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ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue X, October 2025
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Agricultural Financing Awareness and Access to Microfinance
Credit as Determinants of Financial Challenges Among
Agricultural Entrepreneurs: A Systematic Literature Review Using
Prisma.
Professor Archee B. Garcia
Makilala Institute of Science and Technology/ Department of Entrepreneurship
DOI: https://doi.org/10.51583/IJLTEMAS.2025.1410000113
Received: 02 November 2025; Accepted: 10 November 2025; Published: 15 November 2025
Abstract: This study aims to develop a systematic review of the influence of agricultural financing awareness and access to
microfinance credit on financial challenges among agricultural entrepreneurs from both global and Philippine perspectives. The
Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework was used as a guideline to ensure
methodological rigor and transparency in the systematic literature review process. Scholarly articles published between 2015 and
2025 were examined, and 20 empirical studies that met the inclusion criteria were selected for analysis. The findings reveal that
both agricultural financing awareness and access to microfinance credit play significant roles in reducing financial challenges,
enhancing financial resilience, and improving decision-making among agricultural entrepreneurs. However, the review also
identified inconsistencies in the strength of these relationships across different contexts, as well as a limited number of studies
exploring their combined effects. These gaps highlight the need for further research to validate and extend existing findings across
diverse agricultural settings. Research examining the combined effects of agricultural financing awareness and access to
microfinance credit on financial challenges remains limited, particularly in the context of developing countries like the Philippines.
This study contributes by synthesizing recent empirical evidence and proposing a more comprehensive conceptual understanding
of how financial literacy and credit access jointly influence the financial sustainability of agricultural enterprises.
Keywords: PRISMA; Agricultural financing awareness; Microfinance access; Financial challenges; Agricultural entrepreneurs;
Systematic literature review
I. Introduction
Agriculture remains a cornerstone of economic growth, food security, and employment across many developing economies,
including the Philippines. However, despite its vital role, the sector continues to face persistent financial challenges that constrain
productivity, limit growth, and hinder the transition from subsistence to commercial agriculture. Agricultural entrepreneurs, who
drive innovation and production in rural economies, are often most affected by these constraints due to inadequate financial literacy,
limited awareness of financing opportunities, and restricted access to credit facilities (Newar & Bhuyan, 2020; Obisesan &
Olubunmi, 2018). These financial barriers not only undermine farm profitability and resilience but also impede the broader goal of
achieving inclusive and sustainable rural development.
A significant body of research highlights the importance of agricultural financing awareness in shaping financial outcomes for
farmers and agri-entrepreneurs. Awareness of available credit schemes, lending institutions, and financial support programs
enhances farmers’ ability to make informed decisions, manage financial risks, and plan strategically for long-term sustainability
(Mhlanga, 2021; Kiplagat et al., 2022). Studies conducted in India, Kenya, and the Philippines have consistently shown that
financial awareness correlates with improved financial resilience and reduced dependence on informal lenders (Kar & Sahoo, 2022;
Villanueva et al., 2021). This evidence underscores that knowledge of financing mechanisms is not merely an informational
resource but a critical factor influencing financial behavior and outcomes among agricultural entrepreneurs.
Parallel to financial awareness, access to microfinance credit has emerged as a pivotal determinant of financial performance in the
agricultural sector. Microfinance institutions provide small-scale farmers and agri-enterprises with essential capital to invest in
production, adopt new technologies, and manage cash flow during lean seasons (Adomako et al., 2021; Rahman & Akter, 2017).
Empirical evidence from Africa and South Asia demonstrates that access to microfinance enhances profitability, boosts resilience,
and improves overall financial stability (Mensah et al., 2023; Abubakar & Sulaiman, 2022). Furthermore, microfinance access
significantly reduces financial hardship, particularly among women-led agricultural enterprises, highlighting the need for inclusive
credit policies (Akinbami et al., 2020). However, studies also caution that while microfinance alleviates short-term liquidity issues,
long-term productivity gains often depend on complementary factors such as financial literacy and market access (Ogbonna et al.,
2025).
