Access to formal finance remains one of the most persistent structural constraints faced by small and medium enterprises (SMEs) in developing economies. Despite sustained policy emphasis on financial inclusion, significant gaps remain between the demand for and supply of bank credit, largely due to information asymmetry, institutional rigidities and risk-averse lending behaviour. This study develops and empirically tests an integrated analytical framework that captures both demand-side and supply-side determinants of bank lending decisions using partial least squares structural equation modelling (PLS-SEM). Primary data were collected from 150 respondents, comprising SME owners and bank managers in Sri Lanka’s Western Province. The model incorporates key latent constructs, including financial transparency, collateral availability and creditworthiness (demand-side), alongside risk perception, lending policies and the regulatory environment (supply-side). The measurement and structural model assessments demonstrate strong reliability, convergent and discriminant validity, and substantial predictive power. The findings reveal that financial transparency and creditworthiness significantly enhance access to bank finance, while risk perception emerges as the most critical constraint from the supply side. Collateral remains important but is gradually being complemented by information-based lending mechanisms. Furthermore, institutional lending policies and regulatory frameworks play a facilitating role in shaping lending outcomes. This study contributes to the literature by offering a novel, integrated PLS-SEM framework that captures the systemic nature of SME lending decisions within a developing country context. It also provides policy-relevant insights for improving financial inclusion through institutional reforms, enhanced credit information systems and capacity-building initiatives. The findings disclose a structural transition in Sri Lanka’s banking practices from collateral-based lending towards information-driven and risk-sensitive lending technologies.
Gender responsive budgeting (GRB) has emerged as a key governance tool for promoting gender equality and inclusive development by integrating gender perspectives into public financial management. In Nepal, although GRB has been institutionalised since the fiscal year 2007/2008 and supported by strong constitutional commitments to equality and inclusion, its implementation at the local level remains limited due to weak technical capacity and inadequate institutional understanding. This study examines the outcomes of a capacity development action research project implemented by the Local Development Training Academy, Nepal, in collaboration with the Centre on Integrated Rural Development for Asia and the Pacific, Dhaka, Bangladesh, across three municipalities of Nepal—Modi Rural Municipality, Sunwal Municipality and Gramthan Rural Municipality—between 2024 and 2025. A total of 117 elected representatives and officials participated in this programme that focused on GRB concepts, budget coding and classification, and gender equality and social inclusion audit processes. Pre- and post-intervention assessments revealed a substantial improvement in participants’ knowledge and understanding, as the average test score increased from 4.09 to 8.29 after the project intervention, out of a total score of 10. Findings also showed strengthened technical skills and enhanced institutional commitment to GRB. It was revealed that structured and participatory interventions are highly effective for capacity-building in improving GRB understanding and supporting its institutionalisation at the local government level in Nepal.
This study addresses the digital skills gap that constrains the online marketing potential of rural community enterprises in northern Thailand, where only 18% of producers possess video editing capabilities. Using Khok Nong Na Pa Phai Herbal Balm Enterprise in Pa Phai Subdistrict, Chiang Mai Province, as a case study, we develop a digital marketing communication model to support sustainable enterprise growth. A mixed-methods design was employed, integrating 20 in-depth interviews, three focus groups ( n = 30) and a stratified random survey of 400 community members, leaders and customers. Thematic analysis of qualitative data identified key communication gaps, digital skills constraints and preferred strategies. Quantitative findings, analysed through descriptive statistics, t -tests, ANOVA, Pearson correlations and multiple regression ( R 2 = 0.52), reveal high enterprise awareness and positive perceptions of its socio-economic and environmental value. Digital engagement showed strong associations with online support intentions ( r = .71, p < .001), while satisfaction with current digital marketing remained moderate, despite high smartphone penetration (92%). Facebook and TikTok were the most frequently used platforms, with digital engagement and attitudes emerging as significant predictors of purchase intentions. Additionally, the proposed model integrates participatory communication, short-form video content strategies and tailored capacity-building. It offers actionable recommendations to strengthen rural enterprise marketing and supports scalable ICT-for-development strategies aligned with Sustainable Development Goals 8 and 9.
