Determinants of farmers’ intentions to seek Agricultural Value Chain Financing in Tanzania

Abstract

This study examines the determinants of sunflower farmers’ intention to seek Agricultural Value Chain Financing (AVCF) in Tanzania. A cross-sectional survey design was used to collect data from 184 farmers in Singida and Dodoma. Partial least squares structural equation modelling (PLS-SEM) was engaged to test the hypotheses. The findings revealed a significant link between perceived benefit, perceived risk, knowledge, social enterprise embeddedness, and farmers’ intention to seek AVCF. However, perceived behavioral control over AVCF and subjective norms demonstrated an insignificant relationship with farmers’ intention to seek AVCF. The results of the present study imply that stakeholders and providers of AVCF must create adequate farmers’ awareness in terms of perceived benefits and risks involved in AVCF. Moreover, the embeddedness of social enterprises in AVCF creates social implications among farmers, through supporting social missions and improving the lives of vulnerable farmers, hence leading to poverty eradication among defenseless farmers.

Keywords:

• Agricultural value chain financing
• sunflower farmers’ intentions
• theory of planned behaviour
• social enterprise embeddedness
• Tanzania

REVIEWING EDITOR:

• Eric Liguori, Florida State University, United States

Subject:

• Entrepreneurship
• entrepreneurial finance
• entrepreneurship and small business management
• social entrepreneurship
• finance
• business
• management and accounting

Author contributions

All listed authors contributed equally in the development and writing of this article.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Data availability statement

Data will be made available upon reasonable request from the authors.

Additional information

Notes on contributors

Charles K. Matekele

Charles K. Matekele is a Lecturer (Accounting, Taxation and Finance) at the Local Government Training Institute (LGTI) Dodoma, Tanzania. He holds Msc.(Accounting and Finance), Bcom(Accounting), CPA(T), CPB(T), and Tax Consultant. He is interested in innovative financing, financial reporting, IPSASs, auditing, risk management, fraud management, taxation, forensic investigation and corporate governance.

Prisca P. Rutatola

Prisca P. Rutatola is an Assistant Lecturer (Procurement and Supply Chain Management) at the Local Government Training Institute (LGTI), Tanzania. She holds a Master’s Degree in the field and her research interest areas includes procurement, logistics, supply chain, value chain, transportation, warehouse, freight management, procurement audit and risk management.

Marko M. Imori

Marko M. Imori serves as a Lecturer (Accounting and Finance) at the Local Government Training Institute. Currently, he is a PhD candidate at the University of Dodoma, Tanzania. Mr. Imori has conducted research, provided consultancy services and his research interests include finance, accounting, behavioural finance, financial markets, M&E and investment.