Evaluation of Poverty Status and Profitability of Selected Women Entrepreneurs in Ogun State, Nigeria.

O O EHINMOWO, A I FATUASE, S O OJO

Abstract


Women are one of the most vulnerable groups to poverty; despite this, they are in the fore front of most small scale entrepreneurial businesses in the country. They see business as means of generating income to meet end means. Therefore, this study determined the poverty status and profitability of women entrepreneurs in Ogun State, Nigeria. Data were obtained from primary source using a set of structured questionnaire assisted with interview schedule. The multistage sampling technique was used to randomly select 135 women entrepreneurs in baking and confectionery enterprise for the study. Data were analysed using descriptive statistics, gross margin, Foster – Greer Thorbecke (FGT) and multinomial logit model analyses. The findings showed that majority of the respondents (85%) were married, 82.2% of the sampled respondents had at least primary education with average age of 43 years’ old and 93.3% had at least 4 persons per house. The study further revealed that total revenue and net profit accrued per annum were N1, 032,480.00 and N475386.01 respectively. The result of the expense structure ratio (ESR) of 0.04 showed that 4% of the total cost of this enterprise made up the fixed cost items. The values of gross margin (N496, 571.26), benefit cost ratio (1.85) and percentage profit (85%) indicated that baking and confectionery was a profitable business in the study area. The results of FGT showed that poverty incidence (Po), poverty depth (P1) and Poverty severity (P2) for the poverty line of $1 and $1.25 USD per day were 0.44, 0.14, 0.57 and 0.11, 0.17, 0.10 respectively. This implies that 14% and 17% of the poverty line of $1 and $1.25 respectively were needed to get out of poverty. Results of multinomial logit model revealed that experience, income and access to credit were the main factors that significantly influenced the level of poverty in the study area. The study therefore concluded that baking and confectionery enterprise is a profitable venture that could generate more income and alleviate poverty in the study area. Keywords: Profitability, Poverty status, Multinomial logit, Ogun State, Women entrepreneurs.

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