Micro enterprises (MEs) represent the backbone of Nepal’s grassroots economy, providing sustainable livelihoods, reducing poverty, and fostering inclusive socio-economic transformation. Defined under the Industrial Trade Act (2017) as enterprises employing fewer than nine individuals with limited investment and energy capacity, MEs have become crucial engines of employment, women empowerment, and local development. Despite their contributions, these enterprises face persistent challenges, including inadequate access to finance, limited record-keeping, technological constraints, and market isolation, particularly in remote and marginalized communities. This research article, derived from an extensive doctoral study, investigates the survival, growth, and socio-economic contributions of micro entrepreneurs across Nepal’s Mountain, Hill, and Terai regions. Using a mixed-methods approach involving Key Informant Interviews (KIIs), Focus Group Discussions (FGDs), and case studies, the study explores the lived realities of micro entrepreneurs while linking them to broader development policies. Findings reveal that MEs significantly enhance income, self-reliance, and skill development, yet remain constrained by structural barriers and policy gaps. The article underscores the need for integrated support systems, inclusive financing mechanisms, and capacity-building initiatives to strengthen MEs’ resilience. By contextualizing the findings within Nepal’s diverse ethnic and socio-cultural landscape, this study highlights the transformative potential of micro enterprises in national development. Ultimately, the research demonstrates that fostering entrepreneurship at the micro level is not merely an economic intervention but also a pathway to social justice, equity, and sustainable prosperity in Nepal.