Organizational Capacities, Access to Economic Services and Effectiveness of Farmers' Organizations in Supporting Rural Micro-Enterprises: An Empirical Study in the ITASY Region

Abstract

Farmers’ Organizations (FOs) are increasingly recognized as key institutional actors in rural development, particularly through their contribution to the creation, consolidation, and sustainability of rural micro-enterprises (RMEs). By facilitating collective action and connecting small-scale producers with essential resources and services, these organizations can significantly influence the economic opportunities available to rural communities. This study assesses the influence of organizational capacity and access to economic services on the effectiveness of FOs in supporting RMEs. A mixed-methods research design was employed to combine empirical measurement with an in-depth understanding of organizational practices. The study covered 100 Farmers’ Organizations selected through proportional stratified sampling. Data were gathered using questionnaires, semi-structured interviews, and documentary analysis. Quantitative information was examined through descriptive statistics, Principal Component Analysis (PCA), Analysis of Variance (ANOVA), and multiple linear regression, while qualitative findings were used to enrich the interpretation of the quantitative results. The findings reveal a significant relationship between the organizational capacity of FOs, their access to economic services, and their effectiveness in supporting RMEs. Organizational capacity appears to be the most influential factor, particularly through leadership, governance, planning, financial management, human-resource development, and institutional coordination. Access to training, financial resources, technical assistance, and market information further strengthens the ability of FOs to provide relevant and sustainable support to rural enterprises. The study concludes that improving the sustainability of RMEs requires more than access to financial or technical resources alone. It calls for a complementary strategy that strengthens the institutional foundations of Farmers’ Organizations while improving their access to appropriate economic services. This integrated approach can contribute to resilient enterprises, inclusive rural economies, and sustainable socioeconomic development.