Emerging research increasingly emphasizes the synergistic relationship between financing awareness and credit access. The
interplay between these two factors often produces greater financial stability and entrepreneurial success than either variable alone
(Banga & Mkhize, 2019; Ijioma & Osondu, 2015). Financial awareness acts as a mediator that enhances the effective use of
microfinance, leading to improved financial outcomes and reduced vulnerability (Chen & Lin, 2020). Studies across various
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regions, including Southeast Asia and the Philippines, confirm that agricultural entrepreneurs who combine strong financial
knowledge with reliable credit access experience significantly fewer financial challenges and higher levels of financial well-being
(Santos & De Guzman, 2022; Lim & Cheng, 2024). This underscores the importance of integrated interventions that address both
knowledge and access simultaneously.
Despite this growing body of literature, notable gaps persist. Many existing studies focus on either financial awareness or credit
access in isolation, leaving their combined effects underexplored (Newar & Bhuyan, 2020; Abubakar & Sulaiman, 2022).
Additionally, most research is concentrated in African or South Asian contexts, with limited evidence specific to the Philippine
agricultural sector, where structural, institutional, and cultural factors may shape different outcomes (Villanueva et al., 2021; Santos
& De Guzman, 2022). Moreover, the majority of studies employ cross-sectional designs, limiting the ability to capture dynamic
interactions over time (Mhlanga, 2021; Lim & Cheng, 2024). These gaps highlight the need for further investigation into how
financing awareness and microfinance access jointly influence financial challenges in diverse agricultural contexts.
In light of these limitations, this review seeks to deepen understanding of the relationship between agricultural financing awareness,
microfinance access, and financial challenges among agricultural entrepreneurs. Specifically, it aims to synthesize current empirical
evidence to explain how financial awareness influences entrepreneurs’ ability to address financial constraints, how access to
microfinance credit shapes financial outcomes, and how the integration of these two factors contributes to financial resilience and
sustainability. By addressing these questions, the study intends to provide valuable insights for policymakers, development
practitioners, and financial institutions seeking to enhance financial inclusion, design effective interventions, and promote
sustainable agricultural entrepreneurship in the Philippines and beyond. Based on this, the research question that needs to answer
on this study is follows:
RQ: What is the collective empirical evidence concerning the influence of agricultural financing awareness and access to
microfinance credit on the financial challenges faced by agricultural entrepreneurs, and what conceptual and contextual research
gaps are highlighted in the current literature?
II. Material and Methods
This systematic review employed the Preferred Reporting Items for Systematic Reviews (PRISMA) framework to ensure
transparency, quality assurance, and replicability of the review process. The PRISMA approach provides a standardized
methodology that strengthens the validity of evidence synthesis and improves the reliability of conclusions drawn from existing
studies. The review process was structured into five key stages: determining information sources, selecting studies, collecting data,
defining eligibility criteria, and selecting data items.
Determination of Information Sources.
The systematic search was conducted across multiple reputable databases to ensure a comprehensive and diverse pool of literature.
The databases included Scopus, ScienceDirect, SpringerLink, Google Scholar, Taylor & Francis Online, Emerald Insight, and
JSTOR. Additionally, Philippine-based journals and institutional repositories were explored to capture relevant local studies. The
literature search covered the period 2015 to 2025, ensuring that the review focused on the most current research and emerging
trends in agricultural financing awareness, access to microfinance credit, and financial challenges among agricultural entrepreneurs.
Study Selection
The study selection process adhered to the PRISMA flow model, beginning with the identification of articles through keyword-
based searches. Keywords used included “agricultural financing awareness,” “microfinance access,” “financial challenges,”
“agricultural entrepreneurs,” and “microcredit.” Boolean operators (AND, OR) were used to refine searches and maximize relevant
results. After removing duplicates, titles and abstracts were screened for relevance. Full-text articles were then assessed based on
inclusion criteria, and only those meeting the predefined standards were included in the review. The final synthesis included 20
empirical studies published between 2015 and 2025.
Data Collection Process
Data extraction was conducted using a structured matrix to ensure consistency and accuracy. Each selected article was reviewed for
critical information such as author(s), year of publication, research objectives, methodology, sample size, key findings, and
limitations. The extracted data were then categorized based on three thematic areas derived from the study objectives:
1. agricultural financing awareness and financial challenges,
2. access to microfinance credit and financial challenges, and
3. combined effects of financing awareness and microfinance access.
This thematic categorization facilitated a more coherent synthesis and allowed for the identification of recurring patterns and gaps
across studies.
