Determinants of Access to Agribusiness Finance and Their Influence on Enterprise Growth in Rural Communities
Abstract
Access to agribusiness finance remains a critical determinant of enterprise growth, productivity, and rural economic transformation. In developing economies, financial constraints hinder smallholder farmers and rural entrepreneurs from expanding their operations, adopting new technologies, and improving value chain efficiency. This review examines the determinants influencing access to agribusiness finance—such as credit availability, collateral requirements, interest rates, financial literacy, gender dynamics, institutional support, and policy frameworks—and evaluates their collective impact on enterprise growth in rural settings. The study synthesizes evidence from empirical and theoretical literature to reveal how socio-economic characteristics, governance mechanisms, and infrastructure accessibility mediate financial inclusion. Moreover, it highlights the role of digital finance, microfinance institutions, and cooperative societies in bridging rural financing gaps. By analyzing both supply- and demand-side constraints, the paper underscores how limited access to credit perpetuates income inequality and stifles innovation among rural enterprises. The findings suggest that enhancing financial literacy, improving collateral systems, and promoting inclusive financial technologies can significantly boost agribusiness sustainability and rural development. Ultimately, this review advocates for integrated policy interventions and public-private partnerships to create equitable financial ecosystems that foster long-term agribusiness growth in rural communities.
Keywords
Agribusiness Finance, Rural Development, Enterprise Growth, Financial Inclusion, Credit Accessibility, Financial Literacy.
Citations
IRE Journals:
Olamidotun Nurudeen Michael, Omodolapo Eunice Ogunsola "Determinants of Access to Agribusiness Finance and Their Influence on Enterprise Growth in Rural Communities" Iconic Research And Engineering Journals Volume 2 Issue 12 2019 Page 533-548
IEEE:
Olamidotun Nurudeen Michael, Omodolapo Eunice Ogunsola
"Determinants of Access to Agribusiness Finance and Their Influence on Enterprise Growth in Rural Communities" Iconic Research And Engineering Journals, 2(12)
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