present, the previously available but unregistered
crusher enterprises have been significantly reduced due to the strict regulation of local
government authorities.
Hardware enterprises: The hardware enterprises are highly concentrated in the district
headquarters (market area). District´s headquarter is a strong base of institutional arrangements
of government offices which set up for a large number of government line agencies. Even today,
it is the only large business area to supply construction materials. The district level market
structure connects to the semi urban and rural market area and municipalities. The semi-urban
and rural markets, though they are emerging as local centers, are not reliable source of supply for
import based construction materials. Therefore, hardware enterprises of local center as well as
district market centers are supplying the import based construction materials.
3.2 Development of Markets in Nuwakot District
Figure 1: District Map, rivers, and road passes in Nuwakot District
19
Bidur, the district headquarter of Nuwakot, is the major market area that connects small
emerging market areas in rural municipalities. Nuwakot district has 3 major rivers called
Trishuli, Tadi and Likhu and construction markets are concentrated around these rivers. More
specifically, the local production of construction materials such as crushers, concrete stones,
sands, etc. are broadly limited around these rivers, while imported raw materials such as
hardware items and bricks are supplied from the district headquarters to local market centers
which are being emerged at the main roads of district´s connection. These materials have been
imported mainly from Kathmandu, Terai market, India, etc. Local market centers import
hardware items and bricks from district headquarter and nearby cities. In addition to district
coverage, the large scale hardware enterprises of Nuwakot supply their construction items to few
municipalities of Dhading district and to a large segment of Rasuwa district.
The major suppliers of construction sector market such as hardware enterprises, brick suppliers,
etc. are located at the major road and major river side area. Development of emerging markets in
Nuwakot district are therefore limited along with the roadside of the Trishuli River (Bidur
municipality), Tadi Khola (Belkotgadhi, Kharanitaar), and Likhu Khola (Dhikure and Chhahare)
and around the road connectivity areas.
The distribution of MSMEs which are working on construction market is influenced by the land
topography such as the hills, river basins, etc. Bidur, Urban Municipality, which lies in the
district headquarters has more than 6 times higher MSMEs (584) in comparison to the MSMEs
available in Dupcheswor Rural Municipality (89). However, emerging markets Likhu has a bit
large number of MSMEs (234) and Tadi has 98 MSMEs (Table 3).
The number of MSMEs in some selected municipalities of Nuwakot district is presented in table 3, below:
MSMEs Dupcheswor Bidur Likhu Tadi
Hardware enterprises 6 52 16 8
Crushers 0 2 2 1
Brick Kilns 2 27 0 5
Hallow Concrete Block (HCB) and CSEB producers 1 14 5 1
Stone Cutting enterprises 4 0 0 0
Sand extractor 7 5 0 1
Timber treatment/furniture enterprises 10 69 0 0
Transporters 28 216 87 35
Mini and Micro Contractors 31 194 103 24
Grill 0 5 21 23
Total MSMEs 89 584 234 98 Source: Ward Chairpersons of the respective municipalities in Nuwakot district, July 2018
According to the registered SMEs of Office of Small and Cottage in District, the number of
SMEs have 247 enterprises based on the construction industry in Bidur municipality (For more
details- please see the Annex-XI). The registered list however does not incorporate the number
Table 3: List of different MSMEs present in Nuwakot District
20
of hardware enterprises, mini and micro contractor, and the transporters. While comparing the
registered small enterprises (crushers, sand extractors, furniture, etc.) with information given by
ward chairpersons of Bidur municipality, we found out a higher number registration in
comparison with whatever observed by the ward chairpersons.
3.3 Estimated Number of Small Enterprises of Construction Market in Nuwakot
District
The estimate of MSMEs shows that the number Hardware enterprises, Crushers, Brick Kilns and
suppliers, Hallow concrete block and CSEB producer, stone cutting enterprises, sand extractors,
timber treatment /furniture enterprises, transporters, mini and micro contractors, and Grill
enterprises are 149 (7%), 13 (1%), 54 (3%), 43 (7%), 4 (<1%), 22 (1%), 169 (8%), 773 (36%),
784 (37%), and 108 (5%) respectively in Nuwakot district. (For more details, please see the
Annex-XII)
3.4 Development of Markets in Dhading District
Dhading besi is the head-quarter of Dhading district. Similar to Nuwakot district, construction
market is highly concentrated on headquarter market area and river bank of Trishuli River along
the Prithvi Highway. Trishuli River in Dhading district crosses four rural municipalities-
Benighat Rorang, Gajuri, Siddhalek and Galchhi, while the Prithvi Highway in Dhading district
Hardware enterprises
7%
Crushers1% Brick Kilns
3%
Hallow Concrete Block (HCB) and CSEB producers
2%
Stone Cutting enterprises
0%
Sand extractor 1%
Timber treatment/furniture
enterprises8%
Transporters36%
Mini and Micro Contractors
37%
Grill5%
Estimated MSMEs in nuwakot district
Figure 1: Estimated MSMEs in Nuwakot district
21
crosses five municipalities, i.e., one additional rural municipality (Thakre municipality) in
addition to those of 4 rural municipalities that are passed by the Prithvi Highway.
The highway also locates MSMEs which supply locally produced as well as imported
construction materials. Some local items such as bricks from the local kilns are produced in a
few municipality areas of Dhading district, such as Dhunibesi Municipality. Locally produced
construction materials are available at the bank of Trishuli River. The more we move towards
Kathmandu valley the more concentration of locally produced materials in Dhading district.
However, import based construction materials are available at the headquarter city- Dhadingbesi
(Nilkanth Urban Municipality) and around the Prithvi Highway. The closer we move towards
Kathmandu valley, we observe a large number of sand processors and crushers located around
the bank of Trishuli River.
