Knowledge Bank

This paper presents a discussion of several key issues concerning the financing of rural nonfarm enterprises with special emphasis on Asia. The similarities and differences between farm and nonfarm enterprises are discussed. The supply-leading approach to rural finance is reviewed and its shortcomings identified. Financial programs for microenterprises are discussed, drawing upon recent evaluations of AI.D. programs and the Grameen Bank. The paper ends with a discussion of issues to be addressed concerning the expansion of financial services for rural enterprises.