The Micro-Enterprise Development Programme which initiated its five year programme in June 1998 accomplished its broader objective of setting up six thousand micro-entrepreneurs. Based on the performance and objectivity of the programme, the Nepal Government, United Nations Development Programme and donor agencies extended their support to take the programme into a second phase (January 2004 - December 2007). The decision to not only extend the programme but also to expand the outreach of programme activities to an addition ten districts has given the programme time to facilitate in promoting the micro-enterprise development sector in Nepal to support the country's poverty reduction drive by involving the rural population. Based on the programme's activities and support for poor people and households, the programme is in a position to state developments which have worked for the benefit of the programme beneficiaries.

Reflecting on the activities of the programme during Phase I, our programme targeted towards poor households in remote rural areas in selected ten districts across Nepal points to some promising developments with respect to prospects for improving the living standards of poor people. While there are signs of an improved environment for poor people to be engage in micro-enterprises to address their poverty, much still remains to be done in terms of policy action. As the programme continues to facilitate in promoting the development of micro-enterprise to support the country's poverty reduction drive during Phase II, the development community are arguing that broad policy mandates to strengthen the micro-enterprise sector have often suffered from an under appreciation for the distinct constraints faced by micro-entrepreneurs. The opportunities to positively shape the livelihood of poor rural households through micro-enterprise development are promising, but policy strategists need to be more enthusiastic to bring in micro-enterprise friendly policies for the poor.