Survey of Small Manufacturing Establishments 2008-2009
Nepal, 2008 - 2010
Identification
NPL_2008_SSME_v01_M
Survey of Small Manufacturing Establishments 2008-2009
Sana Udhyog Surveyekshan 2066, Nepal
| Name | Country code |
|---|---|
| Nepal | NPL |
Enterprise Survey [en/oth]
The Central Bureau of Statistics (CBS) started the Survey of Small Manufacturing Establishments (SSME) in 1972-73 for the first time. Actually, it was the national level pilot study of cottage and small manufacturing establishments, primary purpose of which was to evaluate the value added of such establishments for national accounts estimation. After then, next exercise of studying Nepal's cottage and small manufacturing sector was done during sixth five year plan period.
In January 1994, CBS published a report of SSME 1991/92. It was multistage sampling survey which had covered establishments having following features:
- Establishments engaged less than 10 persons
- Household manufacturing industries having at least one hired labor
- Household manufacturing industries without hired labor but sole income to run the house
In this survey, probability proportional to size (PPS) was used to select 31 districts at the first stage as well as to select 1671 wards of 542 Village Development Committees at the second stage. At the final stage, circular systematic sampling was used to select establishments. There were 46418 small establishments altogether.
Moreover, in April 2001, CBS published SSME 1999-2000 report. It had the same scope and coverage as that of the SSME 1991/92. But the sampling procedure was quite different from that of SSME 1991/92. During later survey, in spite of using industrial registration name list, nationwide complete listing operation was conducted by CBS one year before the data collection year. During this listing operation, 30514 small industries were found in all over the country. But in the sampling design and survey data estimation phase, a raising factor was introduced by using the super population model assuming chi-square distribution. Hence the estimates of the later survey are not comparable and harmonized with the former survey completely although the concept, definition, scope, coverage and questionnaire used were equivalent.
In 2008-2009, another SSME was conducted which is considered the fifth of its kind. This survey covered only such establishments of the country which engaged less than 10 persons and came into operation after having legal registration. So, the latest survey did not comprise any kind of household industries neither with hired labor nor having sole income of the household. Many kinds of modification and necessary arrangements were made in the scope defining, questionnaire design as well as in the sampling design to establish direct correlation of its results with those of the results obtained by the Census of Manufacturing Establishments because it is considered as a supplementary survey of the CME in real terms. Further, it was based only on the sampling frame prepared after the listing operation.
In Nepal, the industrialization process is stagnant; the contribution of Manufacturing Sector to the national economy is minor and most of the factories are of small scales. The fifth decennial survey of small manufacturing establishments (SSME) 2008-2009 is one of the primary source of industrial statistics which covers all functioned manufacturing activities of the nation with a formal registration that engage less than 10 persons. The sampling survey undertaken by the Central Bureau of Statistics in establishment approach has provided complementary information of the Census of Manufacturing Establishments (CME) which is summarized in a set of 101 tables. This information is based on the responses of 614 questions interviewed by permanent staffs in 3737 randomly selected sample establishments. The survey report has quantified the size, composition, and distribution of the small manufacturing sector including ten principal indicators by internationally comparable and standard industrial classification at Development Region level.
There were 32326 small manufacturing establishments found active during mid July 2008 to mid-July 2009, the reference period of the survey when the listing operation had conducted in all districts. In this period, they had altogether contributed Rs. 11.5 Arab value added in the national economy and generated employment for 122 thousand persons. Moreover, there were 75 types of industries which produced 154 items using 186 types of raw materials in the reference period.
The survey has disclosed that grain milling, wearing apparel sewing, furniture making, and jewellery designing are the top four small manufacturing activities in Nepal. Share of which are nearly 39, 17, 10, and 7 percent of total in number; and they contribute about 20, 14, 14 and 7 percent of total value added in the small manufacturing sector.
