The Impact of Financing Sources on Subjective Well-being: Empirical Study from Laying Hen Farmers in East Java, Indonesia

DOI

10.2991/978-94-6463-880-6_42How to use a DOI?

Keywords

Financial resources; Laying hen farmers; Ordered probit model; Self-financing; Subjective well-being

Abstract

The influence of financing sources on economic outcomes has been widely discussed in the literature; however, these studies typically focus on monetary aspects, without considering non-monetary factors such as subjective well-being. To date, empirical studies the impact of financing sources on subjective well-being remain limited. This study investigates the impact of financial resources for business on the subjective well-being of laying hen farmers. The financial resources are categorized into three types: self-financing, financing from formal financial institutions, and financing from informal financial institutions. Using survey data from laying hen farming households in East Java and analyze the data using an ordered probit model, our research shows that households using self-financing exhibit higher levels of happiness and life satisfaction compared to those using financing from formal or informal financial institutions. Moreover, households that rely on informal financial institutions as their primary source of capital experience significantly lower subjective well-being, with reduced happiness and life satisfaction. The implications of these findings suggest the need for policies that support access to self-financing and improve the structure of formal financing, particularly for small-scale farmers, to enhance their subjective well-being. Furthermore, the results highlight the importance of regulating and monitoring informal financial institutions, which can negatively affect farmers’ well-being. Government and relevant institutions should promote more affordable and sustainable financing alternatives to support the social and economic well-being of farming households.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Tina Sri Purwanti
AU  - Jaisy Aghniarahim Putritamara
AU  - Awang Tri Satria
AU  - Alifia Nurma Anggraeni
PY  - 2025
DA  - 2025/10/31
TI  - The Impact of Financing Sources on Subjective Well-being: Empirical Study from Laying Hen Farmers in East Java, Indonesia
BT  - Proceedings of the 11th International Conference of Innovation in Animal Science (ICIAS 2024)
PB  - Atlantis Press
SP  - 377
EP  - 388
SN  - 2468-5747
UR  - https://doi.org/10.2991/978-94-6463-880-6_42
DO  - 10.2991/978-94-6463-880-6_42
ID  - Purwanti2025
ER  -