Facilitating the Flow of Capital to Niche Agricultural Producers in Rural Markets

dc.contributor.author Van Auken, Howard
dc.contributor.author Walter, Clyde
dc.contributor.author Van Auken, Howard
dc.contributor.department Management
dc.date 2018-02-17T16:03:15.000
dc.date.accessioned 2020-06-30T05:59:04Z
dc.date.available 2020-06-30T05:59:04Z
dc.date.copyright Fri Jan 01 00:00:00 UTC 2010
dc.date.issued 2010-10-01
dc.description.abstract <p>Availability of capital has historically been a challenge in rural markets. Niche agricultural producers face a daunting task when trying to raise capital because they commonly have business models that are not well understood by providers of capital and, thus, they are considered high risk. As a consequence, traditional lenders are often apprehensive about providing financing because of this perceived risk. The successful flow of capital is a common challenge both for small firms seeking to acquire capital and for providers of capital. The ability to obtain funding is predicated on a matching of applicant’s characteristics, as documented according to the funder’s requirements. Niche agricultural producers may be representative of a group of potential capital users who view the loan application process is a barrier, rather than an opportunity, to growth of their business. Technical assistance can help overcome these barriers by educating the applicant about the process and requirements associated with capital acquisition. Government programs attempt to fill the financing gap by providing technical assistance that lowers perceived risk and expanding the borrowers’ business networks. Understanding the alternatives in the capital acquisition process can help niche agricultural producers in their search for capital and assist governments and communities in developing policies that can facilitate the flow of capital.</p>
dc.description.comments <p>This article is from <em>Small Business Institute Journal</em> 6 (2010): 91.</p>
dc.format.mimetype application/pdf
dc.identifier archive/lib.dr.iastate.edu/management_pubs/23/
dc.identifier.articleid 1021
dc.identifier.contextkey 8463475
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath management_pubs/23
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/54411
dc.language.iso en
dc.source.bitstream archive/lib.dr.iastate.edu/management_pubs/23/2010_VanAukenHE_FacilitatingFlowCapital.pdf|||Fri Jan 14 22:46:21 UTC 2022
dc.subject.disciplines Agribusiness
dc.subject.disciplines Agricultural Economics
dc.subject.disciplines Management Sciences and Quantitative Methods
dc.subject.keywords Finance
dc.subject.keywords Agriculture
dc.subject.keywords Capital Acquisition
dc.subject.keywords Rural Markets
dc.title Facilitating the Flow of Capital to Niche Agricultural Producers in Rural Markets
dc.type article
dc.type.genre article
dspace.entity.type Publication
relation.isAuthorOfPublication a002449c-65f0-4d93-9aee-6b1cde19da92
relation.isOrgUnitOfPublication 76f2501b-6a79-4f9b-b1ae-e0c64574c784
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