Himalayan News Service

Kathmandu, January 11

Federation of National Cottage and Small Industries Nepal (FNCSIN) today showed serious concerns over the closure of small and medium enterprises, thanks to dismal business environment for the past several years.

Speaking to newspersons today, Ramesh Shrestha, president of FNCSIN said, "As SMEs occupy over 87 per cent employment in the country, closure of such industries has hit the national economy hard and affected overall business activities."

Shrestha, speaking at the meeting, said that over 70 per cent small and medium enterprises have already been shut down. Out of the total registered industries, SMEs alone occupies 98 per cent, said he, "SMEs alone occupies about 80 per cent of the total manufacturing and export sector."

SMEs contributes about seven per cent to gross domestic product (GDP), said FNCSIN. The Federation, according to its executive members, is focusing its activities in the enhancement of women entrepreneurs for boosting national economy introducing various innovative programmes. There is a need to train women in enterprising development as most of the women in Nepal do confine their activities in household chores alone, said Shrestha.

Janga Bahadur Shrestha, vice-president of FNCSIN opined that overal national economic development is a need of the hour for which the federation is starting various activities at the district level with the cooperation of all concerned agencies. He said that the federation intensively focuses its activities to protect the rights of small entrepreneurs as they are the real pillar of the local economy.

President of FNSCIN, Ramesh Shrestha, concerned that there are a lot of challenges from WTO membership in this competitive market for which we have to work hard and better ourselves through skill development programmes.

He said that SMEs have greater contribution for alleviating unemployment in the country so this sector needs strong upgradation. He informed that Maoist insurgency has affected huge number of SMEs for which political circle needs to seriously support the SMEs.