STUDY TO DETERMINE THE - Micro-Enterprise … needs of women I… · report on factors affecting...

STUDY TO DETERMINE THE

SPECIAL NEEDS OF WOMEN

IN THE

MICRO-ENTERPRISE

DEVELOPMENT SECTOR

Study commissioned by: Micro-Enterprise Development

Programme (MEDEP)

2000

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TABLE OF CONTENTS EXECUTIVE SUMMARY ....................................................................................................................................5 1. INTRODUCTION .............................................................................................................................................8 2. RATIONALE OF THE STUDY ......................................................................................................................9 3. OBJECTIVE OF THE STUDY .......................................................................................................................9 4. METHODOLOGY ............................................................................................................................................9 5. LIMITATIONS ................................................................................................................................................11 6. DISTRICT PROFILE .....................................................................................................................................11 7. SOCIO-ECONOMIC BACKGROUND OF WOMEN COVERED BY THE STUDY .............................13 8. MAJOR FINDINGS .......................................................................................................................................15

8.1 SOCIAL – ECONOMIC ISSUES ...........................................................................................................15 8.2 ENTRY RELATED ISSUES FOR POTENTIAL ENTREPRENEURS................................................26 8.3 CONTINUITY RELATED ISSUES FOR WOMEN OWNED ENTERPRISES ..................................30

9. MAJOR PROBLEMS AND STRATEGIC INTERVENTIONS .................................................................35 9. SYNOPSIS OF MICRO-ENTERPRISE RELATED ISSUES AND STRATEGIC INTERVENTIONS46 Annex A ..............................................................................................................................................................50 SSI CHECKLIST FOR POTENTIAL ENTREPRENEURS ..........................................................................50 Annex B ..............................................................................................................................................................52 CHECKLIST FOR CASE STUDY ...................................................................................................................52 Annex C ..............................................................................................................................................................53 Checklist for Semi Structured Interviews for MEDEP Partners and Other Key Informers ...........53 Annex D-1 ..........................................................................................................................................................54 NAWALPARASI ................................................................................................................................................54 Work Plan of Nawalparasi district ....................................................................................................................54 Annex D-2 ..........................................................................................................................................................56 LIST OF PARTICIPANTS ................................................................................................................................56 Annex D-3 ..........................................................................................................................................................61 CASE STUDIES .................................................................................................................................................61 Annex E-1...........................................................................................................................................................65 NUWAKOT .........................................................................................................................................................65 Annex E-2...........................................................................................................................................................67 List of Participants ..........................................................................................................................................67 Annex E-3...........................................................................................................................................................72 CASE STUDIES .................................................................................................................................................72 Annex F ..............................................................................................................................................................76 SSI with Partner Organisations at the National Level ............................................................................76 Annex G ..............................................................................................................................................................77 REFERENCES ...................................................................................................................................................77

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ACKNOWLEDGEMENTS

The Micro Enterprise Development Programme wishes to thank Alliance Nepal for Social Mobilization which was commissioned to conduct the study. The Programme would also like to thank professionals and individuals that helped in the process of successfully completing this study. The Programme would would like to acknowledge the invaluable support of all the programme staff who were involved in the preparation of this report along with Ms. Bidula Shrestha, Marketing Specialist and Ms.Geeta Pandey, Gender and Training specialist. The objective of the study was designed to identify the special needs of women in the micro-enterprise development sector with particular reference to MEDEP's terai and hill districts locations such as Nawalaparasi, and Nuwakot. The aim of the study was to analyze ways to increase women’s participation in micro-enterprise development as well as their share of benefits. Two districts were chosen to assess constraints faced by women as well as opportunities, which might be available to them based on their skills, interest and knowledge. The purpose of the research was also to provide a basis for the programme to monitor its progress in reaching its goal of mainstreaming gender equity. The study would not have been successful without the rightful response and support from the programme's district staff as well as all women respondents who gave their time and effort in sharing their problems and prospects for the study. The programme hopes that the findings of the study will be able bring about benefits to numerous women entrepreneurs who seek to upgrade their livelihood through their involvement in micro-enterprises. Dr. Lakshman Pun Niranjan Baral National Programme Manager National Programme Director

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ABBREVIATIONS ADB/N Agricultural Development Bank CBOs Community Based Organisations CSIDB Cottage and Small Scale Industry Development Board DCSI Department of Cottage and Small Industries DDC District Development Committee DPM District Programme Manager EDF Enterprise Development Facilitator EDS Enterprise Development Supervisor FNCCI Federation of Nepalese Chamber of Commerce & Industries FNCSI Federation of Nepalese Cottage and Small Industries IEDI Industrial Enterprise Development Institute MEDEP Micro-enterprise Development Project NBC New Business Creation Training NFE Non-formal Education NGO Non-government Organisation PDDP Participatory District Development programme SLC School Leaving Certificate SSI Semi-structured interview VDC Village Development Committee WDO Women Development Officer

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EXECUTIVE SUMMARY Enterprise and entrepreneurial development in Nepal has not picked up well though there is much hidden potential. The CBS report (1993) shows that only 8.9 percent of women and 25.07 percent of men are engaged in non-farm activities. Being an agricultural economy, agro-based enterprises are slowly expanding and profiting. However, other sectors are not picking up relatively well. Women have a big role to play in developing the micro-enterprise sector of this country because they are not only the backbone of agriculture, but they also have the ability to develop other types of micro-enterprise products such as home based food stuffs, handicrafts, garments and many others. The aim of MEDEP is to increase women’s participation in micro-enterprise development as well as their share of benefits. To ensure that women’s needs are determined and that the programme achieves its target of 70% participation by women, this study was carried out to report on factors affecting promotion of women-owned enterprises. The study was conducted in two districts Nawalparasi and Nuwakot and in each district, two market centres were chosen. The major findings of the study have been divided into three parts. The socio-economic issues, the entry related issues and the continuity issues that women entrepreneurs face to be involved in micro-enterprise activities and continue successfully. Interventions have been designed according to these three areas of constraints that women face. The socio-economic issues that women face starts from attitudinal problems within themselves and their community. Many think that earning is a man's job. Along with this attitude, some of the basic problems for women's involvement in micro-enterprise activities are illiteracy and lack of mobility. Even without literacy, few women are confident enough to take such initiatives. Due to limited mobility in some ethnic groups, most women find it difficult to go out for long distances to do the marketing of the products. One of the major obstacles that women face is the household and farm workload. The study findings show that majority of the men do not help women in the household activities and women are also burdened with fodder and fuel wood collection. In terms of the women's economic access and decision making powers, the Brahmin/Chhetri and Tharu women do not have much control over the household income, while the Mongoloid women do. Majority of the women are consulted while making decisions of the household, but women cannot make independent decisions regarding taking loans for micro-enterprise activities. In terms of entry related issues, first of all, most of the women are not aware of various support programmes that are available to them if they are interested to start micro-enterprises. They also have limited knowledge on alternate forms of enterprise activities and usually tend to settle for the already saturated businesses like tailoring and poultry farming. On the issues relating to credit, findings shows that women find it burdensome to form

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groups to take micro-finance due to lack of common interest and trust among each other. The loan amount given was also considered too small to start any enterprise and was not enough for the initial working capital. The women also had a few reservations about the skill trainings that they received. Illiterate women, who take entrepreneurship development trainings, were unable to fully capitalise on its learnings because the course package is not suitable for them. After receiving entrepreneurship development trainings, women complained that they did not receive the skill trainings in time. Existing women entrepreneurs also faced some problems in continuing and sustaining their micro-enterprises. They seemed to be comfortable socio-economically as they managed household work along with their business. They also had full control over the income they earned. In terms of mobility, the unmarried women were very mobile while the married ones were supported by their husbands in mobility related activities. Most of the women entrepreneurs are unable to keep accounts even if they were literate. They also did not have enough information on other available opportunities for micro-enterprise development or the various aspects for its sustenance. Thus, their profit margin was very low and most of them could not afford to re-invest money in the business. Most of the women owned enterprises were also not consistent in production. They often close down during the harvesting season. Certain market related and external problems that they faced were competition from Indian/Chinese made products, which is cheaper and is of much better quality. Due to their lack of knowledge on market prices, they also complained of being exploited by the middlemen. The rising price of raw materials has also been affecting their production since they cannot raise the price of their products accordingly due to stiff competition. Moreover, due to low working capital, the women entrepreneur also could not afford to buy raw materials in stock, which resulted in some losses since buying in small amounts costs more. In view of all the constraints that women are facing, certain interventions have been designed. To combat socio-economic barriers, a special situational analysis should be carried out to understand the socio-economy of that particular area. Then a social mobilisation package that helps in overcoming socio-cultural barriers group formation, skill training and credit mobilisation should be implemented. To address the entry related problems, first informative and educational materials on feasible ventures and various aspects of micro-enterprise development should be disseminated. Secondly, access to credit should be made easier alongwith checking its proper utilisation, and making the loan amount flexible as per the need of the business. The training should also be upgraded and changed as per the need of the viable enterprises in the district. To address the continuity related barriers for existing entrepreneurs especially the market related problems, advanced quality training should be given to the entrepreneurs, and a quality control mechanism within the project can be developed. Also to avoid saturation of one product in the market, new enterprises should be ventured into. A collective marketing system can also be explored to avoid middlemen and have easier access to raw materials.

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Additional financial management support can also be given to make the entrepreneurs capable to re-invest profit in their businesses. Promotion of new technology to lessen women's work burden or to increase production is also another aspect that needs to be looked into for the growth of micro-enterprises.

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1. INTRODUCTION The Ninth Plan has made women the target for achieving its overall aim of poverty alleviation. Women’s empowerment and gender equality through mainstreaming women's participation in more productive activities is the long-term strategy of poverty alleviation. In Nepal, savings and credit and micro-enterprise development has been one of the foremost interventions to address women's empowerment. The goal for implementing micro-enterprise programmes for women is to increase their level of income, so that they can support the household financially and have increased share in decision-making leading her to a process of self-empowerment. Many small income generation activities such as sewing and knitting, cattle raising, opening up small teashops had been promoted to give women the opportunity to earn income. The flexible nature of work makes it easy to combine income generation with domestic responsibilities. However, though recognition of women's major role in the micro-enterprise sector has increased, the realisation of the constraints they face is also seeping in. Over the years there has been a saturation of such kinds of micro enterprises and a plethora of NGOs are implementing the same kind all over the country without considering its viability to the required extent. Very few attempts have been made to innovate new micro- enterprises and sustain the on-going enterprises by encouraging women to analyse their personal interest and potential skills. The concepts of establishing location specific marketable enterprises whic Tc (whic)(wkedu2 Tc ( iswkedu2 Tc n) Tj0.36 Tc ( lipe0.132 Tc (srnj0.36 Tc ( ) Tj0 r Tc (srnj0.36 Tc ( ) Tj0e0 Tc6 Tc ( ) Tj0 Tc (th.1ac.12 Tc (g (location) Tj1.2 Tc (s) Tj1.2 Tc ( ) Tj0 Tc (s) Tj1.2 Tc ( )Tj0 Tc (saturc ( ) Tjmc ( )Tj0 Tc (saturc ( ) Tahsoturc ( ) Tjmc ( )Tj0 Tc (2) Tj1.2 Tc ( ) Tj0 Tc (sra Tj0 Tc (th.1ac.12 Tc (g (lt6aturc ( ) Tjmc ( )Tj0 Tc oso) Tj0.36 Tc ( ) Tj0 T( )6aturc ( ) Tjmc ( )Tjie(sra Tj0 Tc (th.0a Tc ( ) Tj0 T( )-w6p Tjmgedu2 Tc n) Tj0.36 Tc ( lip1.08 Tc e( )nrise.2 Tc ( ) Tj0 Tc. Tc n) Tj0.36 tial) Tj1.2 T Tjattempts) Tj1.08)Tj0 Tc (2) Tj1ts) Tj1.08)Tj0 Tcc ( ) Tj0 e Tj1.08)Tj0 Tcc ( ) Ta Tj1.08)TjT2mn) Tj0 Tc (ew) Tj1.08 Tc cohht3.36 Tc aturc ( ) Tjj0 Tc. Tc Tj0 Tc (an) Tj0.12 Tc (dTj1.08)Tj0 Tcc ( ) Tj0 e Tij0 Tc (few) Tj1.08 erpriseali(innovate) Tj1.08 Tcc ( ) TTa j0 e Tj1.0 (to) Tj2.52 Tc ew) Tj1.0cc (g) Tj0 Tm o. Tc ew) Tj1.0cc (gTj2iF08 2nc (saturc ( ) Tahsotu Tj0.36 tial) T ( ) Tahsotu Tj0.36 ti6 tial) Tj1.2 T Tjattempts) Tj1.08)Tj0 Tc (2) d Tc (are ) Tj0 -c (the) Tj0.36 Tc ( ) TC Tjatteythe

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2. RATIONALE OF THE STUDY The aim of MEDEP is to increase women’s participation in micro-enterprise development as well as their share of benefits. To ensure that women’s needs are determined and that the programme achieves its target of 70% participation by women, a survey that reports on factors affecting promotion of women-owned enterprises was needed. Two districts were chosen to assess the constraints which women face as well as opportunities which might be available to them based on their skills, interest, knowledge and so on. The purpose of the research was also to provide a basis on which MEDEP can monitor its progress over time towards reaching its goal of mainstreaming gender.

3. OBJECTIVE OF THE STUDY 3.1 Overall Objective To identify the special needs of women in the micro-enterprise development sector with particular reference to MEDEP's terai and hill districts locations such as Nawalaparasi, and Nuwakot. 3.2 Specific Objectives In order to ensure that women's needs are determined and that the programme activities target 70% participation by women, the following specific objectives were designed: 3.2.1 Identification of the factors affecting promotion of women owned enterprises 3.2.2 Determine the constraints which women face as well as opportunities that might be

available to them based on their skills, interest, and knowledge. 3.2.3 Suggest how to increase participation of women in micro-enterprise development as

well as their share of benefits.

4. METHODOLOGY The methodology of this survey was designed in relation to how the three specific objectives mentioned above could best be researched. The main approaches used were micro-workshops, focus group discussions, semi-structured interviews, case studies, and site observations. i. Document review

♦ Micro-enterprise development programme in relation to poverty alleviation in Nepal. ♦ MEDEP's principles, objectives, and process – programme document. ♦ MEDEP progress reports and annual reports.

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♦ Programme policy support structures and implementing agencies of micro-enterprise development in Nepal.

♦ Report of MEDEP'S socio-economic and market survey. ii. Field work

♦ Meeting with the field staff in the project offices to share the study methodology, improvise on it, and to finalise two markets centres where the study should be carried out.

♦ A combination of micro-workshops, semi-structured interviews (SSI), case studies, and site observations was used to carry out the research. • The purpose of the site observations was to assess the current situation of the

potential and existing women entrepreneurs. • The purpose of the micro-workshops was to gain varied information from a group.

Micro-workshops were focused specifically on two types of target groups – potential entrepreneurs and existing entrepreneurs. In this manner, both their constraints could be well understood. A micro-workshop was also done with MEDEP staffs and partners to validate the findings towards the end and gain further insights into the issue.

