ABSTRACT
This study analyzed the Effects Entrepreneurial Competencies on the Performances of Cassava Processors in Abia State, Nigeria. Specially, the study described the socio-economic characteristics of the processors, described the entrepreneurial competencies possessed by the processors, estimated the factors influencing the entrepreneurial competencies among the processors, estimated the cassava processors entrepreneurial performance along the value chain, determined the differences in entrepreneurial performance of the processors, estimated the factors that influence the processors entrepreneurial performance and examined the constraints militating against the processors performance. A multistage sampling technique was used to select 120 cassava processors while a well-structured survey instrument was used to elicit the required data. The data collected were analysed using descriptive statistics, Principal Component Analysis (PCA), budget analysis, analysis of variance (ANOVA) and Multiple regression analysis. The results reveal that the cassava Processors had formal education with 63.3% of them having secondary education while the distribution according to their level of experience shows that 89.2% had an experience in cassava processing above 5 years. The cassava processors are involved in the production of flour, fufu, garri, and tapioca though most of them were found to produce more than one value added product. The significant of entrepreneurial competence with a mean X > 3.00 as shown in the results of the analysis are business understanding, communication skill, risk taking, good operational planning, good financial control, task coordination, ability to explore new idea etc. Cassava Processors entrepreneurial competencies were found to be profitable and viable with entire Cassava Processing enterprises having a return per naira of N5.265 There is a significant difference in the performance of various enterprises. Household size, income, competence and experience were the significant variables affecting the entrepreneurial performance of the processors. The major limitations faced by the enterprises include low output, entrepreneurial orientation, poor capital access etc. Based on the findings, it is recommended that cassava processors should be given enough orientation to enable them manage their inputs and also to understand the business environment in order to identify the market needs.
CHAPTER 1
TABLE OF CONTENTS
Title i
Declaration ii
Certification iii
Dedication iv
Acknowledgements v
Table of contents vi
List of Tables ix
Abstract x
CHAPTER
1: INTRODUCTION
1.1 Background
to the Study 1
1.2 Statement of Problem 3
1.3 Research
Questions 5
1.4 Objectives
of the Study 6
1.5
Hypothesis 6
1.6 Justification of the Study 7
CHAPTER
2: LITERATURE REVIEW
2.1 Conceptual
Framework 9
2.1.1 Description
of Cassava and its origin in Nigeria 9
2.1.2 Processing
of Cassava products 10
2.1.3
Cassava processing operations 11
2.1.3.1 Peeling and washing 12
2.1.3.2 Grating 13
2.1.3.3 Fermentation 13
2.1.3.4 Chipping/Slicing 15
2.1.3.5 Pressing 15
2.1.3.6 Sieving 15
2.1.3.7 Sun-Drying 16
2.1.3.8 Frying/Roasting or Drying 16
2.1.3.9 Soaking 17
2.1.3.10 Boiling 17
2.1.4 Cassava processed products 17
2.2 Overview of Nigerian agriculture 18
2.2.1 Entrepreneurship as a mechanism for
poverty reduction 23
2.2.2 Factor that contribute to entrepreneur business performance 25
2.2.3 Challenges to processing in Nigeria 26
2.2.5 Cassava processing technologies 30
2.2.6 Constraints
faced in Cassava processing 35
2.2.7 Global situation of cassava 36
2.3 The
Nigerian Cassava industry 37
2.4 Postharvest
handling and storage 39
2.4.1 Processing
techniques of cassava root 40
2.4.2 Storage
techniques 41
2.4.3 Demand
estimates of Cassava supply in Nigeria 45
2.5 Value
Chain of Cassava Product 45
2.5.1 Secondary
Products From Cassava 46
2.6 Profitability 51
2.6.1 Repayment
Capacity 53
2.6.2 Financial
Efficiency 55
2.7 Theoretical Framework 57
2.7.1 Farmers/Processors
As An Entrepreneur 57
2.7.2 Approaches
to assessing entrepreneurs 62
2.8 Empirical review 72
2.9 Analytical
Framework 77
2.9.1 Budgetary
Analysis 77
2.9.2 Multiple
Regression Analysis 78
2.9.3 Principal Component Analysis 79
CHAPTER 3: RESEARCH
METHODOLOGY
3.1 Study
Area 81
3.2 Method of Selection
of Respondents 82
3.3 Method
of Data Collection 82
3.4 Method of Data Analysis 82
3.5. Model
Specification 83
3.5. 1.