This study examines the key success factors of Village-Owned Enterprises (VOEs) in Indonesia using a phenomenological qualitative approach across three rural contexts: Sidomulyo, Sugih Waras and Brubuh. VOEs function as community-based institutions that integrate economic gain with social welfare. The findings suggest that adaptive capacity, stakeholder collaboration and local innovation are essential for maintaining VOE performance. In Sidomulyo, managerial resilience was evident in the utilisation of personal capital to overcome financial constraints. In Sugih Waras, participatory training strengthened organisational capacity. Meanwhile, Brubuh exhibited adaptive strategies through digital promotion and facility improvement to revitalise rural tourism during the pandemic. Collaborative governance among village leaders, managers and community members fosters ownership, legitimacy and sustainable outcomes. Innovative ventures, including tourism development, equipment rental and local flower processing, demonstrate VOEs’ ability to convert community resources into economic and social value. The study positions VOEs as catalysts for inclusive rural transformation and as transferable models for community-driven enterprises across developing regions. Nonetheless, its limited scope and qualitative nature suggest the need for broader mixed-methods research. Strengthened policy support through continuous training, innovation incentives and digital literacy is recommended to enhance VOE resilience and long-term sustainability.
This study aims to analyse the financial performance of microfinance institutions (MFIs) in Afghanistan for an extremely unstable period, for the financial years of 2014–2015 to 2023–2024, to address significant political instability and the COVID-19 pandemic. Using panel data from the top larger MFIs in Afghanistan, the study looks at the effects of internal institutional characteristics on the return on assets (ROA), which is an indicator of financial sustainability. Panel regression techniques are employed to analyse the relationships between these factors and institutional performance. The findings indicate that branch expansion enhances ROA; therefore, increasing branches led to greater profitability, even amid political instability and uncertain conditions. While the gross loan portfolio had a negatively significant effect on financial performance, this finding indicates that quality and assessing the associated risk of the loan portfolio may be challenging. Total income and the number of active borrowers were less significant or impactful variables. Overall, the findings indicate that MFIs encountered financial problem and even some of them led to stop their services, moreover, highlighting the need for risk-adapted progress and efficient portfolio control to maintain the financial viability of MFIs working especially in fragile or crisis-affected economies.
Indigenous peoples in the Philippines face persistent poverty and social discrimination, with their cultural identity deeply rooted in ancestral lands. The Alta, an Indigenous group in the Sierra Madre region, rely on the mountain range for their livelihood, traditions and way of life, yet their environment is increasingly threatened by deforestation, illegal mining and logging. This study explores the perspectives of 34 Alta youth (ages 10–25) on environmental conservation and an ecotourism initiative along the Diteki River in San Luis, Aurora. Using qualitative methods, including pakikipagkwentuhan (story-sharing) and focus group discussions, analysed through interpretative phenomenological analysis, the research reveals that the Alta youth perceive their environment as essential for sustenance, protection and cultural continuity, while recognising human activities such as illegal logging and mining as significant threats. They view ecotourism as a potential means of balancing economic opportunities with conservation, as it provides an alternative source of income to them while they preserve their environment. However, they believe there is a need for stronger collaboration between their community and the government to promote environmental preservation. Participants highlight ecotourism’s potential to provide alternative livelihoods and reinforce conservation efforts. However, illegal resource extraction and inadequate policy support are the challenges that need to be addressed. This study emphasises the importance of integrating Indigenous youth into conservation and sustainable tourism policies, which position them as key stakeholders in safeguarding cultural heritage and ecological integrity. By amplifying their voices, this research contributes to global Indigenous-led conservation discourse, emphasising youth leadership in sustainable development.