• The semi-structured interviews (SSI) were done to get individual opinions. The team specifically focused on carrying out the SSI with the heads of MEDEP partners like DCSI, CSIDB, ADB/Nepal, FNCCI, PDDP etc., district level key informants besides the potential entrepreneurs.

• Case studies were used to find out the status of the women entrepreneurs and the obstacles and opportunities they are having for continuity and future growth.

♦ Debriefing of the findings to the MEDEP staff to inform them about the findings of the study and to get additional comments and suggestions.

iii. Consolidation

♦ Data analysis ♦ Report writing ♦ Additional interviews of partner organisations ♦ In-house workshop with experts in the micro-enterprise field to validate the

findings and get further information. iv) De-briefing

♦ Discussion on draft report with MEDEP staff. ♦ National level workshop

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5. LIMITATIONS

Certain limitations have affected the outcome of the study. • The constraints of women of various ethnic groups in different geographical locations

could not be well documented because the period was too short to visit far off locations that housed different ethnic groups. In Nawalparasi, workshops were held with two different ethnic groups in the two market centres. However, in Nuwakot, the market centres that were chosen did not have diverse ethnic groups, so it was difficult to assess the problems by ethnic variation.

• The work schedule in Nawalparasi could not go according to plan because of certain misunderstandings in the methodology i.e. the district level workshop that was supposed to be held at the end had to be held on the very first day.

• The coverage is not extensive since only 122 women in two districts were covered. Hence, the findings of the study may not be completely applicable for all the districts of Nepal. It will be questionable to generalise the findings and not all the issues may be pertinent to give an overall picture of the present status of women in the micro-enterprise sector.

6. DISTRICT PROFILE

NAWALPARASI Nawalparasi lies in the western Terai covering 2016.16 square kilometres. The district headquarter is Parasi. It consists of 73 VDCs out of which 17 VDCs are in the hilly slopes which are mostly inhabited by migrants from the hills and the mountain. The population of the district is 468,741 according to the 1991 population census out of which 49% is female. The ethnic groups are highly mixed among the hill, inner terai and terai population. A highway crosses the district from Kathmandu to Butwal. It has a relatively good transportation network. The socio-economic condition and location advantage of the district provides opportunities for micro-enterprise development based upon the local raw materials like sugarcane, mustard, food items, vegetables, pulses, spices, timber, bamboo, stones, etc. The marketing outlet for the products is Butwal, Bhairawa, Narayanghat, and Pokhara. The local products have to face tough competition with Indian goods. The district is placed in 49th and 63rd position in women empowerment and gender development indices respectively. (ICIMOD, 1997, South Asia Centre, 1999). NUWAKOT Nuwakot is one of the hill districts of the central development region. The district headquarter is Bidur and it has 61 VDCs and covers an area of 1,121 square kilometres. The population is 245,645 of which 49.8 percent is female according to the 1991 population

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census. The Brahmins, Chhetris, Newars, Tamangs, Gurungs, Magars, Sherpa, and other occupational castes like Kumal, Mijar, Nepali (Pariyar), Bishwokarma, and Sunar are the main ethnic groups. The settlement pattern of the district is highly scattered. The district has important road linkages with Kathmandu. The potential agro-based micro-enterprises in Nuwakot are food processing, fruit processing, poultry, livestock, and oil extraction. Various forest-based micro-enterprises are bamboo craft, Nepali paper, herb processing, and furniture. Mineral and service based micro-enterprises are metal works, stone works, pottery, tailoring, and transport services. The district is placed in 30th and 37th

position in women empowerment and gender development indices respectively. (ICIMOD, 1997, South Asia Centre, 1999). Table 1 Human Development Index and Socio-economic status of women in Nuwakot and Nawalparasi Nuwakot Nawalparasi Life expectancy (1996) Male Female

54 53

53.5 51.1

Adult literacy rate (1996) Male Female

39.27 10.83

57.28 21.04

Mean years of schooling (1996) Male Female

1.914 0.858

3.007 1.254

Human Development Index 0.312 0.300 Per capita income Rs.10,520 Rs.5386 Female percentage share in income 14.06 20.21 % of female in non-agricultural occupation

21.26 18.34

Women empowerment index 37 49 Gender development index 30 63 Source: ICIMOD, 1997, Districts of Nepal, Indicators of Development, ICIMOD in collaboration with SNV/Nepal. South Asia Centre, Nepal Human Development Report, 1998 Centre Bureau of Statistics, 1993; Population Census of Nepal, Centre Bureau of Statistics 1991, Ramshah Path,

KTM, Nepal

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Women Empowerment Index (WEI) is based on: ♦ participation in white colour work ♦ Participation in literacy ♦ Participation in VDC, DDC, and national elections ♦ Participation in primary schools ♦ Enrolment at primary schools ♦ Girl dropout at primary level. Gender Development Index (GDI) is based on: ♦ Literate female population of 10+ years as a percentage of total literate population. ♦ Female population 15+ years engaged in non agricultural occupation as percentage of total population in the

same age groups engaged in the same occupation. ♦ Number of females elected on to VDCs, DDCs and Municipalities as a percentage of total members elected. ♦ Number of girls enrolled as a percentage of total enrolment at primary level. ♦ (Ratio of females to males among the population aged 15+ years multiplied by sex ratio of the same age

group + ratio females to male among the literate population of 15+ years multiplied by sex ratio of the same age group) / 2.

The figure of GDI/WDI are ranking out of 75 districts with 1 being the lowest and 75 being the highest

7. SOCIO-ECONOMIC BACKGROUND OF WOMEN COVERED BY THE STUDY

i. The table below shows that out of a total number of 122 women, 55 percent were from

the Terai region (Nawalparasi) and the rest were from the hills (Nuwakot). Table 2 Regional distribution of women covered by the study Number (% of the total

women participants) Nuwakot Dhikure market centre Devighat market centre

39 (31.27) 16 (13.12)

TOTAL 55 (45.10) Nawalparasi Parasi market centre Gopigunj market centre

19 (15.57) 48 (39.00)

TOTAL 67 (54.90) Total women covered by the study

122 (100.00)

Source: Alliance Nepal/MEDEP Study, 2000 ii. The distribution of women covered by ethnicity is presented in the table below. The

highest proportion of women were the disadvantaged groups (DAG) because a workshop

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was exclusively held with their participation alone, followed by Brahmin/Chettri, Mongoloid and the Terai Natives.

Table 3 Distribution of women by ethnicity Ethnicity Number (% of the total

women participants) 1. Mongoloid 25 (20.49) 2. Brahmin/Chettri 30 (24.59) 3. Terai native 20 (16.39) 4. Disadvantaged groups (11 Bishwakarma women of Nawalparasi included)

35 (28.69)

5. Others 12 (9.84) TOTAL 122

Source: Alliance Nepal/MEDEP Study, 2000 1. Mongoloid: Tamang/Magar/Gurung/Rai/Ale 2. Brahmin/Chettri: Rimal/Sharma/Acharya/Sapkota/Pokhrel etc... 3. Terai native: Chaudhary/Bania/Agrahari/Yadav 4. Disadvantaged groups: Mijar/Bishwakarma/Damai 5. Others: Newar/Muslims/Gair iii. The table below shows that out of 122 women, 46 were literate and 76 were illiterate. In

the two districts there was no distinct variation regarding the literacy rate. Within the district, variation was found in the market centres mainly according to accessibility, age and ethnicity.

Table 4 Level of literacy Nuwakot No. of literate

women No. of illiterate women

Total

Dhikure 11 28 39 Devighat 9 7 16 Total 20 35 55 Nawalparasi Parasi 6 13 19 Gopigunj 20 28 48 Total 26 41 67 Grand total 46 76 122

Source: Alliance Nepal/MEDEP Study, 2000 iv. Most of the participants fall under the age group of 20-29 followed by 30 and above. The

women below 30 constitute to around 60 %. In Nawalparasi, the proportion of younger age group is relatively higher by region and market centre.

Table 5

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Distribution of Women by Age Group Nuwakot Nawalparasi Total (%) Dhikure Devighat Total (%) Dharampur Gopigunj Total (%) Under 20 8 6 14 (25.46 ) 3 8 11 (16.4) 25 (20.45) 20-29 15 6 21 (38.18 ) 10 18 28 (41.8) 49 (40.17) 30 & above

16 4 20 (36.36 ) 6 22 28 (41.8) 48 (39.34)

Total 39 16 55 (100.00 ) 19 48 67 122 (100.00) Source: Alliance Nepal/MEDEP Study, 2000 v. The table below shows the number of women who were involved in non-farm activities.

The 21 percent who were involved are usually doing side businesses like wholesale shop, tea shop, spinning, tailoring, bamboo works, dhaka weaving, retail stores, making turmeric, etc.

Table 6 Distribution of women involved in non-farm activities by region and market centre Women involved in non-farm

activities (%) Not involved (%)

Total

Nawalparasi Parasi 4 (21.00) 15 (79.00) 19 Gopigunj 14 (29.00) 34 (71.00) 48 Total 18 (27.00) 49 (73.00) 67 Nuwakot Dhikure 7 (18.00) 32 (82.00) 39 Devighat 1 (6.00) 15 (94.00) 16 Total 8 (15.00) 47 (85.00) 55 Grand total 26 (21.00) 96 (79.00) 122

Source: Alliance Nepal/MEDEP Study, 2000

8. MAJOR FINDINGS The main findings have been divided into three main headings with sub-issues in each of the headings. The first heading is on socio-cultural constraints that women face, the second is on the entry barriers that potential women entrepreneurs face and the third is on the continuity barriers that existing enterprises managed by women face. The findings are based on 98 women (11 Bishwakarma women included), 24 of the disadvantaged women's (Nuwakot) analysis has been done separately (see box). 8.1 Socio-Economic Issues Methodological Approach: In order to assess the socio-cultural constraints that women face, qualitative and quantitative methods were used in workshops and SSI to get the required information. In Nawalparasi, a

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socio economic survey was done to get most of the quantitative information from the workshop whereas in Nuwakot, participants were personally asked during the workshops. i. ATTITUDES Generally, Nepalese culture does not encourage women to be involved in outdoor activities. While doing business, women have to deal with many people and at times, they have to travel to far away places from their houses. Such things are not well accepted by the male and elder female family members. Earning an income is still considered a man's job by many women. The study found some attitudinal variation among men and women depending on the ethnic groups. Two main issues were considered to judge the attitudinal barrier – restriction on mobility and perception towards earning an income by women. a) Mobility The study findings revealed that about 39.5% out of a total of 98 women participants have mobility restrictions. The important variables determining the mobility of women are geographic region, age, ethnicity, and migrant status. • In Nuwakot 61% of the women out of 31 said that they couldn't go out without the

permission of their husbands and in-laws while the corresponding figure for Nawalparasi was 30%. The women of Nawalparasi are relatively better off because a higher proportion of them were migrants.

• Age distribution of women show that 27 women were above the age of 30 and 71 women were 30 years and below. 22% of the women aged 30 and above said that their mobility is restricted while the corresponding figure for the younger women was 47%.

• Among the total women, 47 were migrants and 51 were non- migrant. 10% and 67% of the migrants and the non- migrant women respectively said that their mobility is restricted.

• The women are grouped into the following ethnic groups - Mongoloid, Brahmin\Chhetri, Native Terai and others. Mobility of other castes could not be documented because few women belonged to other castes. Women's mobility varies significantly by ethnicity as suggested by the table below.

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Table 7 Percentage of Women with Restricted Mobility Districts Total women (%) Reporting mobility

restriction (%) Nawalparasi 67 (68.33) 20 (30.00) Nuwakot 31 (31.63) 19 (61.21) Total 98 (100.00) 39 (39.5) Age group 30 and below 71 (72.5) 33 (47.0) 30 years 27 (27.5) 6 (22.22) Total 98 (100.00) 39 (39.50) Migrant status Migrant 47 (47.96) 5 (10.63) Non-migrant 51 (52.04) 34 (67.00) Total 98 (100.00) 39 (39.80) Ethnicity Mongoloid 25 (25.51) 3 (12.00) Brahmin\Chhettri 30 (30.61) 13 (43.33) Terai native 20 (20.41) 12 (60.00) Others 23 (23.47) 11 (48.00) Total 98 (100.00) 39 (39.00) Source: Alliance Nepal/MEDEP Study, 2000 As suggested by the table in terms of mobility, the most disadvantaged ethnic groups were the Terai natives followed by Brahmin\Chhettri women, whereas Mongoloid ethnic women were much better off. b) Perception towards earning an income One of the factors that determine women's participation in micro-enterprise is the amount of family support she receives particularly, their attitude towards women as income earners. To seek the perception of women being income earners, the women were asked how supportive their male family members and elderly female family members were. Important factors used to determine the perception towards earning an income were geographic region, ethnicity, and migrant status of women. • 32 percent out of 98 said that their male family members and elderly female family

members perceived that earning an income is a man's job. • 39 percent and 30 percent of the women in Nuwakot and Nawalparasi respectively said

that their male family members and elderly female family members perceived that earning an income is a man's job. The percentage of women reporting negative perception is relatively lower in the Terai due to high proportion of migrant women (48 percent).

• 15 percent of the migrants and 47 percent of the non-migrants respectively said that their male and elderly female family members perceived that earning an income is a man's job.

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Table 8 Variation in perception towards earning an income Districts Total women (%) No. of women reporting negative

perception towards earning income (%) Nawalparasi 67 (68.37) 20 (30.00) Nuwakot 31 (31.63) 12 ( 39.00) Total 98 32 (32.00) Migrant status Migrant 47 (48.00) 7 (15.00) Non-migrant 51 (52.00) 24 (47.00) Total 98 32 (32.00) Ethnicity 15 ( Mongoloid 25 (25.51) 00. (00.00) Brahmin/ Chettri 30 (30.61) 15 (50.00) Terai native 20 (20.41) 12 (60.00) Others 23 (23.47) 5 (22.00) Total 98 32 (32.00) Source: Alliance Nepal/MEDEP Study, 2000 • Regarding perception about income earning by women, it can be seen that the Mongoloid

castes were relatively better off than the native Terai and Brahmins/Chettris. For example in Dharampur, Nawalparasi certain traditional products like "dhaka" that could be developed for sale was used only for gifts or to barter with other goods. Making a business out of it was considered to be against the prestige of women.

ii. AGE GROUP Age is an important factor in determining the women's micro-entrepreneurial capability. Experience shows that a good age for involving women in micro-entrepreneurial activities is 30 and above. The older the women, the more free time she will have for activities outside the household as her children will be grown up. By this time, she will be well acquainted with her mother in law to demand for some more freedom if she is living in a joint family. If the family has separated, she will need extra income to run the household. Elderly women will also have more experience, and will be more confident about what she is doing. Therefore, age and maturity play a critical role in involving women for micro-entrepreneurial activities. Majority of the women entrepreneurs with whom the team met was above the age of 30 years. Nevertheless, women who have the entrepreneurial skills and show keen interest in doing something should be considered no matter what her age is because entrepreneurship is a process that grows with time. iii. DECISION MAKING POWER OF WOMEN The ability of women to make decisions independently also helps in micro-enterprise development. Decision making power of women shows her status in the family. Many

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studies have shown that women's decision making power directly correlates with her economic independence, age, type of family and ethnicity. The main variables used to assess women's decision making power were marital status, age factor, and ability to make independent decisions. Table 9 Variation in decision making power of women by region, age, and marital status Number of women

who are consulted (%) Number of women who are not consulted (%)

Total number

Nawalparasi 47 (76.00) 15 (24.00) 62 Nuwakot 23 (77.00) 7 (23.00) 30 Total 69 (75.00) 23 (25.00) 92 Unmarried women 00 (00.00) 15 (100.0) 15 Married women 69 (90.00) 8 (10.00) 77 Above 30 years 19 (90.00) 2 (10.00) 21 30 years and below 50 (70.00) 21 (30.00) 71 Source: Alliance Nepal/MEDEP Study, 2000 Out of 98 participants, 6 women were not living with their husbands, so they are not included in the analysis. Therefore, the total number of women considered are 92. • The study shows that out of 92 women, 75% (69) of the women said that their male/

elderly female family members consult them while making important decisions in the family. The corresponding figure for Nuwakot is 77.4% while in Nawalparasi it is 76%.