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Determination of Eligibility Criteria.
Studies were included if they met the following criteria: (a) peer-reviewed journal articles published between 2015 and 2025; (b)
focused on agricultural financing awareness, access to microfinance credit, and/or financial challenges; (c) involved agricultural
entrepreneurs, smallholder farmers, or agribusiness SMEs as participants; and (d) presented empirical evidence, either qualitative,
quantitative, or mixed methods. Studies were excluded if they were opinion pieces, policy briefs, conference papers, or publications
outside the agricultural sector. Non-English studies were also excluded to maintain consistency in analysis.
Selection of Data Items.
The final selection of data items was guided by the objectives of this review. Each study was analyzed for variables related to
financial awareness, microfinance access, and financial challenges, including their interrelationships and combined effects.
Information on study contexts (geographic location, sample characteristics, and policy environment) was also extracted to support
comparative analysis. Patterns, themes, and research gaps were identified through an iterative reading process, forming the basis
for the synthesis and conclusions presented in this review
Resources and Study Selection
Information searches were carried out using reputable online databases that host extensive collections of peer-reviewed academic
studies. The main databases included Elsevier (Scopus), which indexes over 23,500 scholarly journals, along with ScienceDirect,
SpringerLink, Taylor & Francis Online, JSTOR, Emerald Insight, and Google Scholar. To ensure comprehensive coverage, relevant
local studies were also sourced from Philippine-based journals and institutional repositories. Only peer-reviewed journal articles
were considered for inclusion, and studies that could not be accessed in full text were excluded from the review.
The selection of studies followed a systematic three-step process:
Keyword Search: Search keywords were developed based on the objectives of this review to identify studies examining the
influence of agricultural financing awareness and access to microfinance credit on financial challenges among agricultural
entrepreneurs. The following search strings were used: ("agricultural financing awareness*" OR "financial literacy*" OR
"microfinance access*" OR "microcredit*" OR "credit accessibility*" OR "financial challenges*" OR "financial constraints*" OR
"agricultural entrepreneurs*" OR "smallholder farmers*" OR "agri-enterprises*") AND ("quantitative*" OR "qualitative*" OR
"mixed methods*").
Screening of Titles, Abstracts, and Keywords: All retrieved articles were screened based on their titles, abstracts, and keywords
to ensure relevance to the research objectives. Studies were shortlisted if they addressed one or more of the core variables —
agricultural financing awareness, microfinance access, and financial challenges in the context of agriculture.
Full-Text Review and Final Selection: Articles that passed the initial screening were then reviewed in full to confirm their
eligibility. Studies that did not meet the inclusion criteria — such as those outside the 2015–2025 publication range, those not
focused on the agricultural sector, or those lacking empirical evidence — were excluded. The final selection included 20 peer-
reviewed studies, encompassing global and Philippine research, that directly examined the relationships between agricultural
financing awareness, microfinance access, and financial challenges among agricultural entrepreneurs.
Data Collection and Eligibility Criteria
The data collection process was conducted manually through a systematic content analysis of the selected studies. Relevant
information was extracted from each article, including the type of article, journal name, year of publication, research objectives,
study location, topic focus, research methodology, variables investigated, indicators used, and key findings related to the influence
of agricultural financing awareness and access to microfinance credit on financial challenges among agricultural entrepreneurs.
This comprehensive extraction ensured that the review captured not only the relationships among the variables, but also contextual
insights and methodological approaches applied in previous research.
The inclusion criteria (IC) guiding this systematic literature review are defined as follows:
1. IC1: All selected literature must be original, peer-reviewed, and published in English.
2. IC2: The research must focus on examining the influence of agricultural financing awareness and/or access to
microfinance credit on financial challenges among agricultural entrepreneurs, farmers, or agri-enterprises.
3. IC3: The research must employ quantitative, qualitative, or mixed methods approaches, ensuring methodological diversity
and comprehensive analysis.
For IC1, only English-language studies were included, as English is the primary language of scholarly communication and ensures
accessibility to the broader academic community. Regarding IC2, the review specifically targeted studies exploring how financial
awareness and microfinance access affect financial constraints and resilience in the agricultural sector. These variables are crucial
because awareness of financing mechanisms empowers agricultural entrepreneurs to make informed decisions, manage risks, and
enhance their financial capacity (Newar & Bhuyan, 2020; Villanueva et al., 2021). Likewise, access to microfinance credit addresses
liquidity issues, supports enterprise growth, and improves financial performance (Adomako et al., 2021; Mensah et al., 2023).
