ABSTRACT
The goal of the study was to evaluate the effectiveness of small agricultural firms in Nigeria’s Niger delta region and farmers’ access to loans. Through the use of a structured questionnaire and an oral interview, 30 and, 80 agricultural firms that accessed informal and formal finance, respectively, were chosen. For the study, a total of 370 respondents were chosen. Statistical tools for descriptive analysis, such as percentages, means, and frequencies, were used to describe the socioeconomic features of the businesses.
The logit model was used to evaluate enterprise traits that significantly impacted small scale agricultural enterprises’ access to formal and informal loans. The Heckman model was used to analyze the variables impacting the amount of accessed formal and informal credit.
A Poisson Regression analysis was used to look at the variables influencing how frequently businesses get formal or informal finance.
Examining the success of businesses that borrowed from the region’s informal and formal credit markets involved using current ratio and return on capital.
Separate examination of informal and formal credit helped to highlight the similarities and differences between credit sources in terms of factors affecting credit access, credit amount, frequency, credit default, and firm financial performance.
According to the findings, just 21.86% of small-scale agricultural firms had access to the official credit market, while 60.13% did.
Social capital (p=0.01) and enterprise age (p=0.010) had significant and favorable effects on informal finance access.
TABLE OF CONTENTS
Title Page i
Certification ii
Dedication iii
Acknowledgement iv
Table of Contents v
List of Tables viii
List of Figures ix
Abstract x
CHAPTER ONE Introduction
1.1 Background Information 1
1.2 Problem Statement 2
1.3 Objectives of the Study 10
1.4 Hypotheses of Study 10
1.5 Justification of Study 11
CHAPTER TWOLiterature Review
2.1Concept and Definition of Small Scale Enterprises (SSEs) 13
2.2The State of Nigeria’s Agro-Based Industries 14
2.3Small Scale Agro-based Enterprises in Niger Delta 18
2.4Access to Credit 21
2.4.1 Limitation to Credit Access 22
2.4.2 Access to Credit among SMEs 24
2.4.3 Credit Constraints 26
2.5 Credit Default 28
2.6Empirical Evidence on Credit Accessibility 32
2.7 Theoretical Framework 36
2.7.1 Credit Access 36
2.7.2 Credit Constraints 41
2.7.3 Credit Default 43
2.7.4 effect of credit 45
2.8Analytical Framework 46
CHAPTER THREE Methodology
3.1 The Study Area 54
3.2 Sampling Technique 55
3.3 Data Collection 56
3.4 Data Analyses 56
CHAPTER FOUR Result and Discussions
CHAPTER FIVE Summary, Conclusion and Recommendations 96
5.1. Summary 96
5.2 Conclusion 99
5.3 Recommendations 100
5.4 Contributions to Knowledge 101
5.5 Suggestions for Further Research 102
REFERENCES 103
EVALUATING THE PERFORMANCE OF SMALL AGRICULTURAL ENTERPRISES IN THE NIGER DELTA REGION OF NIGERIA AND CREDIT ACCESS TO FAMERS
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