Comparative study of equity and non-equity financing of poultry enterprises in Obio-Akpor L.G.A in Rivers State

Abstract

This study compared equity and non-equity financing of poultry enterprises in Obio-Akpor L.G.A in Rivers State. The objectives were to  describe the socio-economic characteristics of poultry farmers, determine the availability of equity funding of poultry enterprise, identify  non-equity sources of funding of poultry enterprise, compare equity and non-equity profit of poultry enterprise and identify constraints  in poultry farmers access to both equity and non-equity funding in ObioAkpor LGA. This study adopted a survey research method. The  population of this study comprised of registered poultry farmers in Obio-Akpor local government area of Rivers State. Primary data were  used for this study. Data were collected using structured questionnaire. The collected data were analysed using descriptive statistics,  paired sampled t-test analysis and mean. From the result, self-funding (100%) was the predominant means of equity financing available  to poultry farmers in Obio-Akpor LGA. The amount of money poultry farmers were able to raise as equity finance was between ₦100,000- ₦500,000. Poultry farmers in Obio-Akpor LGA do not gain much from government credit schemes. Profitability analysis shows a net farm  income (profit) of ₦85,954.35 a return on investment of 0.3038 for equity financed poultry farms and a net farm income (profit) of  ₦62,674.35 a return on investment of 0.14 for non-equity financed poultry farms. The significance value of the paired sample test result  0.935 showed that there is no statistically significant difference between equity and non-equity financed poultry enterprise in Obio-Akpor. The study concluded that there is no difference in profit from equity financed and non-equity financed poultry farms in Obio-Akpor and  recommended that banks in collaboration with other financial houses in Rivers State should work out modalities to build instruments of  equity financing for poultry farmers in Rivers State .