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The Effect of Micro Enterprise Financing on Farmers Welfare in Abia State, Nigeria


OR Mejeha
OR Iheke
NC Okoh

Abstract

This study was on the effect of micro enterprise financing on farmers welfare in Abia State, Nigeria. Both primary and secondary data were used for the study. Primary data were collected using well structured questionnaire and interview schedules while secondary data were from texts, journals and other relevant reports and documents. Micro enterprise farmers used for the study included crop, livestock, poultry and fish farmers. A multi-stage random sampling technique was employed in the selection of the farmers used for the study. Data collected were analyzed using multiple regression analysis and Chow’s test. Result of the study revealed that microloan, physical assets, farm size, age and education were the significant determinants of the welfare of the farmers with micro loan, while for the farmers without microloan, physical assets, household size and education were the significant factors affecting their welfare. The pooled sample result revealed the significant factors affecting the farmers’ welfare to be micro credit, physical assets, farm size, household size and education. The chow’s test revealed a significant difference between the welfare of the farmers with micro loan and those without micro credit. Micro enterprise farmers who obtained micro credit to finance their business had better welfare status that those that did not.


Key words: Micro Enterprise, Financing, Welfare, Abia State,


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print ISSN: 0300-368X