Ensuring business innovation fundamentals : exploring equity, diversity and inclusion in small and medium sized enterprises (MSMES) of Nepal

Innovation in MSMEs is the key driver of productivity and long-term growth. However, a study done to assess the experience of enterprises in twelve South Asian countries has listed six South Asian countries, including Nepal as poor performer in terms of innovation, production, and export performance. United Nations ESCAP (2011) has highlighted the dominance of SMEs in business communities of Nepal, which make up more than 95% of all enterprises. Given the importance of MSME sector, the government of Nepal has introduced business-support programs to encourage the creation of enterprises, especially with a view of generating employment, import substitution, poverty alleviation, and economic growth. Micro-Enterprise Development for Poverty Alleviation (MEDPA) and Youth and Small Entrepreneur Self-Employment Fund Programme (YSEF) are two flagship innovation support programs (ISPs) in Nepal that provide a wide range of support services to the MSMEs. With the aim of addressing the social and economic aspects, those ISPs have aimed to improve the economic and social condition of low-income and socially backward families through micro-enterprises development, self-employment promotion and entrepreneurship, especially among the youth and women by curbing down the labor migration and promoting domestic production