The data reveals that headquarter of the Dhading district- Nilkantha Urban Municipality (557) as
well as Dhunibesi Urban Municipality (border of the Kathmandu valley) (629) have a large
number of MSMEs in comparison to the MSMEs located in other rural municipalities. Benighat
Rorang Rural Municipality have a large number of MSMEs as compared to the MSMEs in
Gajuri Rural Municipalities.
Figure 2: District map, rivers, and roads passes in Dhading district
22
The list of MSMEs which were registered at the District Office of Small and Cottage reveals that 89 small
enterprises are working in the field of Dhunibesi municipality5. Benighat Rorang, Gajuri, and Siddhalek
municipalities have 47, 111, and 15 MSMEs respectively. The list does not incorporate the number of
hardware enterprises, mini and micro contractor, and the transporters working in the survey areas.
Enterprises Dhunibesi Benighat Rorang Nilkantha Gajuri
Hardware enterprises 16 15 28 7
Crushers 4 1 1 8
Brick Kilns 38 1 11 2
Hallow Concrete Block (HCB) and
CSEB producers 4 6 24 7
Stone Cutting enterprises 3 2 0 3
Sand extractor 4 6 28 8 Timber treatment/furniture
enterprises 0 0 61 13
Transporters 346 7 136 84
Mini and Micro Contractors 186 299 237 167 Grill 28 16 31 13
Total MSMEs 629 353 557 312
Source: Ward Chairpersons of the respective municipalities in Dhading district, July 2018
5 The hardware enterprises could be identified by the name they have as such in the register, while the mini and micro enterpri ses are not
registered and the limited transporters are registered at the District Small and Cottage Office.
16
4
38
4
3
4
0
346
186
28
15
1
1
6
2
6
0
7
299
16
28
1
11
24
0
28
61
136
237
31
78
2
7
3
8
13
84
167
13
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Hardware enterprises
Crushers
Brick Kilns
Hallow Concrete Block (HCB) and CSEB producers
Stone Cutting enterprises
Sand extractor
Timber treatment/furniture enterprises
Transporters
Mini and Micro Contractors
Grill
MSMEs in construction market in selected municipalities in Dhading district
Dhunibesi Benighat Rorang Nilkantha Gajuri
Figure 3: MSMEs in construction market in selected municipalities
in Dhading district
Table 4 Different enterprises present in Dhading District
23
There is a gap between those of registered MSMEs at the District Office of Small and Cottage
and data collected through the source of ward chairpersons. (For more details, please see the
Annex-XIII)
3.5 Estimated Number of Small Enterprises of Construction Market in Dhading
District
In Dhading district, the estimate of MSMEs show that number Hardware enterprises, Crushers,
Brick Kilns and suppliers, Hallow concrete block and CSEB producer, stone cutting enterprises,
sand extractors, timber treatment /furniture, transporters, mini and micro contractors, and Grill
enterprises are 118 , 19, 54, 48, 11, 54, 178, 776, 2110, and 101 respectively. Of these MSMEs,
transporters cover 50 percent followed by 13 percent mini and micro contractors, 11 percent
furniture/ timber treatment enterprises, 8 percent hardware enterprises, etc. (For more details,
please see the Annex-XII)
3.6 MSME Registration
The MSMEs registration process generally takes place at the District´s Small and Medium
Enterprise (SME) Office, a line agency of Ministry of Industry (MoI). In addition, registration
processes are being started at municipality level. For the purpose of tax, MSMEs are also
registered at the district line agency of the Inland Revenue Department.
A questionnaire survey was administered to report on the registration status of micro and small
enterprises of construction sector in Nuwakot and Dhading districts. The survey respondents
include hardware enterprises, crushers, brick suppliers/ Kilns, CSEB/HCB producers, stone
Hardware enterprises
8%
Crushers1%
Brick Kilns4%
Hallow Concrete Block (HCB) and CSEB producers
3% Stone Cutting enterprises
1%
Sand extractor 3%
Timber treatment/furniture
enterprises11%
Transporters50%
Mini and Micro Contractors
13%
Grill6%
Total MSMEs in Dhading district
Figure 4: Total MSMEs in Dhading district
24
cutters, sand extractor, furniture, transporter, contractor, and metal worker/griller. Almost of the
entrepreneurs engaged in construction sectors, for example, are registered at their concerned
local or national regulatory agencies. However, almost all of small contractors and very few
hardware and furniture enterprises are supplying their services/outputs without registering their
business. Those insignificant hardware and furniture enterprises which are not registered are
mostly located in the rural and semi-rural area. There are some MSMEs which are not registered
anywhere are supplying construction goods and services. Those enterprises which are supplying
goods without registration are mostly the small and mini contractors and transporters (at the local
level) in addition to the brick suppliers. On the other, there are also some MSMEs which are not
supplying the construction goods and service though they have been registered at the SME office
in the districts.
Most of the respondents have registered their business in the government authority. However, few
respondents from metal and furniture enterprises and most of the respondents from contractors are not
registered in Nuwakot and Dhading districts.
3.7 Source of Investment for MSMEs in Construction Market Respondents were asked to inform about the source of capital for investment on their business. Half of the
respondents (50%) reported that they used their old savings. This was followed by those respondents who
sourced through the Bank and Financial Institutions including the cooperatives (30%), neighbors, friends
and relatives (13%), business income of the entrepreneur (4%), and others (3%).
30
2
7
8
1
6
23
9
1
14
0
0
1
0
0
0
3
0
8
3
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Hardware enterprise
Crushers
Brick suppliers/ Kilns
CSEB/HCB
Stone cutter
sand extractor
Furniture
Transporter
Contractors
Metal
Number of registered and non-registered business
Yes No
Figure 5: Number of registered and non-registered business
25
Respondents who used old saving for busfiness were more in rural area in comparison to urban
area.