Geographically, the Central Development Region has the largest number of small factories. It belongs to 45 percent establishments and contributes 50 percent value added to the small manufacturing sector in Nepal which follows by Eastern Development Region with 27 percent establishments and 24 percent value added.
Finally, the survey has told about the capacity utilization status and problem faced by the small industries. Only 32 percent of the industries utilized 60 percent or more than their installed capacity during the reference period and their major problem is the lack of electricity followed by capital dearth in national level. The ratio of capital utilization and problem faced by those establishments are found vary from industrial activity to activity and region to region.
Sample survey data [ssd]
Establishment
Version
Version 01: Cleaned, edited, not anonymized, for internal use only.
2010-08
Scope
The survey covers all small manufacturing establishments defined in the Nepal Standard Industrial Classification (NSIC 2000) within division "D" having
- less than 10 persons engaged, and
- a registration in any government body.
The NSIC is the Nepali version of the International Standard Industrial Classification of all economic activities third revision (ISIC rev 3). Manufacturing, as per the ISIC rev 3, is the physical or chemical transformation of materials or components into new products, whether the work is performed by power-driven machines or by hand. Establishments are described as an economic unit, which is under a single ownership or control, engaged in one or predominantly one kind of economic activity at a single physical location. A manufacturing establishment is one, which is predominantly engaged in manufacturing activities.
The survey collects information on the profile of small manufacturing establishments in terms of:
- Employment
- Purchase of fuels
- Purchase of raw materials
- Production and Sale of Goods
- Costs of and receipts from industrial and other services
- Stocks
- Indirect taxes and fees
- Loan transactions
- Utilization of production capacity
- Fixed assets
- Environment
- Major problems faced
Coverage
National 5 Development Regions Urban-Rural
The survey covered all active manufacturing establishments in Nepal that engage less than 10 persons and have a legal registration.
Producers and sponsors
| Name | Affiliation |
|---|---|
| Central Bureau of Statistics | Government of Nepal |
| Name | Role |
|---|---|
| Government of Nepal | Funding |
Sampling
The sampling design of SSME 2008-2009 comprised of complete as well as sample enumeration. Actually, there were three modes of selecting samples and the probability of selection of a sample is unequal. The sampling frame for the design was obtained by conducting one year listing operation throughout the country. In that operation, there were 32326 small industries found active. Out of them, 3737 had been selected for the survey.
At first, the sampling frame was sorted and split by NSIC and development regions. Then, a cut-off point (<5 establishments) was determined and in turn, all establishments under a NSIC with frequency less than 5 in a development region are selected. The total number of such establishments was 152. In fact, they were chosen for complete enumeration. This was done to achieve more reliable and better representative sampling distribution. The probability of selection of these establishments was considered one.
Secondly, the remaining establishments of the sampling frame had been further divided into two groups. The first group contained all establishments within NSIC 1531, 1810, 2811, 3610 and 3691; and the next group belonged to remaining NSICs. The first group again classified into 3 strata by number of persons engaged. There were altogether 24837 establishments within this group. Out of them, 2485 simple random samples were selected with probability 0.10 proportional among the strata.
Thirdly, the next group had 7337 establishments. It was also divided into 3 strata by number of persons engaged. Among them, 1100 simple random samples had been selected with probability 0.15 proportionally.
Finally, about 12 percent of total industries were selected. Out of total about 45 percent belong to Central Development region. Eastern and Western Development Region contains nearly 27 percent and 16 percent samples respectively.
The sample design of the SSME 2008-2009 mentioned a sample of 3737 establishments and the estimated data of the survey was also based on all of these 3737 industries. Hence the response rate was 100 percent. It means, the survey questionnaire was administered to each and every sample successfully.
There were unequal probabilities of selection of samples in the sample design of SSME 2008-2009. In fact, there were three modes of selection of samples. In terms of sampling units, they were units selected under the cut-off point (less than 5 establishments within a development region), Sampling Units with Selection Probability 0.10, and Sampling Units with Selection Probability 0.15.