Budgetary
analysis 83
3.5.2. Profitability
Index 84
3.5.3. Multiple
regression model 84
3.6. 4 Principal component factors analytical model 81
CHAPTER
FOUR: RESULTS AND DISCUSSION
4.1 The
Socio Economic Characteristics of the cassava processors 86
4.2 Attributes of entrepreneurial
competencies processed by the respondent in the
study area 92
4.3 Entrepreneurial competencies along the
value added products of the cassava
Processing 98
4.4 Cassava processors’ entrepreneurial
performance along the value chain 102
4.5 The differences in entrepreneurial
performance of the Cassava processors 106
4.6 Factors that influence the cassava
processors entrepreneurial performance 108
4.7 The Constraints Militating Against
Entrepreneurial Performance of the Cassava Processors 111
CHAPTER
5: SUMMARY, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary 113
5.2 Conclusion 114
5.3 Recommendation
Reference 117
LIST OF TABLES
2.1: Traditional and Improved Cassava Processing
Equipment 34
4.1: Socio-Economic Characteristics of the Cassava Processors 88
4.2: Value
Added Products by the Cassava Processors 92
4. 3: Description
of the entrepreneurial competencies by the cassava processors 94
4.4: Entrepreneurial competencies among the
cassava processors along the value chain 98
4.5: Entrepreneurial
Competencies among the Cassava Processors along the Value chain
continued 101
4.6: Cassava
Processors’ Entrepreneurial Performance (53,333 kg of Cassava root) 102
4.7: Cassava
Processors Entrepreneurial Performance continued
the fufu processing enterprises are
viable. 104
4.8:
Cassava Processors Entrepreneurial Performance continued 105
4.9: Differences
in the Entrepreneurial Performance of the Cassava Processors 106
4.10: Ordinary
least square estimates of the Factors Influencing Entrepreneurial Performance 108
4.11:
Constraints Militating Cassava Processors Entrepreneurial Competence 111
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE
STUDY
Currently,
Nigeria is the largest producer of cassava in the world with an annual output
of 50,000,000 metric tons (FAO stat, 2017). Its importance forms the premise of
the presidential initiative on cassava production and processing which is one
of the major reforms in Nigeria economy from 1999 (Adebayo and Sangosina,
2005). Some of the inherent features which make cassava attractive especially,
to the marginal farmers in Nigeria are that, it is rich in carbohydrate,
starchy and consequently has a multiplicity of end uses. It also has the
ability to withstand adverse conditions, available all year round and thus
providing food security. According to Ezike, Nwibo and Odoh (2011),
commercialization of cassava is not all about growing the crop in large quantity
but an integration of such with effective value addition in form of processing.
They also noted that, without value addition to cassava roots, cassava cannot
be stored or exported.
The
entrepreneurial competency approach is becoming increasingly popular as a way
of studying entrepreneurial characteristics Man, Lau & Chan (2002). Lans, Bergevoet, Mulder and van Woerkum
(2005) have stated that, the issue of competency development has been a focal
point for literature on entrepreneurship. The competency approach is thus
proven to be an appropriate approach for measuring entrepreneurship.
In other to increase performance, the focus should be to minimise
cost, and increase business growth and sustainability within the volatile
market. Thus, the abilities needed to improve profitability and increase
business growth include decision making skills, networking skills, opportunity
seeking behaviour and problem solving abilities. The decision-making abilities
of a processor/owner are considered to be part of the skill of an entrepreneur.
However, for processors to be successful in their business operation,
innovative decision-making abilities are needed linking with entrepreneurial
characteristics and competencies in order to guarantee success. Sanchez (2011)
defines competencies as “a cluster of related knowledge, traits, attitudes and skills that affect a major
part of one’s job; that correlate with performance on the job; that can be
measured against well‐accepted standards; and that can be improved via
training and development”. Entrepreneurial competencies are defined as people
characteristics which enhance their performance or effectiveness at work.
Entrepreneurship research has shown that entrepreneurial competencies have a
positive impact on SME performance. According to Bird (1995), competencies are
seen as observable behaviours that are more tied to performance than other
entrepreneurial characteristics such as personality traits, intentions or motivations.
Gartner and Starr (1993) noted that entrepreneurial competencies play an
important role in enhancing firm performance, having both direct and indirect
effects on firm performance. An entrepreneur is expected to interact with these
environmental forces which require him to be highly competent in different
dimensions like intellectual, attitudinal, behavioural, technical, and
managerial aspects. Entrepreneurs are therefore permanently challenged to
deploy a set of competencies to succeed in their entrepreneurial endeavours.