20
1
7
4
0
6
22
8
7
12
3
0
1
1
0
0
11
1
0
5
17
1
3
6
1
1
9
6
0
8
3
0
0
0
0
1
1
0
1
2
2
1
0
0
0
2
0
0
0
1
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Hardware enterprise
crushers
Brick suppliers/ Kilns
CSEB/HCB
Stone cutter
Sand extractor
Furniture
Transporter
Contractors
Metal
Source of loan for business establishment by business
Old Saving Neighbours and Friends Loan from Bank, Finance and cooperative Business Income Other
4
11
23
12
2
6
3
18
1
7
0
4
8
3
1
3
0
2
0
1
3
4
19
4
0
5
2
9
0
6
0
0
7
0
0
0
0
0
0
1
1
0
1
1
0
1
1
0
1
0
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Belkotgadhi Municipality
Benighat Rorang
Bidur Municipality
Dhunubesi Municipality
Dupcheshowor Rural Municipality
Gajuri Rural Municipality
Likhu Rural Municipality
Nilkhantha Municipality
Siddhalekh Rural Municipality
Tadi Rural Municipality
Source of loan for business establishment by municipality
Old Saving Neighbours and Friends Loan from Bank, Finance and cooperative Business Income Other
Figure 6: Source of loan for business establishment by business
Figure 7: Source of loan for business establishment by municipality
26
CHAPTER FOUR
FINANCIAL REQUIREMENTS AND ITS ARRANGEMENT
The presence of the bank and financial institutions have a good coverage around the head quarter
cities and in the few developed areas of the districts (For more details, please see the Annex- A).
Equally there are a few rural municipalities which still have low access of financial resources for
the MSMEs. Study team found the limited access of the resources to MSMEs even with presence
of all categories BFIs- A, B, C, and D including the cooperatives. Most of those BFIs which are
providing resources are serving loans to MSMEs as a consumer basis but in the form of business
entity (For more details, please see the Annex-XIV). The interest rate charged for business entity
in the Nepali banking industry is relatively smaller while it goes higher for consumer. Actually,
rate of interest charged are based on the base rate plus premium value. The base rate covers
overall operational cost of BFIs and the premium is additionally added which is usually based on
the sectors of credit flow, associated risk, return on equity, collateral positions, etc. The presence
of informal market for access of credit such as friends, neighbors, relatives are also found
equally important source of fund for MSMEs. The proportion of these informal loans is still
higher among the MSMEs in the districts. Issues are found on availability of collaterals, cost of
capital, business and financial education, credit market infrastructures, development of physical
infrastructures, etc.
4.1 Willingness to Expand Business
21
1
8
6
1
5
22
6
9
16
9
1
0
2
0
1
4
3
0
1
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Hardware enterprise
crushers
Brick suppliers/ Kilns
CSEB/HCB
Stone cutter
sand extractor
furniture
transporter
contractors
Metal
Willingness in Business expansion in near future
Yes No
Figure 8: Business expansion in near future, by business
27
Respondents were asked to inform their willingness to expand business in near future. A very
high majority of the survey respondents reported that they wish to expand their business. Eighty
two percent respondents desired to expand their business while 18 percent did not have such
wishes. Of those who were willing to their business were stone cutter and brick suppliers
(100%), furniture enterprises (84%), non-registered contractors (67%), etc. On the other those
who denied expanding their business in near future were crushers (50%), transporter (37%),
hardware enterprises (30%), CSEB/HCB producers (25%), etc.
Respondents who were from rural local market centers would like to expand their business in
comparison to those who were from semi-urban or headquarters area of the district.
4.2 Utilization of Fund to Expand Business
Respondent MSMEs reported that they were interested in utilizing the fund for purchasing of
land to manage their working space. In addition respondents were also interested in procuring
necessary materials, steels, Tayal, machinery and equipment, new transports, increase the stock
of goods and services, build show room for display, develop new pillar boxes, warehouse
management, etc. for business expansion.
4.3 Availability of Capital to Expand Business
Respondents were asked to inform on the availability of capital to expand business in near future.
An overwhelming proportion of respondent reported that they didn´t have their own capital to
expand their business. Those respondents who did not have their own capital were more in rural
area in comparison to the urban and semi-urban area. Most of the questionnaire survey respondents
did not have their own capital to invest in for their business expansions.
4
12
29
11
2
7
4
17
1
8
1
1
6
3
0
3
0
4
0
3
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Belkotgadhi Municipality
Benighat Rorang
Bidur Municipality
Dhunubesi Municipality
Dupcheshowor Rural Municipality
Gajuri Rural Municipality
Likhu Rural Municipality
Nilkhantha Municipality
Siddhalekh Rural Municipality
Tadi Rural Municipality
Business expansion in near future in municipality
Yes No
Figure 9: Business expansion in near future in municipality
28
4.4 Source of Capital to Expand Business
Respondents were asked to report possible fund suppliers for their business expansion. Most of
the respondents (90.5%) reported that they shall be taking loan from BFIs and cooperatives while
expanding their business in near future. Respondents who have planned to take loan from
neighbors, friends, and family to expand their business are very low (5%). (Figure 13)
0
0
2
0
0
0
0
1
0
0
4
12
27
11
2 7 4
16
18
0
5
10
15
20
25
30
0 0.5 1 1.5 2 2.5
Belkotgadhi Municipality
Benighat Rorang
Bidur Municipality
Dhunubesi Municipality
Dupcheshowor Rural…
Gajuri Rural Municipality
Likhu Rural Municipality
Nilkhantha Municipality
Siddhalekh Rural Municipality
Tadi Rural Municipality
Own capital to expand business Yes No
1
0
0
0
0
1
0
1
0
0
20
1
8
6
1
4
22
5
9
16
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Hardware enterprise
Crushers
Brick suppliers/ Kilns
CSEB/HCB
Stone cutter
sand extractor
Furniture
Transporter
Contractors
Metal
Own capital to expand business by enterprises
Yes No
Figure 10: Own capital to expand business
Figure 11: Own capital to expand business by enterprises
29
Respondents who intended to use their own old saving while expanding their business were 22
percent only (Figure 14).
