Micro-Finance and Agro-Entrepreneurship Develoment: A Study of Bhimkali Savaing and Credit Co-Operative of Kalila Municipality, Chitwan

Abstract

A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations. Even in Nepal most of the agro-enterprises are funded by co-operative. The study entitled MICRO FINANCE

AND AGRO-ENTREPRENEURSHIP DEVELOPMET: A STUDY OF BHIMKALI SAVING AND CREDIT CO-OPERATIVE, KALIKA, CHITWAN thus tried to analyze the relationships between microfinance and agro entrepreneurship development. General objectives isto examine the role of co-operative for agro entrepreneurship development.

This study applied quantitative research approach and survey method. Required data were collected from 216 respondents (board member and general members) selected randomly. In doing so, household survey technique with tools (Cronbach’s Alpha value 0.73) has been used. The validity for financial activities and agriculture practice is 0.64 and financial activities and role of microfinance is 0.229 which means no issue of content validity. This study used SPSS version 20 for organizing, summarizing, describing and generalizing the data. This research found that microfinance had a favorable impact on agro entrepreneurship

development. Saving, credit and other activities was found satisfactory. The three indicators of indicators, financial activities of micro-finance, agriculture practices and role of microfinance found out moderately correlated. That means the micro-finance has positive role on agriculture practices and agro entrepreneurship development.

It is also found that loan process of micro-finance is easy and gives priorities for agro-business with appropriate interest rate.Nearly to third of respondents (61.1%) wear self-motivated to join cooperative and 50 percent of respondents were joined cooperative for saving and nearly on third (28.7%) of respondent joint cooperative since five years.The average mean of descriptive scale was nearly 3. That means respondent were somehow agree with statements related to financial activities.About two fifth (42.6%) of respondents had 11-15 kattha land ownership and 41.7% did crops farming.The Pearson correlation shows the relation between Role of micro-finance with Agriculture practices and financial activities. The correlation between Role of microfinance and Agriculture Practices have found to be .592 and Role of micro-finance and Financial activities have found to be .229 which are significant and positively correlated. The findings of the study is fruitful to the Bhimkali Saving and Credit Cooperative,

Kalika Municipality, Chitwan, Co-operative organization and Nepal cooperative Organization and the future researchers. On the basis of the conclusions and

findings, the following recommendations are made to enrich the role of cooperative in

agro-entrepreneurship development process in the study area. To involve the people in

socio- economic activities, the

low interest loan as a micro credit should be provided and should focus on agricultural sector more. To increase cooperative activities, government should be providing financial support to cooperative institution. Programme like training, exposure visit incentives to farmer member and education support to poor students of share members should be extended.