Unlocking the future of food security through access to finance for sustainable agribusiness performance
DOI:
https://doi.org/10.26661/2522-1566/2024-4/30-09Keywords:
access to finance, farmer, agribusiness, food securityAbstract
Access to finance is vital for improving food security, particularly in developing nations where agricultural production is crucial. Despite several financial interventions targeted at increasing agricultural production, smallholder farmers continue to lack access to reasonable, timely, and sufficient financing, limiting their ability to invest in improved technology and inputs, lowering productivity and food supply. This study examines the relationship between access to finance and food security among smallholder farmers in Ogun State, employing institutional theory as a theoretical framework. The study takes a quantitative method, with a survey for the research design and a population of 37,200 agricultural smallholder farmers. A sample size of 380 was chosen using probability sampling and simple random techniques. The data were analysed via Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings demonstrate a favourable relationship between access to finance and food security, with an R2-value of 0.615 indicating a robust link. These findings underline the need of improving financial institutions and implementing enabling policies to enable farmers have access to the financial resources they need to achieve food security outcomes.
JEL Classification: L26
References
Ahmed, F., & Bashir, Z. (2023). Financial inclusion and credit access in South Asia. South Asian Journal of Economic Studies, 15(3), 215-229.
Akinwumi, J., Oladipo, E., & Adeyemi, O. (2023). Digital finance and microenterprise growth: Evidence from East Africa. Journal of Digital Innovation, 12(1), 43-59.
Asogwa, O., & Nwaogwugwu, O. (2022). Barriers to rural finance: The case of Nigerian SMEs. Journal of African Development, 19(2), 101-117.
Asongu, S., & Nwachukwu, J. (2021). Financial inclusion, institutions, and entrepreneurship in Africa. World Development, 140, 105375.
Beck, T., & Maimbo, S. (2021). Access to finance: Regulatory frameworks and financial stability. International Financial Journal, 46(2), 85-98.
Chen, L., Kuo, S., & Chang, M. (2022). Cybersecurity challenges in digital finance: An evolving threat landscape. Global Journal of Finance and Technology, 8(4), 342-367.
Demirgüç-Kunt, A., Klapper, L., Singer, D., Ansar, S., & Hess, J. (2020). The Global Findex Database 2020: Financial inclusion in the world’s economies. World Bank Group.
Ebeke, C., & Sahay, M. (2021). Financial inclusion and economic recovery post-COVID-19. International Monetary Fund Working Paper, WP/21/45.
Grohmann, A. (2021). Financial literacy and access to finance: Evidence from SMEs in developing countries. Journal of Business Economics, 91(5), 765-780.
Kabeer, N., McFadden, P., & Sweetman, C. (2021). Women, financial inclusion, and economic justice. Gender & Development, 29(2), 223-240.
Mohan, R. (2021). Government policies to promote financial inclusion: Lessons from developing economies. Development Policy Review, 39(3), 312-328.
Omondi, P., & Mugambi, N. (2023). Financing agribusiness in sub-Saharan Africa: Institutional constraints and opportunities. Journal of Agricultural Economics, 15(1), 54-67.
Suri, T., & Jack, W. (2021). The impact of mobile money on financial inclusion in Africa. Journal of Economic Perspectives, 35(3), 133-156.
Wamba, S. F., Akter, S., & Edwards, A. (2022). Digital credit platforms: A solution for financial inclusion? Journal of Banking and Finance, 134, 106320.
Zins, A., & Weill, L. (2022). Digital financial services and the post-COVID recovery. Journal of Finance and Development.
Akinwumi, J., Oladipo, E., & Adeyemi, O. (2023). Digital finance and microenterprise growth: Evidence from East Africa. Journal of Digital Innovation, 12(1), 43-59.
Asogwa, O., & Nwaogwugwu, O. (2022). Barriers to rural finance: The case of Nigerian SMEs. Journal of African Development, 19(2), 101-117.
Asongu, S., & Nwachukwu, J. (2021). Financial inclusion, institutions, and entrepreneurship in Africa. World Development, 140, 105375.
Beck, T., & Maimbo, S. (2021). Access to finance: Regulatory frameworks and financial stability. International Financial Journal, 46(2), 85-98.
Chen, L., Kuo, S., & Chang, M. (2022). Cybersecurity challenges in digital finance: An evolving threat landscape. Global Journal of Finance and Technology, 8(4), 342-367.
Demirgüç-Kunt, A., Klapper, L., Singer, D., Ansar, S., & Hess, J. (2020). The Global Findex Database 2020: Financial inclusion in the world’s economies. World Bank Group.
