Kathmandu, June 25 -- Most informal microenterprises in Nepal remain outside the formal economy not by choice but out of necessity, according to a recent World Bank report, which says the vast majority of such businesses operate at subsistence levels with little prospect of growth.

The report, titled "Survival or Growth? Nepal's Microenterprise Landscape and the Case for a Differentiated Policy," finds that informal firms are largely survival-driven enterprises established by people with limited employment opportunities and low earning potential.

According to the study, owners of informal businesses are more likely than owners of formal microenterprises to run their ventures as a means of meeting subsistence needs. Many operate them as ...