The lack of employment and income in rural areas has caused migration of people to urban and peri-urban areas and to the economically more dynamic Tarai. More than 50% of the population now resides in the Tarai. As finding employment in the formal sector is difficult, a large number of people generate their daily income in the informal sector through self-employment or wage labour in micro-enterprises. Access to technical advice and to financial services needs to be promoted for micro-enterprises to be successful and to grow.

INFORMAL SECTOR ENTERPRISE DEVELOPMENT AND EMPLOYMENT GENERATION PROGRAMME (ELAM)                                            

The Elam project intends to develop a modality to make business services accessible to persons who wish to start or expand a micro-enterprise. It needs to be a locally managed, low cost service with strong private sector orientation. Elam has taken the enterprising town of Birgunj as its pilot site and has gradually expanded into neighbouring market areas.

OUTCOMES

• Coaching, Counselling and Consultancy services are locally available to micro-entrepreneurs through qualified Enterprise Service Providers.

• Enterprising persons in the informal sector enhance their business, resulting in higher turnover, increased income, more employment; many of them register and enter the formal sector

PRESENT STATUS

• More than 800 clients are served for Coaching, Counselling, Consultancy (CCC)

• More than 22 Enterprise Service Providers (ESP) are capacitated and provide low cost, quality services

• Self-help groups are linked with businesses and convert into producer groups, sub-contracted to provide standardized quality products; almost 300 women work in group enterprises under subcontracting

• Improved access to loans from the formal financial sector through credit agent linkages.

PARTNERSHIP

• The project is a facilitator for business relationship in the private sector.

• Micro-entrepreneurs are the main clients

• ESPs are gradually establishing themselves as local service providers

• Local banks for linkage to financial markets

• Coordination with Chamber of Commerce, private enterprises, Municipality, DDC

FUNDING

About CHF 110,000 per year from Helvetas for developing the local service system. Micro entrepreneurs make their own investments for enterprise development.

Contact Details

ELAM / Helvetas
Murli, Birgunj-15, Parsa, Nepal
Phone: 977 51 530221
E-Mail: elam@helvetas.org.np