Credit Constraints and Agricultural Risk for Non‐<scp>F</scp>arm Enterprises

Gajigo, Ousman

doi:10.1111/1467-8268.12059

Cited by 15 publications

(7 citation statements)

References 22 publications

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“…Jerome (2011) points out that access to infrastructure enables people to take part in productive activities that accelerate poverty reduction. Gajigo and Lukoma (2011) argue that investment in infrastructure can have direct and indirect benefits for poor people. The authors add that rural infrastructure (especially roads and irrigation) promotes agricultural development, which raises the real income of farmers.…”

Section: Literature Reviewmentioning

confidence: 99%

Infrastructure and inclusive growth in sub-Saharan Africa: An empirical analysis

Mutiiria

Dumor

2020

Progress in Development Studies

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This study provides an empirical assessment of infrastructure and inclusive growth in sub-Saharan Africa (SSA). An inclusive growth index has been constructed and then used to test the infrastructure–inclusive growth nexus. The study has also examined whether infrastructure has a distributive impact on income groups. The overall analysis employed panel data collected from 31 SSA countries over the period 2003–17. The study found a positive link between infrastructure and inclusive growth. These results were significant for energy, transport and information and communications technology (ICT) infrastructures. It was also found that poorer people gain more benefits from the listed infrastructures than the rich, which shows that infrastructure plays an important role in the distribution of income. The overall results imply that infrastructure is vital in reducing income disparities and enhancing shared prosperity in SSA. Policies for increasing access and affordability of infrastructure services are highly recommended to promote inclusion.

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Section: Literature Reviewmentioning

confidence: 99%

Infrastructure and inclusive growth in sub-Saharan Africa: An empirical analysis

Mutiiria

Dumor

2020

Progress in Development Studies

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“…Past studies have shown that access to finance can have a direct impact on rural youth entrepreneurship (Ullah, 2020;Liu et al, 2019) and plays an important role in inclusive rural transformation by facilitating farm households' entrepreneurial activities. From the entrepreneurship theory, many factors including individual traits and characteristics, firm's characteristics as well as business environment determine the creation and the performance of a firm (Gajigo, 2013;Baye, 2013, Gartner, 1985.…”

Section: Conceptual and Empirical Frameworkmentioning

confidence: 99%

Access to finance and rural youth entrepreneurship in Benin: Is there a gender gap?

Senou

Manda

2022

African Development Review

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Rural entrepreneurship is an important employment generation intervention for the fastgrowing young labour force in developing countries. Many bottlenecks including access to finance impede rural youths to perform in their new ventures. This paper examines the impact of access to finance on rural youths' entrepreneurship in Benin using data from the second wave of the School-To-Work Transition (SWTS) survey involving over 900 youths. The paper employs the endogenous switching regression technique (ESR), combined with propensity score matching, to investigate the drivers of rural youths' access to finance and its impact on entrepreneurship intention and performance. The results indicate that age, education, poverty status, experience, working in the agricultural sector and the existence of a bank branch are important determinants of rural youths' access to finance. The results also show that access to finance increases the probability of youth's entrepreneurship by 15.2% on average. Similarly, the turnover increased by 15.86% for the youths who accessed finance. Moreover, the study shows a significant gender gap in rural entrepreneurship of 5.24% among youths that had access to finance in Benin. These results suggest that policymakers should encourage formal financial institutions to reduce their credit eligibility conditions for youths who do not have collateral.

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“…Key success factors in diversified rural non-farm enterprises include education, set skills, financial capital and socio-economics (Davis, 2016;Winters et al, 2011), good infrastructure and transport (Senadza, 2012), communication and information technology and market access (Gajigo, 2013). Many rural people neither own nor have access to these and encounter many challenges in their struggle to maintain decent livelihoods.…”

Section: Empirical Reviewmentioning

confidence: 99%

Rural Non-Farm Enterprises Needs towards Positive Rural Livelihood Outcomes in Kiambu County, Kenya

Mureithi

White

2022

JEPM

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Rural non-farm activities contribute to the agricultural value chain. These activities include agro-processing, breeding, transport, distribution, marketing and retail. The need to recognise the factors that influence people to engage in diversified rural non-farm activities in the agricultural sector has been noted to be crucial, as it can act as a guide to strategising and promoting the agricultural sector. Therefore, this study sought to assess the support that RNFEs need to ensure positive rural livelihood outcomes. The study adopted an epistemology philosophy. The target population was all non-farm small and medium enterprises (SMEs) in Kiambu County who have prevailed by supporting agrarian related exercises. This population of RNFEs came from every one of the 12 sub-areas: Gatundu North, Gatundu South, Thika, Juja, Githunguri, Ruiru, Kiambu, Kiambaa, Kabete, Kikuyu, Lari and Limuru. The study investigated five rural non-farm undertakings occupied with the accompanying regions: agribusiness activities, rural industrialisation ventures, transport services, the travel industry activities and development ventures. The study used questionnaires and interview guides for primary data collection. The inferential model indicated that there was a strong relationship between government and farmers. Many enterprises were not able to obtain finances for start-up businesses and/or expansion of their businesses. The main contributory factors to rural livelihood outcomes were (a) to have access to income and (b) to be able to gain employment. RNFEs is a way of improving rural infrastructure development, which allows production and growth of basic goods and services. Forms of government support that have been experienced include legislation, financing, empowerment of the marginalised and improvement of infrastructure, with the most important support coming from improvement of infrastructure. The major support that RNFEs are able to access are improvement of infrastructure such as roads, hospitals and learning institutions, which enable quick development and growth. The study further recommends on the need for a support mechanism procedure for RNFEs. The study recommended on availability of cheap loans with low interest rates for farmers. The lending interest rates were unaffordable for RNFEs, thus making it challenging for the growth of rural livelihood outcome from an entrepreneurship perspective.

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Credit Constraints and Agricultural Risk for Non‐Farm Enterprises

Cited by 15 publications

References 22 publications

Infrastructure and inclusive growth in sub-Saharan Africa: An empirical analysis

Infrastructure and inclusive growth in sub-Saharan Africa: An empirical analysis

Access to finance and rural youth entrepreneurship in Benin: Is there a gender gap?

Rural Non-Farm Enterprises Needs towards Positive Rural Livelihood Outcomes in Kiambu County, Kenya

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