Supporting Small Enterprises: Generating Jobs Through Processing Local Resources

The Innovation in Enterprise Development and Job Creation Project (InElam) builds on the long-standing success of the Elam project, renowned for its inclusive market systems development approach. The project works in Nepal's Madhesh and Karnali Provinces, two regions with the lowest human development index in the country. The project aims to contribute to the overall entrepreneurial ecosystem, particularly targeting the pressing issue of unemployment in Nepal.

The project holds immense significance in the context of Nepal's unemployment challenges, particularly among the youth, who, facing a lack of opportunities, often resort to migration in search of hope and prospects. In a country where systemic constraints hinder the growth of micro and small enterprises, InElam contributes to these young individuals, particularly those from disadvantaged communities and with limited resources to begin their entrepreneurial journey. The project offers comprehensive support to entrepreneurs, encompassing localized business services, strategic market linkages, improved financial access, networking opportunities, and the infusion of technical expertise. Leveraging cost-effective local technologies, the project adopts innovative approaches to product development and enterprise promotion. Which in turn minimizes material imports, generate employment, and also contribute to environmental betterment.

Over the past few decades, Nepal has become a reservoir of cheap labor for many countries – with all the opportunities and drawbacks. The project, by promoting technological innovation and micro-enterprise, contributes to establish micro-entrepreneurship in Nepal, and showing that investing in a little business is a sensible use of the money sent home by family members working abroad.

Building on its successes, InElam has previously, piloted innovative business models such as Learning and Earning, Private-led Learning Centers, and Area Potential Surveys (APS), which identify viable businesses leveraging local resources and market opportunities. And, the current phase, InElam is well-positioned to capitalize on these achievements, advance technological innovations, and explore new enterprise models, driving sustainable economic growth and unlocking the next frontier of local entrepreneurship.

InElam, in this phase, will focus on leveraging underutilized local resources such as Himalayan nettle, dairy, beekeeping, bamboo, and bio-paints , waste based enterprise to create green jobs and build a green economy.

Moreover, weak business support systems and limited access to affordable credit, especially for women and marginalized groups, hinder enterprise growth. To address this, InElam will collaborate with financial institutions and local cooperatives to develop innovative credit mechanisms, including impact and blended financing. Enterprise Support Providers (ESPs) will enhance digital platforms to expand business services and strengthen market linkages. Key sectors: dairy, beekeeping, bamboo, bio-paints, and waste-based enterprises (plastic recycling, composting, textile upcycling) will drive green and circular economy growth through partnerships with private and public stakeholders.

Innovative approaches like incubation centers, learning hubs, and business bootcamps will promote youth-led enterprises in Madhesh, while scalable models will be piloted and expanded through public-private partnerships. These strategies build on InElam’s past learnings to ensure inclusive, sustainable economic development.