Micro-Finance and Agro-Entrepreneurship Develoment: A Study of Bhimkali Savaing and Credit Co-Operative of Kalila Municipality, Chitwan
Date
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Department of Rural Development
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.