Grohmann, A. (2021). Financial literacy and access to finance: Evidence from SMEs in developing countries. Journal of Business Economics, 91(5), 765-780.
Kabeer, N., McFadden, P., & Sweetman, C. (2021). Women, financial inclusion, and economic justice. Gender & Development, 29(2), 223-240.
Omondi, P., & Mugambi, N. (2023). Financing agribusiness in sub-Saharan Africa: Institutional constraints and opportunities. Journal of Agricultural Economics, 15(1), 54-67.
Suri, T., & Jack, W. (2021). The impact of mobile money on financial inclusion in Africa. Journal of Economic Perspectives, 35(3), 133-156.opment, 59(1), 24-31.
Béné, C. (2020). Resilience of local food systems and links to food security: A review of some important concepts in the context of COVID-19 and other shocks. Food Security, 12(4), 805-822.
Béné, C., Mehta, L., & McGranahan, G. (2021). The COVID-19 pandemic and global food security: Where we are and where to go? World Development, 144, 105024.
Chauvin, N. D., Goundan, A., & Porter, C. (2022). Global food crisis: Russia-Ukraine conflict, climate change, and COVID-19. International Agricultural Journal, 29(1), 56-72.
Clapp, J. (2021). Food security and international trade: Unpacking disputed narratives. World Development, 137, 105195.
De Schutter, O., & Giljum, S. (2021). The global food system: An analysis of policies and sustainability. Journal of Agricultural and Environmental Ethics, 34(2), 113-128.
FAO. (2020). The state of food security and nutrition in the world 2020. Food and Agriculture Organization of the United Nations.
FAO. (2021). The impact of COVID-19 on food security and nutrition: Policy responses and long-term recovery. Food and Agriculture Organization of the United Nations.
Famine Early Warning Systems Network (FEWS NET). (2022). Food insecurity in Africa: A comprehensive report.
Global Network Against Food Crises. (2022). Food crises in conflict-affected regions: Annual report.
Ingram, J. (2021). Food system resilience in the face of climate change: Evidence from Africa. Food Security, 13(5), 857-870.
Laborde, D., Martin, W., & Vos, R. (2020). Estimating the impact of COVID-19 on global poverty and food insecurity. IFPRI Discussion Paper.
Renzaho, A. M. N. (2020). The impact of food insecurity and malnutrition on COVID-19 mortality in developing countries: A case study of the sub-Saharan Africa region. Journal of Public Health, 42(3), 689-694.
Swinburn, B., Kraak, V., & Allender, S. (2020). Food system transformation and diet-related disease: Time for global action. Lancet, 395(10218), 1457-1468.
Wheeler, T., & von Braun, J. (2022). Climate change impacts on global food security: Adaptation strategies. Nature Food, 3, 102-109.
Béné, C., Mehta, L., & McGranahan, G. (2021). The COVID-19 pandemic and global food security: Where we are and where to go? World Development, 144, 105024.
Chauvin, N. D., Goundan, A., & Porter, C. (2022). Global food crisis: Russia-Ukraine conflict, climate change, and COVID-19. International Agricultural Journal, 29(1), 56-72.
Clapp, J. (2021). Food security and international trade: Unpacking disputed narratives. World Development, 137, 105195.
De Schutter, O., & Giljum, S. (2021). The global food system: An analysis of policies and sustainability. Journal of Agricultural and Environmental Ethics, 34(2), 113-128.
FAO. (2020). The state of food security and nutrition in the world 2020. Food and Agriculture Organization of the United Nations.
Ingram, J. (2021). Food system resilience in the face of climate change: Evidence from Africa. Food Security, 13(5), 857-870.
Laborde, D., Martin, W., & Vos, R. (2020). Estimating the impact of COVID-19 on global poverty and food insecurity. IFPRI Discussion Paper.
Renzaho, A. M. N. (2020). The impact of food insecurity and malnutrition on COVID-19 mortality in developing countries: A case study of the sub-Saharan Africa region. Journal of Public Health, 42(3), 689-694.
Swinburn, B., Kraak, V., & Allender, S. (2020). Food system transformation and diet-related disease: Time for global action. Lancet, 395(10218), 1457-1468.
Wheeler, T., & von Braun, J. (2022). Climate change impacts on global food security: Adaptation st Adebayo, A., et al. (2021). The impact of credit access on food security among smallholder farmers in Nigeria. Journal of Agricultural Economics, 72(1), 89-106.
