Gradus

Hungary is planning the introduction of repayable subsidies for the agricultural, food and fishery sectors for the 2014-2020 period in order to expand the financial opportunities. Financial instruments can be taken by enterprises who are profitable but – for any reason (eg. size, lack of funds) – they are not able to obtain other market sources of funding. In order to localize this group of businesses we made a GAP analysis. During analysis our hypothesis was confirmed that the area based subsidies have protected certain agricultural sectors from the effects of the crisis. In agriculture the small and medium size enterprises (SME’s) and individual farmers, in the food industry also the SME’s, and in the fishery industry also the SME’s are identified as business groups who are not able to or hardly able to be financed by market sources of funding. The reasons for the sub-optimal financing situation are primarily the size, the lower than average but still positive profitability, lack of funds, and the lack of documentation for individual farmers can cause the failure of the credit rating.

Keywords: Financial instruments, GAP-analysis, Loan, Structure of sources, Profitability,