All establishments selected below the cut-off point were given sampling weight of 1, and those selected by simple random sampling were given weights equal to the inverse of their probability of selection. Hence, the weight of a sample establishment having selection probability 0.10 had become either 10 or 11 according to the size corresponding strata. Likewise, the weight of the sampled establishment having selection probability 0.15 varied from 4 to 9. In this way, by using SPSS Software, the weight of each sample establishment had been obtained at the time of sample selection; and aforementioned three types of weights were merged into a consolidated sample weight file and sorted them by "Form No"; the unique identification number given for each establishment. Thus, to estimate any variable under study, to the corresponding weight by "Form No" should be multiplied with it.
Survey instrument
In CBS, it is a general procedure to consult with a Technical Committee composed of subject matter specialists, prominent users and data processing experts in order to give original shape to the questionnaire and tabulation plan before the survey or census starts. In place of such committee, during the questionnaire design stage of the SSME 2008-2009, a consultative committee was composed under the chairmanship of the Deputy Director General of Economic Statistics Division of CBS. This committee consisted of all six directors of each section under the division. At first, they discussed on the purposed first draft of the questionnaire prepared by the Section. Later many additional improvements were incorporated, in particular, related to the format, sequential flow or logical arrangement of data items in accordance with the recommendation provided by the committee.
In fact, the questionnaire for the SSME 2008-2009 was a kind of structured questionnaire especially based on the CME 2006-2007 questionnaire with some modifications and additions. An establishment questionnaire was administered to each establishment which collected various information on employment, input-output and capital formation including legal status, major activity, capacity utilization, indirect taxes paid and problem faced by the establishment.
It contains 15 sections as stated below:
- Employment
- Purchase of Fuels
- Purchase of Raw Materials
- Production and Sale
- Service Industries Only
- Cost of and Receipt from Industrial and Other Services
- Stocks
- Indirect Tax and Fees
- Loan Transaction
- Cost of Non-industrial Services
- Receipts from Non-industrial Services
- Utilization of Production Capacity
- Fixed Assets
- Environment
- Major problems faced by the establishments during the reference period
Aside from these 15 sections, there was an introduction part at the first page of the questionnaire. It was a large questionnaire. There were altogether 614 questions to be filled or answered.
The questionnaire was first developed in Nepali language and translated into English version for report writing purpose. The translation was undertaken by Mr.Lok Bahadur Khatri, the Statistics Officer of ECSS of CBS. The translation was then reviewed finally by Mrs Ganga Dabadi, the Director of the section. The Nepali questionnaire was tested in some establishments at Kathmandu Valley.
Data collection
| Start | End | Cycle |
|---|---|---|
| 2008-10-15 | 2009-07-25 | Listing |
| 2010-01-01 | 2010-06-30 | Data collection |
| Name | Affiliation |
|---|---|
| Central Bureau of Statistics | Government of Nepal |
| Branch Statistics Office | Central Bureau of Statistics |
Interviews were conducted by individual enumerators of Branch Statistics Offices. The Establishment Census and Survey Section (ECSS) of the CBS was responsible for the overall survey operation. ECSS carried out the planning, training, supervision, data entry, editing and processing of the SSME-2008-2009. The staffs from statistical offices in the districts (Branch Statistical Offices) located in the 33 districts of the country were involved in the listing and data collection activities. Mostly, the field work was supervised by BSO heads. Additionally, Officers from the ECSS also directed and controlled the listing and survey work in order to maintain the quality of the data.