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Understanding their influence provides evidence-based insights into interventions that can strengthen agricultural entrepreneurship
and rural development. Finally, for IC3, studies utilizing quantitative, qualitative, or mixed methods were included to capture a
comprehensive understanding of the phenomenon across various research designs and contexts.
Figure 1. Reporting Items for Systematic Reviews (Adoption of PRISMA) Source: Researcher Process (2025)
Table 1. Grouping of articles based on relationships between variables and authors
Hypothesis Relationship Between
Variables
Authors Number of
Articles
1 Agricultural Financing
Awareness towards Financial
Challenges among
Agricultural Entrepreneurs
Newar & Bhuyan (2020); Obisesan &
Olubunmi (2018); Kiplagat et al. (2022);
Dube et al. (2023); Mhlanga (2021); Kar
& Sahoo (2022); Villanueva et al.
(2021).
7
Literature searches
Database
Keywords: ("agricultural financing awareness*" OR "financial literacy*" OR "microfinance
access*" OR "microcredit*" OR "credit accessibility*" OR "financial challenges*" OR
"financial constraints*" OR "agricultural entrepreneurs*" OR "smallholder farmers*" OR
"agri-enterprises*" OR "impact of agricultural financing on financial challenges*" OR "effect
of microfinance access on financial performance*" OR "effect of financial literacy on financial
resilience*" OR "determinants of financial challenges among farmers*") AND
("quantitative*" OR "qualitative*" OR "mixed methods*")
Search Result N= 147
Articles were selected based on title, abstract and keywords
Relevant articles
n=61
Irrelevant Article
n=86
Articles are selected after reading the entire content
Selected articles
n=20
Irrelevant article n=41 (does
not meet IC2 and IC3)
Articles used in this research n=20
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2 Access to Microfinance Credit
towards Financial Challenges
among Agricultural
Entrepreneurs
Adomako et al. (2021); Rahman & Akter
(2017); Mensah et al. (2023); Abubakar
& Sulaiman (2022); Akinbami et al.
(2020); Osei-Asare et al. (2021); Asante-
Addo et al. (2020).
7
3 Agricultural Financing
Awareness and Access to
Microfinance Credit as
Determinants of Financial
Challenges among
Agricultural Entrepreneurs
Banga & Mkhize (2019); Ijioma &
Osondu (2015); Chen & Lin (2020);
Dube et al. (2023); Kiplagat et al.
(2022); Mhlanga (2021); Santos & De
Guzman (2022); Lim & Cheng (2024)
8
Table 2 List and synthesis of articles
No. Author and
Year
Research Focus Research
Approach
Results
1 Newar & Bhuyan
(2020)
Examined how awareness of
agricultural financing options
influences financial problems among
agricultural entrepreneurs in India.
Quantitative + Sig – Greater awareness
reduces vulnerability to
financial problems.
2 Obisesan &
Olubunmi (2018)
Investigated how farmers’ awareness
of financing opportunities affects their
ability to manage financial risks in
Nigeria.
Quantitative +Sig – Awareness
significantly improves
financial decision-making.
3 Mhlanga (2021) Explored the impact of limited
financing awareness on persistent
financial constraints among
agripreneurs in Zimbabwe.
Qualitative +Sig – Lack of awareness is
a major contributor to
financial hardship.
4 Dube et al.
(2023)
Analyzed how financial literacy and
awareness programs influence
entrepreneurial sustainability in the
agricultural sector.
Quantitative +Sig – Financial awareness
enhances access to funding
and lowers financial stress.
5 Kiplagat et al.
(2022)
Studied how knowledge of credit
schemes impacts financial resilience
among smallholder farmers in Kenya.
Mixed Methods +Sig – Awareness
positively correlates with
financial resilience.
6 Kar & Sahoo
(2022)
Investigated how awareness of
government financing schemes affects
financial risk exposure among
farmers.
Quantitative +Sig – Awareness improves
financial risk management.
7 Villanueva et al.
(2021)
Examined awareness of financing
programs and their effects on
financial decision-making among
Filipino agri-entrepreneurs.
