Thesis Abstract and Dissertation Abstracts
Access To Credit By Small Scale Entrepreneurship Precisely Poultry Farmers In Ghana
Abstract Category: Accounts and Economics
Course / Degree: Master of Science, Economics
Institution / University: Atlantic International University, United States
Published in: 2014
The study was conducted to find out factors that influence access to credit by poultry farmers in Abokobi in the Ga-East municipality of the Greater Accra Region in Ghana. A total of sixty (60) poultry farmers were sampled and were given questionnaire for their responses. The study revealed among others that all respondents accessed credit in one way or the other but those who are members of farmer based organizations were given more and lump sum in relation to their request by the virtue of the fact that they can easily be traced in case of default. The study recommended that extension education should be intensified in the study area to help farmers to access credit from formal credit organizations with respect to the formation of farmer based groups.
Agriculture continues to contribute in diverse ways worldwide. In developing economies it is the livelihood of many that live in the rural communities. But now much of the world’s agriculture is struggling and starved of the much needed investment (United Nations (UN), 2006). Heads of state and governments meeting at the 2005 world summit at the United Nations stated: “We recognized the need for access to financial services, in particular for the poor, including through microfinance and microcredit” (UN, 2005). This truly reflects what must be-and increasingly is a concern of development and poverty eradication policy at national and local levels.
Agriculture is typical a capital- intensive industry with investments in farmland, building, machinery, equipment and breeding livestock dominating the asset structure of most types of farms (Barry and Robison, 2001). However many of these investments have been identified to depend on success to appropriate financial services of which the provision of, and access to credit is prominent (Latin America Data Base (LADB, 2001).
Agriculture credit plays a very important role in the development of the agricultural sector; it can meet a range of needs and can be critical to the success of agriculture. In fact, circumstantial evidence shows that where agriculture has grown more rapidly, institutional credit has expanded more rapidly (Mellor, 1938; Desai, 1989). Credit does not only serve as a valuable source of liquidity in responding to risk, but also readily available credit has facilitated many of the significant, long-term challenges in the farm sector increasing commercialization, large farm sizes, fewer farms, greater capital intensity, adoption of new technology, stronger market coordination, and others (Barry, 1995).The need for credit can therefore not be overemphasized. In Ghana this need gave rise to the establishment of the Agricultural Development Bank (ADB) (Act 286) in 1965 to promote the development and modernization of agriculture and allied industries, one of which is the poultry industry under the livestock subsector. It however allows for a balanced in the distribution of its loanable fund between the agricultural sector and the rest of the economy. There is therefore the need for other credit organizations to assist farmers and to be precise poultry farmers in keeping and improving on their farms. Indications show that there is decline in supply of credit to the agricultural sector (Flake and Ashitey, 2008)
Reasons for this according to some of the farmers interviewed may be due mainly to the non-repayment of loans by some farmers. The banks are therefore not willing to provide credit to this sector since any supply of credit undermines principles of profit and prudent Management. It is realized that credit organizations face difficulty in recovering agricultural loans compared with loans for personal and non-agric purposes. According to the ADB, some farmers feel that loans made available to them are from government sources and therefore are not under any compulsion to pay back. Other reasons given for this include: inadequate logistics to monitor farmers, unreliable locations and other risks associated with the enterprise with regards to production and marketing (Mpuga, 2004).
Thesis Keywords/Search Tags:
Credit Access
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Submission Details: Thesis Abstract submitted by David Ackah from Ghana on 08-Mar-2015 15:56.
Abstract has been viewed 1769 times (since 7 Mar 2010).
David Ackah Contact Details: Email: drdavidackah@gmail.com Phone: +233 244 218 418
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