Access to Credit and Profitability in Aquaculture Enterprises: A Financial and Production Analysis of Small-Scale Fish Farmers

Abstract

This study examines access to credit and profitability in small-scale aquaculture enterprises, integrating financial and production perspectives. A mixed-methods approach was employed, combining primary data collected from 150 fish farmers with secondary data from institutional reports. Descriptive statistics and regression analysis were used to assess the impact of credit access on production output, cost efficiency, and profitability. The findings indicate that farmers with access to formal credit exhibit higher production levels, improved input utilization, and greater profitability compared to those relying on informal financing sources. However, high interest rates, collateral requirements, and limited financial literacy restrict effective access to credit. Furthermore, inefficiencies in resource utilization and weak market linkages reduce the overall benefits of financial access. The results underscore the importance of financial inclusion in enhancing aquaculture productivity and sustainability. Strengthening institutional support, improving access to affordable credit, and promoting financial literacy among farmers are essential for maximizing the benefits of aquaculture investments. The study concludes that access to credit has a significant influence on profitability in aquaculture enterprises and plays a pivotal role in transforming small-scale fish farming into a commercially viable and sustainable sector. Policy interventions aimed at improving financial access and production efficiency will enhance the sector’s contribution to food security, employment generation, and economic development.