• Distinct variation was found in the involvement of women in decision making process by marital status. All the unmarried women (15) said their family members do not consult them. Whereas 90 percent (69 out of 77) married women said that they were consulted while making important decisions.

• Age factors also plays an important role in influencing women's involvement in decision making. 23 percent of the total women considered (92) were above 30 years. 77 percent of the total women were 30 years and below. Out of 21 women above 30, majority of them (90%) said that they were consulted while making important decisions. But the corresponding figure for women below the age of 30 was relatively lower (70 percent).

• Though 69 women out of 92 said that they were consulted while making important decisions in the family, very few (only 10%) said that they could take independent decisions on important family affairs, and in taking loans or starting a business. Amongst those who said that they can make independent decisions, majority of them were Mongoloid.

iv. CONTROL OVER HOUSEHOLD INCOME AND ASSETS BY GENDER Women's limited control over assets and income also hinders their participation in micro-enterprise development. All the participants in both the districts reported that landed property and other fixed assets were owned by their husbands or by elder family members. To assess

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this issue, the women were asked who owns the household property (land/house), who keeps the household income, and on what the household income is mostly spent. a) Ownership of property All the women participants reported that house, landed property, and other assets are officially owned by male family members. b) Access to household income • 70 % (69 women out of 98) said that they have access to household income. They keep

the household income and spend for household expenses. 30% (29 out of 98) said that they do not have control over household income.

• In Nuwakot, out of 31 women, 26 women (84%) said that they have control over household income. While the corresponding figure for Nawalparasi was 64 percent (43 out of 67).

• The study shows that 82 percent (22 out of 27 women aged 30 and above) said that they have control over household income while the corresponding figure for women aged 30 and below is 66% out of 71 women.

Table 10 Variation in women's control over income. Districts Total no. of women

participants Women having control over

household income (%) Nawalparasi 67 43 (64.00) Nuwakot 31 26 (84.00) Total 98 69 (70.00) Age factor Above 30 years 27 (27.55) 22 (82.00) 30 years and below 71 (72.45) 47 (66.00) Total 98 69 (70.00) Ethnicity Mongoloid 25 (25.51) 23 (93.00) Brahmin/Chhetri 30 (30.61) 20 (67.00) Native terai 20 (20.41) 11 (55.00) Others 23 (23.47) 15 (65.00) Total 98 69 (70.00) Source: Alliance Nepal/MEDEP Study, 2000 Regarding women's control over household income, the findings show that the Mongoloid community were better off than the others. v. WORKLOAD

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Work burden is considered as one of the main obstacles for women's involvement in micro-enterprise activities. In order to assess the work burden of women three issues were considered – male participation in household work, fuel and fodder collection and farm activities. Methodological Approach: In order to assess the work burden of women in farming, fodder and fuelwood collection, a gender work chart was used in Nuwakot and in Nawalparasi, a sociogram was done. The women participants were asked about the distribution of farm workload by gender. Participants who did not have farmland of their own reported tiling others land on share cropping basis. a) Distribution of farm work by gender It is evident that women have a huge responsibility in farming (table 11). Men's participation in Nuwakot is seen only in less time consuming activities such as nursery raising, ploughing, terracing, levelling, and the use of chemical fertilisers. Similarly, in Nawalparasi, 90% of women in Banjaria said that men's farming workload is limited to ploughing, levelling, irrigating, and threshing. However, the selling of farm products is done mostly by men.

Table 11 Distribution of Farm Works by Gender in Nuwakot (in Percentage) Farm Activities Male (%) Female (%) Both Total # Nursery Raising 35.00 13.00 52.00 100 Ploughing/Terracing 48.00 0.00 52.00 100 Levelling 52.00 0.00 48.00 100 Transplanting/sowing 0.00 100.00 0.00 100 Irrigation 39.00 13.00 48.00 100 Weeding 0.00 100.00 0.00 100 Use of Fertiliser 48.00 13.00 39.00 100 Harvesting 0.00 100.00 0.00 100 Threshing 0.00 0.00 100.00 100 Transporting 16.00 81.00 3.00 100 Drying/Storing/ Processing

0.00 100.00 0.00 100

Selling 86.00 16.00 0.00 100 Source: Alliance Nepal/MEDEP Study, 2000

• Agro-processing is a highly time consuming activity which is exclusively done by

women. Majority of the women in Nuwakot said that, they have to walk more than an hour to reach the processing mills. Many of them expressed that their time could be saved if the mills were closer to their houses.

• The findings suggest that the higher the size of land holding, the higher will be the work burden of women and lesser time will she have for micro-enterprise activities.

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b) Fuel-wood and fodder collection Another activity, which requires women's long time input, is fuel wood and fodder collection. Women were asked how long it took to collect fuel and fodder. Majority of the women said that around 1-3 hours was spent in collecting a load of firewood, but it usually depends upon its availability. During the dry season, women have to spend more time collecting fodder and fuel.

• 75% (74) of the total women (98) said that fuel wood and fodder collection is

exclusively their job. 25% of the women from the Mongoloid community said that men also help them in collecting fuel and fodder collection. Regional variation was also noted. 85 % of women in Nuwakot reported that men do not help in fuel and fodder collection while in Nawalparasi the corresponding figure was 70% only.

c) Distribution of household work by gender In order to judge how gender sensitive the men are, male participation in household activities was assessed during the workshops (see table 12). Out of 98, 45 women said that their men do participate in household activities. • Regional variation was found in this respect. Male participation is lower in Nuwakot

(38.71%) as compared to Nawalparasi (49.25%). • Within the districts also, the percentage of women reporting male participation was found

very different among the VDCs. This is explained by the variation in ethnic composition in the VDCs. 64 percent, 40 percent, 30 percent and 47.83 percent of the Mongoloid, Brahmin/Chettrri, Terai native and others respectively reported male help in household works.

Table 12 Number of women who are helped by the male family members in household works YES NO Total no. of women Nawalparasi Banjaria 5 (26.00 %) 14 (74.00 %) 19 Gopigunj 28 (58.00 %) 20 (42.00 %) 48 Total 33 (49.25 %) 34 (50.75 %) 67 Nuwakot Dhikure 10(66.70 %) 5 (33.30 %) 15 Devighat 2 (12.50 %) 14 (87.50 %) 16 Total 12 (38.71 %) 19 (61.29 %) 31 Total of both districts 45 (45.92 %) 53 (54.08 %) 98 Source: Alliance Nepal/MEDEP Study, 2000

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vi. INVOLVEMENT IN NON-FARM ACTIVITIES The number of women working in non-farm activities was assessed to find out what type of activities women were involved in for a livelihood besides farming. The total number of women working in non-farm activities are 23 (23.46%) out of a total of 98. Some of the activities that women were involved in are wholesale shops, tea shops, spinning, tailoring, bamboo works, dhaka weaving, retail stores, making turmeric etc. The proportion of women engaged in non-farm activities was relatively lower particularly in Nuwakot 16%, as compared to Nawalparasi 28%. In Nuwakot, regional variation was observed. In Devighat, out of 15 women 7% of them were involved in non-farm activities whereas in Dhikure 26.7% out of 15 was involved. In Nawalparasi too, the proportion of women engaged in non-farm activities varied by region. In Banjaria, 21% out of 19 women were involved and in Gopigunj, 29.16% out of 48 women were involved. In both the market centres, those who reported doing more non-farm activities were generally migrants. vii. LITERACY LEVEL: Methodological approach: The literacy level of the participants was taken during the time of introduction in workshops. a) Literacy Literacy/schooling is one of the basic necessities for entrepreneurial development. It opens up access to skill training, and information relating to different aspects of micro-enterprise development. Moreover, without basic accounting skills, it will be difficult to run an enterprise. Distribution of participants by literacy shows that majority of the women were illiterate and the illiteracy rate is 58.16% out of 98 women. In Nuwakot, the illiteracy rate is 51.61% and in Nawalparasi it is 61.20 %. The percentage of literate women is higher than the district average because higher proportion of the participants was from the younger age group and majority of them were living near the urban centres. vii. LEVEL OF SELF-CONFIDENCE Methodological approach: Judging the women’s ability to express herself and her level of exposure and understanding assessed the level of self-confidence. Self confidence is an important quality that majority of the women who were illiterate and unexposed seldom have. Women involved in CBOs and PDDP were seen to be more vocal and assertive, but their confidence in making their enterprises successful was still lacking due insufficient experience and exposure. Among the ethnic groups, the Mongoloid caste were more vocal and willing to take initiatives than the other castes. This obviously is due to the freedom that women are given in their family and community. The Terai natives were the least confident. Age was also an important factor in determining the confidence level of women. The women who were above 30 of all castes were more vocal and expressive than the women who were below 30.

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Problems of Disadvantaged Women

A workshop was organised in Dhikure market centre to assess the problems faced by women from disadvantaged occupational castes like Mijars, Damais and Biswakarmas. The purpose of the workshop was to identify their special needs for their promotion in micro enterprise activities and also to find out the possibilities of women's involvement in their family occupations. Twenty-four women and five men attended the workshop. Among twenty-four participants, thirteen women were from the Mijar community, seven were from Damai community and four were from the Biswakarma community. Among the five men, 3 were from the Damai community and two were from the Bishwakarma community. The major findings are: ð Mobility of women was found to be influenced by age factor and marital status.

Out of 6 women aged above 30 years, 95% said that they are allowed to go out, but 50 percent of the women from the younger age said they are restricted to go out.

ð The young married women were less mobile because of their small children. ð Almost all the women reported that the perception of their male/elderly female

family members towards women being income earners was positive. ð There was no involvement of women in the family occupation of the Mijars and

the Biswokarmas. Whereas, amongst the Damais, both male and female jointly do the family occupation.

ð Out of 24 women, 15 were landless and the rest owned very little land. ð All of them work as agricultural labourers during the peak season. ð The women who belong to a higher age bracket and unmarried women said they

could manage time for micro enterprise activities, although they are burdened with household works because they can seek help from their family members.

ð Mass illiteracy is another problem associated with them. Nineteen women out of twenty-four were illiterate (80 percent).

ð Limited access to household income is another problem. 63 percent of the women said that they do not keep household income and it is mostly spent by men for drinking and playing cards. All of their occasional earnings (agricultural wage) is spent for domestic requirements.

ð Very few women reported that they are consulted while making important decisions in the family.

ð The married women are burdened with wide range of activities, like domestic works, farm activities, care of poultry and cattle, fuel and water collection. Only 12.5% of the 24 disadvantaged women were engaged in non-farm activities like tailoring, making and selling of turmeric, vegetable vendor, weaving gundri and mandro for bartering.

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ð When asked about the micro enterprise of their interest, they only mentioned tailoring, animal husbandry and poultry. They said that if they produce food items no one will buy from them because they are untouchables.

ð Another problem associated with them is lack of knowledge regarding alternative opportunities available to them. As for example, 71 percent out of 24 did not know about the provision of micro finance under group guarantee.

ð A major problem of these women was physical abuse by their husbands. 66 percent reported frequent physical abuse by their husbands. Even three out of five male participants claimed to beat their wives. According to women, the causes were due to high alcohol intake and frustration from lack of employment.

An analysis was done in involving women in blacksmith works (sheet metal works). Different production components were identified in which women's participation can be increased.

ð To make charcoal, men have to go to the jungles to cut the trees. Women cannot do this, but they can be involved in transporting the charcoal to the workshops.

ð Heating of the sheet metal can be done by both men and women. ð Melting, hammering and welding needs physical strength so men alone can do it. ð Cleaning, polishing, and painting can be done by female provided she is given

training. ð Carving the sheet metal can be done by women too, provided she is given

training. ð Men and women can do marketing of the products. The findings indicate that sheet metal works can be promoted as a family enterprise and women's skill can be developed in various aspects of production.

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Special Needs of Disadvantaged Women ð More information should be given to them on alternative non-food enterprises, which can

be combined with household work. ð Give advanced training to Damai women on tailoring so that they can support their

husbands in the family occupation. Since both the husband and wife are involved in the family business amongst the tailoring caste, supporting either male or female will help in promoting the family business. This will help them to compete with other emerging tailors (from other caste groups) in their own vicinity.

ð Give training to Bishwakarma women on different components of metal work production processes, which they are capable of doing.

ð Design programmes to build women's confidence and leadership. ð Since many of the women are not mobile, more emphasis should be given to involve them

in home based enterprises using local raw materials, which can be easily sold in the village markets.

ð Leather craft works can be promoted as a family business by giving training to women to make various leather products like shoes, leather bags, and purses of different designs. Some of the Mijars who were interviewed in Bidur market centre said that promotion of leather works is possible provided women are given proper trainings.

ð 8.2 ENTRY RELATED ISSUES FOR POTENTIAL

ENTREPRENEURS Methodological approach: These barriers are faced by women who can be considered as potential women entrepreneurs and are seeking to access certain support to establish their enterprises. Most of the findings of the issues below have come from workshop proceedings and SSI with MEDEP partners, women participants, and entrepreneurs. The findings are mostly qualitative, but certain issues have been quantified when possible. i) AWARENESS: a) Knowledge on micro-enterprises: Most of the women participants still do not know what business they should pursue. They are usually influenced by what others are doing. They are more interested in women specific activities such as tailoring, knitting, poultry and livestock since these activities can be easily combined with their household work and are not very risky too. Thus, other alternative opportunities to enterprise development were not explored. Women were also not willing to take risks in any other forms of micro-enterprises that have not been done previously by others in her locality. As for example, in Dhikure, Nuwakot, out of 24 disadvantaged women,

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11 said that they were interested in livestock and poultry, and 9 said tailoring. Similarly, in Devighat, out of 16 participants, half of them said that they were interested in tailoring. In Nawalparasi also most of the participants showed their interest in tailoring. b) Awareness on support systems Awareness on support programmes launched for women enterprise development is one of the pre-requisites for enhancing women's exposure to entrepreneurship development. Due to illiteracy and restricted mobility, most of the women were not aware of various existing support programmes such as micro-finance, skill training, and formation of savings and credit groups. For example, in Dhikure market centre, only 33 percent of the total participants were aware of the provision of micro-finance being available. Similarly, only few disadvantaged women were aware on different support systems. • Most of the bamboo workers of Gopigunj were not aware of the provision of micro-

finance under group guarantee. All of them usually took loans from informal sectors to buy bamboo at exorbitant rate of interests (5% per month). They are still not aware that under other support programmes, the rate of interest is much lower.

ii) CREDIT: a) Access to credit Limited or even lack of credit is also a major deterrent to women starting micro-enterprises. Most of the women lack collateral and their families were not too keen to give their property as collateral. Therefore, women cannot take big loans than the amount given under micro-finance schemes. They also cannot take loans without the permission of their husbands or other elder family members. In addition, due to lack of education many women were not able to prepare bank documents and do other formalities. b) Formation of groups for finance • Women find it burdensome to take loans because they fear not being able to repay it.

