Income, savings and investment pattern of small-scale agro-based entrepreneurs in Kaduna South Local Government Area of Kaduna State Nigeria

Abstract

The study aimed at analyzing the income, saving and investment pattern of small-scale agro-based entrepreneurs in Kaduna South Local Government Area of Kaduna State. A total of 102 respondents were randomly selected from four wards in the study area using a multistage sampling procedure. Primary data were collected using wellstructured questionnaire and analyzed using descriptive statistics, and seemingly unrelated regression model. The result showed that, respondents in the study area were engaged in the sales of foodstuffs, and they had 6 years of entrepreneurial experience. The average monthly income and savings was N39190 and N26759 respectively. Majority (40.2%) invested within N101000 - N200000 in their businesses. Furthermore, the seemingly unrelated regression results showed that household size (1.505), marital status (6.282) and sex (4.576) had positive influence on income(p<0.01) while agro-based enterprise (1.435) and income (0.411) had positive influence on savings(p<0.01). Also, the result indicated that household size (1.88), marital status (6.310) and sex (4.619) were the factors that influenced investment in the study area. The major constraints limiting income, savings and investment in the study area were inadequate financing (4.35) and poor power supply (4.08). The study concluded that savings, and investment in the study area was low and thus recommended that Government and users should be pro-active in the construction and/or maintenance of existing infrastructure since while financial institutions and organizations should create savings products that cater for the unique needs of the agro allied entrepreneur.