Sources of financing as a determinant of the development of innovative integration ties

Abstract

The success of any venture is largely determined by the proper selection of financing sources for the conducted activity. To attempt to eliminate the difficulties related to functioning in competitive conditions, one should use various available sources of financing. The availability of appropriate sources of financing makes operating and investment activities possible and guarantees financial security. In addition, it has an impact on the decisions made by the organisation and determines its plans and strategic goals. Access to financing instruments covering the needs of a company to a greater extent may also constitute a source of competitive advantage in a dynamically changing market. The main goal of this study is to show the sources of financing the activities that determine the initiation and functioning of innovative integration links in agribusiness. The financial system determines not only effective functioning, but also subsequent dynamic expansion of cluster initiatives. In further parts of the study, attempts were made to present the sources of financing and their functions in the activities of an organisation, and the impact of clusters on the growth of the economy’s potential. Forms of financing cluster initiatives were also reviewed. To achieve this goal, the results of empirical research were used, showing the forms and dilemmas of the financing clusters. They were carried out in 2015 among 80 entrepreneurs-participants of four agri-food clusters, and among 4 representatives of institutions managing these clusters in Podkarpackie Voivodeship. The study confirmed the thesis that properly functioning cluster structures contribute to an increase in the competitiveness of entities and the level of innovation in the economy, eliminating inequalities in their development, both at the local, regional and international levels.