Determining the Role of Social Capital in Linking Smallholders with Agribusiness
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Improving smallholder welfare in the rural sectors of developing countries requires improving
access to both input and product markets. Success, however, in developing sustainable and
mutually beneficial links between smallholders and agribusiness has been variable.
Two recent ACIAR studies concluded that there may be more to linking smallholders with the
agribusiness sector than individual smallholder characteristics. This paper hypothesizes that
social capital influences the ability of individual smallholders to take advantage of emerging
agribusiness opportunities. It outlines a project proposed by the authors that aims to test this
hypothesis and examine the potential for social capital to help alleviate rural poverty while
maintaining social and environmental balance.