Under the MEDEP programme strategy and some other credit programmes, micro-finance is available only under group guarantee. Women were asked what prevented them from taking loans and some of them expressed that due to lack of common interest and trust among each other, it was very difficult to form groups. The women said that they have to get consent from their husbands or other elder members of the family to take loans, and they often hesitate to give permission under group guarantee since the chances of the group breaking up is high.

• Moreover, women only have partial control over the loans. In some cases, the husbands

utilise the money for their own purpose. Husbands often take the loans of women for gambling and alcohol consumption or women themselves use the loans for making alcohol, which is a highly profitable business. The ADB/N loan officer, Nuwakot

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district and Nirdhan Bank, Parasi Branch, manager expressed that there is much male domination over the utilisation of loans.

c) Interest rate and repayment schemes • The women who have taken loans expressed that the interest rates are very high. • Some of the women who have taken loans from the Grameen Bikas Bank in Gopigunj

and from Nirdhan in Parasi market centre expressed that weekly payments of principles and interests amount through group collateral takes a lot of time and disturbs their productive activities.

d) Provision of micro finance: Another problem that potential entrepreneurs face is the long delay in processing the application for micro finance. Only 13 out of 113 women who completed NBC training have received micro finance in Nuwakot (refer table 13). In Nawalparasi as of January 2000, women had not yet received micro-finance, but it was in process. Procedural delays however, were a major problem. e) Loan amount • Most of the informers said that the loan amount under the micro-finance scheme is too

low to start a profitable business. They said that the amount of loan given should be flexible according to the minimum amount required for a particular enterprise. A women who had received training in Dhaka weaving and is planning to start an enterprise expressed that the loan amount is not even enough to buy a loom and for initial working capital.

• Due to low micro-finance available, most of the women entrepreneurs were not able to

buy raw materials in stock for which the price is relatively lower compared to buying in small bulks.

• Despite the problems faced by women in accessing credit from formal sectors most of

the bankers, ADB/Nepal, Nirdhan, Grameen Bikas Bank said that women lenders were relatively more committed and punctual in repayment of loan and interests.

iii. Skills/ Training: a) New Business Creation Training (NBC) NBC training has been given to illiterate and literate women. The women were asked about their views on NBC and how they were utilising the learning of NBC. It was found that the literate women have the knowledge to utilise it properly and are demanding more training in

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book-keeping and accounting because they will certainly need to increase their accounting skills as the business grows. However, the illiterate women entrepreneurs who have received NBC training may learn to do some basic accounting at a minimum level, but if the numbers increase, they may have difficulties in keeping the accounts. In the NBC training illiterate women are taught counting by using objects such as stones, and grains. The illiterate women, thus learn how to do basic accounting, but fail to do cost estimation and proper pricing. b) Access to trainings and its utilisation:

• Women’s limited access to training opportunities hinders their successful participation in micro enterprises. Heavy work burden and their restricted mobility do not allow women to participate in the limited training opportunities available. Moreover, women also face many problems in accessing the training programmes which are held quite far away from their locality.

• The delay in supporting potential entrepreneurs for skill training after the NBC trainings

also partially hinders the women's enthusiasm and motivation to start their own enterprise. The large gaps (see table 13) in the number of women receiving NBC training and the number of women getting skill-training is well indicated in the table below. Many women who develop interest and enthusiasm after the NBC training back out when the skill training cannot be arranged for a long time after NBC training.

Table 13 Training support given by MEDEP to potential women entrepreneurs NUWAKOT Male Female Total NBC 60 113 173 Skill training 11 21 32 Micro finance 17 13 30 No. of women who have started micro-enterprise

16 30 (27%) 46

NAWALPARASI NBC 41 64 105 Skill training 8 31 (48%) 46 Micro-finance N N N No. of women who have started micro-enterprise

N 8 (12.5%)

[source: progress reports of Nawalparasi, Jan 2000 and Nuwakot, Jan 2000] c) CSIDB/DCSI trainings • In Nuwakot, training has been mainly focused on tailoring as it was demanded from the

local women. Out of the total number of women who got skill training in 1999, 43.7 percent in Nawalparasi and 52.3% in Nuwakot were given training in tailoring alone.

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However, the quality of training given by CSIDB was not considered very good. Women expressed that they have not been able to utilise it properly for business purposes. They have not been able to make garments as per the customer demand because the training only taught them how to make simple garments, while the demand is more for garments like pants, shirts, and coats. In Battar market centre where there are a number of women tailors, advanced training in tailoring was demanded because the three months training given by CSIDB was not considered enough.

• CSIDB chief industrial officers expressed that the skill training are designed mostly for

the literate. Thus, most of the women being illiterate face difficulties in joining the training.

• Occasionally the training given by CSIDB was not found to be properly targeted. For

example, Deviki Lamichane, women ward representative, of Ratmate VDC under Dhikure Market Centre, Nuwakot, has received training in tailoring, fruit processing and mushroom farming. However, she is not utilising any of these trainings for business purposes. According to her, she went for these trainings only because nobody else in her ward was willing to go.

• The CSIDB chief industrial officers of both the districts expressed that the follow-up and monitoring of trainees is not done regularly due to the lack of sufficient budget after the training.

• The CSIDB chief industrial officer of both the districts said that CSIDB has been

unable to give more quotas for MEDEP recommended women due to objections from the VDC chairman. They (VDC) want their own candidates to receive the training.

8.3 CONTINUITY RELATED ISSUES FOR WOMEN OWNED ENTERPRISES Certain barriers are being faced by existing women owned enterprises who are either having personal constraints or constraints related to their enterprises. Since there were very limited number of women owned enterprises, workshops could not be held exclusively with their participation, so the findings are based on 10 case studies, and 7 site observations of the enterprises, and the views of key informers. Most of the findings under this heading are qualitative because it was difficult to quantify the information. The problems faced by women managed enterprises producing different products are examined in this section, but there are also some positive socio-cultural developments among the existing women entrepreneurs especially in terms of their household status. Out of a total of 17 women entrepreneurs, 10 (58.82%) were above the age of 30 and 7 (41.18%) were below the age of 30. In terms of literacy, there were 11 literate (64.71%) and 6 (35.29%) illiterate women. Two of the literate women had passed SLC. Of the total enterprises covered by the study, about fifty percent of them were supported by MEDEP.

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i) SOCIO-ECONOMIC ISSUES a) Mobility • The women entrepreneurs who are separated from their husbands or widows were

found to be involved in buying the inputs and marketing the products, even if they have to cover a long distance. However, those who were married said that they often seek help from male family members to buy the raw materials and sell the products.

b) Workload • Contrary to the general understanding that due to heavy work burden, women cannot

devote full time in business, the findings for women entrepreneurs suggest that time constraint is not a major problem. Their grown up children and even their husbands help them in easing their household and business work burden. Many of the entrepreneurs who were interviewed said that 'time management' was more of a challenge and possible to manage.

c) Control over earned income • Women entrepreneurs do have control over their earned income. When asked about the

use of earned income, they all reported that, it is used mostly for household expenses, and they can use it for their own personal expenses too.

d) Decision making • All women entrepreneurs reported that they take all the decisions regarding the business

with the consultation of male family members. Men were found in the secondary role only for making the decisions related to enterprise management

ii) ACCOUNT KEEPING • Most of the women entrepreneurs were not keeping accounts. Out of ten women

entrepreneurs interviewed in different market centres in Nawalparasi, 90% of women entrepreneurs said that they do not keep accounts. In Nuwakot too, 80% of the women did not keep accounts. Even the women who were literate were only keeping accounts of income and expenditure, but could not do a cost estimation of overall profit and losses. When income, expenditure, and the labour cost for production is not kept properly, it may lead to wrong pricing and thus, the enterprise may face losses.

• The bamboo workers do not keep the accounts of expenditure and income of their

enterprises. Neither do they know how to calculate cost of their products. • The producers of the tika enterprises are not keeping accounts of expenditure and

income although both of the interviewed entrepreneurs have passed SLC..

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• Although the two interviewed dhaka weavers were literate they are not keeping account of the income and expenditure of their enterprises. Both of them were not even aware of the actual cost of production per meter because when they were asked, they did not include the labour cost.

iii) INFORMATION ABOUT AVAILABLE OPPORTUNITIES Most of the women were showing interest in enterprises that already have a market base and are doing well like Tika, Dhaka, bamboo crafts and tailoring. Women did not have access to further information about various aspects of micro-enterprise development or new upcoming ventures. Women are not yet taking much interest in agro-based products of which the raw materials are locally available and the market is much better. Their inability to identify remunerative enterprises may lead to market saturation and over supply of the products, limiting their income earning opportunities and sustenance of the enterprises. iv) MARKET Availability of a market and marketing of the products are the most difficult aspects of micro-enterprise development. The study shows that the major problems associated with marketing are inability to face competition due to poor quality, high cost of production, inaccurate pricing of goods, and sales on credit. Moreover, socio-cultural factors such as mobility restrictions were also responsible for making marketing a problem for women. a) Cost of production: The FNCCI Chairmen in both the districts (Nuwakot and Nawalparasi) said that one of the major problems of the existing women entrepreneurs is that the market is being overtaken by Indian/Chinese goods or goods from Kathmandu. Due to the high cost of production, local entrepreneurs cannot price their products at a reasonable rate that is more attractive than the outside products. Most women stated that due to their inability to bring raw materials in bulk, for which the price is relatively lower, they couldn't price their products at lower rates. • A women tailor who wanted to sell readymade gowns in the local market in Nuwakot

for Rs120 (minimum cost according to her) could not compete with Indian garments of the same design which was selling for Rs 80.

• The Tika Udhyog is an upcoming women related micro-enterprise and they are doing

relatively well. Yet a problem they face as expressed by two women of Arunkhola, is that the price of their tika is higher than the Indian tikas. This is because they have to pay a higher price for the raw materials which are imported from India. However, another women tika producer's raw materials were purchased by her husband from Janakpur and thus, her price was relatively lower.

b) Product quality

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• According to the shopkeepers, though the design of the tika are good, the glue of the tika is not strong enough, so customers prefer the tikas from outside more than the local ones. The producers said that they were trying to improve on this by using better quality glue.

• Some soap enterprises in Nuwakot that were established by some women and men after

receiving skill training from PDDP, flopped miserably due to its poor quality. • The buyers of Dhaka in Butwal said that they have to reduce the price per metre of

Dhaka occasionally because of weaving defects. These defects occur with the use of simple handlooms which most women weavers use.

c) Productivity and supply Enterprises were closed very often especially during the harvesting season. This hinders the regular supply of products and they lose the customers. If the enterprise is to grow, it should supply its products regularly and have a good niche in the market. However, most of the women owned enterprises were operated as per the free time available to them. • All the women dhaka weavers were using traditional handlooms in which productivity

is relatively low. According to them, their profitability could be raised to a greater extent if loan is made available to buy semi-automatic looms. Another common problem that hinders productivity is the lack of warping facilities in the villages. They have to go to Butwal to get their thread warped. As there is only one warping centre in Butwal they have to wait for a long time. Moreover, there is no electricity in the village and thus, they cannot weave during the nighttime.

d) Product diversification Some of the women entrepreneurs expressed that there were many risks in product diversification due to lack of information on marketing outlets. The skills are available, but women fear to diversify in case the products does not get sold. • All the bamboo workers in Gaidakot and Gopigunj were producing only simple bamboo

racks and other products like doko/dalo/bhakari even though they are skilled in producing more fine products like baskets, penholders, and other items. They are not producing these items because of the uncertainty on the demand for these products.

• Some of the women Dhaka weavers of Gopigunj stated that they could increase their

profit margin if they weave and sell Nepali caps instead of selling the material alone. However, the dealers of Butwal who give raw materials on credit to women weavers refuse to give credit if the women weavers go to sell the readymade products to other places where they get a relatively higher price.

• Some of the women tailors complained that it was very hard to diversify their business

into producing readymade garments because of the influx of Indian made garments.

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d) Sales on credit The women sell Tika on credit and they are paid only after 2-3 weeks. Since the working capital is not enough to buy raw materials in bulk, the women cannot start work again until they are paid. e) Mobility The women entrepreneurs who were separated from their husbands or widows are found to be involved in buying the inputs and selling the products even if they have to cover a long distance. However, most of the women entrepreneurs who were married and living with their husbands were restricted to be mobile as per the need of the business. They seek help from their family members to take the products to the market and buy inputs. This does not mean that they do not have control over their earned income. They are functioning as a family enterprise. v) RE-INVESTMENT OF PROFIT IN BUSINESS The enterprises based on micro-finance do not generate enough profit to make them capable of re-investing the profit for business expansion after meeting domestic expenses. Most of the generated income is just enough for household expenses. • The bamboo workers said that the income from the enterprise is low, yet they have to pay

high interest rates for the loan taken for the working capital. Income from the enterprise is just enough for domestic expenses. They were incapable of reinvesting any profit.

vi) WORKING CAPITAL Due to the low amount of micro-finance, the working capital of most of the entrepreneurs is rather small to comfortably operate a business and thus, they cannot invest in the required inventories to sustain the business in a profitable manner. • All bamboo workers expressed lack of capital as the main problem in promotion of their

enterprises. They usually take loan from local moneylenders at an exorbitant interest rate (5 percent per month). They all said they were not able to keep stocks of the products and sell them in season due to lack of working capital. The bamboo workers who were involved in making 'Bhakari and Kotha' which is used for storing grains, said that these products could fetch higher prices (double than in off season) during harvesting season.

• Three women making "dalmoth," "ainthe," and "doughnut” expressed that due to low

working capital they could not buy raw materials in bulk, thus, their retail price was very high.

• The women tailors were unable to buy raw materials in stock because of low working

capital and lack of connection to the wholesalers who provide cloth in bulk.

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vii) MIDDLEMEN Since most of the women entrepreneurs are not very shrewd marketers, they all depend on the middlemen to sell their products. The middlemen are necessary people but due to the innocence of the women entrepreneurs they often exploit and cheat them. • All the bamboo workers who make racks said they have to depend on middlemen and

wholesalers to sell the products. They feel that they were being exploited because they are offered a very low price for their products while the customers are charged much higher.

