Comparative Analysis of Net Returns of Small and Medium Agro-Based Enterprises in Enugu State, Nigeria

Abstract

The study analysed the returns to agro-based small and medium enterprises in Enugu State, Nigeria. It specifically estimated and compared the returns to both categories of enterprises and also determined the factors that affected returns to each category.  Ninety agro-based SMEs comprising 60 small scale and 30 medium scale agro-based enterprises were randomly sampled from the three zones of the State. Data were generated through the use of structured questionnaire. Results showed that small scale agro-based enterprises earned on the average a total revenue of N1,006,470 ($6,099.82 at an exchange rate of $1 = N165) per annum while the medium scale agro-based enterprises total revenue was N2,065,375 ($12,517.42) per annum. The results yielded a net return of N199,070 ($1,206.48) and N433,332 ($2,626.25) with an average rate of return of 24.66% and 26.55% for the small and medium scale agro-based enterprises respectively. This implies a high rate of return. Net returns to small and medium scale agro-based enterprises were significantly affected by age of operators, education, employment generation, linkage effect, experience and category of enterprise. It is recommended that policies which will encourage continuous education of entrepreneurs in business skills either through workshops or seminars should be highly advocated.

Key words: Net returns, agro-based, small scale, medium scale, enterprises