COMMUNITY BANKS AND THEIR EFFECT ON THE RURAL MICRO-ENTERPRISES FROM THE ANCASH REA IN PERU

Edwin Hernan Ramírez Asís¹*, Rosario Mercedes Huerta Soto², Robert Jesus Concepción Lazaro³, Cesar Hernan Norabuena Mendoza⁴

¹Dr. in Administration, Associate professor of the Universidad Nacional Santiago Antúnez de Mayolo, PERÚ, ehramireza@unasam.edu.pe
²MBA, Associate professor of the Universidad Nacional Santiago Antúnez de Mayolo, PERÚ, charo_hs@hotmail.com
³Lic. in Administration, Part-time professor of the Universidad San Pedro, PERÚ, conc7000@gmail.com
⁴MBA, Part-time professor of the Universidad Catolica Los Angeles de Chimbote, PERÚ, cehenome@hotmail.com
*Corresponding Author

Abstract

Community banks methodology is an assistance more highly used in Latin American countries. Methodologically, it’s an applied and correlational research, non-experimental and non-cross-sectional type. In Peru, rural areas in Ancash have a population of 2,547 customers, through random sampling 324 micro entrepreneurs were surveyed as of the second credit, the questionnaires were submitted to a content validity test based on experts’ judgments and reliability with 0.85 of Cronbach alpha coefficient. Community banks have a direct and significant relation with the growing of micro-enterprises in the rural areas in Ancash according to Spearman correlation coefficient of 0.87 and a p-value of 0.00*.

Keywords: micro credit, growing strategy, microfinances, micro-entrepreneurs, rural economy, rural businesses.