ANALYSIS OF THE EFFECTS OF POLICY ON THE DEVELOPMENT OF AGRO-BASED MICRO-ENTERPRISES IN THE INFORMAL SECTOR OF BAYELSA STATE, NIGERIA
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ANALYSIS
OF THE EFFECTS OF POLICY ON THE DEVELOPMENT OF AGRO-BASED MICRO-ENTERPRISES IN
THE INFORMAL SECTOR OF BAYELSA STATE, NIGERIA
ABSTRACT
This study was conducted to analyze the
effects of policy on the development of Agro-based micro-enterprises in the
informal sector of Bayelsa State of Nigeria. Structured questionnaires were
used to collect data from 150 microenterprises that were randomly selected.
Descriptive statistics, multiple
regression, Access model and the t-
statistics were employed for data analysis. Among the major findings were that
the agricultural micro-enterprises span the entire agricultural sector of crop
production, animal, fisheries, processing and trading. The age range of the
entrepreneurs were between 31-65 years (85.4%), with women dominating the
sector (58.0%).
The level of education was appreciable with
44.0% having more than primary education, the enterprises were relatively new
with experience range of 1-10years and 80.7% employed between 1 and 10 persons.
The average income was N100,000 per annum and an asset holding of N100,000 to
N150,000. Econometric estimation showed that experience, size, income level,
value of asset-holdings and credit history affected the amount of micro-credit
obtained significantly. Also, age,
gender of entrepreneur and level of education
did not affect the amount of credit obtained significantly. Further findings
showed that only 23.3% had access to training and only 9.3% have benefited in
government market facilities. The access index of micro-credit was 0.26
representing 26.0% in the entire state.
The survey also showed that tax policy also
significantly affected the development of urban and rural micro-enterprises.
Also poor transportation, poor road network, poor electricity supply,
inadequate market infrastructure, inadequate subsidies and micro-credit were
the identified constraints to microenterprises development. It is therefore
recommended that the government, NGOs multinationals should re-address the
infrastructural policies, micro-credit policies, tax, training programmes and
if possible partner with private companies for a total over-haul of the sector.
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