Inadequate access to finance remains a major obstacle for many aspiring entrepreneurs, particularly in developing countries. Studies have confirmed, the global financing gap for micro, small and medium-sized enterprises remain enormous. Entrepreneurs of all types and sizes require a variety of financial services, including facilities for making deposits and payments as well as accessing credit, equity and guarantees (UNCTAD).

Access to finance remains a challenge for SMEs across the globe, including in the Eastern Partner (EaP) region. A pre-COVID assessment of the global SME finance gap estimates that 41% of formal MSMEs in developing countries have unmet financing needs (SME Finance Forum, 2023). 

Nepal Rastra Bank (NRB) has been taking various policy measures, ranging from incentives to a few forced measures to broaden financial access. As a result, banks and financial institutions have been expanding their services by establishing new branches substantially not leaving even a single local government (LG) without branches of commercial banks.

Access to finance aliens with Nepal’s national development strategies, which prioritize financial inclusion, poverty reduction, and economic empowerment. Enhanced access to finance contributes to country’s broader goals of inclusive growth and sustainable development as envisioned in 16th plan. 

Moreover, access to finance is a pre-requisite in attaining the United Nations Sustainable Development Goals (SDGs), particularly SDGs 1.4, 2.1, 2.3, 2.4, 5a, 8.3, 8.5, 8.6, 8.10. Therefore, DEPROSC-Nepal prefers to work on this theme with the following objectives and strategies. 

Strategies 

Institutional development of community-based and civil society organizations. 

Contribute to the modernization and strengthening of financial services.  

Enhance access to financial services for micro enterprises and agriculture value chain actors. 

Narrow down the gap between the demand and supply mechanism of rendering quality digital financial services.

Enrich financial and business literacy packages and deliver also along with BFIs.