Quantitative +Sig – Awareness is linked
to reduced financial
challenges.
8 Adomako et al.
(2021)
Explored the effect of microfinance
access on business growth and
financial constraints among
agripreneurs in Ghana.
Quantitative +Sig – Access to credit
reduces financial
challenges.
9 Rahman & Akter
(2017)
Studied how microfinance programs
influence financial stability among
small-scale farmers in Bangladesh.
Quantitative +Sig – Credit access
improves cash flow and
resilience.
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10 Mensah et al.
(2023)
Investigated the relationship between
credit accessibility and financial
performance of rural agripreneurs.
Quantitative + Sig – Credit access
enhances profitability and
stability.
11 Abubakar &
Sulaiman (2022)
Analyzed microfinance’s role in
building financial resilience among
Nigerian agricultural enterprises.
Quantitative + Sig – Access improves
capacity to cope with
financial shocks.
12 Akinbami et al.
(2020)
Explored how microfinance reduces
financial difficulties among women-
led agricultural SMEs.
Mixed Methods + Sig – Microfinance
significantly alleviates
financial hardship.
13 Osei-Asare et al.
(2021)
Studied how microcredit access
impacts financial growth and
operational continuity of agripreneurs
in Ghana.
Quantitative +Sig – Increased credit
access leads to improved
financial outcomes.
14 Asante-Addo et
al. (2020)
Investigated how microfinance
supports farm expansion and reduces
financial constraints.
Quantitative + Sig – Farmers with
microfinance face fewer
financial difficulties.
15 Banga & Mkhize
(2019)
Examined how financing awareness
and credit access jointly affect
financial outcomes in the agri-sector.
Quantitative +Sig – Both factors
together improve financial
stability.
16 Ijioma & Osondu
(2015)
Studied how financial literacy and
credit access mitigate financial
constraints among Nigerian farmers.
Quantitative +Sig – Awareness and
access together strongly
reduce financial challenges.
17 Chen & Lin
(2020)
Explored the mediating role of
financing awareness in enhancing the
effects of microcredit programs.
Quantitative +Sig – Awareness
strengthens microcredit’s
impact on financial
outcomes.
18 Dube et al.
(2023)
Investigated combined effects of
financial literacy and credit access on
sustainability of agri-enterprises.
Quantitative + Sig – Synergistic effects
significantly reduce
financial challenges.
19 Santos & De
Guzman (2022)
Analyzed how awareness and credit
access together influence financial
well-being among Filipino agri-
entrepreneurs.
Mixed Methods +Sig – Joint influence
reduces financial
difficulties more than either
factor alone.
20 Lim & Cheng
(2024)
Studied the integrated effects of
financing knowledge and microcredit
accessibility on financial resilience in
Southeast Asian agriculture.
Quantitative + Sig – The combination
significantly lowers
financial vulnerability.
III. Result and Discussion
Following the systematic review process, a total of 20 relevant studies were included in the analysis. These studies were grouped
thematically based on the primary relationship investigated. A total of 7 studies investigated the relationship between agricultural
financing awareness and financial challenges. These studies highlighted the significant role of financial knowledge in enabling
farmers and agri-entrepreneurs to manage financial risks and improve decision-making. Limited awareness was consistently linked
to higher financial vulnerability and constraints. These findings align with the argument that increasing financial literacy and
awareness among agricultural entrepreneurs can significantly enhance financial resilience and reduce operational risks.
A total of 7 studies explored the impact of access to microfinance credit on financial challenges. Most reported that credit
accessibility significantly improves financial performance, liquidity, and resilience. Access to credit was also shown to facilitate
farm expansion, increase profitability, and strengthen the capacity of agricultural entrepreneurs to cope with financial shocks. These
results reinforce the importance of inclusive financial services in supporting sustainable agricultural enterprises.
A total of 8 studies examined the combined and synergistic effects of agricultural financing awareness and access to microfinance
credit on financial challenges. Findings from these studies indicated that the interaction of both variables leads to greater financial
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stability and improved entrepreneurial outcomes than when either factor is considered independently. The synergistic effect of
financial knowledge and credit access contributes to long-term sustainability and significantly reduces financial constraints among
agricultural entrepreneurs.
