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Financial Exclusion Of Farmers And Rural Entrepreneurs

Author

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  • Kata, Ryszard
  • Walenia, Alina

Abstract

Financial exclusion appears to be greater in rural areas than in cities. The article concludes that the problem is connected not only with the people of low incomes but also individuals running their own businesses e.g. farmers and small entrepreneurs. The extent and reasons for fi nancial exclusion among such entities have been identifi ed and accompanied by the analysis of access to banking services – the key to effective management. The source of empirical data relied on survey questionnaires of farmers and small entrepreneurs in the rural areas in the south-eastern region of Poland. It was stated that in case of persons running their own businesses fi nancial exclusions is mainly connected with a limited access to bank credit, yet the reasons for this situation are diverse. Apart from the internal factors associated with businesses (e.g. low and unstable incomes, aversion to risk, lack of confi dence in banks etc.), signifi cant determinants lie on the side of banks and the structure of fi nancial system in rural areas.

Suggested Citation

  • Kata, Ryszard & Walenia, Alina, 2015. "Financial Exclusion Of Farmers And Rural Entrepreneurs," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 36(2).
    • Handle: RePEc:ags:pojard:253302
    DOI: 10.22004/ag.econ.253302
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    File URL: https://ageconsearch.umn.edu/record/253302/files/9_2_2015.pdf
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    References listed on IDEAS

    as
    1. Jan Fałkowski & Pavel Ciaian & d'Artis Kancs, 2009. "Access to Credit, Factor Allocation and Farm Productivity: Evidence From the CEE Transition Economies," Working Papers 2009-12, Faculty of Economic Sciences, University of Warsaw.
    2. Martin Petrick & Laure Latruffe, 2003. "Credit access and borrowing costs in Poland’s agricultural credit market : a hedonic pricing approach," Working Papers hal-02416849, HAL.
    3. Chaves, R.A. & Sanchez, S. & Schor, S. & Tesliuc, E., 2001. "Financial Markets, Credit Constraints, and Investment in Rural Romania," Papers 499, World Bank - Technical Papers.
    4. Oecd, 2006. "The SME Financing Gap: Theory and Evidence," Financial Market Trends, OECD Publishing, vol. 2006(2), pages 89-97.
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    Cited by:

    1. Kata Ryszard & Filip Paulina, 2016. "European Union subsidies and bank credits as external sources of financing for small and medium enterprises in Poland," Management, Sciendo, vol. 20(2), pages 457-472, December.
    2. Bożena Kusz & Dariusz Kusz & Iwona Bąk & Maciej Oesterreich & Ludwik Wicki & Grzegorz Zimon, 2022. "Selected Economic Determinants of Labor Profitability in Family Farms in Poland in Relation to Economic Size," Sustainability, MDPI, vol. 14(21), pages 1-25, October.

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    Keywords

    Agricultural Finance;

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