Title: EVALUATION OF MICRO-FINANCING ON THE DEVELOPMENT OF RURAL ECONOMY

Full: Chapter 1-5

Micro-financing goes beyond creating the platform for rural economic players to access credits and the distribution of money but can enter into how money is used and invested and how savings are done. Through micro-financing government provide subsidized credit for the development of the rural economy. The micro-financing help creates and delivers financial services to rural areas, which are continuously ignored by the formal banking sector. This study sought to evaluate the micro-financing in the development of the rural economy. The objectives of the study were to identify the factors influencing the development of the rural economy, factors that influence micro-financing, and how micro-financing influences the development of the rural economy. To achieve the objective of the study, convenient sampling was used to select 80 respondents making-up of the managing staff and the working staff of two rural banks (Adansi Rural Bank and Arb Apex Bank) operating in the Adansi North district. The main data collection instrument used was the questionnaire. The data were analysed using Statistical Package for Social Sciences (Version 26) software and presented using percentages, frequencies and tables. The findings of the study revealed that micro-financing increases employment opportunities for the local people enhances income to lift the local people above the poverty line and improves the access and efficiency of savings in the rural economy. Also, micro-financing creates an enabling environment for the creation and expansion of existing businesses in rural areas and empowers businesses owned by women in rural areas.