Despite the overall consensus on the positive influence of these variables, research gaps remain. Most existing studies are
concentrated in African and Asian contexts, with relatively fewer conducted in the Philippine setting. Additionally, the majority of
studies adopted quantitative methods, with limited use of qualitative or mixed-method approaches, indicating the need for more
nuanced investigations into how contextual and behavioral factors influence financial outcomes. Furthermore, while many studies
examined agricultural financing awareness and microfinance access separately, fewer explored their combined effects in a
comprehensive framework. Addressing these gaps would enrich the literature and provide deeper insights into strategies for
enhancing financial resilience among agricultural entrepreneurs.
Measurement and Analytic Method
Most of the reviewed studies employed structured survey questionnaires analyzed using quantitative techniques such as multiple
regression, correlation analysis, and Structural Equation Modeling (SEM) to determine the relationships among Agricultural
Financing Awareness (AFA), Access to Microfinance Credit (AMC), and Financial Challenges (FC). Several studies also adopted
mixed-method approaches combining survey data with interviews or focus group discussions for triangulation. Common theoretical
frameworks applied included the Resource-Based View (RBV) and Financial Intermediation Theory (FIT) to explain how
knowledge-based resources and institutional mechanisms contribute to financial resilience among agricultural entrepreneurs.
1. Common operationalizations of variables include Agricultural Financing Awareness (AFA): Measured by knowledge of
available financial programs, understanding of credit terms, and awareness of institutional support and government
financing schemes (Newar & Bhuyan, 2020; Mhlanga, 2021; Villanueva et al., 2021).
2. Access to Microfinance Credit (AMC): Assessed through indicators such as loan accessibility, credit utilization, repayment
capacity, and satisfaction with microfinance services (Adomako et al., 2021; Abubakar & Sulaiman, 2022; Mensah et al.,
2023).
3. Financial Challenges (FC): Measured in terms of liquidity constraints, debt burden, operational costs, and perceived
financial instability (Dube et al., 2023; Lim & Cheng, 2024; Santos & De Guzman, 2022).
Data analysis in most quantitative studies was carried out using SEM, regression analysis, and correlation techniques to test the
direct and mediating effects of financial awareness and credit access on financial challenges. Qualitative studies used thematic
coding and content analysis to capture perceptions and lived experiences of Agri-entrepreneurs regarding access to finance. The
integration of these analytical approaches provided comprehensive empirical evidence that AFA and AMC jointly reduce financial
challenges and improve the financial sustainability of agricultural enterprises.
Heterogeneity and Limitations Across Studies
Sample diversity remains limited across the reviewed studies, with a strong bias toward smallholder farmers and micro-
entrepreneurs in rural settings, while only a few studies utilized larger or nationally representative samples (Adomako et al., 2021;
Mhlanga, 2021). Most research relied heavily on self-reported survey data, and only a small fraction made use of institutional or
financial records to verify actual credit performance or repayment behaviors (Abubakar & Sulaiman, 2022; Dube et al., 2023). In
terms of methodology, this body of research is predominantly cross-sectional, limiting the ability to infer causal relationships or
assess the long-term effects of agricultural financing awareness and microfinance access on financial challenges (Rahman & Akter,
2017; Lim & Cheng, 2024). Another notable limitation is the geographical imbalance of evidence, with most studies concentrated
in Sub-Saharan Africa and South Asia, while research focused on Southeast Asian countries like the Philippines remains scarce
(Santos & De Guzman, 2022; Villanueva et al., 2021). Furthermore, inconsistencies in measuring financial awareness, credit
accessibility, and financial challenges across studies hinder comparability, as definitions and indicators vary widely. Lastly, very
few studies have explored gender differences or the role of institutional quality, leaving a gap in understanding how socio-economic
and policy contexts influence financial resilience among agricultural entrepreneurs.
The Relationship Between Agricultural Financing Awareness, Access To Microfinance Credit, And Financial Challenges.
A substantial body of empirical evidence highlights the significant role of agricultural financing awareness in shaping the financial
stability and decision-making capacity of agricultural entrepreneurs. Several quantitative studies demonstrate that enhanced
financial awareness enables farmers to make informed investment choices, adopt effective financial risk management practices,
and reduce their vulnerability to economic shocks (Newar & Bhuyan, 2020; Obisesan & Olubunmi, 2018; Villanueva et al., 2021).
