Challenges Faced by Start-up Entrepreneurs in Agriculture Sector to Access Finance: A Case of Agro-dealers in Zambia's Central Province

Nicholus Obby Mainza; Chipego Kafunga Hachinene

doi:doi:10.11648/j.hss.20241206.13

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Challenges Faced by Start-up Entrepreneurs in Agriculture Sector to Access Finance: A Case of Agro-dealers in Zambia's Central Province

Nicholus Obby Mainza^*

, Chipego Kafunga Hachinene

Published in Humanities and Social Sciences (Volume 12, Issue 6)

Received: 2 October 2024 Accepted: 13 November 2024 Published: 21 November 2024

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Abstract

Background: This study evaluated financial barriers limiting the growth and sustainability of agro-dealers in Zambia's Central Province. It also examined the impact of these challenges on the agricultural supply chain, assessed the adequacy of existing financial services, and investigated the role of government policies, financial institutions, and development programs in facilitating or hindering access to finance. Methods: Using a cross-sectional design, the study surveyed 384 agro-dealers. Data were collected through structured questionnaires and analyzed using descriptive statistics and logistic regression models to identify predictors of credit access and sales impact. Results: Major financial barriers identified were high interest rates (80.2%), collateral requirements (85.1%), and complex application processes (76.8%). These barriers led to inadequate stock (87.2%), lost sales (82.0%), and reduced product quality (50.8%). Logistic regression showed high interest rates significantly increased credit access (AOR = 6.68) and increased sales impact likelihood (AOR = 5.71). Collateral requirements also increased sales impact likelihood (AOR = 4.07). Thematic analysis highlighted inadequate government support, stringent lending criteria, and limited development program reach. Conclusions: The study highlights the need for targeted interventions, including simplifying application processes, developing tailored financial products, increasing government support, and enhancing development program reach. These measures are crucial for improving agro-dealers' financial stability and growth, thereby strengthening Zambia's agricultural sector and economy.

Published in	Humanities and Social Sciences (Volume 12, Issue 6)
DOI	10.11648/j.hss.20241206.13
Page(s)	202 -209
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Agro-dealers, Financial Barriers, Credit Access

References

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APA Style

Mainza, N. O., Hachinene, C. K. (2024). Challenges Faced by Start-up Entrepreneurs in Agriculture Sector to Access Finance: A Case of Agro-dealers in Zambia's Central Province. Humanities and Social Sciences, 12(6), 202 -209. https://doi.org/10.11648/j.hss.20241206.13

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ACS Style

Mainza, N. O.; Hachinene, C. K. Challenges Faced by Start-up Entrepreneurs in Agriculture Sector to Access Finance: A Case of Agro-dealers in Zambia's Central Province. Humanit. Soc. Sci. 2024, 12(6), 202 -209. doi: 10.11648/j.hss.20241206.13

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AMA Style

Mainza NO, Hachinene CK. Challenges Faced by Start-up Entrepreneurs in Agriculture Sector to Access Finance: A Case of Agro-dealers in Zambia's Central Province. Humanit Soc Sci. 2024;12(6):202 -209. doi: 10.11648/j.hss.20241206.13

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@article{10.11648/j.hss.20241206.13,
  author = {Nicholus Obby Mainza and Chipego Kafunga Hachinene},
  title = {Challenges Faced by Start-up Entrepreneurs in Agriculture Sector to Access Finance: A Case of Agro-dealers in Zambia's Central Province
},
  journal = {Humanities and Social Sciences},
  volume = {12},
  number = {6},
  pages = {202 -209},
  doi = {10.11648/j.hss.20241206.13},
  url = {https://doi.org/10.11648/j.hss.20241206.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.hss.20241206.13},
  abstract = {Background: This study evaluated financial barriers limiting the growth and sustainability of agro-dealers in Zambia's Central Province. It also examined the impact of these challenges on the agricultural supply chain, assessed the adequacy of existing financial services, and investigated the role of government policies, financial institutions, and development programs in facilitating or hindering access to finance. Methods: Using a cross-sectional design, the study surveyed 384 agro-dealers. Data were collected through structured questionnaires and analyzed using descriptive statistics and logistic regression models to identify predictors of credit access and sales impact. Results: Major financial barriers identified were high interest rates (80.2%), collateral requirements (85.1%), and complex application processes (76.8%). These barriers led to inadequate stock (87.2%), lost sales (82.0%), and reduced product quality (50.8%). Logistic regression showed high interest rates significantly increased credit access (AOR = 6.68) and increased sales impact likelihood (AOR = 5.71). Collateral requirements also increased sales impact likelihood (AOR = 4.07). Thematic analysis highlighted inadequate government support, stringent lending criteria, and limited development program reach. Conclusions: The study highlights the need for targeted interventions, including simplifying application processes, developing tailored financial products, increasing government support, and enhancing development program reach. These measures are crucial for improving agro-dealers' financial stability and growth, thereby strengthening Zambia's agricultural sector and economy.
},
 year = {2024}
}