Asfaw, S., et al. (2020). Financial services and food security: Evidence from rural Ethiopia. Food Security, 12(3), 653-665.
Scoones, I. (2021). Sustainable livelihoods and food security: Rebuilding after crises. Oxford University Press.
Sulaiman, M., et al. (2022). Financial inclusion and food security: Evidence from developing countries. Journal of Food Policy, 100, 102-115rategies. Nature Food, 3, 102-109.
Akinwumi, J., Oladipo, E., & Adeyemi, O. (2023). Digital finance and microenterprise growth: Evidence from East Africa. Journal of Digital Innovation, 12(1), 43-59.
Asogwa, O., & Nwaogwugwu, O. (2022). Barriers to rural finance: The case of Nigerian SMEs. Journal of African Development, 19(2), 101-117.
Asongu, S., & Nwachukwu, J. (2021). Financial inclusion, institutions, and entrepreneurship in Africa. World Development, 140, 105375.
Beck, T., & Maimbo, S. (2021). Access to finance: Regulatory frameworks and financial stability. International Financial Journal, 46(2), 85-98.
Chen, L., Kuo, S., & Chang, M. (2022). Cybersecurity challenges in digital finance: An evolving threat landscape. Global Journal of Finance and Technology, 8(4), 342-367.
Demirgüç-Kunt, A., Klapper, L., Singer, D., Ansar, S., & Hess, J. (2020). The Global Findex Database 2020: Financial inclusion in the world’s economies. World Bank Group.
Ebeke, C., & Sahay, M. (2021). Financial inclusion and economic recovery post-COVID-19. International Monetary Fund Working Paper, WP/21/45.
Grohmann, A. (2021). Financial literacy and access to finance: Evidence from SMEs in developing countries. Journal of Business Economics, 91(5), 765-780.
Kabeer, N., McFadden, P., & Sweetman, C. (2021). Women, financial inclusion, and economic justice. Gender & Development, 29(2), 223-240.
Mohan, R. (2021). Government policies to promote financial inclusion: Lessons from developing economies. Development Policy Review, 39(3), 312-328.
Omondi, P., & Mugambi, N. (2023). Financing agribusiness in sub-Saharan Africa: Institutional constraints and opportunities. Journal of Agricultural Economics, 15(1), 54-67.
Suri, T., & Jack, W. (2021). The impact of mobile money on financial inclusion in Africa. Journal of Economic Perspectives, 35(3), 133-156.
Wamba, S. F., Akter, S., & Edwards, A. (2022). Digital credit platforms: A solution for financial inclusion? Journal of Banking and Finance, 134, 106320.
Zins, A., & Weill, L. (2022). Digital financial services and the post-COVID recovery. Journal of Finance and Development.
Akinwumi, J., Oladipo, E., & Adeyemi, O. (2023). Digital finance and microenterprise growth: Evidence from East Africa. Journal of Digital Innovation, 12(1), 43-59.
Asogwa, O., & Nwaogwugwu, O. (2022). Barriers to rural finance: The case of Nigerian SMEs. Journal of African Development, 19(2), 101-117.
Asongu, S., & Nwachukwu, J. (2021). Financial inclusion, institutions, and entrepreneurship in Africa. World Development, 140, 105375.
Beck, T., & Maimbo, S. (2021). Access to finance: Regulatory frameworks and financial stability. International Financial Journal, 46(2), 85-98.
Chen, L., Kuo, S., & Chang, M. (2022). Cybersecurity challenges in digital finance: An evolving threat landscape. Global Journal of Finance and Technology, 8(4), 342-367.
Demirgüç-Kunt, A., Klapper, L., Singer, D., Ansar, S., & Hess, J. (2020). The Global Findex Database 2020: Financial inclusion in the world’s economies. World Bank Group.
Grohmann, A. (2021). Financial literacy and access to finance: Evidence from SMEs in developing countries. Journal of Business Economics, 91(5), 765-780.
Kabeer, N., McFadden, P., & Sweetman, C. (2021). Women, financial inclusion, and economic justice. Gender & Development, 29(2), 223-240.
Omondi, P., & Mugambi, N. (2023). Financing agribusiness in sub-Saharan Africa: Institutional constraints and opportunities. Journal of Agricultural Economics, 15(1), 54-67.
Suri, T., & Jack, W. (2021). The impact of mobile money on financial inclusion in Africa. Journal of Economic Perspectives, 35(3), 133-156.opment, 59(1), 24-31.
