A Case Study on the Role of Financial and Social Remittance in Supporting Rural Micro-Enterprise Development in Nepal

Funding Agency: International Centre for Integrated Mountain Development (ICIMOD)

Duration: August 2014 to December 2014

This study identified and mapped rural micro-enterprises set up by migrant returnees (male and female), young returnees, and returnees from India, the Middle East, Southeast Asia, and the US/Europe in five districts of Nepal; assessed the manner in which remittances are being channelled into existing rural micro-enterprises; explored the role financial intermediaries (e.g., money transfer agencies) in rural micro-enterprise development; examined the factors that enabled micro-enterprises to succeed; highlighted the factors that constrained the growth of rural micro-enterprises (including documentation of failed micro-enterprises and reasons for such failure); assessed the involvement of community members in rural micro-enterprises set up by the returnees; and highlighted the sectors associated with the aforementioned rural micro-enterprises.

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