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TY  - JOUR
T1  - Challenges Faced by Start-up Entrepreneurs in Agriculture Sector to Access Finance: A Case of Agro-dealers in Zambia's Central Province

AU  - Nicholus Obby Mainza
AU  - Chipego Kafunga Hachinene
Y1  - 2024/11/21
PY  - 2024
N1  - https://doi.org/10.11648/j.hss.20241206.13
DO  - 10.11648/j.hss.20241206.13
T2  - Humanities and Social Sciences
JF  - Humanities and Social Sciences
JO  - Humanities and Social Sciences
SP  - 202 
EP  - 209
PB  - Science Publishing Group
SN  - 2330-8184
UR  - https://doi.org/10.11648/j.hss.20241206.13
AB  - Background: This study evaluated financial barriers limiting the growth and sustainability of agro-dealers in Zambia's Central Province. It also examined the impact of these challenges on the agricultural supply chain, assessed the adequacy of existing financial services, and investigated the role of government policies, financial institutions, and development programs in facilitating or hindering access to finance. Methods: Using a cross-sectional design, the study surveyed 384 agro-dealers. Data were collected through structured questionnaires and analyzed using descriptive statistics and logistic regression models to identify predictors of credit access and sales impact. Results: Major financial barriers identified were high interest rates (80.2%), collateral requirements (85.1%), and complex application processes (76.8%). These barriers led to inadequate stock (87.2%), lost sales (82.0%), and reduced product quality (50.8%). Logistic regression showed high interest rates significantly increased credit access (AOR = 6.68) and increased sales impact likelihood (AOR = 5.71). Collateral requirements also increased sales impact likelihood (AOR = 4.07). Thematic analysis highlighted inadequate government support, stringent lending criteria, and limited development program reach. Conclusions: The study highlights the need for targeted interventions, including simplifying application processes, developing tailored financial products, increasing government support, and enhancing development program reach. These measures are crucial for improving agro-dealers' financial stability and growth, thereby strengthening Zambia's agricultural sector and economy.

VL  - 12
IS  - 6
ER  -

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Author Information

Nicholus Obby Mainza

School of Business, University of Zambia, Lusaka, Zambia

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http://orcid.org/0000-0002-0747-4693
Chipego Kafunga Hachinene

School of Health Sciences, Chreso University, Lusaka, Zambia

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APA Style

Mainza, N. O., Hachinene, C. K. (2024). Challenges Faced by Start-up Entrepreneurs in Agriculture Sector to Access Finance: A Case of Agro-dealers in Zambia's Central Province. Humanities and Social Sciences, 12(6), 202 -209. https://doi.org/10.11648/j.hss.20241206.13

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ACS Style

Mainza, N. O.; Hachinene, C. K. Challenges Faced by Start-up Entrepreneurs in Agriculture Sector to Access Finance: A Case of Agro-dealers in Zambia's Central Province. Humanit. Soc. Sci. 2024, 12(6), 202 -209. doi: 10.11648/j.hss.20241206.13

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AMA Style

Mainza NO, Hachinene CK. Challenges Faced by Start-up Entrepreneurs in Agriculture Sector to Access Finance: A Case of Agro-dealers in Zambia's Central Province. Humanit Soc Sci. 2024;12(6):202 -209. doi: 10.11648/j.hss.20241206.13

