Abstract:

This critical piece of research paper reviews the literature on the key determinants of finance for Liberia’s rural market. It also takes into account the limitations of the supply of finance for the rural market of Liberia, with the unabated need for the diversification of the Liberian economy in the face of intermittent shocks in the global economy. The study unearthed that investment in agricultural small and medium-sized enterprises (SMEs) will prove adequate in triggering sustainable economic growth and development through poverty alleviation, job creation, and food security which are the drivers of the supply of finance for rural dwellers in Liberia. Notwithstanding, the study found that the supply of finance for Liberian agricultural SMEs is constrained by the lack of creditworthiness information, weak judicial enforcement of contracts and corporate transparency, land ownership, high non-performing loans, and financial literacy. The keywords used in this article include gross domestic product, small and medium-sized enterprises, non-performing loans, inflation, credit rating, bankruptcy, value chain, urbanization, food security, human capital, and risk aversion.

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