For instance, Newar and Bhuyan (2020) found that increased awareness of available financial instruments significantly decreases
the likelihood of financial problems among Indian agri-entrepreneurs. Similarly, Mhlanga (2021) reported that a lack of financial
literacy and awareness is a major contributor to persistent financial challenges in Zimbabwe’s agricultural sector. These findings
collectively suggest that the dissemination of financial knowledge is a powerful tool for improving resilience and promoting
sustainable business practices among agricultural entrepreneurs.
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The relationship between access to microfinance credit and financial performance is equally well-documented. Multiple studies
have shown that microfinance services, including loans and credit lines, substantially reduce liquidity constraints and enable
business expansion (Adomako et al., 2021; Rahman & Akter, 2017; Mensah et al., 2023). For example, Adomako et al. (2021)
demonstrated that access to credit in Ghana significantly enhances agripreneurs’ ability to manage financial risks and improve
profitability. Likewise, Abubakar and Sulaiman (2022) highlighted that microfinance access increases the capacity of Nigerian
agricultural enterprises to cope with financial shocks, while Asante-Addo et al. (2020) found that farmers with credit access
experience fewer financial difficulties. However, some studies also indicate that the effectiveness of microfinance depends on the
terms of credit and institutional support available, suggesting that contextual factors can influence outcomes (Osei-Asare et al.,
2021).
Beyond their individual effects, the combined influence of agricultural financing awareness and microfinance access plays an even
more significant role in mitigating financial challenges. Banga and Mkhize (2019) found that when farmers possess adequate
financial knowledge and simultaneously have access to credit, their financial stability improves more substantially than with either
factor alone. Similarly, Chen and Lin (2020) noted that financial awareness strengthens the effectiveness of microcredit programs
by enabling entrepreneurs to better utilize the resources available to them. This synergy supports the argument that capacity building
and financial inclusion must work hand in hand to improve agricultural sustainability and resilience (Santos & De Guzman, 2022;
Lim & Cheng, 2024).
Despite the consistent evidence of positive relationships, differences across studies indicate that contextual variables—such as
government policy, institutional quality, and socio-economic conditions—may moderate these effects. For instance, while most
studies found a significant relationship between microfinance access and financial performance, others reported variations in impact
due to policy implementation gaps or inadequate institutional frameworks (Ijioma & Osondu, 2015; Dube et al., 2023). These
inconsistencies highlight opportunities for further empirical research to deepen understanding of how agricultural financing
awareness and credit access interact with environmental factors to influence financial outcomes.
From a theoretical perspective, the Resource-Based View (RBV) suggests that financial awareness functions as a critical intangible
resource that strengthens the competitive advantage and resilience of agricultural enterprises (Barney, 1991). Concurrently, the
Financial Intermediation Theory (FIT) emphasizes the role of financial institutions in bridging capital gaps and facilitating
entrepreneurship through accessible credit services (Gurley & Shaw, 1960). Together, these theories explain why agricultural
entrepreneurs with greater financial knowledge and access to credit are more likely to overcome financial challenges and achieve
sustainable growth.
Theoretical Implications
The theoretical foundation of this systematic review is anchored in the Resource-Based View (RBV) and the Financial
Intermediation Theory (FIT). These two frameworks provide the conceptual basis for understanding how agricultural financing
awareness and access to microfinance credit influence the financial challenges faced by agricultural entrepreneurs.
The Resource-Based View (RBV) emphasizes that the strategic resources of an enterprise—whether tangible or intangible—play a
critical role in achieving competitive advantage and long-term sustainability (Barney, 1991). In the context of agricultural
entrepreneurship, financial literacy and awareness can be viewed as vital intangible resources that enable entrepreneurs to
effectively identify, access, and utilize financial opportunities (Newar & Bhuyan, 2020; Villanueva et al., 2021). According to this
perspective, when farmers and agri-enterprises possess adequate knowledge of financing options and government support programs,
they are better equipped to make sound financial decisions, mitigate risks, and allocate resources efficiently (Mhlanga, 2021). Such
capabilities directly reduce financial vulnerabilities and enhance enterprise performance. This review supports the RBV framework
by demonstrating that increased awareness of financing mechanisms significantly strengthens the financial resilience of agricultural
entrepreneurs and enables them to sustain and grow their enterprises (Dube et al., 2023; Kar & Sahoo, 2022).
