Financial Risk Analysis-Case study Guri I Zi in the Municipality of Shkodër in Albania

Abstract

Vegetable farmers operating in Guri I Zi, located in the Shkodra district, meet 42% of the vegetable market demand in the region. To identify the most important financing risks faced by these farmers when searching for financial resources, a study was conducted to analyze the financing risks related to their activity. The study used descriptive analysis and multiple regression analysis techniques to determine the main factors influencing the financing risks of these farmers. The study found that farmers perceived low profits, excessive debt, and high-interest rates as critical financing risks. However, the multifactorial analysis revealed that low earnings were statistically insignificant, while excessive debt and high interest rates were statistically significant. Regression analysis showed a strong correlation between financial risk, excessive debt, and high interest rates at 86%. The main objective of the study was to make farmers aware of the importance of financial risks.