• The Tika producers feel that they were being exploited by the dealers and shop keepers

who are offering them a much lower price (average price Rs. 24-28) and are charging very high price to the customers (Rs. 50 per dozens).

• The middlemen usually reduce the price to be given to the Dhaka weavers, complaining

of weaving defects. viii) RAW MATERIALS Many entrepreneurs complained either about the rising price of raw materials or the difficulty in accessing raw materials. However, they were not able to raise the price of the products due to competition in the market and thus, their net profit was decreasing. • The raw materials for tika were not locally available. It is available only in Butwal.

Furthermore, the price of raw material is also very high, as it is imported from India. But the producers cannot raise the price of the final product since there is competition from the Indian made tikas, which are much cheaper.

• All the women Dhaka weavers said that the raw materials for the products were not

locally available. They have to go to Butwal for it. Another problem associated with the enterprise is rising price of inputs, but the price of the product has not raised accordingly.

• Raw materials like Mujj (a kind of grass which is grown along the river side) needed for

Dhakia weaving takes a long time to collect, and the women have to walk long distances to gather it. This is also one of the reasons why women are not interested in making Dhakia for business purposes.

9. MAJOR PROBLEMS AND STRATEGIC INTERVENTIONS

From all the issues that were discussed in the main findings, the interventions have been designed for some of the major barriers for women's involvement in micro-enterprise

36

activities. Only those interventions that projects can address directly or indirectly has been given because there are some issues/barriers which are very much inbred in the culture and tradition of the various ethnic groups, beyond the reach of any project. I) MAJOR SOCIO-ECONOMIC PROBLEMS The findings under the socio-economic problems of women suggest that mobility restrictions, negative perception towards earning an income, household and farm workload, literacy level, and level of self -confidence are posed as constraints for women depending on their ethnicity, age, and migrant status. Suggested Interventions: Situational Analysis ♦ Before entering into the community for micro-enterprise support to women and men, a

situational analysis should be done. The following factors should be considered for the study ♦ Socio-economic analyses including in-depth gender relationship analysis amongst the

major ethnic groups of the programme area. ♦ Study of existing income generating activities ♦ Inventory of available skills ♦ Feasibility studies of viable micro-enterprises (based on locally available raw

materials and skills) ♦ Study of the livelihood patterns

Social Mobilisation Package: It is very necessary that the project gain the trust of the community people as they proceed with the activities. Therefore, a good social mobilisation package should be developed. In the various stages of social mobilisation continuous rapport and alliance building should be the main focus so that the women and the community people are motivated to participate in the programme. 1. Community Sensitisation: ♦ In order to sensitise the project objectives to the community, the project should first

launch community sensitisation programmes. During these sensitisation sessions, the socio-economic problems and prospects, and issues pertaining to micro-enterprise development can be discussed. This forum can further be capitalised to sort out difficulties in establishing/operation of micro-enterprises regarding raw materials, social support, loan, marketing and so forth. Regular meetings and forums involving ward representatives, VDC officials, opinion leaders, family heads, and women and their husbands can be arranged to discuss attitudinal and socio-cultural barriers, which hinder the self-development of women and their participation in micro-enterprises and to identify the solution to these problems through participatory approach..

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2. Group Formation ♦ Group formation is a vital part of the SocMob package which should be process oriented

and not target oriented. Through the community orientation programmes, the community will realise whether the project objective meets with their requirements or not and if it does, the participants will eventually feel that they need to form groups for the promotion of their own interest. In places where there are no previous CBOs, it would be better to form new groups for interventions in micro-enterprise development.

3. Group Promotion ♦ In order to promote the groups, various forms of trainings can be given depending on the

women's capability. Literacy, numerate leadership training, fund management, and basic accounting classes should be provided. By taking these classes, the level of self- confidence will gradually increase as women discuss their problems and prospects and applies the knowledge she learns in practice.

♦ Many of the women lack confidence in running a business individually, therefore, the

concept of group enterprise should be promoted. In group enterprises, women who are relatively more mobile can be involved in marketing, women who are not so mobile can be involved in production, while women who are literate can be in charge of accounting and book-keeping. Group enterprise increases women's solidarity and after its successful operation, it can be replicated in other market centres. However, the success of group enterprise depends upon the cohesion of the group. To ensure that group cohesion is maintained group management and leadership training should be an integral part of group formation

4. Certain social indicators for choosing women for micro-enterprise development: Ethnicity/Mobility/Age/Landholding/Exposure: ♦ Since the Mongoloid, migrant and women above the age of 30 are more mobile and

relatively less burdened with household work, more focus should be placed on these women for micro-enterprise development. They should be the prime targets in the beginning because they are more likely to be successful in sustaining their enterprise.

♦ The Terai native women and Brahmin/Chhetri women particularly of the younger age

group are not relatively mobile and the community does not tolerate them working outside. For these women, home based micro-enterprises, which can be combined with domestic activities, should be promoted. The micro-enterprises for which the raw materials are not locally available and product of which cannot be sold locally like dhaka, tika, and bamboo will not be very suitable for these women. Home based enterprises where the whole family can help such as making doughnut, ainthe, dalmoth, will be relatively more suitable for them.

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♦ Since women do most of the time consuming farm works, the bigger the size of land holding of a family, it is probable that women from that household will face more time constraint. Thus, it would be better to give preference to women from landless families or the families holding little land. However, enterprising women who are interested in micro enterprises should not be left out, although she is from a family holding relatively bigger land size. Women belonging to such families can be encouraged to take up enterprises based on their own farm products such as ginger, turmeric, chillies etc. Agro-based enterprises can be promoted involving the whole family.

♦ Women below the age of 30 are still very much involved in child rearing and household

work, and therefore, more likely to face time constraints to be involved in micro-enterprise activities. The best age for women's involvement therefore would be after she completes her childbearing age. However, her capability to run the enterprise successfully also depends upon the family support she receives.

♦ Women trained by VDCs, NGOs, and INGOs can be given preference since they already

have some training and exposure and are in need for further support. This can help in the synergetic effect too. Since the women who are the members of the CBOs are more confident and relatively more mobile, preference should be given to these women in the beginning.

II) MAJOR ENTRY RELATED PROBLEMS FOR POTENTIAL

ENTREPRENEURS i) Awareness Low awareness on support systems and lack of knowledge on micro-enterprises Due to illiteracy and mobility restrictions, most women were not well aware of various support systems or potential micro-enterprises that they can pursue. Women who were entering into the micro-enterprise sector were also not totally sure about what business they should pursue. They usually opt for businesses like tailoring and knitting since it can be easily combined with their household work. In the social mobilisation package, the awareness and education component should also be well integrated. Suggested Interventions:

♦ ME specific information - feasible ventures, technology, and technical know-how. ♦ Dissemination of ideas on case studies and role models of women entrepreneurs to

increase the motivation of men and women to start micro-enterprises. ♦ Education on various aspects of micro-enterprise development since awareness alone

is not sufficient to make a woman a successful entrepreneur. ii) Credit

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Limited or even lack of credit is also a major deterrent to women starting micro-enterprises. Most of the women lack collateral and their families were not too keen to give their property as collateral. Therefore, women cannot take big loans than the amount given under micro-finance schemes. They also cannot take loans without the permission of their husbands or other elder family members. In addition, due to lack of education many women were not able to prepare bank documents and do other formalities. Procedure delay in loan sanctioning is another major problem. Suggested Interventions:

♦ The women should be first of all linked with the lending institutions. ♦ Access to credit should be simplified by lending institutions. Projects should

continuously advocate this matter with the institutions. ♦ If the credit is mobilised through formation of savings and credit groups, then

misutilisation of loans can be minimised due to group ownership over the capital. ♦ To make sure that loans are utilised properly, regular follow up and supervision

should be done by project staffs. ♦ Support programmes should consider making the loan amount flexible according to

the investment required for the business. If a proposal is feasible then, it should be well recommended to the credit providers.

♦ ADB/N should be involved in group formation, management, and saving and credit training not just in giving micro-credit alone.

♦ In some of the lending institutes (Gramin Bikas Bank/Nirdhan) weekly payment of principle and interest is required. This is very inconvenient for women and it needs to be re-considered.

iii) Skills/Trainings Problems in access to trainings and its utilisation Most of the women who have received entrepreneurship development training have not received skill training. Problems were also expressed in the type of skill trainings given such as over emphasis on tailoring alone, trainings being designed only for the literate, and not being properly targeted to the right women. Required follow up and monitoring of the given trainings was also missing. It was also revealed that MEDEP recommended women did not receive the trainings as per the required extent. Suggested Interventions:

♦ CSIDB/DCSI should upgrade the quality of skill trainings and develop new packages as per demand. A special training package especially for illiterates should be designed. The trainings should have more explanations in pictorial forms for illiterate women. Close co-operation with World Education and CECI in this matter could be beneficial.

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♦ Maximum number of women should have access to skill training. Majority of the women cannot go out for a long distance, so the skill training venues should be near the village in a convenient location for the women.

♦ In order to discourage women from joining training just for the sake of receiving

allowances, it should be made clear that only women who have to forgo their daily wage will be given the allowances.

♦ To make sure that the acquired skill from the training is used for the business, care

should be taken to properly target the trainees and regular follow ups and monitoring should be done. CSIDB's role for follow-up and monitoring should be increased.

♦ Proper need assessment of training should be done not only based on the interests of

women but also on the basis of the feasibility of the enterprise. It would be better if projects can promote an enterprise that has a good market and give training to a number of women for the establishment of that particular enterprise and to make it a model for others to follow.

♦ Presently, skill training is provided long after receiving entrepreneurship development

training. The two training should be given one after another so that women retain their interest in doing the business that they seek to.

♦ Additional technical support after skill trainings should also be provided for smooth

operation of the enterprise. Projects should provide some incentives to the partner organisations to make them capable of giving technical guidance to the entrepreneurs on a continuous basis.

♦ While integrating the project design with the VDC's and DDC's periodic plans, the

role of the local government units and their staffs should be clarified. The field level staffs should strengthen their link with VDCs personnel to work together in social mobilisation, training, and credit mobilisation.

III) MAJOR CONTINUITY RELATED PROBLEMS FOR EXISTING

ENTREPRENEURS i) Inability to keep accounts It was seen that most of the women entrepreneurs did not keep accounts. Even the literate women entrepreneurs kept accounts on daily income and expenditure, but could not do further cost estimation and keep profit and loss accounts.

Suggested Intervention: ♦ The women entrepreneurs should be helped regularly by the field level staffs in

bookkeeping/cost calculation/pricing of the products. Women entrepreneurs should be further trained/reoriented on financial accounting with a separate package of 2-4 days

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that can be a part of the non-formal education (NFE) package. The present account keeping training can also be reviewed/revised to suit the pressing needs or literacy level of the target beneficiaries. If the women entrepreneur is illiterate and incapable, then one of her family members can be given the training. Follow-up and backstopping support from the project becomes vital for this task.

ii) Market a) High cost of production Due to the high cost of production, women owned enterprises cannot price their products at a reasonable rate that is more attractive than the outside products, and therefore, they face tough competition from other products. Suggested Intervention:

♦ Since the competition with outside products are very high, the projects should assist newly emerging enterprises and look into the alternative micro-enterprises especially in the areas of agro-based products. A selected group of entrepreneurs should be taken for exposure visits to successful agro-based enterprises in other parts of the country.

b) Low quality of product The quality of the products is poor, so customers prefer the foreign products to the local ones. Suggested Interventions:

♦ In order to improve the quality of the products, advanced quality training should be given to the entrepreneurs and the project staff should regularly supervise to ensure its good quality.

♦ Support programmes can make linkages with existing factories to arrange sub-contract activities for women. Certain ancillary units of a particular factory can be established in the form of micro-enterprises. In this manner, there will be assurance of quality control alongwith a readily available market.

♦ A quality control mechanism should be developed for all products for which a continuous backstopping support will be necessary.

c) Product diversification If too many women are concentrated in the same products, in the long run, there will be a risk of saturation in the market which eventually will threaten the profitability from those specific products. Therefore, women have to venture into alternate enterprises to diversify products. Suggested Intervention:

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♦ New enterprises in the area of non-timber products in the community forestry programme can provide good opportunity for diversification of enterprises. For instance, in Nuwakot many women are members of forest users group. These women can be mobilised to start forest-based micro-enterprise like herb collection and packing. For example, tapari making is an upcoming enterprise in Nawalparasi, which can be replicated in Nuwakot. Since this enterprise needs more investment, group enterprise is recommended.

iii. Low working capital Due to the low micro-finance given by various support programmes, the working capital of the entrepreneurs is rather small to comfortably start the business and thus, they cannot have enough inventories required to sustain the business. Suggested Intervention:

♦o

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stoves can also be promoted as a micro-enterprise for women. Training can be given to Bishwakarma women to make stoves and promoted as a family enterprise.

♦ Establishing improved pani ghatta in nearby location helps to reduce travelling time. Nuwakot has great potential for water mills. It can be promoted as a group or family enterprise.

b) Technology to upgrade enterprises ♦ Warping drums can be installed in villages having many handloom workers. Warping is

the pre-weaving process. Since the women weavers are operating on a small scale, they cannot afford to buy warping drums. In Nawalparasi, warping facility is only available in Butwal. Installations of warping drums in the villages as a common facility will help the weaver to save time and increase productivity.

♦ According to the local weavers, improved handlooms imported from India have the capacity to increase the productivity to a greater extent and lessen the weaving defects.

♦ Installation of a solar-dryer as a common facility will help to promote agro-processing businesses. Ginger and sutho are one of the major exportable items of Nepal and Nawalparasi is one of the main districts for ginger cultivation. Women in the districts can be involved in processing ginger. There is also potential of ginger cultivation in some places of Nuwakot. Besides ginger processing, titaura, mashaura, chhurpi, meat, onion, chillies and other spices can be dried within a short period, and better quality is maintained when dried in the solar dryer. Installation of solar drier in production area will help to promote these enterprises.

♦ Group micro-enterprises can be promoted through the use of locally developed technologies, which can be operated easily by semi-skilled women such as: ♦ Bakery ovens, ♦ Grinder to grind wheat, maize, barley, spices etc., ♦ Chiura mill for roasting and beating the paddy.

vi. Rising price and difficulties in accessing raw materials Entrepreneurs are facing problems due to the rising price of raw materials or the difficulty in accessing them. However, they are not able to raise the price of the products due to competition in the market and thus, their net profit is decreasing. Suggested Intervention:

♦ Since availability of raw materials is an important component of enterprise development, some support systems should be in place to facilitate the acquisition of raw materials at a reasonable price and on time.

♦ Collective marketing of raw materials, formation of product associations, and mobilisation of male family in marketing of the raw materials is suggested. However, it should be remembered that mobilisation of male family members in marketing of raw materials is advisable only if there is gender equity at the family level. Otherwise women may simply become the producers and the control over income will gradually go to the men's hand.

