Challenges in Transformation of Informal Business Sector towards Formal Business Sector in Nepal: Evidence from Descriptive Cross-Sectional Study

Main Article Content

Dipak Bahadur Adhikari
Preeti Gupta
Niranjan Devkota
Udaya Raj Paudel
Seeprata Parajuli


This study seeks to contribute to the empirical understanding to the transformation of informal business towards formal business in Nepal on the basis of cross-sectional data. This paper examines the preferences socio-economic and other social capital related to informal business. Various indicators were identified to understand and analyze readiness of various informal sectors from literature review of different theories. People with high level of education less prefer informal sector however, prime working age labor force were involved massively in informal sector. More than two-third respondents argued that situation is not manageable which means the informal economy is not transitional to formal economy. Majority of respondents believes that there are some administrative problems that could hinder the entrepreneurial potential and their creativity to flourish.

Informal business, transformation, employment, income, Kathmandu valley

Article Details

How to Cite
Adhikari, D. B., Gupta, P., Devkota, N., Paudel, U. R., & Parajuli, S. (2021). Challenges in Transformation of Informal Business Sector towards Formal Business Sector in Nepal: Evidence from Descriptive Cross-Sectional Study. Asian Journal of Agricultural Extension, Economics & Sociology, 39(2), 95-106.
Original Research Article


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