Impact of Remittance on Small Business in Nepal

Abstract

This study analyzes the impact of remittance on growth of small business in Nepal. The dependent variable is growth of small business. Similarly, the selected independent variables are skill acquisition, volume of remittance, use of technology, educational expenditure and entrepreneurship experience. The primary source of data is used to assess the opinions of the respondents regarding the impact of remittance on growth of small business in Nepal. The study is based on primary data of 146 respondents. To achieve the purpose of the study, structured questionnaire is prepared. The correlation coefficients and regression models are estimated to test the different impact of remittance on small business in Nepal. The study shows that skill acquisition has a positive impact on growth of small business. It means that increase in skill acquisition leads to increase in growth of small business. Similarly, volume of remittance has a positive impact on growth of small business. It implies that increase in volume of remittance leads to increase in level of growth of small business. Likewise, use of technology has a positive impact on growth of small business. It indicates that increase in use of technology leads to increase in growth of small business. Furthermore, educational expenditure has a positive impact on growth of small business. It implies that higher educational expenditure leads to increase in growth of small business. Moreover, entrepreneurship experience has a positive impact on growth of small business. It indicates that higher entrepreneurship experience leads to increase in level of growth of small business.