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ADDITIONAL RECOMMENDATIONS 1. Synergy Coordination with other ongoing programmes in the area, being launched by other NGOs and INGOs, will help in creating a synergetic effect. MEDEP should organise regular meetings, at least every three months, with other ongoing programmes so that similar supports are not duplicated and/or additional resources are not used for similar outputs. 2. Plan of Operation This study has given a general framework for the development of women managed enterprises. The appropriate operational mechanisms have not yet been identified. Therefore, we recommend MEDEP to carry out an opinion survey amongst similar organisations in Kathmandu, especially with those who were present during the report presentation forum. It is also advisable to visit these organisations, which could further enhance the operational strategies for MEDEP. The outcomes could be used for the development of MEDEP's operational plan (with specific activities) in a participatory workshop. 3. Further research needs One of the recommendations is also to carry out similar studies to assess the special needs of women in micro-enterprise in other project districts. Such a study would reveal the constraints of women as per the socio-economy of each district and would provide inner realities for MEDEP to design its programme interventions.

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Notes: Ainthe Local sweets made from ghee, sugar, wheatflour Bhakari/Kotha Big bamboo basket used for storing grains Biswakarmas Sheet metal workers Chhurpi Dried cheese Dalmoth Foodstuff Damais Tailors Dhaka Traditional handloom cloth Gundri/ Mandro Straw mattress Mashaura Agro based product Mijars Cobbler Sutho Dried ginger Tapari Leaf bowl and plates Tika Women's ornamental wear on the forehead Titaura Fruit product

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9. SYNOPSIS OF MICRO-ENTERPRISE RELATED ISSUES AND STRATEGIC INTERVENTIONS

MAIN ISSUES PRESENT STATUS STRATEGIC INTERVENTIONS

i. Attitudes • Mobility • Perception towards earning an income

• Restrictions on mobility depending on certain factors such as ethnicity, marital status, migrant status and age.

• Many think earning is a man's job.

ii. Decision making power of women

• Most women are consulted while making decisions at the household level.

• Cannot take independent decisions regarding taking loans or starting a business.

iii. Control over household income • Ownership of property • Access to household income

• Men own household properties. • Most women have control over household

income and expenditure. iv. Workload • Distribution of household work by

gender • Distribution of farm work by gender • Fuelwood & fodder collection

• Over work burden due to household and farm activities.

• Collection of fuel & fodder mostly done by women.

v. Involvement in non-farm activities • Limited involvement in non-farm activities. vi. Literacy level • Low literacy level

vii. Level of self-confidence • Level of self-confidence depends on ethnicity, age, literacy and exposure.

1. Socio-

Economic Issues

viii. Age factor • Women below the age of 30 are targeted for ME development.

1. Situational Analysis • Socio-economic analysis • Study of existing income generating

activities • Inventory of available skills • Feasibility studies of viable MEs • Study of the livelihood patterns

2. Social Mobilisation

• Community orientation (information sharing) • Community sensitisation on MEs • Group formation • Group promotion (literacy/ numeracy

classes, seed capital, group promotion.) • Sharing problems, prospects and networking

3. Development and use of certain indicators for

choosing women for micro enterprise development based on: • Ethnicity (contextual) • Age • Mobility (assessing the ethnic value) • Land holding • Exposure (within the community and

outside) • Involvement in non-farm activities (tea

shops/vegetable vendor etc.)

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i. Awareness • Awareness on support systems • Knowledge on alternative micro-

enterprises

• Limited awareness on the available support systems

• Lack of knowledge on viable micro-enterprises – other than women specific micro-enterprises only

• ME specific information/education • Information on feasible ventures and viable

MEs • Technology, and technical know-how. • Various aspects of micro-enterprise

development. • Dissemination of case studies, success stories

and role models of women entrepreneurs. ii. Credit: • Access to credit • Formation of groups for finance • Provision of micro finance • Loan amount

• Limited access to credit • Difficult to form groups for finance • Delay in the process for providing micro-

finance • Low loan amount

• Facilitate networking support • Simplify access and process to credit • Flexible loan amount • Regular follow-up & supervision

2. Entry Related

Issues for Potential Entrepreneurs

iv. Skills/ Training: • Access to skill trainings and its

utilisation • Entrepreneur development training • Quality of trainings

• Low quality of training • Limited access to training/ training held in

faraway venues. • Some training are not suitable for illiterate

women • Too focused on stereotype training such as

tailoring for women • Diluted training purpose – not always for

entrepreneurship development • Lack of follow up

• Up-gradation of training (upgrading skill for ME management)

• Provide training on feasible enterprises • Flexible timing for training • Accessible training venue at nearby location • Appropriate target groups for training • Mobilisation of partner organisations to give

technical support to enterprises. • Role clarity of representatives of local

governments institutions in project activities.

i. Socio-economic issues • Mobility • Workload • Control over earned income • Decision making

• Men support in buying inputs & marketing products.

• Help in domestic work by other family members.

• Women have control over their earned income

• Important decisions are made with consultation of family members.

• Further strengthen inclusion of men for buying raw materials and marketing of the products

• Organise orientation related events for men and women jointly

3. Continuity

Related Issues for Existing Entrepreneurs ii. Account keeping • Inability to keep accounts

• Inaccurate pricing

• Follow up and coaching on accounting/cost calculation

• Review present account training package to suit the literacy level of women.

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iii. Information about available opportunities • Limited information

• Provide networking related information. • Inform on other possible supports for expansion

and profit making strategies.

iv. Market • Cost of production • Product Quality • Productivity & regularity in supply • Product diversification • Sales on credit • Mobility

• High cost of production • Tough competition with the external goods • Poor product quality • Irregularity in supply of raw materials vis-à-

vis finished products • Risky to diversify products • Late payment hampers regularity in

production • Less involvement of women in marketing.

• Support to access raw materials. • Product management and marketing support. • Support on quality control mechanism and regular

supervision by project staff to ensure good quality. • Promote sub-contract activities to form ancillary

units of existing factories. • Venture into new enterprises to avoid saturation of

one product in the market – diversification • Set up organised form of repayment mechanisms • Open showrooms in urban centres or near main

highways (common facility centre). • Organise exhibitions.

v. Re-investment of profit in business • Low profit, therefore inability to re-invest in

business. • Enough to meet the livelihood needs

• Support in cost effective production • Motivation to save • Additional financial management support

vi. Technology related to lessening work burden and quality production

• Use of less productive technology • Some technologies are not compatible for

quality products

• Promote technology to lessen work burden – eg. Improved cooking stove, beehive briquette, improved water mills etc.

• Upgraded technology for enterprises – e.g. warping drum, solar dryer, semi-automatic looms etc.

vii. Working capital • Low working capital – inability to buy raw materials in stock. • Review present credit policy

viii. Raw materials

• High dependence on middlemen • Difficult to access raw materials • Unpredictable price rise of raw materials • Pricing of product by the middlemen rather

than the ME entrepreneurs

• Collective marketing systems - product associations (common facility centre).

• Mobilisation of male family members in purchasing raw materials.

• Support systems should be in place to facilitate the acquisition of raw materials at a reasonable price and on time.

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Skill Development

Credit

5 Technology, production &

marketing support

6 Follow-up & Backstopping

Support

Process and Monitoring

support

Stage of Graduation

Social Mobilization

2

PROCESS FLOW FOR MICRO ENTERPRISE

DEVELOPMENT 3

4

7

1 Situation Analysis

• Socio-economic analysis • Study of existing IGAs • Inventory of available skills • Feasibility study of viaible ME

• Community

sensitization (information sharing)

• Group formation (potential entrepreneurs)

• Group promotion • Sharing problems, prospects

and networking

• ME specific information • Entrepreneurship development

training (upgrading skill for ME management)

• Technical know-how/technical skill

• Networking support • Simplified access

• Development and use of technology of lessen women's work burden and increase productivity of MEs

• Accessing raw materials • Production management (quality control) • Marketing

• Account keeping/ cost calculation • Marketing linkages • Financial management (loan) • Risk management

• Expansion (products) • Provide additional support to sick

enterprises • Incentive /recognition to successful

MEs.

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Annex A

SSI CHECKLIST FOR POTENTIAL ENTREPRENEURS

1. Name 2. Age 3. Surname 4. Land holding 5. Educational status 6. Marital Status 7. Knowledge/Attitude and skill of interested enterprise 8. Attitudinal Barriers

• Female cannot go out • Earning income is a man’s job

9. Socio/cultural/economic barriers

• Women are burdened with household work • Men do not participate in household work • Female role in decision making • Household income under the control of male/female/both • Illiteracy • Female cannot take loan without permission of husband/elder family members • Less access to training

10. Time Constraints

Farm Activities

• Nursery Raising (Male/Female) or both • Land preparation/terrace management (Male/Female) or both • Chemical fertilisation/manure (Male/Female) or both • Sowing/transplanting (Male/Female) or both • Weeding (Male/Female) or both • Harvesting (Male/Female) or both • Threshing (Male/Female) or both • Drying (Male/Female) or both • Storing (Male/Female) or both • Transporting (Male/Female) or both • Mill (Male/Female) or both

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• Manual (Male/Female) or both • Selling (Male/Female) or both

11. Fuel wood collection

• How many days a weak do you collect fuel? • How long does it take? • Who collects the fuel wood?

12. Livestock • Collecting fodder (Male/Female/both) • Who cleans the animal shed? (Male/Female\both) • Who goes for herding? (Male/Female\both) • Who milks? (Male/Female\both) • Who goes to sell the livestock product? (Male/Female\both) 13. In your opinion, what kind of support do women need to encourage/involve them in the

micro-enterprise sector?

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Annex B

CHECKLIST FOR CASE STUDY 1. Name 2. Age 3. Landholding 4. Marital Status 5. No of Children 6. Educational status: Literate/illiterate 7. Previous Background 8. Present Background: 9. Group member Yes or No 10. From where did you get support to start this enterprise?

• Finance/Skill development/other supports if any 11. Experience with the product

• Sales? • Market problems, where do you sell?

12. Gender Impact • Has your workload increased after your involvement in the micro-enterprise? • Have you been able to spend money on yourself from the profit? • For whom is the income spent on the most?

13. Who keeps the income from the business? 14. Involvement in the management of the enterprise 15. Decision making relating to important affairs of business: Male/female/both 16. Marketing of inputs: Male/Female/both 17. Marketing of output: Male/Female/both 18. Collection: Male/Female/both 19. Gender Relationship

• Does your husband/male help in household work? • Does your husband consult you to make important decisions?

20. Have you been able to devote enough time to your business? 21. Problems encountered 22. Intervention

53

Annex C

Checklist for Semi Structured Interviews for MEDEP Partners and Other Key Informers

1. What are some potential service/manufacturing/trading bases which women can develop

into micro-enterprises? 2. Is there any potential sub-contract activities with existing industries/hotels – creation of

ancillary enterprises? (value addition). 3. Are there any crude products that can be upgraded with better finishing for the

urban markets? (value addition). 4. What kind of technologies is required for these micro-enterprises? 5. How can the marketing/market linkages be improved for women entrepreneurs? 6. What techniques are the motivators taking to motivate the women to undertake

micro-enterprise activities/ what kind of motivation are the women seeking? 7. How to mobilise women (social mobilisation component/ formation of

associations) for the development of micro-enterprises? 8. What are the policies and strategies to promote women owned enterprises within

the MEDEP components? ♦ Skill training ♦ Market promotion ♦ Micro-finance ♦ Entrepreneurship training ♦ Business counselling and follow up support ♦ Programme management ♦ Technology ♦ Consumption pattern 9. What additional support systems are needed to promote women owned

enterprises? 10. How to ensure gender mainstreaming in the existing and newly developed micro-

enterprises i.e. 70% participation of women – project target.

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Annex D-1 NAWALPARASI

Work Plan of Nawalparasi district

January 5 Travel to Nawalparasi. January 6 Parasi – workshop with MEDEP partners and MEDEP staff. January 7 Banjaria – workshop with potential women entrepreneurs January 8 Banjaria – workshop with VDC members, potential women and men

entrepreneurs, and SSI with key informants. January 9 Interview with MEDEP staff – EDF, EDS, DPM January 10 Gopigunj – workshop with potential and existing women entrepreneurs; January 11 Gopigunj – workshop with VDC members, existing women and men

entrepreneurs, local organisations; SSI with key informants; case studies, and site observation

January 12 SSI with district level officials January 13 Gaidakot, Arunkhola: site observation, case studies and SSI January 14 Debriefing to MEDEP

Micro-Workshops: • District level workshop with MEDEP staffs/partner organisations in Parasi. • Two workshops with potential and existing women entrepreneurs in Banjaria, Parasi

market centre, and Daoonedevi, Gopiganj market centre. • Two workshops with existing men and women entrepreneurs, VDC representative,

local organisation's representative, teacher etc. in Banjaria, Parasi market centre, and Daoonedevi, Gopigunj market centre.

Semi-Structured Interviews: • EDF • Male Entrepreneur • Female Potential Entrepreneur • Female Existing Entrepreneur • VDC Representative • Local Organisation Representative • ADB/N Manager • FNCCI/DO President • CSIDO Industrial Manager • NIRDHAN, Parasi Manager • WDO Representative • PDDP Mobiliser

55

Site Observation: • Dhaka Weaving and Rice Mill-Daoonedevi • Tika Udhyog- Arun Khola • Tapari Udgyog -Chormara • Bamboo Craft -Gaidakot

Case Studies: Six Existing Women Entrepreneurs

• Teeka Udhyog (2) • Tapari Udhyog (1) • Dhaka Weaving (2) • Bamboo Craft (1)

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Sapkota Fukumaya Acharya Radhika Bania Shubhawati Agrahari Bania Radhika Agrahari Bania Shakuntala Agrahari

22 35 33 20 14

WORKSHOP # 3 DHARAMPUR MARKET CENTRE Name Age Address Magar I Kumari Acharya Radhika Chapagai Jhabilal Bania Ganga Narayan Bania Paramatma Bania Jayaprakash Agrahari Shankar Prashad Pathak Keshab Raj Tamang Sanu Ram Bahadhur Gam Malla Nar Bahadhur Magar Shankar Prashad Gair Manbir B.K. Nar Shimha Chaudhari Bhola Chaudhari Rajendra Bania Mohan Chaudhari Bal Kumari Chaudhari Durupati Agrahari Shyam Pritha Pasi Chabiraj Pariyar Sita Bania Radhika Agrahari Pant Dodh Raj Manandhar Sushil Acharya Gopal Prashad Shrestha Chitendra Kumar Chaudhari Shiva Shankar Gair Jamuna

21 35 34 35 24 18 62 40 43 56 52 36 42 57 40 32 19 40 36 34 35 30 38 50 52 35 42 46 42

Dharampur Dharampur Dharampur Amroad Amroad Banjaria Banjaria Dharampur Dharampur Dhaampur Dharampur Amroad Dharampur Dharampur Amroad Amroad Amroad Banjaria Banjaria Banjaria Banjaria Banjaria Banjaria Banjaria MEDEP Banjaria MEDEP Amroad Banjaria