Historical Experience
In the time of earlier manufacturing censuses and surveys, data collection was really a difficult task to undertake. The respondents were not properly educated on the importance of information culture. They used to take survey answering as an unnecessary burden and the poor enumerators as unwanted guests. There were several call backs even from leading industrialists who were regarded as pioneers. In those days, the transport and communication problem was quite acute. Once the survey people were not in their respective duty areas, it was very difficult to maintain contact with them from the center. It would take days and months for letters to go from one part to another. So, one can imagine how difficult it was to monitor field activities like recruitment, training, data collection, field edit, and document flow etc. In addition to this, since most of the survey personnel - survey officers, supervisors and enumerators were on temporary basis, they were not so loyal to their assignments. So, in effect, the quality of data was very miserable. It is a known fact that industrialists do hesitate to supply correct information for many reasons, chiefly because they think their figures might be supplied to revenue offices and create unnecessary troubles for them in the future.
Secondly, since they do not get any direct benefit from the survey, they do not find it so meaningful to cooperate with government efforts. In the context of the Nepalese experience, among the most non-cooperative class are the large and well organized establishments. They have created unnecessary problems to survey people at all times. They are the ones that delay or send back the poor enumerators with empty hand, even though they have good record keeping systems. Sometimes, they even challenge the authority of CBS because they have influential connections in the economic and political area. Even when they supply data after persistent efforts, sometimes the data are from their second set of books or wrong figures; the enumerators have to do a lot of probing or other checks in order to obtain the information they want.
But, on the other hand, the small scale establishments do not generally employ such time consuming and non-cooperative tactics, the only problem with them is to do more probing because they generally do not maintain a full set of accounting books. These days, the situation has changed to some extent. Due to having more census experience and better public education by the different media and the involvement of trade and industry organization in the census/survey committee, the field operation have also become somewhat easier because of better socio-economic infrastructures. So, we can expect a better quality of data in comparison to earlier days.
Pilot Survey of SSME 2008-2009
The pilot survey of the SSME 2008-2009 had been conducted jointly with the pilot survey of CME 2006-2007 in three districts - Rasuwa, Jhapa and Surkhet - in 2005-2006.
Data Collection Process in SSME 2008-2009
The survey was carried out in two phases. In the first phase, the listing work was carried out during 2008-2009. To carry it out, 96 personnel of 33 Branch Statistics Offices were trained at three places, viz. 31 in Itahari of Sunsari district, 33 in Tandi of Chitwan district and 32 in Nepalganj of Banke district in 2008 September. Then, these trained personnel were sent to take interview at the selected sample establishments through branch offices. The listing was completed in 9 months from October 2008 to July 2009. Total expense of the listing was more than 4.3 million Nepalese rupees. On the basis of the listing, a master frame of establishments was prepared. The frame indicated that there were altogether 32326 establishments under operation. For preparing the frame, all operating establishments were enumerated throughout the country by visiting each locality which could have such manufacturing activities. The small manufacturing industries are mainly found in the rural areas in Nepal. Majority of the industries were rice milling, tailoring, furniture making and jewellery designing.
In the second phase, the detailed survey was undertaken on a sample basis. To conduct the field work, The "Questionnaire" and "Instruction Manual for Enumerators" in Nepali language were used to collect necessary information. Interview was conducted in Nepali language. Monetary figures were recorded in thousand Nepali rupees. A separate control form was administrated for each establishment. Seven thousands pieces of questionnaire and 4 hundreds pieces of instruction manuals had been printed at center. Nearly 100 enumerators - BSO's staffs - were trained during November- December 2009. Training of supervisors, who were also BSOs' heads, were provided orientation about SSME in September 2009 during their annual meeting at the center. Moreover, the enumerators' training was held in Itahari of Sunsari district, Simara of Bara district and Nepalgunj. More than 5.8 million NRs budget was estimated for the field work. Actually, the district level field work was managed by the corresponding BSO head and the central office had provided technical documents and T.A.D.A. budget. This budget was nearly 3.5 million which had sent to BSOs. The survey enumeration work was completed in six months from January to June 2010.
Reference period
Data for the small manufacturing establishments referring to the fiscal year 2008-2009, beginning from 16th July 2008 to 15th July 2009 (2065 Shrawan - 2066 Ashad) were collected. For point data like employment, the reference date was considered as 15th February (1st Magh 2065).
