The Financial Management Challenges on the Village Socio-Economic Development

Abstract

Socio-economic development is based on the enhanced productivity and appropriate financial management of rural area resources. Financial institutions’ role in socio-economic development is critical for they finance rural project activities. This study analyzes the socio-economic development status of six villages in the Arumeru District in relation to its financial management challenges and rural development strategies. The data was collected using questionnaires and the results show that most of financial challenges that affect socio-economic development in the villages are financial systems, policies and reporting, and the over-reliance on outsiders’ development strategies. Further, it was found that the village financial management challenges are based only on the village global development plan settings even though villages establish most of the initiatives for their socio-economic development.