4.5 Problems in the Source of Loan
Respondents were asked to view the problems close to the source of capital while they are going
to expand their business. 27 percent respondents reported that the interest rate is high, while 16
3
11
26
11
2
7
3
15
0
8
1
1
3
0
0
0
1
2
1
0
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Belkotgadhi Municipality
Benighat Rorang
Bidur Municipality
Dhunubesi Municipality
Dupcheshowor Rural Municipality
Gajuri Rural Municipality
Likhu Rural Municipality
Nilkhantha Municipality
Siddhalekh Rural Municipality
Tadi Rural Municipality
BFIs source of loan for business expansion in near future
Loan from Bank, Finance and Cooperative Yes Loan from Bank, Finance and Cooperative No
1
3
5
4
0
1
1
3
0
3
3
9
24
7
2
6
3
14
1
5
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Belkotgadhi Municipality
Benighat Rorang
Bidur Municipality
Dhunubesi Municipality
Dupcheshowor Rural Municipality
Gajuri Rural Municipality
Likhu Rural Municipality
Nilkhantha Municipality
Siddhalekh Rural Municipality
Tadi Rural Municipality
Old saving as a source of loan for business expansion in near future
Yes No
Figure 12: BFIs source of loan for business expansion in near future
Figure 13: Old saving as a source of loan for business expansion in near future
30
percent, 15 percent, 11 percent and 5 percent respondents reported that they had difficulty to pay
the high interest rate, no reliable source of loan, difficult to pay loan installment, and cost of loan
processing respectively. One fourth of the respondents (25%) reported that they had other
problems (Figure 15).
While delving deep into the root causes, study team observed several challenges in access to finance for
MSMEs, especially for those MSMEs who were from rural municipalities. Actually the challenges were
found in the supply as well demand side of the loanable funds. The supply side challenges in summary
30
22
00
41
73
30
40
12
53
23
20
12
113
23
1
10
20
01
21
00
130
43
13
83
13
90
22
01
111
27
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Hardware enterprise
Brick suppliers/ Kilns
Stone cutter
Furniture
Contractors
Problems in the source of loan
No relaiable source of loan Difficult to pay interest Difficult to pay installment
Cost of loan processing High interest rate Others
1
3
7
2
1
0
0
3
0
5
0
4
5
3
0
2
0
4
0
5
1
3
1
1
0
3
1
4
0
2
0
0
0
3
0
1
1
1
0
1
0
5
12
7
0
5
0
9
0
1
3
5
9
3
0
2
2
8
1
2
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Belkotgadhi Municipality
Benighat Rorang
Bidur Municipality
Dhunubesi Municipality
Dupcheshowor Rural Municipality
Gajuri Rural Municipality
Likhu Rural Municipality
Nilkhantha Municipality
Siddhalekh Rural Municipality
Tadi Rural Municipality
Problems in the source of loan
No reliable source Difficult to pay interest Difficult to pay installments
Cost of loan processing High interest rate Others
Figure 14: Problems in the source of loan
Figure 15: Problems in the source of loan
31
are: (a) increase the proportion of MSME business loan, (b) decrease the lengthy procedures of lending
and documentation, (c) include rural social assets in risk mitigation measures- scoring matrix of BFIs, (d)
enlarge the scope of assets in the list of collaterals, (e) reduce the cost of credit information among SMEs,
(f) educate MSMEs on business development plan and strategies. On the other, the demand side
challenges in summary are: (a) increase the payment capacity of MSMEs, (b) reform the credit transaction
practice, (c) reduce the cost related to the business registration, audit reports and tax compliance (d)
reduce the cut throat competition among MSMEs, (e) establish credit market infrastructures, (f) habituate
MSMEs on market system and credit market information, (g) develop the local level physical
infrastructures of development, etc.
The presence of the BFIs were largely concentrated in the urban area. Commercial banks which
have a large proportion funding resources were found with limited interest in small size loans
(NRs. 1 million threshold) because of higher operational cost. The presence of development bank
and finance companies are limited even in the urban area of the study districts. The number of
cooperatives in the rural areas is high but they remain closed due to no regular staffs in majority
cases and were found with limited loanable funds. These cooperatives usually flow loan of very
small size (mainly NRs. 25,000- 300,00.00) which in many extend do not cover the demand for
construction MSMEs.
4.6 Required Size of Capital for Business Expansion
34.48
20.69
10.34
17.24
17.24
44.12
20.59
8.82
17.65
8.82
200,000-1000,000
1100,000-2000,0000
2100,000-4000,000
4100,000-10,000,000
10,100,000- 10,500,000
Average size of loan demand for MSMEs in rural and urban municipalities (%)
Rural Municipality Urban Municipality
Table 5: Loan capital requirements for MSMEs to expand business
NRs. Frequency Percent
2 to 4 hundred thousands 4 4.2
4 to 6 hundred thousands 8 8.4
6 to 8 hundred thousands 5 5.3
8 to 10 hundred thousands 5 5.3
Above 10 hundred thousands 73 76.8
Total 95 100.0
Figure 16: Average size of loan demand for MSMEs in rural and urban municipalities
32
A large proportion of the respondents (77%) reported that additional loan capital requirements for them is
more than 10 lakhs, while 13 percent respondents reported that they require about 6 lakhs loan, and 10
percent respondents reported that they are in need of 6-10 lakhs for expanding their business in near
future.
However, majority of the respondents demanded for a loan size in the range between NRs. 1- 2 million.
The credit requirements vary in between the nature of MSMEs in the districts, their family background,
city they belong to, size of business they handle, and so on. Those who are from urban areas have demand
of larger size credit compared to the MSMEs from rural areas.
