The role of access to finance on smallholder farming entrepreneurship

Entrepreneurship which is a catalyst for economic growth and development through job creation, income generation and poverty reduction can also found in the field of farming and particularly in smallholder farming. From the reviewed literature, smallholder farming supports one third of humanity around the globe hence the need to establish the determinants of smallholder farming entrepreneurship. The aim of this study was therefore to explore the influence of access to finance on smallholder farming entrepreneurship. Data for this study was derived from secondary sources such as books, previous researches as well as current articles from ardent scholars on entrepreneurship development and smallholder farming entrepreneurship. The study recognized access to finance as one of the pre-conditions that must be in existence for entrepreneurs to succeed as financing is critical for the smooth running of day to day operations, asset acquisition, expert recruitment and the development of marketing and distribution channels of the entrepreneurial venture. In order to enhance access to finance among smallholder farming entrepreneurs, there is need to leverage on technology to reduce the cost of financial services by having them access financial services through branchless banking that include banking agents and use of digital technology. Further, countries need to put in place appropriate legal frameworks that promote alternative credit securing mechanisms that go beyond the traditional collateral mechanisms.