Diversification in rural employment is key to achieving sustainable and inclusive development. Expanding rural non-farm employment (RNFE) allows the rural workforce to get involved outside the agriculture sector. It helps households to come out of multidimensional poverty. In this article, unit-level data from the Employment and Unemployment Survey and Periodic Labour Force Survey are used to understand structural characteristics and trends of RNFE across socio-economic groups. As far as methodology is concerned, we applied only simple percentage analysis. The key findings unveil that nearly half of the working population actively engages in RNFE. The increasing number of young people participating in RNFE unequivocally shows progress in rural economic activity. Workers aged 30–45 are the most economically productive and mobile group. Furthermore, the growing presence of educated individuals in RNFE underscores its crucial role in the rural economy. Socially, many individuals from lower groups than ‘Others’ in RNFE demonstrate the inclusive nature of this sector. However, it is a big concern that real wages have declined across genders in 2023–2024 compared to 2017–2018, based on the 2016 base year as per the Reserve Bank of India. Wage disparities between males and females are also evident. The need of the hour is stronger labour market interventions, including better enforcement of minimum wages, expansion of employment schemes like Mahatma Gandhi National Rural Employment Guarantee Act and targeted efforts to formalise casual work, particularly in the non-farm sector.
Migration serves as a critical livelihood strategy for many of the rural poor, offering opportunities to improve their living conditions and advance their social standing. This study investigates the socio-economic effects of internal migration on migrants in Barishal City, Bangladesh, focusing on factors influencing migration, social and economic status and poverty levels before and after relocation. Results indicate modest improvements in both economic and social conditions post-migration. The economic status index value of 40.63% suggests a moderate positive impact on migrants’ financial situations, with improvements in household income, savings, expenditure, land ownership and non-productive assets. The social status index of 41.25% reflects enhancements in housing, water and sanitation facilities, healthcare access and working efficiency. The study also finds a reduction in poverty levels among migrants, as measured by the headcount ratio, and contributes to the understanding of internal migration dynamics in Bangladesh, a country highly vulnerable to climate-induced displacement.
A baseline survey was conducted in 2025 of 10 university-based agri-food innovation centres, which provides a snapshot of current practices, services and challenges faced by institutions supporting food and beverage entrepreneurs. The results highlight the diversity of funding models, service offerings and client engagement strategies used to foster regional food innovation ecosystems.
Village-owned enterprises ( BUMDes ) are central to Indonesia’s rural development agenda, yet their performance with respect to social capital formation varies widely with the stages of development. This study examines the impact of different stages of development of the BUMDes on social capital (as trust, networks and norms) formation. The BUMDes generally pass through four stages of development: Basic, Growing, Developing and Advanced. The purpose of this study is to assess and compare social capital dimensions at each level of classification. Advanced BUMDes have been found to possess significantly greater levels of internal trust, more complex and richer networks, organisational norm compliance and stronger/greater norm adherence. One-way analysis of variance test further confirms that these differences are statistically significant across stages. Social capital is also shown to be influenced by leadership background and external partnerships, showing that social capital functions simultaneously as a measure of institutional development and maturity. Enhancing leadership and fostering collaborative external partnerships alongside formalising shared norms can aid in the development of BUMDes . The findings of this study advance theory on rural institutions while offering practical policy recommendations.
This research examines the socio-economic effects of the seasonal fishing ban on hilsa fishers in Barishal, Bangladesh, with a focus on income loss and the role of social safety net programmes. Based on primary data collected from 210 fishing households, the study applies both descriptive analysis and econometric techniques to identify the key determinants of livelihood vulnerability during the ban period. A binary logistic regression model was estimated using Stata 14 to assess the probability of income decline and to evaluate the effectiveness of various coping and support mechanisms. The results show that the fishing ban significantly disrupts household income, particularly among fishers without access to alternative employment or external assistance. Households that engaged in alternative jobs, received government or NGO aid, or participated in vocational training were significantly less likely to experience income loss. In contrast, loan-dependent households were more likely to suffer financial setbacks, indicating that borrowing served as a distress response. The model achieved strong explanatory power, with a pseudo R 2 value of 0.733. This study contributes to policy discussions on sustainable fisheries management by underscoring the importance of integrating conservation efforts with socio-economic protection for vulnerable fishing communities.
This article employs the case study method to explore the nature of political interference in rural water schemes through the perspectives of local politicians in eastern Nepal. Using thematic analysis and in-depth interviews with seven key respondents in Panchthar District, the article finds that most delays in rural water schemes are attributed to entrenched political undercurrents, which often result in project failure. This finding aligns with public choice theory, which posits that political interference is rooted in the vested interest of electoral gain rather than optimal and sustainable choices. The study further identifies the presence of the tragedy of the anti-commons in rural water schemes, contributing to further political impasse. However, despite their differences, politicians expressed concern about climate change, and hence the study suggests adopting a utilitarian approach in order to implement sustainable and climate-resilient water schemes.
