Abstract:
The study was aimed at finding out about the Contributions that Rural Banks make towards the Development of Small and Medium Scale Enterprises. A case Study of Juaben Rural Bank – Juaben in the Ashanti Region of Ghana.
It was aimed at ascertaining whether income levels of small and medium scale enterprises have improved after accessed Credit, to know whether Rural Banks have direct stake in these enterprises, and to know other benefits that the small and medium scale enterprises derived from the Rural Banks.
Description:
Despite the numerous benefits that we as a nation stand a chance of getting from these small and medium scales enterprises, the sector faces problem of financing. Borrowing from the commercial banks has become a problem to owners of these small and medium scale enterprises since they are required to open a current account that require a lot of documents that this category of people because of their level of education cannot provide to enable them access this facility from them. In the quest of government to alleviate the problems of rural farmers and small and medium scale enterprise owners through credit finance provision, government at that time introduced rural banking in Ghana in the year 1970s, and the first Rural Bank was established in 1976 as Nyakrom Rural Bank Limited at Agona Nyakrom in Central Region of Ghana. Today Ghana can boost of 131 rural banks to its credit.
