Partners' Roles

Many government institutions and NGOs have been providing services necessary for micro-entrepreneurs and their enterprises such as skills, micro-credit and business development. However, the services provided by state institutions are either provided in isolation or independent of other services needed by micro-enterprises. For example, Micro-finance institutions providing micro-credit to an entrepreneur does not ensure the success of an enterprise or the skills provided by a government department does not ensure that the skills gained will turn an individual into an entrepreneur. Similarly, the product or service of an entrepreneur does not necessarily mean they will be consumed in the market even though an NGO has helped an entrepreneur to produce a product. To ensure that services needed to set up micro-enterprises which are provided by state institutions are coordinated, MEDEP has forged partnership with local governments, state institutions and the private sector.

On the onset of preparing the programme document, the architects of the programme believed that Nepal did not lack service institutions and organisations that could help the poor people. Hence, by keeping account of the records of existing state institutions that could provide their services to promote the micro-enterprise sector, a component of the programme's strategy, was to capitalise on existing resources and not building new institutions.

In this context, MEDEP could be considered as a pioneering partnership project which was used to the advantage of the country's existing institutions and their experience to provide services for the poor people. Promoting sustainable enterprises based on partnership between state institutions to provide a comprehensive package of services has ensured coordination-cooperation-linkages among existing micro-enterprise service delivery organizations.

The Programme's partnership strategy is two tiered: central and district level. At the national level, the programme's thrust is on improving the policy and regulatory framework for the development and promotion of micro- and small enterprises in Nepal. The partnership at the national level is also to ensure that departments and state institutions at the district level are directed by central state institutions. At the district level, the programme is managed and implemented by District Enterprise Development Committee (DEDC) which involves district level state institutions which are the foundations of the implementing process. The enterprise development model promoted by MEDEP has given a new perspective to addressing poverty; not only in Nepal, but in the south Asia region as well. The model is premised on the programme's strategic approach to interlink and coordinate local resources, low-income people's interest in enterprise development and entrepreneur's access to local and national markets.

Partners' Roles

The role of each partner has been clearly defined to ensure that partnership strategy worked well in delivering services needed by the poor people to set up or expand enterprises,. Although the services provided by the respective institutions are autonomous and independent of MEDEP, their services are coordinated by MEDEP, most of which are on a cost-sharing basis. The district level partnership approach is effective in utilising the existing institutional resources to deliver the components of micro-enterprise development. Despite the challenges of coordinating the activities of a diverse set of institutions, these public and private sector district-level organisations, under the coordinated guidance of the DDC, can deliver the needed services to the would be micro-entrepreneurs.

The model developed by MEDEP has not been of its own making, but as a result of partnership between national state institutions (Cottage and Small Industries Development Board, District Chamber of Commerce and Industry, Department of Cottage and Small Industries, Industrial Enterprise Development Institute, Agricultural Development Bank of Nepal) and local government authorities (District Development Committee) and cooperation between the public and private sector (Federation of Nepalese Chambers of Commerce and Industry and Federation of Nepalese Cottage and Small Industries).

The partners and their role in the micro-enterprise development are highlighted in the table.

Stakeholders' Programme Partners


Department of Cottage and Small Industries (DCSI)

Skill Development Training


Cottage and Small Industries Department
Board (CSIDB)

Skill Development Training


Agricultural Development Bank of Nepal (ADB/N)



Federation of Nepalese Chambers of
Commerce and Industry (FNCCI)

Business counselling and follow up support


Federation of Nepal Cottage and Small Industries (FNCSI)

Counselling and follow up support


Industrial Enterprise Development Institute (IEDI)

Entrepreneurship development training/ business counselling


District Development Committee (DDC)

Micro-enterprise planning and coordination


Local Development Fund Board/DDC

Enterprise development, micro-finance, social mobilization

Networking Programme Partners


RECAST (Tribhuvan University)

Appropriate technology


Centre for Rural Technology (CRT)

Appropriate technology


Rural Banks/ Local Savings and Credit Cooperatives



Domain EOI


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