Iran’s rural development model, primarily centred on physical and infrastructural improvements, has been driven by the Rural Master Plans (RMPs) for over four decades. This study evaluates the challenges associated with RMPs, revealing that many rural managers and villagers remain unaware of the plans’ objectives and implementation processes. While RMPs exhibit strengths and opportunities that support an aggressive development strategy, they face significant weaknesses, particularly in addressing the economic and environmental dimensions. Villagers often perceive the plans as unsuitable, with insufficient focus on economic diversification and environmental sustainability. The findings indicate that RMPs have a limited impact on economic and environmental aspects compared to other dimensions, underscoring their functional shortcomings. To achieve sustainable rural development, RMPs must prioritise diversifying economic activities and integrating environmental considerations into planning and implementation processes.
In September 2013, India implemented the National Food Security Act (NFSA), the world’s most extensive food security initiative. The NFSA is significant for Assam since it guarantees food security for its citizens by giving subsidised food grains to eligible consumers. This study aims to analyse the implementation and impact of the NFSA, 2013, among the rural population of Assam, India. The study is based on both primary and secondary data sources. Primary data were gathered from a survey of 160 households registered under the NFSA in the Lakhimpur District of Assam. This included 80 households each from Priority Households and Antyodaya Anna Yojana households, selected via convenience sampling. In Assam, the Target Public Distribution System (TPDS) provides mainly rice to vulnerable populations under the NFSA, 2013, which overlooks the nutritional needs of rural and tribal communities. Sixty-six per cent of respondents reported that TPDS subsidised food is necessary for mitigating hunger. However, researchers observed inclusion and exclusion errors, which have questioned NFSA’s effectiveness in targeting poor people. The study highlighted the need for better inclusion criteria, awareness programmes, integrated nutrition education and effective grievance mechanisms to enhance the efficiency and fairness of the TPDS under NFSA Assam.
Though relatively new, the concept of smart villages empowers rural communities by providing essential amenities that support a self-sustaining lifestyle, reducing the need for migration to urban areas. As climate change intensifies, maintaining the current urban-to-rural population ratio of 60:40 is crucial in mitigating global warming and ensuring planetary sustainability ( United Nations (UN), 2017 , World Population and Housing Census Program ). The increasing adoption and use of the internet play a pivotal role in socio-economic development, particularly in rural areas where connectivity has the potential to transform lives. Enhanced digital access can empower communities, foster economic growth and curb urban migration. However, despite its recognised importance, rural regions struggle with inadequate internet access and usage. This study examines internet adaptation and usage patterns in rural areas, focusing on Assam, a state in north-eastern India where the digital divide hampers progress in education, healthcare and economic activities. Data were collected from 2,058 households across 12 villages, analysing mobile phone ownership, internet service quality and usage trends. The findings reveal that while approximately 75% of the surveyed population has mobile phone services, only 19% report internet access, and a mere 9% consider the internet quality satisfactory. Among those with connectivity, the primary uses include social networking (90%), education (85%) and entertainment (85%), followed by work-related activities (60%) and online shopping (40%). Despite the potential benefits of digital inclusion, infrastructure deficiencies, affordability constraints and limited digital literacy remain significant barriers to widespread internet adoption. The study further highlights that, for many rural residents, improved internet access is not yet a top priority compared to pressing needs such as clean water and sanitation. However, the research underscores the transformative potential of internet connectivity in fostering smart village development. By providing valuable insights into the relationship between digital adaptation and sustainable rural development, this study offers a framework for addressing connectivity challenges in similar global contexts.