33
CHAPTER FIVE
CONSTRAINTS OF MSMEs
The study team during the questionnaires survey asked them to put forth about their problems.
The responses were collected under the following headings about the MSMEs.
Industry: There are some policy issues about construction materials. For examples, judiciary
and district administration office have conflicting statements - they have supported and ruled
against extraction of sands and concrete from the rivers. The barriers are mainly in the quality of
the construction materials, transportation system, price fluctuation of raw materials, local
material scarcity, etc. The government has not proper supportive policies for MSMEs in the
development of construction market. The cost of transportation is very high due to the difficult
muddy roads and lack of road networks. The labor market is in problem mainly due to the
shortage, dominance of unskilled and semi-skilled labors since they were available only for
seasonal periods. MSMEs have problems of liquidity as most transactions were on credit basis.
They recently have faced problems of high tax. There are problems occurred in time and again
such as inconsistent supply of electricity, lack of raw materials, poor governance, unsupportive
behavior of law enforcement personnel, forest office (for not letting allow to chop down the
trees) and district administration, difficulties of road connectivity, market practices of the
MSMEs, shortages of goods and services, collaterals for access to credit, low education and
technical idea on business proposal development, limited market opportunities etc.
Hardware: In lack of proper regular income of the consumers, entrepreneurs are compelled to
practice of selling goods and services on credit. As a result, lack of cash liquidity complex
relation with dealers and whole sellers. The competition among the enterprises in the local
market is increasing. Increase in company price for the imported products led to rise in local
retail price of goods in the market. However, consumers complained on the rising price of
construction materials. Therefore, it is difficult to sale construction goods and services due to the
high price. Internally, Hardware MSMEs also have problems of staffs (unavailability) and local
level transportations. MSMEs also feel that government officials have not rightly monitored for
market reform. With the unavailability of construction goods and service for months in a year,
lack of sufficient space for investment due to the limited opportunity in the local market, the
MSMEs expansion has been stagnated. Problems are also in the approach of banking valuation
while taking loan from BFIs. Due to the transportation problems, goods arrive was very untimely
in local market. Due to this, hardware MSMEs have been unable to meet the demands for goods
and services in the rural area. They blame on the government policies and employees for taking
charge of under invoices during the import and export of goods and demand transparent
monitoring by the government officials.
34
Brick suppliers / Kilns: The market is growing more competitive due to the large level of
suppliers in the local market. Suppliers are selling bricks as per manufacturer´s cost and they are
not even taking the marketing cost. The land for rent is going to be very expensive. They have
used more unskilled or semi-skilled labors. Brick suppliers have taken high loan from the bank
and financial institutions. As a result, brick suppliers are not being able to invest more in
business. Some of the brick suppliers are not registered. Situations like increase in cost due to
broken bricks and seasonality demand in the market have led the bricks suppliers difficult to
sustain in the market.
Halo concrete block and CSEB producers: These producers sale goods on credit and they
delay payment had restricted further investment. As a result, they have problems to capitalize the
resources. Also high price of raw materials made difficulty in the smooth sales. The banking
service for taking loan has a very lengthy process. There is a lack of skilled labors. The demand
for these goods and services is small.
Transporters/ suppliers: The transporters have a seasonal market supply. The problems are
created by the police administration and their bad governance. In addition, local road network is
very poor to move on the roads to supply of goods in the rural areas. Also, credit transaction in
local market has made the entrepreneurs shortage of liquidity, eventually having negative impact
on the expansion of the service. The cost of capital is high due to the high interest rate. The
suppliers also feel a lengthy banking process for taking loan even to the SMEs. In case of vehicle
accident, they face problems from public people and feel difficulty (far distance) to reach at the
local hospitals. Suppliers are facing problems in getting back the credit receivable amount from
the market and the transactions are also very low due to seasonality market. Also, they think that
VAT has increased expense cost. The vehicle servicing and maintenance are also difficult in the
districts. Moreover, they face a tough competition among suppliers depending upon the seasonal
variations. The shortage of raw materials and blockages of roads by the various groups is also the
problems for transporters. The transporters also face difficulty in securing their vehicles as there
is limited space available for parking.
Mini and small contractors: Most of the mini and small contractors are Madeshi communities
and they feel that biased and discriminatory behavior by some members of the community have
made difficult to work. They are not legally registered but they are taking contract for
constructing their homes. They have low capacity of investment to expand their business. Also,
they don’t have collateral in most of the cases. They have to pay a high proportion of revenue for
labor costs. They feel difficulty and expensive registration process. They also suffer from the
poor roads networks, seasonal working of the labors, and problems in the supply of raw
materials.
Furniture/Timber treatment enterprises: They lack proper space for managing their raw
materials and products. They also face problems in getting loan from bank as it was difficult to
secure loan as per the size of their demands. They also sell goods on credit. Sometimes woods
35
(raw materials) are damaged by termites and other insects. Because of seasonality and low
annual transaction, they do not feel necessary in registering their enterprises on the Office of the
Company Registrar. They are facing shortage of skilled and semi-skilled labor, and raw
materials. The raw materials they use to produce outputs are becoming costly and it makes
difficulty to compete among other suppliers in lack of proper stock. They also have credit
transaction problems. They don’t have sufficient stock of money to invest in their business. They
have dissatisfaction with government institutions regarding the registration and other issues.
They are facing difficulties to import woods from other districts because of irregularities by the
governing bodies.
Sand extractors: They have policy level difficulty of extract sand. Problems are sometimes
created by government administration. The market sometimes has lack of raw materials.
Government complicated policies and illegal extraction and distribution of sands in the market
has created further problems for Sand extractors.
Crushers: Policy issues are at the regulatory levels. Local governments are being unable to take
right decision to support on the reconstruction process.
We are regulating locally produced construction materials. A large number of suppliers are involved in
extracting the construction materials even without registration and paying any tax to the local government.