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@article{10.11648/j.hss.20241206.13,
  author = {Nicholus Obby Mainza and Chipego Kafunga Hachinene},
  title = {Challenges Faced by Start-up Entrepreneurs in Agriculture Sector to Access Finance: A Case of Agro-dealers in Zambia's Central Province
},
  journal = {Humanities and Social Sciences},
  volume = {12},
  number = {6},
  pages = {202 -209},
  doi = {10.11648/j.hss.20241206.13},
  url = {https://doi.org/10.11648/j.hss.20241206.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.hss.20241206.13},
  abstract = {Background: This study evaluated financial barriers limiting the growth and sustainability of agro-dealers in Zambia's Central Province. It also examined the impact of these challenges on the agricultural supply chain, assessed the adequacy of existing financial services, and investigated the role of government policies, financial institutions, and development programs in facilitating or hindering access to finance. Methods: Using a cross-sectional design, the study surveyed 384 agro-dealers. Data were collected through structured questionnaires and analyzed using descriptive statistics and logistic regression models to identify predictors of credit access and sales impact. Results: Major financial barriers identified were high interest rates (80.2%), collateral requirements (85.1%), and complex application processes (76.8%). These barriers led to inadequate stock (87.2%), lost sales (82.0%), and reduced product quality (50.8%). Logistic regression showed high interest rates significantly increased credit access (AOR = 6.68) and increased sales impact likelihood (AOR = 5.71). Collateral requirements also increased sales impact likelihood (AOR = 4.07). Thematic analysis highlighted inadequate government support, stringent lending criteria, and limited development program reach. Conclusions: The study highlights the need for targeted interventions, including simplifying application processes, developing tailored financial products, increasing government support, and enhancing development program reach. These measures are crucial for improving agro-dealers' financial stability and growth, thereby strengthening Zambia's agricultural sector and economy.
},
 year = {2024}
}

Copy | Download

TY  - JOUR
T1  - Challenges Faced by Start-up Entrepreneurs in Agriculture Sector to Access Finance: A Case of Agro-dealers in Zambia's Central Province

AU  - Nicholus Obby Mainza
AU  - Chipego Kafunga Hachinene
Y1  - 2024/11/21
PY  - 2024
N1  - https://doi.org/10.11648/j.hss.20241206.13
DO  - 10.11648/j.hss.20241206.13
T2  - Humanities and Social Sciences
JF  - Humanities and Social Sciences
JO  - Humanities and Social Sciences
SP  - 202 
EP  - 209
PB  - Science Publishing Group
SN  - 2330-8184
UR  - https://doi.org/10.11648/j.hss.20241206.13
AB  - Background: This study evaluated financial barriers limiting the growth and sustainability of agro-dealers in Zambia's Central Province. It also examined the impact of these challenges on the agricultural supply chain, assessed the adequacy of existing financial services, and investigated the role of government policies, financial institutions, and development programs in facilitating or hindering access to finance. Methods: Using a cross-sectional design, the study surveyed 384 agro-dealers. Data were collected through structured questionnaires and analyzed using descriptive statistics and logistic regression models to identify predictors of credit access and sales impact. Results: Major financial barriers identified were high interest rates (80.2%), collateral requirements (85.1%), and complex application processes (76.8%). These barriers led to inadequate stock (87.2%), lost sales (82.0%), and reduced product quality (50.8%). Logistic regression showed high interest rates significantly increased credit access (AOR = 6.68) and increased sales impact likelihood (AOR = 5.71). Collateral requirements also increased sales impact likelihood (AOR = 4.07). Thematic analysis highlighted inadequate government support, stringent lending criteria, and limited development program reach. Conclusions: The study highlights the need for targeted interventions, including simplifying application processes, developing tailored financial products, increasing government support, and enhancing development program reach. These measures are crucial for improving agro-dealers' financial stability and growth, thereby strengthening Zambia's agricultural sector and economy.

VL  - 12
IS  - 6
ER  -

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