This study empirically analyzed the determinants of profitability among small scale cassava processors in Southwest, Nigeria. Three States were considered for the study which was Ogun, Oyo and Ondo. A multistage sampling technique was employed to randomly select 373 respondents. The data collected were analyzed using descriptive statistics and multiple regression models. The findings revealed that the cassava processing business was profitable in the study area given the value of gross margin (N45,485,680.00; N33,476,280.00 and N64,517,720.00) and net profit (N45,231,752.00; N33,254,740.00 and N64,177,111.00) for the three States (Ondo, Oyo and Ogun). The result of regression model indicated that education, year of experience, access to extension services, household size, cost of raw materials and types of cassava purchased were the factors that significantly determined profitability in the study area. The main challenges encountering by the processors were identified as inadequate capital, environmental hazard, cost of fuel, storage facilities and market problems.
This study employed a stochastic frontier model to analyze the productivity and technical efficiency (TE) of cassava processing methods among small scale processors in SouthWest , Nigeria. The study was carried out in three states of Ogun, Oyo and Ondo, Nigeria. Data were obtained from primary sources using a set of structured questionnaire assisted with interview schedule. The multistage sampling technique was used. Data were analyzed using: descriptive statistics and the stochastic frontier production function using a farm level survey data collected from 373 small scale cassava processors. Results showed that cassava processing under local and modern methods was in stage one (stage of inefficiency) of the production region and that processors using the local method of processing cassava were more technically efficient than those using the modern method.
This study examines the determinants of technical efficiency (TE) and income inequality of family business in southwest Nigeria. Data were obtained from primary source using structured questionnaire and interview schedule. A multi-stage sampling technique was employed in selecting 120 respondents for the study. Analyses were carried out using descriptive statistics, Gini coefficient and Lorenz curve as well as the stochastic frontier production function models. The results revealed that experience, educational level, household size and method of processing were the main determinants of TE of the respondents. Results further showed that food vending was in Stage II of production surface as shown by the returns to scale (RTS) of 0.776. The variables such as cost of raw materials, labour, operating expenses, depreciation cost on equipment and duration of the business were effectively allocated and used, which was also confirmed by the estimated coefficient value of each variable between zero and unity. The technical efficiency of food vending also varied between 0.44 and 0.69 with a mean of 0.52. However, the analysis of inefficiency model revealed a positive response of age factor. This implies that age factor led to decrease in TE of food vending in the study area. Also, the result of the Gini coefficient (0.58) indicated the presence of income inequality among the food vendors which was also affirmed by the Lorenz curve. The study therefore concludes that experience, educational level, household size, age factor and processing method were the main determinants of technical efficiency and uneven income distribution among the food vendors in the study area.
The study determined the poverty profiles and technical efficiency of women entrepreneurs in cassava processing in Oyo State, Nigeria. Data were obtained from primary source using a set of structured questionnaire assisted with interview schedule. The multistage sampling technique was used. Data were analyzed using: descriptive statistics, Foster -Greer Thorbecke (FGT) and Stochastic Frontier Production Function Analysis (SFPF). Farm level survey data were collected from 105 women cassava processors. The results revealed that 64.8 percent of the women entrepreneurs in the study area were poor and would need 16.1 percent of 1US Dollar (N160) per day to escape poverty. It was also revealed that poverty incidence was noticed among women entrepreneurs between age ranges 40 -49, most of them (61%) had a large household size with 4 -6 members and (95.2%) had low educational level. Results further showed that cassava processing enterprise was in the stage of inefficient production (stage I) as shown by the Returns to Scale (RTS) of 1.264. The variables such as cost of raw material, operating expenses and energy were effectively allocated and used, as confirmed by each variable having estimated coefficient value between 0 and 1. The Technical Efficiencies of the women entrepreneurs varied between 0.637 and 0.994 with a mean of 0.888. The analysis of the inefficiency model revealed that poverty level, method of processing and source of raw material were positive indicating that all these factors led to decrease in technical efficiency of cassava processing enterprise in the study area. The study recommends that to increase the efficiency of the women cassava processors, policies that would promote poverty alleviation, improve education and boost income should be adopted.
The study examined the income inequality among entrepreneurs in Ondo State, Nigeria using a questionnaire based survey. Multistage sampling technique was used to select the 200 respondents and the data was subjected to descriptive statistics, Lorenz curve, Gini coefficient and Double -Log regression model.Findings showed that 40% of the respondents spent at most 12 years in school, while hair dressing (43.5%) and fashion designing (31.5%) were the most common enterprises among the respondents. The findings also revealed that majority of the entrepreneurs earned below N200, 000 per annum. The result of the Gini coefficient (0.58) showed that there was income inequality as shown by the Lorenz curve while the regression indicated that gender, family size and number of workers significantly affected the income of the entrepreneurs. This study is important as it recommends policies targeted at improving income as well as reducing the income inequality of the entrepreneurs.
The study examined the income inequality among entrepreneurs in Ondo State, Nigeria using a questionnaire based survey. Multistage sampling technique was used to select the 200 respondents and the data was subjected to descriptive statistics, Lorenz curve, Gini coefficient and Double -Log regression model.Findings showed that 40% of the respondents spent at most 12 years in school, while hair dressing (43.5%) and fashion designing (31.5%) were the most common enterprises among the respondents. The findings also revealed that majority of the entrepreneurs earned below N200, 000 per annum. The result of the Gini coefficient (0.58) showed that there was income inequality as shown by the Lorenz curve while the regression indicated that gender, family size and number of workers significantly affected the income of the entrepreneurs. This study is important as it recommends policies targeted at improving income as well as reducing the income inequality of the entrepreneurs.
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