This article investigates the real income dynamics of agriculture and non-agriculture to explain why farmers are increasingly switching out of agriculture. The study assesses the potential role of price levels and volatility in pushing farmers out of agriculture. We estimate the terms of trade (ToT) of agriculture against the manufacturing sector based on the ratio of the agricultural gross domestic product (GDP) deflator and the manufacturing/industrial GDP deflator. Our results show a persistent deterioration in agricultural ToT, indicating that agricultural prices have risen more slowly than industrial and service sector prices. This imbalance reduces agricultural households’ real incomes while raising consumption costs, incentivising sectoral shifts. Moreover, it has far-reaching implications for the overall shape and size of the sectors in this economy. It is almost instantaneously that, as long as the cost of switching sectors is minimal, people will switch from a sector with lower rewards to another sector where the reward is higher. However, ToT alone does not fully capture the complexity of farmers’ decisions. Supplementing our analysis with recent commodity price data from the Department of Agricultural Marketing (DAM) of Bangladesh, we present that beyond declining price levels, heightened price volatility and resulting income instability further erode the attractiveness of agriculture. Together, these factors contribute to the economy’s structural transformation by steadily pushing farmers out of agriculture.
This study examines the effectiveness of Bangladesh’s national development planning documents in addressing the socio-economic and environmental vulnerabilities of Char areas, which are among the country’s most marginalised rural regions. Using a qualitative methodology, the study combines a structured literature review, a SWOT (strengths, weaknesses, opportunities and threats) analysis of three major policy documents—the Eighth Five-Year Plan (2021–2026), the Perspective Plan 2041 and the Bangladesh Delta Plan (BDP) 2100—and key informant interviews (KIIs) with government officials, community representatives, non-governmental organization (NGO) workers and rural development experts. The findings reveal that while national plans acknowledge the vulnerabilities of Char communities and propose several targeted interventions, significant gaps remain in terms of implementation mechanisms, coordination among agencies and resource mobilisation. The SWOT analysis highlights both the opportunities embedded in existing policy frameworks and critical threats due to institutional weaknesses. Insights from key informants reinforce the need for stronger participatory governance, better integration of local knowledge into planning and enhanced social protection measures for Char populations. The article concludes by recommending policy adjustments to ensure that development strategies more effectively address the unique challenges of Char areas, contributing to inclusive rural development and advancing Bangladesh’s sustainable development goals (SDGs).
This study examines decision-making determinants of microcredit expenditure by female self-help group (SHG) members in rural agricultural households of Gaya district, Bihar. SHG loans give women access to credit without collateral for 1% interest, compared to 5% by typical moneylenders. This study examines credit decision-making authority rather than loan repayment as a proxy for women’s empowerment. Unlike previous findings, poor agricultural households may struggle with repayment, but their female members can often make decisions. Male and female household members are included in the study, and females are considered decision-makers only when male members acknowledge their expenditure decisions. Loans in agricultural households are mainly used for consumption and farming, reflecting family priorities over personal empowerment. The descriptive statistics analysis and binary probit regression show that Scheduled Caste (SC) and Other Backward Class (OBC) women are more likely to participate in financial decisions than General caste and joint family women. Although SHG loans empower women as key financial agents in households where men lack equivalent credit access, the results show that women frequently hand over control of the loans to male family members, limiting their agency. The study shows that microcredit reduces poverty and improves household welfare, but does not empower women in patriarchal societies.
The Unnat Bharat Abhiyan (UBA) is a programme initiated by the Ministry of Education, Government of India, to leverage higher educational institutions (HEIs) to tackle rural development challenges. UBA seeks to foster self-sufficiency and sustainable development in rural areas, positioning HEIs as key players in promoting rural development. Research on UBA remains scarce, particularly regarding the experiences and perspectives of UBA coordinators. A study was conducted involving 220 HEIs in Tamil Nadu to examine the contributions of HEIs within the UBA framework towards enhancing rural development initiatives. Furthermore, the study aimed to assess the impact of UBA activities, identify the challenges HEIs and rural communities face in executing UBA projects and suggest strategies for improvement. The study utilised a mixed-methods approach to evaluate the impact and efficacy of UBA. This article underscores the vital role of HEIs in rural development through UBA, emphasising the need for sustainable partnerships with stakeholders and effective community organisation methods to innovate solutions for rural issues. It also emphasises the importance of training UBA coordinators in community organisation to improve service delivery by understanding community dynamics, responding to local needs and building trust with community leaders.