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WORKSHOP # 4 GOPIGANJ MARKET CENTRE Name Age Tamang Phul Maya B.K. Shree Maya B.K. Madhu Geywali Radha Shinha Nirmala Chapagai Tulshi Khanal Mina Pandey Biahnu Pandey Thira Bhattarai Kalpana Pokherel Parwati Paudal Shumitra Chaudhari Ambika Chaudhari Ghujeshowri Pandey Phul Maya Sunar Parwati B.K. Gita B.K. Maya B.K. Bishnu B.K. Laxmi B.K. Laxmi B.K. Durga B.K. Budhi Maya Rana Davisara Ale Bishnu Pandey Kamala Lugelo Fumikala Thapa Budhi Maya Lamechane Bimala Shrestha Hum Kumari Shrestha Bishnu Bhandari Bhagawati Rana Goma Thapa Deel Maya B.K. Junkeri Gurung Deeli Tamang Sapani Gurung Purni Maya Tamang Ganga Maya Tamang Mang Maya Tamang Phul Maya Tamang Maan Maya Tamang Kanchi Maya

53 55 17 20 17 18 29 19 18 18 35 30 46 24 24 45 25 42 27 18 26 19 28 36 25 30 36 25 20 26 35 40 28 30 20 30 23 30 30 22 44 35 23

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Tamang Endhu Maya Chaudhari Teelotama Chaudhari Man Kumar Chaudhari Hema Kanti Chaudhari Babita

39 36 40 49 28

WORKSHOP # 5, GOPIGANJ NAME AGE Bahandari Suru Bahadhur Chaudhari Bhikare Dawadi Tul P. B.K. Budhi Maya B.K. Laxmi Maya Chaudhari Ambika Pokharel Bishnu B.K. Dharma Bahadhur Tharu Nathu Magar Tharka Saru Chaudhari Satya Narayan Temilshena Booj Raj Chaudhari Khem Narayan Thakuri Toop Bahadhur S. B.K. Dhan Bahadhur Chaudhari Dabanti Tamang Phul Maya Tamang Phul Maya Chaudhari Ganga Ram Tamang Indu Mya Chaudhari Shumitra Chaudhari Canischari Chaudhari Chanai Devi Samjari Pandey Shaligram Tamang Aaya Tamang Baal Bahadhur Tamang Daal Bahadhur Tamang Kale Sunar Krishna Bahadhur Gurung Raag Maya Giri Mima Devi Lamechane Bimala Pokharel Gita Devi

45 42 32 28 18 46 50 52 38 41 26 33 44 38 18 35 44 53 45 39 50 50 40 45 42 42 45 54 21 52 45 45 43 46

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KEY INFORMERS OF SSI: 1. Shiv Shankar Chaudhary, Amroud VDC-6, Teacher 2. Shyam Agrahari, Banjaria VDC-6, Ward Chairman 3. Chittendra Shrestha, Dharampur, EDF 4. Raj Maya Gurung, Jana Kalyan Mahila Samuha, Gopigunj

Chairperson. 5. Dharma Bishwokarma, Daouney VDC, Vice chairperson. 6. Salekram Pandey, Gopigunj VDC, Masala Udhog 7. Surendra Prasad Gupta, FNCCI, Chairperson 8. Keshav Raj Regmi, ADB/N, Branch Manager. 9. Rama Nath Sharma, CSIDO, Industrial Officer. 10. Dhruba Kumar Yadav, Nirdhan, Parasi. 11. Dilliram Chaudhary, Gopigunj market centre, EDF. 12. Chabbi Lal Chapagain, Purba Tara Yuba Club, Banjaria, ward # 9. 13. Gopal Prasad Acharya, Banjaria VDC, Vice Chairman. 14. Khem Kumari Sharma, Gaidakot, EDF. 15. Bharati Sharma, Social mobiliser, PDDP, Gaidakot

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Annex D-3

CASE STUDIES Reena Panta (Teeka Udyog) Arunkhola, Nayabelani, Nawalparasi Reena Panta, a resident of Arunkhola, Nayabelani, Nawalparasi migrated from Khandbari, Eastern Nepal with her husband 13 years back. She is the mother of two daughters and one son. She has passed SLC and is working as a schoolteacher in a local kindergarten school. Her husband is working in Saudi Arabia. Her husband is not helping her financially. She is one of the 40 members of a community organisation formed by PDDP. She participated in teeka making training in Sunoul organised by PDDP for three days. On completing the training she started a teeka enterprise with financial help from PDDP, worth Rs. 3000. With that money she bought raw materials, equipment and packing materials from Sunoul. To get more capital for further investment she has become a member of a group formed for micro finance by ADB/N. Regarding the marketing of teeka she said, she herself goes to the local market (Sunoul and Naranayghat). At times, she sends the products with her friends. According to her, she has to sell her products on credit. She gets payment only after all the teekas are sold. In order to get the payment she has to wait 2 to 3 weeks. So very often, she has not been able to continue production due to lack of working capital. She said if she could manage to get enough capital, she could have expanded her business and could give employment to other women too. She is producing 25 to 30 packets per week. According to her, she has not been able to devote full time for her enterprise, because she is working as a teacher too. She is selling her teekas at Rs. 28 per dozen. However, the shopkeepers are selling to customers at Rs. 50 per dozen. Therefore, she thinks the producers are being exploited by the businessmen. Often the shopkeepers and wholesalers complain about the quality of teeka and its design because in some sample pieces, the glue is not strong enough. In addition, to this, the local made teekas have to face competition with imported Indian teekas, which are cheaper. Although she has passed SLC, she is not keeping her accounts. She only keeps the record of the income. Due to the heavy demands made on her by the enterprise and by her job as a teacher, her 13 year old daughter has taken most of her domestic chores. However, with the extra income derived from her newly opened enterprise, she has been able to spend on better schooling, food and clothing for her children. Intervention: § Access to cheap and better quality raw materials.

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§ Provision of fancy and different designs of moulds to make varieties of products. § New marketing outlets. § Provision of capital. § Arrangement of making packing materials locally may also reduce cost of production.

Ambika Chaudhari (Dhaka) Ambika Chaudhari aged 46 is a married women with four children. She was Magar by caste before marriage and is married with Khem Narayan Chaudhari, a Dhaka weaver trainer. She is literate. She started her Dhaka weaving enterprise 16 years back. She worked along with her husband and her enterprise flourished very rapidly. Initially she was very optimistic about the enterprise since she received a lot of encouragement from her husband. She gained further skill and ability to work with her husband. She took loans from her sisters and invested in her weaving enterprise. Being in an inter-cast marriage she could not adjust with her husband for long. Thus, they separated officially after 16 years of marriage and four children. Now he is married with another lady and has started separate a Dhaka business. Now Ambika is left all alone to fend for her children. However, she has not lost confidence. She is continueing with her enterprise. By selling her ornaments, she took loan from Grameen Bikas Bank worth Rs. 5,000 under the micro finance scheme. After paying the first loan she took a second loan worth Rs. 8,000. She used the money to add to her working capital. According to her she herself makes designs and repairs the looms whenever necessary. Her plan for the business is to diversify her products. She said she could earn more profit if she could make Dhaka caps. But the constraint is that the dealers refuse to give the thread on credit if she herself gets involved in making Dhaka caps along with weaving. According to her MEDEP should help her solve these problems. To install Semi automatic looms for weaving is her next business plan. According to her the loom is highly productive and the quality of the product is also good fetching a relatively higher price. According to her the provision of loan under group guarantee is too small. She is directly involved in the management of her enterprise. She goes to Butwol to buy inputs and to sell the products. Even though she is literate she has not kept any account of her enterprise. She finds it difficult to keep the accounts. When asked about the problems that she has been facing regarding her enterprise, she pointed that: § The raw materials are not locally available, for this she has to go to Butwol. § Ever rising price of raw materials. § The Dhaka dealers have not increased the price of dhaka cloth as per the rise in the

price of thread that has to be imported from India. § Unable to work during night time due to lack of electricity. § No warping facility is available in the village. For this, she has to go to Butwal.

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She has been successfully paying her loan with interest. She is also an active member of the mother group and participates in saving and credit program. After a long experience in Dhaka weaving, she is very much happy about the quality of her products. She is slowly increasing her production. She hired two women for weaving paying Rs. 60 per day each. Her two grown up daughters also help her on weaving. Because of this enterprise, her workload has also increased. But her daughters have taken almost all her domestic chores. She and one of daughter works on average of 8 hours a day. She is also working as a part time trainer. She has already given training to about 30-35 people and 4 of the trainees have started their own business and the rest are working as employees. Interventions: ð Provision of adequate credit for buying semi automatic looms and working capital. ð Common warping facilities in the village. ð MEDEP should help to search for another market outlet for Dhaka. ð Should arrange for cheap source of raw materials. ð Because there are many dhaka weavers in the locality, MEDEP should help them to

install warping drum in the village as a common facility. Chandramani Pandey (Tapari Udhyog) Palpa Chandramani Pandey, a resident of Palpa bought a Tapari Udhyog a year ago for Rs. 65,000 from its former proprietor. The loan was taken from ADB/N at 3% interest rate per month. The equipment includes three electric pressing machines and moulds of different shapes and sizes. The pressing machine has been imported from Patna, India. But the moulds can be made in Nepal itself. The Tapari Udhyog gives direct employment to 3 workers and one manager and indirect employment to more than 100 women. The factory has not directly employed any women. According to the manager, women are capable of handling all the work except operating the pressing machine. The main markets for tapari are in Kathmandu, Bhaktapur, Patan and Narayanghat to some extent. Many fast food restaurants in Kathmandu, Chitwan and Patan need taparis. The producers do not have direct contact with the retailers. The middlemen collect the products from the factory itself. The production cannot be increased as per the demand in the market due to lack of sufficient working capital. The machines are under-utilised producing only 2000 pieces per day. But when the machines are operated for the whole day, it has the capacity to produce 9000 pieces per day.

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The leaves used to make the taparis are available in forests and the village women have to seek permission from the concerned forest authorities to collect the leaves. The local village women stitch the leaves in plates in different sizes and shapes, dry them and then sell it to the factory. The factory pays Rs. 23 per 100 big stitched leaves, the women are paid instantly. During the dry season, women bring relatively fewer stitched leaves. Components of Production Activities: ♦ Women collect, stitch and dry the leaves. ♦ Checking the stitched leaves before pressing - women can do this work. ♦ Pressing the leaves in various shapes - requires physical strength, so women may not be

able to do this work. But women who are physically strong can operate it. ♦ Checking the products after pressing and packing - this activity can be done by women. The above breakdown of work in a Tapari Udhyog indicates that it can be promoted as a group enterprise run by women in Nawalparasi and Nuwakot. In Nawalparasi (Arunkhola) market centre, the women who are members of community forest organisations can be encouraged to take up this enterprise. The same can be done in Nuwakot too. The activities that cannot be done by women can be done b mcannot breakdown d o n e centncentn forest organisations cacac o Tc incannotcanh.belduc.32 2 Tcg0 Tc (canhn) Tj0.14.32 2 Tcg0 Tc (canhn) Tj12 Tc (g) Tj0.12 Tcapnt(b) rwo Tc ( o Thr6thn) Tj1rt(b) rwo5.144Tdoducts a(cent) Tj1rt(b) rwt Tc (women) Tj2.28 Tc ( ) T o Thri( o Thri( o Thri( o Thri( oj0.144 ho) TjTrj) Tdoawakot0 ) TjTc (canh.belduc.32 oj0.142.28 Tc jTrj) Tdoawakot0 ) TjTc a1e deuanhdoawakot0 oj0tf8shkr0 Tc (can) akot0 canhn cs a1e deuan a1e deuac ( cs a1e deuan a1e deTc7n) t cs a1e deuan oar7e 0o a e d o T c ( ) T d o a w

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Annex E-1

NUWAKOT

Workplan of Nuwakot District

January 25 Travel to Nuwakot and discussion with MEDEP staffs on market centres. January 26 Battar market centre – site observation; SSI with key informants January 27 Dhikure market centre – site observation; SSI with key informants; case

studies of existing women entrepreneurs. January 28 Devighat market centre - site observation; SSI with key informants; case

studies of existing women entrepreneurs. January 29 Dhikure market centre – micro-workshop with women from disadvantaged

community; micro-workshop with potential entrepreneurs. January 30 Dhikure market centre – workshop with VDC officials; PDDP; Gramin bank;

and existing and potential entrepreneurs. January 31 Devighat market centre – micro-workshop with potential entrepreneurs. February 1 Devighat market centre – focus group discussion with women ward

representative; teacher, and potential women entrepreneurs. February 2 District headquarters – SSI with MEDEP partners. February 3 District workshop with MEDEP staffs, and MEDEP partners; Debriefing to

MEDEP staff.

Micro-Workshops: • District level workshop with MEDEP staffs/partner organisations in Nuwakot district

headquarters. • Two workshops with potential and existing women entrepreneurs, in Dhikure market

centre, and Devighat market centre. One with disadvantaged groups in Dhikure market centre.

• Two workshops with existing men and women entrepreneurs, VDC representative, local organisation representative, teacher etc. in Dhikure market centre and Devighat market centre.

Semi-structured interviews: • CSIDB • FNCCI • ADB/N • VDC representatives – VDC chairman, ward chairman, and ward female member. • Teacher • PDDP – programme adviser and social mobiliser. • NGO - DEPROSC • Save the Children/UK • Gramin Bikas Bank • Potential women entrepreneurs

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Site Observations: • Battar – fruits and vegetable vendor, potteries, tailoring shops, "ainthe," masala packing

and pickles. • Dhikure – chocolate maker, tailoring shops, and bamboo works. • Devighat

Case studies: • Male entrepreneur-Shoe Maker, Chocolate Maker • Female entrepreneur-Tailoring Shop, Doughnut Making

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Annex E-2 List of Participants

WORKSHOP # 1, DHIKURE MARKET CENTRE

Name Age Address Interested Field Nepali Krishna Kumari 23 Dhikure Tailoring Nepali Usha 15 Dhikure Tailoring Mijar Rita 14 Khanegaun No Sunar Sita 17 Choughaga Tailoring Shusma Bhushal 18 Choughara Tailoring Sunar Sanumaya 19 Choughara Advanced Training Sunar Gita 16 Choughara Sewing Sunar Kanchi 30 Choughara Metal works Nipali Sani 23 Bhaldanda Tailoring Nepali Kanchi 40 Khanegaun Advanced Training Nepali Suntali 20 Khanegaun No B.K. Tull Bahadur 42 Khanegaun Advanced Training Nepali Raju 31 Chaughara Advanced Training B.K. Krishna Bahadur 30 Chaughara Advanced Training Nepali Makhamali 20 Bhaldanda Tailoring Mijar Lalita 25 Bhaldanda Animal husbandry Mijar Kanchi 20 Bhaldanda Advanced Training Mijar Phulmaya 33 Bhaldanda Animal husbandry Pariyar Sakkali 27 Chaughara Advanced Training Mijar Shanti 30 Bhaldanda Animal husbandry Mijar Ishawari 20 Bhaldanda Animal husbandry Mijar Suntali 32 Bhaldanda Animal husbandry Sarkeni Kanchi 35 Bhaldanda Animal husbandry Mijar Phulmaya 42 Bhaldanda Animal husbandry Mijar Sita 17 Bhaldanda Animal husbandry Mijar Kanchi 30 Bhaldanda Animal husbandry Mijar Thul Kanchi 30 Bhaldanda Animal husbandry Mijar Maile 32 Bhaldanda Animal husbandry Nepali Kunjan 24 Bhaldanda Anything Nepali Budhi 34 Bhaldanda Advanced training

