Performance - oriented selection criteria for rural entrepreneurs

Abstract

One of the aims of current developmental policy in India consists of encouraging the scheduled and un-scheduled commercial banks and other financial agencies, to expand their scope of operaiton in order to remove financial bottlenecks confronted by the small entrepreneurs, especially in the backward rural areas. Several problems in this area assume importance e.g. how would be a financial agency decide on rational basis, whether to finance an applicant or not? On what causal factors the financial agency could base their decision?