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Niche Agricultural Producers' Acquisition Of Capital

Author

Listed:
  • HOWARD VAN AUKEN

    (College of Business, Iowa State University, Ames, Iowa 50011, USA)

  • JIN ZHANG

    (College of Business, Iowa State University, Ames, Iowa 50011, USA)

Abstract

Capital acquisition is one of the most challenging and important issues facing small firms. This paper examines issues related to the acquisition of capital by niche agricultural producers. Niche agricultural producers face greater capital acquisition challenges than traditional small firms because their business models are not well understood and, thus, often considered high risk. Few studies have examined the capital acquisition of niche agricultural producers despite the importance of the overall agricultural industry and niche producers. The findings show firms that are more familiar with sources of capital are more likely to acquire capital. Commercial banks have a pivotal role in providing financial advice and are an important source of capital.

Suggested Citation

  • Howard Van Auken & Jin Zhang, 2009. "Niche Agricultural Producers' Acquisition Of Capital," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 14(01), pages 73-87.
    • Handle: RePEc:wsi:jdexxx:v:14:y:2009:i:01:n:s1084946709001156
    DOI: 10.1142/S1084946709001156
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    References listed on IDEAS

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    1. Sherrick, Bruce J., 1998. "Recent Trends Affecting Farm And Rural Business Finance," Agricultural Outlook Forum 1998 33220, United States Department of Agriculture, Agricultural Outlook Forum.
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