Abstract:
Regional development banks play an important role in providing loan facilities
to small-scale entrepreneurs. This study was conducted among the hundred
small-scale entrepreneurs who get loan facilities from the regional
development bank in Manmunai West Vavunathivu Secretariat Division of
Batticaloa district in Sri Lanka. The main objective of this research is to find
out the contribution of Vavunathivu regional development bank to developing
the standard of living of small-scale entrepreneurs through its credit creation
and to identify how the credit creation of RDB influences the social and
financial factors of the small-scale entrepreneurs in the selected research area.
Data for the research was collected through primary and secondary data
sources. A questionnaire survey was the primary data collection method, while
the central bank report, journals, newspapers, and reports of the Manmunai
Divisional Secretariat were the secondary sources used for this study.
Questionnaires were distributed among the hundred small-scale entrepreneurs
by a random sampling method. Using SPSS 21.0 computer software, collected
data were analyzed quantitatively and qualitatively and presented as
standardized deviation, mean deviation, and proportional computation. This
study found that regional development banks played a middle role in
developing the standard of living of small-scale entrepreneurs by facilitating
loans and taking the middle part to expand the social and financial factors such
as society, new investment, finance, health, and infrastructure of the SSE in
the selected research area. To expand the role of the regional bank in the
selected research area, the government should have implemented a proper
policy to grant vigilant regard to RDB microfinance at the local level, as well
as steps to facilitate easier access to credit and grant low-interest loans to
small-scale entrepreneurs.
