3 years ago
Due to the Lockdown in place by the government due to corona, about 2 lakh small and medium scale enterprises in the country have shut down forever.
According to the Federation of Nepalese Small and Household Industries, 20 percent of small and medium enterprises have been displaced beyond opening.
The National Economic Census of the Statistics Department has shown that there are 923,356 industrial establishments in the country.
Out of 919,311 domestic and small enterprise businesses, it is estimated that 20 percent of them, i.e. 184,000 businesses have been closed permanently.
Mohan Katuwal, vice-president of the Federation of Small and Medium Enterprises, said that domestic, small and medium enterprises were on the verge of fleeing due to the continuous collapse caused by the corona risk and the dire situation created by it.
Shekhar Golchha, senior vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said that the biggest hit was the small and medium enterprises.
He said that if the government extended the lockdown like this, it would not be possible to revive the business even if it wanted to.
According to a study by Nepal Rastra Bank, 61 percent of industries were completely shut down during the previous lockdown.
According to the NRB, 95 percent of the educational institutions, 91 percent of hotels and restaurants, 89 percent of real estate transactions, 76 percent of transportation and storage and 58 percent of construction have been shut down.
The study also showed that the production of 94 percent of the closed industries and businesses has declined by 74 percent.
The study found that 22.5 percent had lost their jobs.
The study found that the worst-affected hotel and restaurant sector saw a 94 per cent decline in production and a 40 per cent loss of employment during that period.
Chairman of the Nepal Retail Entrepreneurs' Association Raj Kumar Shrestha said that the retail business of food and consumer goods has also declined by up to 40 percent. About 5 million jobs lost
About 30-35 lakh workers have lost their jobs in the formal and informal sectors of the non-agricultural sector. Manik Shrestha has an estimate.
Similarly, out of 2.2 million workers working in the formal sector, 1.5 million workers work through informal contracts and they have lost his job completely, he said.
In this regard, it can be estimated that about 5 million workers and employees have lost their jobs due to the Covid-19 lockdown.
Most of these workers are involved in domestic and small enterprises. According to Shekhar Golchha, president of the Federation of Nepalese Chambers of Commerce and Industry, 4.4 million people have been employed by small and medium enterprises.