Now, there is only one registered entrepreneur producing crushers required at the local level and paying
royalty of concrete materials. Now we have to energize to such construction material producers for the
support of constructing homes for the earthquake victims.
Construction materials are not extracted during these 3 rainy months, Ashad to Bhadra. There used to be
problems from district level government structures on supply of construction materials. When new CDO and
Police heads are come into the position, problems appear in the supply. Now we have settled these issues
and problems have been solved in district. There are several small level suppliers to whom we are not
regulating to those who do not use machinery and equipment to extracting sands and concrete materials
from rivers. They are small holders and marginalized community people who need supports. We see
shortages of raw materials in time and again. – Chairperson, Construction Regulation Committee, Bidur
Municipality (Ward Chairperson), Ward No. 4
36
CHAPTER SIX
CONCLUSION AND RECOMMENDATIONS
6.1 Conclusion The current reconstruction process is lagging behind due the market supply gap of construction
sectors actors and problems in their services in Nuwakot and Dhading districts. Specifically in
rural municipalities, supply constraints are observed on the supply of construction materials. The
barriers that limit on the supply of construction materials and related services are not only due to
the topographical difficulties but also on the market based incentives in lack of support from
government institutions and private sectors.
The presence of construction based MSMEs are highly concentrated around the headquarter
cities and major roads around the rivers, while the presence of these MSMEs is very poor in the
rural hilly area in the districts. The presence of construction based MSMEs are therefore largely
affected by government structures in the districts and rivers flow which provides the local raw
materials, and development of roads. The study team projected 2119 and 3469 number of
MSMEs in the construction sector in Nuwakot and Dhading districts respectively. The
disintegrated data showed MSMEs working are Hardware enterprises (7%), Crushers (<1%),
Brick Kilns/suppliers (3%), Hallow Concrete Block (HCB) and CSEB producers (2%), Stone
cutting Enterprises (<1%), Sand Extractors (1%), Timber Treatment/Furniture enterprises (8%),
Transporters (37%), Mini-contractors (37%), Metal/Grill Enterprises (5%) in Nuwakot District.
Similarly, the proportion of Hardware enterprises (3%) , Crushers (<1%), Brick Kilns/suppliers
(1%), Hallow Concrete Block (HCB) and CSEB producers (1%), Stone cutting
Enterprises(<1%), Sand Extractors(2%), Timber Treatment/Furniture enterprises(5%),
Transporters (22%), Mini-contractors (61%), and Metal/Grill Enterprises (3%) among MSMEs
in Dhading District. Of these MSMEs, a large presence of mini contractors who are not legally
registered is very high due to the informal parts of the construction market. Of these enterprises
which sourced their old saving for their business establishment were almost 50 percent.
The outreach of BFIs and Cooperatives is very good in headquarter cities followed by a good
presence on road access area and poor presence in the rural area. An overwhelming proportion of
MSMEs respondents (82%) from the survey area reported that they wish to expand their
business. However, they did not have as much funds of their own to invest in their business. Of
those who had the wish to expand their business were almost in need of the financial
requirements. Moreover, those entrepreneurs desiring of business expansion have a plan to take
loan from BFIs and Cooperatives sources (90.5%). However, MSMEs see problems such as high
interest rate (27% respondents), difficult to pay interest rate and installments, etc. in their
possible loans sources. A very high majority of the respondents (77%) reported that they had a
demand for more than NRs. 1 million to expand their business, while 13 percent and 10 percent
respondents had in demand for less than NRs. 0.6 million and NRs. 0.6-1.0 million. The average
37
size of loan demand per entrepreneur is NRs. 7,031,522. On the supply side, majority BFIs have
SMEs or similar types of product to flow out the loan. But they are not being able to flow loan to
MSMEs due to the problems such as high cost of capital, insufficient source of income,
inadequacy of collaterals, low financial literacy and business management, lack of proper
business plans, etc. Overall BFIs are flowing out limited consumer loan to BFIs of business loan.
Challenges on access to finance for MSMEs are in the supply as well demand side of the
loanable funds. The supply side challenges are: (a) increase the proportion of MSME business
loan, (b) decrease the lengthy procedures of lending and documentation, (c) include rural social
assets in the risk mitigation measures- scoring matrix of BFIs, (d) enlarge the scope of assets in
the list of collaterals, (e) reduce the cost of credit information among MSMEs, (f) educate
MSMEs on business development plan and strategies. On the other, the demand side challenges
are: (a) increase the payment capacity of MSMEs, (b) reform in the credit transaction, (c) reduce
the cost related to the business registration, audit reports and tax compliance (d) reduce the cut
throat competition among MSMEs, (e) establish the credit market infrastructures, (f) habituate
MSMEs on business and credit market information, (g) develop the local level physical
infrastructures of development, etc.
The MSMEs barriers in the districts are in policy and operational levels. The locally produced
materials are in need of the clear policy supports for the extraction of construction materials and
the imposition of tax for those materials. In terms of determining prices and giving permission to
the enterprises for extraction of these locally produced materials, bad governance issues are
inter-related with district administration, police administration, and local government. Almost
enterprises have problems on the under-developed physical infrastructures, towards the credit
crunch position, requirement of funds to expand their business, and labor shortage issues. The
internal issues of the MSMEs such as poor level business education and lack of creative
competency, adequate financial literacy to prepare for business proposal to ask for MSMEs loan
in their requirements, shortages of raw materials, stock management and seasonal supply of the
materials, etc.
6.2 Recommendations Based on key findings, following policy and operational recommendations are suggested:
(a) Recommendations for construction market development: Market supply gap on
construction materials should be filled in support of government entities. Government
and other authoritative bodies should provide subsidies to construction based MSMEs to
expand the construction market. For this, policies should be amended accordingly on the
relevant requirements of MSMEs. There is a frequent problems of high price and
monopoly power exerted by the few suppliers working on the sand and concrete pebbles.
