Evaluating the Impact of RRBs on Rural Entrepreneurship and NonFarm Employment in Rajasthan

This study examined the role of Regional Rural Banks (RRBs) in fostering rural entrepreneurship, non-farm employment, and household welfare outcomes in Rajasthan. Using a sample of 315 respondents from three districts—Jaipur, Bharatpur, and Ajmer, data were collected through a structured questionnaire validated by expert review. Smart-PLS was applied to test the conceptual model, incorporating constructs such as RRB credit access, financial services quality, entrepreneurship support, financial literacy, rural entrepreneurship, non-farm activities, and household welfare. The findings revealed that RRB credit access (β=0.311, p<0.01), financial services quality (β=0.289, p<0.01), entrepreneurship support (β=0.264, p<0.01), financial literacy (β=0.112, p<0.05), and non-farm activity (β=0.138, p<0.05) significantly influenced rural entrepreneurship. However, the direct link between rural entrepreneurship and household welfare outcomes was found to be weak (β=0.076, p>0.05), suggesting that welfare improvements require additional structural and institutional support. Reliability and validity tests confirmed the robustness of the constructs, while discriminant validity assured the distinctiveness of the measured factors.