The Role of Government micro financing in the Development of Rural Entrepreneurship (Case Study: Radkan Rural District)

Entrepreneurship, a burgeoning force in today's economy, plays a pivotal role in rural development by fostering progress, poverty alleviation, and job creation. However, rural areas often grapple with a scarcity of financial capital essential for business initiation or expansion. To address this, governments have introduced micro-rural credits as self-employment loans to stimulate rural employment and entrepreneurship. This study aims to evaluate the impact of government micro-credits on rural entrepreneurship development in Radkan. Adopting an applied, developmental, and descriptive-analytical approach, data was collected through documentary, library, and field research. The study population comprised 27 entrepreneurs, with a sample of 244 individuals from 13 Radkan villages selected using the Cochran formula with a 0.06 error level. Their opinions on research indicators related to the topic were assessed. Findings reveal that micro-government credits have had a negligible impact on rural entrepreneurship in the study area. Most sample entrepreneurs supplemented bank loans with personal funds. Furthermore, insufficient loan amounts, limited credit accessibility, absent insurance support, lengthy loan processing times, and unfavorable repayment terms resulted in low satisfaction levels among entrepreneurs (average 2.32) and rural residents (average 1.91).