Niche Agricultures Producers' Acquisition of Capital

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.