Financial Exclusion of Farmers and Rural Entrepreneurs
Abstract
Financial exclusion appears to be greater in rural areas than in cities. The article concludes that the problem is connected not only with the people of low incomes but also individuals running their own businesses e.g. farmers and small entrepreneurs. The extent and reasons for financial exclusion among such entities have been identified and accompanied by the analysis of access to banking services - the key to effective management. The source of empirical data relied on survey questionnaires of farmers and small entrepreneurs in the rural areas in the south-eastern region of Poland. It was stated that in case of persons running their own businesses financial exclusions is mainly connected with a limited access to bank credit, yet the reasons for this situation are diverse. Apart from the internal factors associated with businesses (e.g. low and unstable incomes, aversion to risk, lack of confidence in banks etc.), significant determinants lie on the side of banks and the structure of financial system in rural areas.
Keywords
Financial exclusion; Agriculture; Agricultural enterprises; Banking services
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Uniwersytet Rzeszowski Poland
Uniwersytet Rzeszowski Poland
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