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VOL. 1, ISSUE 1 (2025)
Entrepreneurs’ perceptions on the role of commercial banks in supporting rural enterprise development
Authors
Venugopal Reddy Ch
Abstract
Commercial banks remain the backbone of formal
financial systems in rural areas, yet their role in supporting enterprise
development remains contested. This study examines the perceptions of rural
entrepreneurs toward commercial banks, focusing on access to finance, service
quality, and the relevance of banking products to rural business needs. Using a
mixed-method approach, data were collected from 250 rural entrepreneurs across
agricultural, manufacturing, and service sectors, supplemented by 15 in-depth
interviews. Findings show that 68% of respondents recognized commercial banks
as essential providers of working capital, but only 42% were satisfied with
loan accessibility, citing high collateral demands and lengthy approval
processes as primary barriers. Service quality was rated moderately high, with
notable appreciation for financial literacy programs and digital banking
adoption. However, gaps remain in developing tailored lending products and
flexible repayment schemes suited to rural business cycles. The study concludes
that commercial banks can enhance their developmental impact through innovative
rural lending models, policy-backed collateral flexibility, and strengthened
advisory services, ultimately enabling sustainable rural enterprise growth.
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Pages:7-9
How to cite this article:
Venugopal Reddy Ch "Entrepreneurs’ perceptions on the role of commercial banks in supporting rural enterprise development". World Journal of Management, Vol 1, Issue 1, 2025, Pages 7-9
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