Factors Influencing Access to Debt Financing among Small and Medium Agribusiness Enterprises in Beni Town, Democratic Republic of the Congo

Abstract

The objective of this study was to examine the influence of firm-level factors on access to debt financing among Agribusiness-SMEs in Beni, DRC. The study’s target population consisted of 91 employees working in the respective finance departments of the 27 small and medium-sized agribusiness enterprises operating in Beni, DRC. A self-administered questionnaire was used to collect primary data which was analysed using the Statistical Package for Social Sciences (SPSS) version 23.0. Both descriptive and inferential statistical analysis were conducted. Findings showed that firm-specific factors, financial factors, and manager/owner factors play a significant role as far as access to debt is concerned. The study indicated that the three categories of factors combined together explain 66.4% of the access to debt financing among Agribusiness-SMEs in Beni. The study recommended that Agribusiness-SMEs have proper accounting in order to increase their chances of accessing debt financing.