Financial institution ties and survival of small commercial poultry farms (SCPFs) in Ghana

Abstract

PurposeThe purpose of this study was to understand the usefulness of financial institution class ties in small commercial poultry farms’ (SCPFs’) survival in Ghana.Design/methodology/approachThe study uses data from a network survey with associated attribute data on poultry small- and medium-sized enterprises. The data were collected in two waves between January 2014 and March 2015. Survival is estimated using a lagged probit model.FindingsIt was found that the survival rate of SCPFs is influenced by ties to universal banks and cooperative credit unions that have a positive effect while those with ties to savings and loans companies have a reduced survival probability.Originality/valueThe findings of the study make a significant contribution to the agricultural enterprise financing literature showing the relevance of the different financial institution types in the continued survival of agricultural SCPFs.