The locally produced materials have to be extracted in such a balance that reconstruction
as well as local construction will have an adequate balance in materials supply along with
the protection of environment. Governments should have a balanced tax and royalty
38
approach to address the local demand and for utilization of locally produced materials.
Governance reform can be the better practice for the supply of local needs. Those
enterprises which provide service at the local level should also be locally
registered/informed. The registration of micro and mini contractors is registered at the
local governments. The registration of transporters at the local level is also important.
Local governments have to reduce the cost of registration by the minimum possible
compliances and procedurals. Local level development affects positively on construction
market. Therefore governments with no alternatives should have a plan of physical
infrastructure development such as roads, electricity, communication, etc. to address the
constraints of the rural area through the private sector. MSMEs have some institutional
problems such as low level of education, business expansion. Governments have to
address these problems through a broad based and inclusive market development
approach.
(b) Recommendations on access to finance: Government bodies should plan incentives to
establish new BFIs branches in rural areas. BFIs branches should focus SME loan to
expand at the maximum possible level. The supply side reforms should be: (a) increase
the proportion of MSME business loan, (b) adopt digital technologies such as cloud
computing, distributed ledger technology, artificial intelligence that can reduce the
transaction cost of BFIs significantly, (c) decrease the lengthy procedures of lending and
documentation, (d) include rural social aspects in the risk mitigation measures- scoring
matrix of BFIs, (e) enlarge the scope of assets in the list of collaterals, (f) reduce the cost
of credit information among MSMEs, (g) educate MSMEs on business development plan
and strategies. On the other, the demand side recommendations are: (a) increase the
payment capacity of MSMEs, (b) reform in the practices of credit transaction of MSMEs,
(c) reduce the cost related to the business registration, audit reports and tax compliance
(d) reduce the cut throat competition among MSMEs, (e) establish the credit market
infrastructures, (f) habituate MSMEs on business and credit market information, (g)
develop the local level physical infrastructures of development, etc.
39
Annex –I: Situation Analysis of Sample Municipalities and Market Area in Dhading
Types of
variable
Situation of the infrastructures and business environment
Nilkantha Municipality Siddhalek
Municipality
Benighat
Rorang
Municipality
Gajuri
Municipality
Dhunibesi Municipality
Major
market
Places
Ward No 3 and wards
touching Kathmandu way in
roadside
Benighat, Majhimtaar,
Malekhu, Charaudi
and road lines wards –
5, 7, 8,9, 10, and 13
Dependent to
Nilkanth,
Malekhu and
Gajuri
Road line
wards – 1, 2,
4, 6,8
Road line wards –1, 2, 5, 6
(Around 15 Kilometers of
highway)
Road
development
Moderate quality black
topped road only on ward
No.3, major market area and
way to Kathmandu. 3 roads
(which are totally closed in
rainy season for vehicles)
also connect to rural hilly
area
1 highway
(Kathmandu to
Mugling/ Chitwan/
pokhara) and rural
hilly and difficult
roads
1 highway
(Kathmandu
to Mugling/
Chitwan/
pokhara) and
rural hilly and
difficult roads
1 highway
(Kathmandu
to Mugling/
Chitwan/
pokhara) and
rural hilly and
difficult roads
1 highway
(Kathmandu to Mugling/
Chitwan/ pokhara) and
rural hilly and difficult
roads
Population
flow
Flown from rural hilly areas flowing out to
Dhadingbesi and
Kathmandu
flowing out to
Kathmandu
flowing out to
Kathmandu
Insignificant
Presence of
BFIs
ABCD category &
cooperatives
Only one branch office
is being established
Very few
branch offices
Few branch
offices
Few in limited wards along
the highway
Electricity
supply
Yes, but power cutting
experience observed by
MSMEs
Yes but limited to road
areas
Yes but
effective in
road areas
but effective
in road areas
but effective in road areas
Rivers
Trishuli River (Benighat
Rorang, Gajuri, Galchhi, and
Thakre rural municipalities)
alongside of the Highway
Trishuli River passes
nearby
Trishuli River
passes
Trishuli River
passes
Trishuli River passes
Trade
linkages and
Kathmandu, Highway and
rural area
Kathmandu,
Dhadingbesi and
Kathmandu
and limited
Kathmandu
and limited
Kathmandu and limited
rural area
40
Market
connectivity
limited rural area rural area rural area
Labor market
situation
Migrated labor More migrated labor
and few local labor
More migrated labor and
few local labor
Topography
Hilly area except Ward No.
3
Most of the part is
hilly, besides few road
and riverside area
Hilly area
except the
road line area
Hilly area
except the
road line area
All wards are hilly
Urban
development
prospects
Yes, but limited land supply Major road area only Highway
Road area
Highway
Road area
Highway Road area
Development
plan
periodic plan, Local
government
Not available Not available Not available Not available
MSME plan National plan National plan National plan National plan National plan
41
Annex – II: Situation Analysis of Sample Municipalities and Market Area in Nuwakot
Types of
variable
Situation of the infrastructures and business environment
Bidur Market Area Belkotgadhi
Market Area
Tadi Market
Area
Likhu Market
Area
Dupcheswor
Market Area
Major market
Places
Roadside Wards: 1, 2, 3,4 Roadside Wards:
7, 8, 9, 10
Roadside
Wards: 3, 4
Roadside
Wards: 6, 4
Road
development
Narrow, black topped but poorly
developed roads in market place. 5 roads
(to Tarkeswor, Tadi/likhu,
Kakani/Tokha, Kolani/Deurali,
Betrawati/Meghang) passes to rural
municipalities area. Most of these roads
are underdeveloped though black
topped. Three roads to connect to
Kathmandu (Kathmandu-Galchhi-Bidur-
Dhunche, Bidur- Dhikure-Chhahare-
Kathmandu, Bidur- Kakani-
Kathmandu).
