Analysis of the effects of policy on the development of agro-based micro-enterprises in the informal sector of bayelsa state, nigeria

Project Abstract

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

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