Saturday, September 15, 2018

Nepal has 32 enterprise for 1000 people


National Economic Census results out

Kathmandu, Sept. 13:
Nepal has about 32 business establishments per 1000 people; show the initial estimates of the National Economic Census 2018.

 But, the size of those enterprises is small in average with 3.7 people employed per establishment.
“According to the preliminary results of the Economic Census, the country has 922,445 enterprises, as of 18 April 2018, of all size and the number of people engaged in those businesses is 3.40 million – 2.04 million male and 1.36 million female,” Director of Economic Census Division at the Central Bureau of Statistics (CBS) Anil Sharma said at a programme organised to unveil the results of the nation-wide survey.

As compared with other countries, Japan has 5.8 million enterprises with 45.4 businesses per 1000 populations and Sri Lanka 1 million enterprises with 50.3 businesses per 1000 people.

Similarly, Indonesia has 26.7 million enterprises with 104.6 businesses, and Cambodia has 500,000 enterprises with 34.6 businesses per 1000 people.

Nepal has relatively fewer establishments for its population size. This is probably due to geographical disadvantage such as upcountry and mountainous, said CBS, the statistical agency under the National Planning Commission (NPC).

Manang is the district with the highest number of enterprises per 1000 persons with 76.2 establishments, followed by Mustang 64.7, Kathmandu 58.3, Bhaktapur 55.3 and Kaski 54.4.

According to the CBS, the biggest district in terms of the number of establishments was Kathmandu with 123,994 establishments, followed by Jhapa 38,741, Rupandehi 38,415, Morang 35,237, and Sunsari 31,486.

Likewise, the district having the lowest businesses per 1000 people are Achham with 15.2 enterprises, Bara 15.6, Rautahat 15.8, Baitadi 16.7 and Doti 17.2. These districts are in Province 2 and Karnali.

The results have indicated that there are high chances of business growth in many districts of province 2 and Karnali.

“Province 3 has the highest number of businesses with 30 per cent share in the national scenario. Province 1 has 18 per cent enterprises, Province 5 has 16 per cent, Province 2 has 16 per cent, Gandaki 11 per cent, Province seven 7 per cent and Karnali 5 per cent,” said Sharma.

He said that the higher number of persons engaged per enterprise was high in Lalitpur district with 5.2 employments per establishment, Manang 4.9, Kathmandu 4.6, Lamjung 4.6 and Sarlahi 4.6.

Similarly, the districts with lowest employment size are Arghakhanchi and Dailekh with 2.3 employment per enteprrise, Udayapur and panchthar 2.5, and Doti 2.6.

“Nepal has 3,408,746 persons engaged and the number of persons engaged per establishment is 3.7. As compared with other countries, Japan has 57.4 million businesses and 9.9 employment per enterprise; Indonesia 70.3 million and 2.6; Sri Lanka 2.8 million and 2.8; and Cambodia 1.7 million and 3.3; respectively,” read the report.

 Among these five countries, Nepal has relatively more persons engaged per establishment which is probably due to fewer street businesses in Nepal, concluded the CBS.

Director General of the CBS Suman Raj Sharma said that the statistics generated by the Economic Census should be integrated with the data of the Office of Company Registrar, revenue offices and other respective government agencies for effective tax administration.

“These statistics will help in creating the development framework for the respective province and local units. It was envisioned while initiating the census last year,” he said.

The first ever economic census was executed to collect process and analyse the details of about 1 million business enterprises in the country with the aim of creating benchmark data for economic statistics.

It will also create basic statistics of the local units. 
Information such as addresses of the business enterprises, major activities, employment, capital investment and access to credit was included in the survey. 
The census will be conducted every five years. 

Published in The Rising Nepal daily on 14 September 2018. 

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