Data processing
For quality control and to make successive steps easier the usual practice was to have manual editing in the field of some key items which generally cannot be corrected in the center. Such edit instructions were mainly of the following types:
i. To check if all cells are properly filled in according to the instruction manual;
ii. To ensure whether all entries are consistent with one another;
iii. To check if all skipping instructions have been correctly followed;
iv. To work out some ratios or rates and see if they are reasonable.
For examples of such calculations are:
a. Percentage of output quantity on principal raw material consumed, and
b. Average wage per employees etc.
In spite of these strict and clear cut rules, many forms would be found with blank cells and incorrect entries. There was always a heavy load at the time of detailed editing. As far as possible, correction works including imputations were done by developing suitable procedures. But, sometimes, there was no way out except to return to the field for the correct information. It is still a general tendency of respondents to report more expenditures and less outputs or receipts. In most cases, the value added figures turn out to be very low or sometimes negative. This situation had created a lot of headache at the processing stage. Since it was not possible to go back to the field for a majority of the forms, the only meaningful alternative was to correct the wrong reporting by adopting some plausible assumptions.
After editing process, the next step was to perform coding work. In order to avoid clerical errors, a complete recheck process or, in some cases, on sampling basis was the general practice to correct previous mistakes as far as possible. As in the previous CME and SSME, in SSME 2008-2009, the coding scheme of NSIC and CPC 1.0 was used to made data comparable nationally and internationally.
Moreover, there were many inconsistencies found especially in the following area of the filled questionnaire:
- Monthly wage and salary of a paid employee
- Per unit cost of fuels
- Per unit cost of raw materials
- Per unit cost of sold items
- Monthly house rent
- Printing expenses
- Travelling expenses
- Rate of indirect taxes
- Relation between the answer of capacity utilization and production
To overcome such variations, certain unit cost limits were introduced and fixed. In some cases, call backs to the industries were made to obtain accurate figures wherever possible. Consistency and validity checks were performed on the first hand computer printouts.
Data appraisal
During the sampling design period as well as in the data processing and estimation stage, even if the estimates of sampling error were not produced formally, many efforts were done to reduce the sampling variance in each and every stage of the sampling survey. Some of them are listed below:
a) During Listing Operation
A reasonably comprehensive directory has been compiled which provided much of the required detail on the distribution of manufacturing activity by NSIC at four digit level and geography at district level.
b) During Sampling Design
To decide and finalize the way in which the sampling units were selected and the number or proportion of units included in the sample, the size, distribution and representation of the samples were observed and discussed several times to find satisfactory results by selecting analyzing a new set of samples for every deliberation.
In the survey, establishments were considered as the sampling units. To minimize the unit variance, they were divided into a large number of strata by NSIC and number of persons engaged, each of which was sampled independently. Different probabilities were assigned to the different strata and without violating the fundamental principles of probability sampling, for some particular units, the probability of selection with certainty had been allocated.
c) During Data Analysis stage
The estimates were produced only for development regions at NSIC three digit level.
Up to the time when the processing work was done manually, for each and every step, subsidiary work sheets were used to come up with the final tables and, as such, all consistency and validity checks among data items in the questionnaire were considered simultaneously. In other words, there were built in check within the system itself. So, when this part of the work was completed, only the job of comparing with other data sources for external consistency remained to be done. But, when the processing job was taken over by computer, scrutiny of final printout became an essential part before releasing the results to outsiders. Special use was made of the following ratios calculated for some principal indicators:
i. Wages, salaries, perquisites by Gross output
ii. Employees by persons engaged
iii. Wages, salaries, perquisites by Employees
iv. Wages, salaries, perquisites by Value Added
v. Input by Output
vi. Value Added by Gross Output
vii. Fixed Assets by Persons Engaged
A study of these relationships would often reveal inconsistencies or questionable data which would call for further investigations. Sometimes, it was even necessary to go back to individual forms. Along with this, a comparison of figures with already published results by other agencies was also a necessary step to be undertaken. When considerable discrepancies were found, it was essential to determine which of the different sets of data was correct. So, taking account of such problems in previous censuses and surveys, some of the key indicators were computed by hand for the SSME 2008-2009, and kept in a separate file. When any mismatching was noticed it was corrected in the computer data files with the aid of manually worked out key results. Thus, many serious mistakes were avoided and, thus, at the time of SSME 2008-2009, past experiences were better utilized and many problems avoided. The results were brought out in time, even though there were still some problems to be solved.
