This paper examines the effect of value chain financing on the competitive advantage of smallholder farmers in Rivers State.The researcher focused attention on those smallholders’ farmers in four local government areas of Obio-Akpor, Ikwerre, Emohua and Etche in Rivers State. A total number of one hundred (100) of such smallholders’ farmers was identified. The data for the study were collected through primary sources such as the questionnaire’ and observations.There are two main variables in this study-Value-Chain Financing Analysis and Competitive Advantage. Value-Chain Financing Analysis was measured by boundary analysis, scope of value and governance while Competitive Advantage was the dependent variable. In testing the hypotheses in the study, a multiple regression analysis was employed, andthe findings of the study revealed that, boundary analysis and governancehas a very strong, positive and significant influence on competitive advantage while, scope of has a strong, positive and significant influence on competitive advantage. The study therefore concludes that, value chain financing analysis significantly influence competitive advantage of smallholders farmers in Rivers State, and recommends that that government should sensitize financiers on the need to adequately fund smallholders’ farmers that they may be channel all the way through boundary analysis, scope of value and governance to attract an efficacious competitive advantage.
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