Ehinmowo et al
Greener Journal of Social Sciences Vol. 6 (1), pp. 019-029, January 2016
ISSN: 2276-7800 © 2016 Greener Journals
Manuscript Number: 122315173
Poverty Profiles and Technical Efficiency Nexus: A Case Study of Women Entrepreneurs in Oyo State, Nigeria
1Ehinmowo Olubukola Omotinuke, *2Fatuase Adewale Isaac and 3Ojo Sylvester Oluwadare
1Department of Entrepreneurship Management Technology, Federal University of Technology, Akure, Nigeria.
2Department of Agricultural Technology, Rufus Giwa Polytechnic, Owo, Ondo State, Nigeria.
3Department of Economics, Federal University of Technology, Akure, Nigeria.
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.
Keywords: Cassava Processing, Poverty Profiles, Women Entrepreneurs, Technical Efficiency.
ADB (African Development Bank) (1999). African Development Report, Oxford University Press, Oxford, UK.
Aidis R, Welter F, Smallbone D and Isakova N (2007). Female entrepreneurship in transition economies. The case of Lithuania and Ukraine, Feminist Economics, 13(2), 157 – 183.
Aigner DJ, Lovell CAK and Schmidt P (1992). Formulation and Estimation of Stochastic Frontier Production Function Model. Journal of Econometrics Vol. 6, No 2, p. 21 – 37.
Ajakaiye A and Adeyeye VA (2001). The nature of poverty in Nigeria. Institute of Social and Economic Research Monograph Series, No. 13: 1 - 20.
Akerele D and Adewuyi SA (2011). Analysis of poverty profiles and socioeconomic determinants of welfare among urban households in Ekiti State, Nigeria, Journal of Social Sciences. Vol. 3(1): 4 – 7.
Apata TG, Rahji MA, Samuel K and Igbalajobi O (2009). The persistence of small farms and poverty levels in Nigeria: An Empirical Analysis, Contributed Paper prepared for presentation at the 111 European Association of Agricultural Economist’- International Association of Agricultural Economists’ 2009 Conference, Seminar ‘Small Farms: decline or persistence.
Battese G and Coelli JJ (1996). Identification of factors which Influence the Technical Inefficiency of Indian farmers” Australian Journal of Agricultural Economics Vol. 6 No 1, p. 48 – 55.
Coelli JJ (1995). Recent Developments in Frontier Modeling and Efficiency Measurement, Australian Journal of Agricultural Economics. Vol. 39, No 3, p. 219 – 245.
Ehinmowo OO and Ojo SO (2014). Analysis of Technical Efficiency of Cassava Processing Methods among Small Scale Processors in South – West, Nigeria; American Journal of Rural Development, Vol.2(2): 20 – 23.
Fisher MG and Weber, BA (2005). The Importance of Place in Welfare Reform: Common Challenges for Central Cities and Remote-Rural Areas. Research Brief 1, Center on Urban and Metropolitan Policy, Brookings Institution, Washington, DC.
Food and Agriculture Organization (2010). FAOSTAT (http//faostat3.fao.org)
Gawel A (2013). Female entrepreneurship in Poland, Poznań University of Economics Review, vol. 13, pp. 115-130.
Global entrepreneurship monitor (GEM) 2004, report on women entrepreneurship, 2007.
Harper DA (2003). Foundations of Entrepreneurship and Economic Development. Published by Routledge 11 New Fetter Lane, London ECAP 4EE.
Igbalajobi O, Fatuase AI and Ajibefun I (2013). Determinants of Poverty Incidence among Rural Farmers in Ondo State, Nigeria, American Journal of Rural Development, Vol 1, No5, 131 – 137.
Kumar MS, Chandrika HSM, Vijaya C and Lokeshwari N (2013). The role of women entrepreneurship in modern world, International Journal of Current Engineering and Technology, 3(1) 100 – 105.
Lee WF and Fan YJ (2010). Evaluating the Performance of the Taiwanese Banking Industry: An Application of the Luenberger Productivity Indicator. Taiwan Economic Review, 38(4), 593-627.
Levy S (1991). Poverty alleviation in Mexico. World Bank Policy Research and External Affairs Working Paper Series 679. Washington DC: The World Bank.
Lipi (2009). Women Empowerment: Globalization and Opportunities in Empowerment of Rural Women in India Kanishka Publishers, New Delhi.
Lipton M (1983). Poverty, under nutrition and hunger. World Bank Staff Discussion Paper No 59. Washington DC: The World Bank.
National Bureau of Statistics, Provisional Total 2006 census figures by Local Government Areas: http://www.nigeriastat.gov.ng/nbsapps as retrieved on 9th of March, 2010.
Odusola AF (1997). Poverty in Nigeria: An Eclectic Appraisal", Poverty Alleviation in Nigeria, Selected Papers for the 1997 Annual Conference.
OECD (2000). Women Entrepreneurs in SMEs: Realizing the Benefits of Globalization and the Knowledge – Based Economy, Paris OECD.
Ojo SO (2005). Productivity and Technical Efficiency of Palm Oil Extraction Mills in Nigeria; Journal of Food, Agriculture and Environment, Vol. 3(1): 21 – 24. www.world-food.net.
Ojo SO, Afolabi JA and Fagbenro OA (2006). Profitability and Technical Efficiency of Artisanal Fisheries Production in Nigeria. Journal of Sustainable Tropical Agricultural Researchvol. 19:23 – 30.
Okunmadewa FY, Yusuf SA, Omonona BT (2005). Social capital and poverty reduction in Nigeria, Revised report submitted to Africa Economic Research Consortium (AERC) Nairobi, Kenya.
Organization for Economic Cooperation and Development, Closing the Gender Gap: Act Now (Paris: OECD Publishing, 2012).
Prabha S (2009). Rural Women and Development of Entrepreneurship with special reference to Punjab in Empowerment of Rural Women in India Kanishka Publishers, New Delhi.
Ramadani V, Dana LP, Gĕrguri S and Tašaminova T (2013). Women entrepreneurs in the Republic of Macedonia: Waiting for directions, International Journal of Entrepreneurship and Small Business, 19(1), 95 – 121.
Ruben R and Vanden Berg M (2001). Non – farm employment and poverty alleviation of rural farm households in Honduras,” World Development, Vol. 29, No 3, 549 – 560,
Singh G and Belwal R (2008). Entrepreneurship and SMEs in Ethiopia: Evaluating the role, prospects and problems faced by women in this emergent sector. Gender in management, An International Journal of Entrepreneurship management, vol. 23, pp. 120-136, 2008.
Spencer D (2002). The future of Agriculture in Sub-Saharan Africa and South Asia, In Sustainable Food Security for All by 2020.Proceedings of an International Conference, Bonn, Germany.International Food Policy Research Institute, Washington, D.C.
Suleman A (2012). Factors Influencing Adoption of Improved Cassava Processing Technologies by Women Processors in Akoko – Edo, Edo State; Faculty of Agriculture, Ahmadu Bello University, Zaria, Nigeria. Unpublished Thesis.
Streeten P (1989). First things first: Meeting Basic Human Needs in Developing Countries. The World Bank: Oxford Press.
Tadesse B and Krishnamoorthy S (1997). Technical Efficiency in Paddy Farms of Tamil Nadu. An Analysis based on farm size and ecology zone, Agricultural. Economics, 16;185 - 192.
Yunez – Naude A and Taylor JE (2001). The determinants of non – farm activities and incomes of rural households in Mexico with emphasis on education. World Development, 29(3):561 – 572.