Distributor information
| Organization name | Affiliation | URL |
|---|---|---|
| Central Bureau of Statistics | Government of Nepal | www.cbs.gov.np |
Data Access
| Name | Affiliation | URL | |
|---|---|---|---|
| Director General | Central Bureau of Statistics | http://cbs.gov.np/?page_id=17 | archive@cbs.gov.np |
| Is signing of a confidentiality declaration required? | Confidentiality declaration text |
|---|---|
| yes | Confidentiality of the respondents is guaranteed by Article 8 of Statistics Act 1958. Any information or details relating to any person, family, firm or company, which has been supplied, obtained or prepared pursuant to section 3, section 4, section 5, section 6, section 7, or any part of such information or details, shall not be disclosed or published directly except to the Director General or to any officer of the Bureau without the written person or of his authorised representative supplying such information or details. |
The dataset has been anonymized and is available as a Public Use Dataset. It is accessible to all users for statistical and research purposes only, under the following terms and conditions:
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The data and other materials will not be redistributed or sold to other individuals, institutions, or organizations without the written agreement of the Central Bureau of Statistics (CBS).
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The data will be used for statistical and scientific research purposes only. They will be used solely for reporting of aggregated information, and not for investigation of specific individuals or organizations.
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No attempt will be made to re-identify respondents, and no use will be made of the identity of any person or establishment discovered inadvertently. Any such discovery would immediately be reported to the CBS.
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No attempt will be made to produce links among datasets provided by the CBS or among data from the CBS and other datasets that could identify individuals or organizations.
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Any books, articles, conference papers, theses, dissertations, reports, or other publications that employ data obtained from the CBS will cite the source of data in accordance with the Citation Requirement provided with each dataset.
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An electronic copy of all reports and publications based on the requested data will be sent to the CBS.
Use of the dataset must be acknowledged using a citation which would include:
- the Identification of the Primary Investigator
- the title of the survey (including country, acronym and year of implementation)
- the survey reference number
- the source and date of download
Example:
Central Bureau of Statistics (CBS), Nepal. Survey of Small Manufacturing Establishments 2008-2009. Ref. NPL_2008_SSME_v01_M. Dataset downloaded from http://cbs.gov.np/nada/index.php/catalog on [date].
Disclaimer and copyrights
The Central Bureau of Statistics, Nepal bears no responsibility for any outcomes or for interpretations or inferences arising from the use of the dataset.
Contacts
| Name | Affiliation | URL | |
|---|---|---|---|
| National Data Archive, Publication, Distribution and Library Section | Central Bureau of Statistics | archive@cbs.gov.np | http://cbs.gov.np/?page_id=17 |
Metadata production
DDI_NPL_2008_SSME_v01_M
| Name | Affiliation | Role |
|---|---|---|
| Establishment Census and Survey Section | Central Bureau of Statistics | Documentation of the study |
| Accelerated Data Program | International Household Survey Network | Editing for IHSN Survey Catalog |
2012-03-12
Metadata version
Version 1.0 - Central Bureau of Statistics - Original documentation of the study.
Version 2.0 - Edited version by ADP based on Version 1.0 of CBS downloaded from http://cbs.gov.np/nada/index.php/catalog on 5 March 2012.