Béné, C. (2020). Resilience of local food systems and links to food security: A review of some important concepts in the context of COVID-19 and other shocks. Food Security, 12(4), 805-822.
Béné, C., Mehta, L., & McGranahan, G. (2021). The COVID-19 pandemic and global food security: Where we are and where to go? World Development, 144, 105024.
Chauvin, N. D., Goundan, A., & Porter, C. (2022). Global food crisis: Russia-Ukraine conflict, climate change, and COVID-19. International Agricultural Journal, 29(1), 56-72.
Clapp, J. (2021). Food security and international trade: Unpacking disputed narratives. World Development, 137, 105195.
De Schutter, O., & Giljum, S. (2021). The global food system: An analysis of policies and sustainability. Journal of Agricultural and Environmental Ethics, 34(2), 113-128.
FAO. (2020). The state of food security and nutrition in the world 2020. Food and Agriculture Organization of the United Nations.
FAO. (2021). The impact of COVID-19 on food security and nutrition: Policy responses and long-term recovery. Food and Agriculture Organization of the United Nations.
Famine Early Warning Systems Network (FEWS NET). (2022). Food insecurity in Africa: A comprehensive report.
Global Network Against Food Crises. (2022). Food crises in conflict-affected regions: Annual report.
Ingram, J. (2021). Food system resilience in the face of climate change: Evidence from Africa. Food Security, 13(5), 857-870.
Laborde, D., Martin, W., & Vos, R. (2020). Estimating the impact of COVID-19 on global poverty and food insecurity. IFPRI Discussion Paper.
Renzaho, A. M. N. (2020). The impact of food insecurity and malnutrition on COVID-19 mortality in developing countries: A case study of the sub-Saharan Africa region. Journal of Public Health, 42(3), 689-694.
Swinburn, B., Kraak, V., & Allender, S. (2020). Food system transformation and diet-related disease: Time for global action. Lancet, 395(10218), 1457-1468.
Wheeler, T., & von Braun, J. (2022). Climate change impacts on global food security: Adaptation strategies. Nature Food, 3, 102-109.
Béné, C., Mehta, L., & McGranahan, G. (2021). The COVID-19 pandemic and global food security: Where we are and where to go? World Development, 144, 105024.
Chauvin, N. D., Goundan, A., & Porter, C. (2022). Global food crisis: Russia-Ukraine conflict, climate change, and COVID-19. International Agricultural Journal, 29(1), 56-72.
Clapp, J. (2021). Food security and international trade: Unpacking disputed narratives. World Development, 137, 105195.
De Schutter, O., & Giljum, S. (2021). The global food system: An analysis of policies and sustainability. Journal of Agricultural and Environmental Ethics, 34(2), 113-128.
FAO. (2020). The state of food security and nutrition in the world 2020. Food and Agriculture Organization of the United Nations.
Ingram, J. (2021). Food system resilience in the face of climate change: Evidence from Africa. Food Security, 13(5), 857-870.
Laborde, D., Martin, W., & Vos, R. (2020). Estimating the impact of COVID-19 on global poverty and food insecurity. IFPRI Discussion Paper.
Renzaho, A. M. N. (2020). The impact of food insecurity and malnutrition on COVID-19 mortality in developing countries: A case study of the sub-Saharan Africa region. Journal of Public Health, 42(3), 689-694.
Swinburn, B., Kraak, V., & Allender, S. (2020). Food system transformation and diet-related disease: Time for global action. Lancet, 395(10218), 1457-1468.
Wheeler, T., & von Braun, J. (2022). Climate change impacts on global food security: Adaptation st Adebayo, A., et al. (2021). The impact of credit access on food security among smallholder farmers in Nigeria. Journal of Agricultural Economics, 72(1), 89-106.
Asfaw, S., et al. (2020). Financial services and food security: Evidence from rural Ethiopia. Food Security, 12(3), 653-665.
Scoones, I. (2021). Sustainable livelihoods and food security: Rebuilding after crises. Oxford University Press.
Sulaiman, M., et al. (2022). Financial inclusion and food security: Evidence from developing countries. Journal of Food Policy, 100, 102-115rategies. Nature Food, 3, 102-109.
Downloads
Published
2024-12-18
Issue
Section
Entrepreneurship, Trade and Exchange Activities
How to Cite
Abolade, A.P. (2024) “Unlocking the future of food security through access to finance for sustainable agribusiness performance”, Management and Entrepreneurship: Trends of Development, 4(30), pp. 106–118. doi:10.26661/2522-1566/2024-4/30-09.
