Most Businesses in Nepal are Financed by Own Funds

A economic census report of Central Bureau Statistics shows that there are total of 9,00,924 business entities in Nepal. It includes all registered and non-registered entities of all sectors, excluding entities non-registered agriculture sector and entities abroad. As we observe the source of financing, only 35.6 percent use borrowed money in their business. However, a larger number of business entities are using self finance means or other sources for their business. Out of these business entities, only 18.1 percent have used loans from Bank and Financial Institutions. Cooperatives are other source of financing for the business where 11.1 percent of business entities of Nepal borrow form cooperatives. .  There are 5.1 percent business entities who borrow from other people instead of borrowing from formal institutions.