This chapter focuses on how gendered institutions explain entrepreneurial choice in the informal economy in developing contexts contribute towards discussions on the contextual embeddedness of women's entrepreneurship. It shows that the processes of institutional change and the conflicts the country has undergone have affected to a large extent the scope and nature of entrepreneurship for all individuals in the Nepalese society. The country's economic, political and social development has affected people's attitudes about the caste system. The chapter discusses the institutional environment for entrepreneurship and the nature of gendered institutions in a developing context. It shows that how despite the provisions made in the formal institutional environment for no caste or gender discrimination, these formal institutions have long lasting effects in prescribing the behaviour and attitudes of individuals in the society. The chapter draws on particular attention to how several gendered institutions such as caste, marriage, family and the lack of rights over property and education have disproportionally affected women.
