Abstract
This paper explores the challenges of social enterprises (SEs) in Nepal. The study is qualitative in nature and uses case studies, open-ended questionnaires and interviews of social entrepreneurs and experts. The Nepalese social enterprises are driven by social motives and social value creation rather than profit. They focus on bringing positive social impact. Absence of legal and other policies create confusions, thus poses challenges in sustaining social enterprises. Specific social enterprises promotion acts, financing policies, and business support services are some of the shortcomings for the sustainability and growth of social enterprises in Nepal. Comprehensive government policies and related regulations would be instrumental in promoting social enterprises in Nepal.
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