The Financial Intermediation Theory (FIT), on the other hand, explains the essential role of financial institutions in facilitating the
flow of funds between savers and borrowers, thereby promoting economic activity and development (Gurley & Shaw, 1960). In the
agricultural sector, microfinance institutions (MFIs) and rural banks act as key intermediaries that provide critical financial
services—such as credit, loans, and capital—to smallholder farmers and agri-enterprises that often lack access to traditional banking
systems (Adomako et al., 2021; Abubakar & Sulaiman, 2022). According to this theory, the availability and accessibility of
microfinance credit reduce liquidity constraints, support business expansion, and enhance the financial capacity of agricultural
entrepreneurs (Rahman & Akter, 2017; Mensah et al., 2023). This review reinforces FIT by highlighting that access to microfinance
services enables agricultural entrepreneurs to overcome financial challenges, stabilize their operations, and improve profitability
(Akinbami et al., 2020; Asante-Addo et al., 2020).
The synthesis of these theoretical perspectives suggests that agricultural financing awareness (as an internal resource) and access
to microfinance credit (as an external enabling mechanism) jointly contribute to reducing financial challenges and enhancing the
sustainability of agricultural enterprises. Their interaction underscores the importance of both capacity building (through awareness
and financial literacy) and institutional support (through accessible microfinance systems) in fostering entrepreneurial resilience
(Banga & Mkhize, 2019; Lim & Cheng, 2024).
INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)
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Moreover, differences in findings among existing studies—such as variations in the strength of the relationship between
microfinance access and financial resilience across contexts—highlight potential research gaps. Future studies could explore how
contextual factors such as government policies, institutional frameworks, and socio-economic conditions mediate or moderate these
relationships (Chen & Lin, 2020; Santos & De Guzman, 2022). These theoretical insights provide a foundation for developing more
targeted interventions and for constructing conceptual frameworks that guide future empirical investigations into the dynamics of
financing awareness, credit access, and financial outcomes in the agricultural sector.
IV. Conclusion
This systematic literature review provided a comprehensive synthesis of existing research on the influence of agricultural financing
awareness and access to microfinance credit on financial challenges among agricultural entrepreneurs. Guided by PRISMA
methodology and based on the inclusion criteria, a total of 20 empirical studies published between 2015 and 2025 were reviewed
and analyzed. The findings consistently indicate that both agricultural financing awareness and microfinance credit access play
crucial roles in reducing financial constraints, enhancing financial resilience, and improving decision-making capabilities among
agricultural entrepreneurs.
However, the review also revealed inconsistencies and gaps in the existing literature. While most studies demonstrated significant
positive effects of financial awareness and credit access on financial outcomes, some reported variations in the strength of these
relationships across contexts and geographic regions. Moreover, a limited number of studies investigated the combined effects of
financing awareness and microfinance access within a single comprehensive framework. These gaps highlight the need for further
empirical research to validate existing findings and explore moderating factors such as government policy, institutional support,
and socio-economic conditions. Overall, the findings of this review provide a solid foundation for future studies and underscore the
importance of financial literacy and access to financial services in addressing persistent financial challenges in the agricultural
sector.
V. Recommendation
The results of this systematic review hold significant practical implications for policymakers, financial institutions, and
development practitioners. First, the evidence underscores the need for capacity-building initiatives aimed at enhancing agricultural
entrepreneurs’ awareness of financing options, credit schemes, and financial management practices. Such initiatives can empower
farmers and agri-enterprises to make informed financial decisions, reduce risk exposure, and improve resource allocation.
Second, improving access to microfinance credit through the expansion of rural banking services, flexible lending terms, and
innovative financial products can play a pivotal role in alleviating liquidity constraints and enabling farm expansion. Financial
institutions and government agencies should collaborate to design inclusive financing models tailored to the specific needs of
agricultural entrepreneurs, especially in underserved rural areas.
Finally, the review suggests that combining financial literacy programs with accessible microfinance services can yield synergistic
effects, significantly strengthening the financial resilience and sustainability of agricultural enterprises. By translating these insights
into targeted interventions and policies, stakeholders can contribute to reducing financial challenges, fostering inclusive rural
development, and promoting the long-term growth of the agricultural sector.
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