2 major roads
passes through it
(connects
Kathmandu from
Kakani and
Dhading from
Galchhi)
Mixed of black
topped and
gravel roads to
connect from
district
Headquarter
Mixed of black
topped and
gravel roads to
connect from
district
Headquarter
Difficult in
access of road
networks to all
wards
Population
flow
Flew in from rural hilly areas flowing out to
Kathmandu and
downside roads
flowing out flowing out flowing out
Presence of
BFIs
ABCD category & cooperatives Limited in road
those 2 major
road sides
Very limited
presence
Very limited
presence
Few in limited
wards
Electricity
supply
Yes, but power shedding exist Limited along the
road sides
Limited along
the road sides
Limited along
the road sides
Not access to
all wards
Rivers
Passes along road
side
Passes nearby Passes nearby
Trade linkages
and Market
connectivity
Kathmandu and rural markets from the
district
Limited rural area
and Kathmandu
and Dhading
Limited rural
area and
Kathmandu
Limited rural
area and
Kathmandu
Tadi and Bidur
Labor market More migrated labor and few local labor More migrated Mix of migrated Mix of migrated Mix of
42
situation labor and few
local labor
labor and local
labor
labor and local
labor
migrated labor
and local labor
Topography
Hills with limited plain land Most of the part is
hilly, besides few
road and riverside
area
Mostly hilly,
besides road
and riverside
area
Mostly hilly,
besides road
and riverside
area
All wards are
hilly
Urban
development
prospects
Yes, but limited land supply Ward No 7,8,9
and 10 that passes
Tadi river and
major road
Road and
riverside area
Road and
riverside area
Limited in
ward 4, 6, 7
(Samundratar
Shikharbesi)
Development
plan
5 year´s periodic plan, Local
government
Not available Not available Not available Not available
MSME plan National plan National plan National plan National plan National plan
43
Annex – III: Data Collection Format in Municipality and District
Types of Enterprises
No. of MSMEs in Wards, ………………………………, Municipality
1 2 3 4 5 6 7 8 9 10 11 12 13
Hardware enterprises
Crushers
Brick Kilns
Hallow Concrete Block (HCB) and CSEB producers
Stone Cutting enterprises
Sand extractor
Timber treatment enterprises
Transporters
Mini and Micro Contractors
Types of Enterprises
Number of MSMEs in ……………………….. District
Hardware enterprises
Crushers
Brick Kilns
Hallow Concrete Block (HCB) and CSEB producers
Stone Cutting enterprises
Sand extractor
Timber treatment enterprises
Transporters
Mini and Micro Contractors
44
Annex – IV: Area of Data Collection and Respondents in Districts - Ward chairpersons, municipalities of Dhading and Nuwakot
- MSMEs working in the various area of construction market
- Rural/Urban Municipality Offices
- Association of Contractor, District Chapter
- FNCCI and FNCSI Office, District Chapter
- Association Office of MSMEs
- Office of the District Coordination Committee
- Small and Cottage Office, Districts
- Construction Supply Regulation Committee, Bidur Municipality
- Bank and financial institutions (BFIs) and Cooperatives
45
Annex – V: Sample Respondents in Districts
District
Sample Size of the Questionnaire Survey Total
Samples Remarks Urban Market Area
(municipality)
Rural Market Area (municipality)
Nuwakot Bidur Belkotgadhi Tadi Likhu Dupcheswor
Hardware enterprises 10 0 1 1 1 13
Crushers 0 1 0 1 0 2
Brick suppliers/ Kilns 3 1 1 0 0 5
Hallow Concrete Block (HCB) and CSEB producers
3 2 0 0 0 5 Construction
material
producers/suppliers Stone Cutting enterprises 0 0 0 0 0 0
Sand extractor 2 0 0 0 0 2
Timber treatment enterprises
7 1 2 2 1 13
Transporters 0 0 3 0 0 3
Mini and Micro Contractors 2 0 3 0 0 5
Metal Enterprises 8 0 1 0 0 9
Total 35 5 11 4 2 57
Dhading Nilkantha Dhunibesi Sidhhalek Benighat Gajuri
Hardware enterprises 7 4 2 5 1 19
Crushers 0 0 1 0 0 1
Brick Kilns 0 3 1 0 0 4
HCB and CSEB Producers 1 1 1 0 1 4 Construction
material
producers/suppliers Stone Cutting enterprises 0 0 1 0 1 2
Sand extractor 1 0 1 0 3 5
Timber treatment
enterprises 4 3
1 4 2
14
Transporters 4 0 1 1 1 7
Mini and Micro Contractors 1 1 1 1 0 4
Metal Enterprises 3 2 1 2 1 9
Total 21 14 11 13 10 69
46
Annex VI: Quick Survey Questionnaire for Supply Side Actors
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47
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48
Annex VII: KIIs for Financial Intermediaries
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!=;+:yfsf] C0f nufgLsf k|fyldstfx? s'g s'g If]qdf 5g <
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^= n3', ;fgf tyf demf}nf pBdLnfO{ C0f k|bfg ul/G5 eg] cem j[l4 u/fpgs] s:tf ;d:of 5g <
49
Annex VIII: KIIs Questionnaires for Municipality
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1 हार्डवेयर ब्यािसायी
2 क्रसरब्यािसायी
3 इटाब्यािसायी
4 हालो कंक्रक्रट ब्लोक र सी एस इ बि
उत्पादक
5 ढंुगा काट्ने मेससनकाब्यािसायी
6 िालुवा तनकाल्ने ब्यािसयी
7 काठको काम गने ब्याब्सायी
8 यािायाि ब्यािसायी
9 सुक्ष्म िथा साना ठेकेदार
10 अन्य (खुलाउनहुोस)
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50
Annex IX: Observation Notes on Market Prospects
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