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WORKSHOP # 2 DHIKURE MARKET CENTRE Name Age Address Interested Field Tamang Kanchi 56 Khanegaun Retail Store Tamang Lalumaya 50 Khanegaun Animal Husbandry Thapa Sita 30 Chaughara Aitha Rai Jevana 22 Chaughara Animal Husbandry Rai Phulmati 25 Chaughara Don’t Know Tamang Shanti 25 Khanegaun Tailoring Dhakal Anita 24 Chaughara Tailoring Shrestha Sita 26 Chaughara Aitha/Teeka Tamang Lalmaya 51 Khanegaun Tailoring Tamang Thuli 40 Chaughara Advanced Training Sunuar Mira 27 Chaughara Advanced Training Tamang Nirmala 16 Khanegaun Tailoring Dhakal L Kumari 47 Chaughara Aitha Aryal Lila 19 Khanegaun Potato Chips Miya Jamimla 20 Khanegaun Teeka

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WORKSHOP # 3 DHIKURE MARKET CENTRE Name Address Rimal Puskar Sharma Bidur Adhikari Ambika Tupche Dhakal Badri Prashad Khanegaun Thapa Machindra Suryamati Khadka Raju Chaugara Dhakal Keshab Chaugara Rai Raj Kumar Chaugara Sunar Krishna Bahadur Chaugara Anita Dhakal Chaugara Dhakal L Kumari Chaugara Shrestha Nirmal Kumar Dhekure Rai Phulmati Chaugara Thapa Sita Chaugara Paudal Laxman Khanegaun Pariyar Sakal Chaugara Tamang Kanchi Khanegaun Thapa Shyam Bahadur Suryamati Shrestha Phul Prashad Chaugara Kuwar Neer Kumari Khanegaun Pandey Janka Kumari Khanegaun Pandey Khet Kumari Khanegaun Shrestha Shova Khanegaun Shrestha Shabetri Khanegaun Keshab Lameshane Khanegaun

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DEVIGHAT WORKSHOP # 4 DEVIGHAT MARKET CENTRE Name Age Address Interested Field Majhi Bishnu 15 Majhigaun Don’t Know Majhi Shantoshi 20 Majhigaun Tailoring Majhi Jagatmaya 30 Majhigaun Animal Husbandry Majhi Santamaye 41 Majhigaun Retail Shop Majhi Ghyanu 18 Majhigaun Animal Husbandry Rai Bhawana 19 Mahadevghat Tailoring Rimal Bhagawati 35 Majhigaun Don’t Know Rimal Ambica 34 Shirkhali Juice Making Rimal Bishnu Kumari 26 Shirkhali Juice Making Nepali Gita 22 Ratmate Advanced Training Nepali Sushila 18 Ratmate Tailoring Nepali Sharada 17 Ratmate Painting Rai Ghyanu 21 Ratmate Tailoring Rai Phulmaya 18 Ratmate Advanced training Rimal Rudra Kumari 24 Khadka

Bhanjang Tailoring

Rimal Yeshodha 21 Khadka Bhanjang

Aitha

DE BREIFING AT MEDEP OFFICE, BATTAR, NUWAKOT Name Designation Office Parajuli Bhawani Prashad LDO DDC Devkota Shiva Main Branch Chief CSIDB Rijal Suman District Development Advisor DDC/PDDP Dhungana Bharat prahad Chairmen DDC Pandit Rachana EDF MEDEP Bhandhari Kamala EDF MEDEP Thapalia Sufal EDF MEDEP Shrestha Minu EDF MEDEP Pandey Shreeram EDF MEDEP Dangol Shiva Kumari Women Representative FNCCI Kadel Surua Bahadur President FNCSI Barnawal Arun Kumar Loan Officer ADB/N Adhekari Bashu EDS MEDEP Pandey Purna Prashad EDF MEDEP

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IV) KEY INFORMERS OF SSI NAME OFFICE Shiva Devkota, CSIDB. Dhana Chetrakar, FNCCI. Krishna Bahadur G.C., ADB/N. Ratna Pandey,. Khanigaow VDC Parsuram Aryal Ratmate VDC Puskar Rimal PDDP Nirmal K Shrestha Khanogaow, VDC Keshav Lamichane Khanigaow, VDC Shiva Pd Nepal Ratmate, VDC Kailash Rijal DEPROSC, Ranipouwa Bijaya Raj Devkota DEPROSC, Battar Ratna Tandukar Save the Children, Nuwakot Suman Lamichane PDDP Laxman Paudyal Gramin Vikash Bank

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Annex E-3 CASE STUDIES

Yad Kumari Dhakal Ward No. 9, Baniatar Chaughada VDC Dhikure Yad Kumari, aged 48, is a Brahmin by caste. Married at the age of 12, she is a mother of 5 children. Her eldest son and daughter are married already and she has 3 grand children. She is a resident of Ward No. 9, Baniatar Chaughada VDC that lies under Dhikure market centre. She is a woman representative of this Ward. She is a member of a community organisation formed by PDDP/LGP. Being a member of this community organisation formed by PDDP, she seems much more confident and aware. She articulates her ideas in the workshop without any hesitation unlike other participants. She is illiterate but can sign her name. She was a small farmer augmenting her little farm income from small retail shop and selling livestock occasionally. But her income was insufficient to sustain daily expenditure of her large family. After she was introduced to MEDEP, she participated in NBC training. According to her, NBC training has given her a great deal of confidence in her entrepreneurial abilities. She has actively implemented her training starting her own enterprise of making doughnuts without any skill training. She learned how to prepare doughnuts from the local shopkeepers. She said that she has been able to sell all her products everyday and is earning a profit. She is very much optimistic about her enterprise, which is less than one year old. She is planning to diversify by making Dalmoth and Aithe along with Doughnuts. For skill training, she is looking forward to MEDEP support. According to her if the provision of skill training and micro finance are arranged as soon as possible after NBC training, it would much more convenient for the potential entrepreneur to start a new business. Because of her active involvement in earning the household income, her social standing is relatively high compared to her counterparts in the villages. Her husband and grown up sons consult her in making any decisions regarding important household matters. They also actively participate in household chores and farm activities. Household income is under her control. She is actively involved in the management of the enterprise including the marketing aspect. She seeks advice from her husband and sons whenever needed. Important decision are always made by her but only after consulting her husband and son.

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While fixing the price for her products she did a market study as taught during the NBC training and consulted other producers in Battar and Bidur. She is also planning to hire a man to sell her products for Rs. 22 per 100 pieces sold. She said her husband helps her to keep the account of income and expenditure of her enterprises. But when asked about the rate of profit per piece, she could not tell the actual rate of profit per piece. One problem she is currently facing now is that the price of high wheat flour in Battar and Bidur. She thinks if she can manage to bring flour from Kathmandu, she will be able to earn a relatively higher profit than what she is earning presently. She perceives great prospect in the development of women entrepreneurs. They can be organised in a group as wholesalers and producers. V) Meena Sunwar Choughada VDC, Ward no. 9 VI) Dhikure Mrs. Meena aged 27 years is married with one son. She is a resident of Choughada VDC, Ward no. 9 under Dhikure Market Centre. Her husband is serving in the Nepal Police. He is always out of the village. Meena is literate and has completed 6 years of schooling. Now she is staying with her mother. Five years back, she was just a housewife doing only household works. She is now an active member of the community organisations formed under PDDP. One of her friends helped her to get skill training in tailoring for three months. On completing the training she opened one tailoring shop in Kathmandu. She took a loan worth Rs.20,000 from her friends paying a higher rate of interest than the bank charge. Immediately, after completing the skill training, she opened one tailoring shop in Kathmandu in the centre of the market. Being in the centre, she was capable of earning a handsome profit and within a year she paid back the loan along with the interest. Due to the increase in customers, she employed one lady to assist her in stitching and finishing the garments. When her mother fell seriously ill, she had to close her flourishing tailoring shop and go back to her native village since there was no one in the village to take care of her. With the money she saved, she again opened a tailoring shop in the village. She has been running the shop since three years. She is happy with the earning although it is less compared to the earnings in Kathmandu. All the domestic expenses, school fees for son and medical expenses for her sick mother are covered with the profit she earns. She invested Rs. 6,000 on land adjoining to her field. Her husband also helped her to some extent to buy the land. She said payment of the stitching charges by the local villagers is usually made in kind rather than in cash. She cannot compel her customers to pay in cash because she fears loosing them.

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Nowadays, she has been giving apprentice-tailoring training to village women taking nominal charges. Though her shop is in the middle of the village she is very much confident about it’s future. When asked about her plans, she said that she is planning to diversify her business by manufacturing readymade garments. For this she is planning to seek help from MEDEP. As a sample, she showed some pieces of ready garments. However, the problem she pinpointed is that the price of textile is very high and cost of production is relatively higher even if the stitching charges are nominal. The Indian garment sellers sell the garments at a much lower price. They bring the textiles from India at a very low rate. Since she does not have access to getting textiles and thread for readymade garments at a cheaper rate, she fears she will not be able make readymade garments. She said, she is going to contact PDDP or MEDEP to arrange for financial support and go to Kathmandu to buy the textiles in bulk. When asked how she manages her time for her business when there is no one else to help her in domestic chores, she said ‘time management is at her hand’. She wakes up early in the morning when she has many deliveries to make. She emphasised that in order to be a successful entrepreneur, one should learn to do time management most efficiently. Furthermore, she said that the three months long training that CSIDB gives does not make the trainee perfect in tailoring. The quality and the duration of training should be increased. According to her only skill training, financial support and helping women develop their entrepreneurial capabilities will not flourish and sustain the women enterprises. Along with these supports, what is more important is the availability of cheap and good quality raw materials, and easy access to the markets It was observed during discussion with her that almost all the characteristics of an entrepreneur is inherent in her. She is motivated, hard working, and self-confident. She feels it is necessary for a woman to be economically independent to maintain her social status in the family and community. She sees prospect in the development of women's micro enterprises if women organise themselves to obtain raw materials in bulk and sell the products. Bishnu Bahadhur Mijar (Shoe Maker) Trisuli Bazar Mr. Bishnu Bahadhur is a 36 year old cobbler. He lives in a joint family of 31 members. He has two-shoe making and repairing shop in Trisuli Bazar. One shop has been running for the past three generations and he opened a new shop 3 years back. He manages the new shop with the help of his younger brothers. Besides this business, he also has some land from which food grains grown is sufficient only for nine months. It is not enough to feed the big joint family.

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Bishnu’s father and brother had previously participated in CSIDB’s skill training program. He acquired shoemaking skills from his father and has also received enterprise development training from a NGO. Profit from the business depends upon off season and peak season. Normally during off-season, he sells about 10-12 pairs (minimum) up to 50-60 pairs (maximum) of shoes per month. During the peak season such as in Dassain, he sells more than 100 pairs of shoes. His capacity is making one pair of shoes per day and his net profit is around 30% to 40% per pair including the labour charges. Bishnu says that his main problem is procurement of raw materials i.e. leather, rubber etc. for which he has to make regular trips to Kathmandu. In addition, he lacks information on new shoe designs. He usually replicates designs based on the information given to him by traders and retailers. Bishnu and his wife both are members in a saving and credit program of Gerkhutar Youth Club, a local NGO. From this NGO, Bishnu has taken Rs. 25,000 loan to buy raw materials and set up the new shop. He has already repaid the loan. He has taken more loans from ADB/N putting his family land as collateral. He remarked that MEDEP's micro credit of only Rs.5,000 is a very small amount to run any micro enterprise and moreover it is very hard to from groups since people do not trust each other. According to him, almost all the Mijars of the village are gradually leaving their family business because of their inability to compete with machine made shoes. If this home-based enterprise is to sustain, then they should be given proper training and adequate financial support. Women family members also can be involved provided they are given proper training. The amount of credit support should also be as per the requirement of the business.

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Annex F

SSI with Partner Organisations at the National

Level

Name & Designation Address 1. Keshav Raj Poudyel, Director General

Department of Cottage & Small Industries, Tripureshwor

2. Krishna Bd. Adhikari, Deputy Director General

Department of Cottage & Small Industries, Tripureshwor

3. Upendra Bd. Karki, Section Chief, Micro-credit and Special Project Section

ADB/N, Ramshah Path

4. Binod Parajuli, Executive Director

FNCSI, Bijuli Bazar

5. Yukta Narayan Shrestha, Programme Officer IEDI, Tripureshwor 6. Dilip Thapa, Business Promotion Officer IEDI, Tripureshwor 7. Rajeshwor Pant, Director CSIDB, Tripureshwor 8. Baturnath Dhakal, Training Department Chief CSIDB, Tripureshwor

Participants of Discussion Session in Kathmandu Date: April 25, 2000 Venue: Alliance Nepal 1.Shyam Badan Shrestha, Vice President, WEAN

2.Padmasana Sakya, Chairperson, MANUSHI

3.Baburam Rana Bhatt, Managing Director, Centre for Business Development, CEBUD

4.Bijaya Gautam, Programme Officer, World Education

5.Helen Sherpa, Programme Co-ordinator, World Education

6.Navaraj Singkhada, Programme Officer, CECI

7.Shanti Basnet, Under Secretary, Women Development Division, WDD/LDM

77

Annex G

REFERENCES 1. Nepal South Asia Centre, Nepal Human Development Report, 1998.

2. ICIMOD, Districts of Nepal, Indicators of Development, ICIMOD, 1997, Kathmandu,

Nepal.

3. NO-FRILLS Consultants (N.F.C), The Micro Enterprise Development Programme, 1998,

Nawalparasi District.

4. NO-FRILLS Consultants (N.F.C.), The Micro-Enterprise Development Programme,

1998, Nuwakot Districts.

5. A Socio-Economic and Market Survey, Prepared for MEDEP/UNDP – NEP/97/013.

6. A Socio-Economic and Market Survey, Prepare for MEDEP/UNDP – NEP/97/013.

7. NPC, HMG/Nepal, The Ninth Plan (1997-2002), NPC 1998, Singha Durbar, Ram Shah

Path, Kathmandu.

8. Central Bureau of Statistics, 1993, Population Census, 1991, Kathmandu, Nepal.

9. Mainstreaming Gender Equity - Proceedings of Seminar on Micro Enterprise and Gender

Equity, UNDP/ Nepal, September 11-12, 1997.

10. CECI, Women's Empowerment through Micro Finance, The Case for Micro Credit

Project for Women, Paper No 2, March 1999

11. Central Development of Home Science, Padma Kanya Multiple Campus, Micro Finance

and Empowerment of Women in Khokana Village Development Committee, April, 1998.

12. South Asia Partnership, Role of Micro Credit in Poverty Reduction and Promoting

Gender Equity - discussion paper prepared for Strategic Policy and Planning, Asia

Branch, CIDA, June 12, 1997.

13. Creevey Lucy, Changing Women's Life and Works, Analysis of Impact of Eight Micro

Enterprise Projec,. Intermediate Publication, 1996, London, UK.

14. MEDEP Programme Documents

15. MEDEP Annual Report, 1999

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