An Assessment Of Status Of Community-based Enterprises And Their Impact On Local Community

The research study entitled "An Assessment of status of Community-based Enterprises and their impact on local community" was carried out in the randomly selected Community-based Enterprises of different districts of Nepal using data from the Sikre Bio-briquette enterprise, Godawari Kunda CFUG and Bihani CFUG which are concerned with the promotion of a variety of Non-Timber Forest Products (NTFP) like Bio-fuel, ecotourism and essential oil. Our research result shows that the investment in CBE is found to be justified if the enterprises will continue up to five years without fluctuation in benefit. With this study our main aim was to investigate the financial status particularly benefit cost ratio, net present value and internal rate of return of Community-based Enterprises. This study also focused to identify community perception on enterprises they entertained in their village and to analyze the contribution of enterprises in supporting rural livelihood through employment generation.Al total33HH (15%) includes6HH (18%),13HH (39%) and14HH (42%) of Sikre-Bio-briquette enterprise, Godawari Kunda CFUG and Bihani CFUG respectively were randomly selected as respondents out of216households in three study sites for HH survey and semi-structured interview. Primary data were collected in the field through numerous PRA and RRA tools and secondary data were obtained from online and the Constitution and Operational plan (OP), minutes of the general assemblies, financial audits and administrative records of CFUGs and Community-based Enterprises, different literatures related to Community-based Enterprises and office records of related enterprises and government organizations etc. The examined data have shown that the benefits received from Community-based Enterprises namely Bio-briquette, ecotourism and essential oil processing are1.06,1.11and1.08times greater than the cost incurred during its operation for processing and manufacturing respectively. The positive result of NPV and IRR concluded after available financial records have also shown that studied community based enterprises are financially possible.The income received from CBE is a major source of financial capital to local poor community in the study area. It can create opportunities for rural employment; cash incomes, human skill development. On average, the largest source of expenditure amongst participating enterprise was on salaries and wages (85%) contributed by briquette manufacturing followed by essential oil processing (13%) and Picnic spot only contribute (2%). On the other hand, in our observation at Godabari Kunda CF area, we found that some18%out of92households’ main occupations were business activities including restaurant owner and shopkeeper. It can show that opening Picnic spot based enterprise in community forests have been also playing vital role towards employment generating to local community. In conclusion, Fund generated through CBE can help in poverty alleviationSome recommendations have been made for commercial cultivation of grass for essential oil production. Further training should be provided to the local community regarding collecting, processing, and marketing of forest based product. Community based co-operative and suitable marketing system should be develop and addressed in policy in initiation of governmental and nongovernmental organizations.