An Analysis of Personal and Managerial Characteristics of Peruvian Smallholders as an Alternative Approach to Improve Their Financial Inclusion

Access to financing is a significant challenge that affects the limited financial capacity of the agricultural sector, as well as the limited adoption of technologies and technical models by small-scale farmers. This circumstance gives rise to diminished sectoral productivity, most severely in developing countries such as Peru. In order to address this gap, the study examined the influence of individual and business characteristics on the financial behaviour of small-scale Peruvian farmers, both with and without access to credit. Therefore, a survey was implemented and administered to a sample of 198 small-scale Peruvian farmers from various regions throughout the country. The analytical procedure for the data was estimated in a Multiple Indicators Multiple Causes model (MIMIC), which is used to analyze the relationships between observed variables and latent variables. The findings of this study underscore the significance of implementing innovative assessment interventions to enhance financial decision-making skills and facilitate access to financial instruments among the rural and agricultural population of Peru.