International Journal of Business and Economics Volume 19, No. 3 December, 2020

Factors Determining the Performance of Non-agricultural Enterprises in Nepal

Ajay Thapa

School of Development and Social Engineering, Pokhara University, Nepal

Abstract

The non-agricultural economic activities play a vital role in the growth of the economy of a country. Nepal has been experiencing an increasing rate of non-agricultural economic activities meanwhile decreasing agriculture activities over the period after economic liberalization in 1990s. This study using the data enumerated from 2,583 households in the Nepal Living Standards Survey III has provided empirical evidence from Nepal in reference to the factors determining the performance of non-agricultural enterprises. In addition to descriptive, t-test and correlation analysis, a multiple regression model was run to identify the key factors determining the performance of non-agricultural enterprise in Nepal. Among several factors included in this study, registration status of the enterprises with government agency, enterprise age and number of hired workers were identified as the key factors determining the performance of non-agricultural enterprises in Nepal.

Keywords：Non-Agricultural Enterprise, Enterprise Performance, Nepal.

JEL Classifications：D22,J14,L25,L26.

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