It is expected that the processor with enhanced entrepreneurial
competencies would enjoy improved entrepreneurial performance. According to Van
Vuuren (1997) entrepreneurial performance is the achieving of set
entrepreneurial goals. In addition, Ladzani and Van Vuuren (2002) argues that
entrepreneurial performance utilizes the available opportunities to grow the
business idea. However, entrepreneurial performance can be measured
subjectively and objectively; absolute performance is used to measure objective
values using quantitative data by asking perceptive views about performance.
Moving the argument along, Performance measurement uses multi – dimensional set
of performance measures that include both financial and non-financial, which
quantify what has been achieved as well
as predict the future (Alhyari et. al., 2013).
Cassava processors need financial
statements to compare the actual performance of the business against the
planned performance and past performance. Efficient production of farming
operations has been shown to be an important factor in financial performance.
However, most farmers and or entrepreneurs prefer not to concentrate on their
planning, record-keeping and marketing, but rather on production. They further
explain that effective entrepreneur must be competent and able to determine the
financial performance of the farming business at any given time. The reason for
this being that a farmer can learn from past performances.
1.2 STATEMENT OF
PROBLEM
Agro
– based processing enterprises have been identified as driving force for
economic growth, job creation, and poverty reduction in developing countries.
(Sauser, 2005). Fabayo (2009) succinctly stated that in developing countries,
agro processing enterprises are the feeder services to large- scale industries,
a major employer and an essential contributor to community civic environments.
However, despite the huge contributions of agro – based processing enterprise
to development generally, researchers
have revealed that
entrepreneurs face many obstacles that
limit their long-term survival and development (ILO, 2005).
Researchers
have indicated that starting a business is a risky venture and that the chances
of small-business owners making it past the five-year mark are very slim (ILO,
2005). Some researches into business development have also shown that the rate
of failure of agro businesses in developing countries is higher than in the
developed world (Marlow, 2009). Factors affecting agro - based enterprise performance
have been a good research area by researchers for many years. Previous
researches indicated that several factors that influence performance include
among many others owners professional background, entrepreneurship capabilities
and preferences, cultural and religious beliefs, as well as the technology and
micro –environment (Buttner, 2001; Makhbul, 2011).
In
Nigeria, Akabueze, (2002) explains that despite the support and programmes to agro business, it would seem
reasonable to expect that agro processing businesses would grow and flourish,
but the rate of business failure continues to increase because of the obstacles
affecting business performance. Such factors according to Akabueze (2002)
include: lack of financial resources, lack of management experience, poor
location, laws and regulations, general economic conditions, as well as
critical factors such as poor infrastructure, corruption, low demand for
products, services, and poverty.
While Akabueze (2002) has argued in general terms about
factors affecting performance of agro-based entrepreneurs, there are no
specific data segregation on factors that influence the processors
entrepreneurial performance and constraints militating against the processors
performance.
Entrepreneurial competencies, linked with entrepreneurial
behaviour and decision making skills influence the performance of cassava
processors. In Abia State however, there is no reported research on the
influence of the processors entrepreneurial competences on their performance or profitability or business
performance.
1.3. RESEARCH
QUESTIONS
The study was intended to provide answers to the following
questions:
i.
What are the socio – economic characteristics of the
processors in the study area?
ii.
What are the entrepreneurial competencies possessed by the
processors along the value chain?
iii.
What are the processors’ entrepreneurial performance along the value chain in the study area?
iv.
What are the differences in entrepreneurial performance of
the processors’ along the value chain?
v.
What are the influence of entrepreneurial competency and
associated socio-economic variables on the processors entrepreneurial
performance in the study area?
vi.
What are the constraints militating against the processors
performance?
1.4 OBJECTIVES OF THE
STUDY
The
broad objective of the study is to analyse the effect of entrepreneurial
competencies on the performance of cassava processors in Abia State, Nigeria .
Specifically the study objectives are to:
i.
describe the socioeconomic characteristics of the processors
in the study area;
ii.
identify and describe the entrepreneurial competency attributes
possessed by the processors along value chain in the study area;
iii.
estimate the
processors’ entrepreneurial performance among the processors along the value
chain in the study area;
iv.
determine the differences in entrepreneurial performance of
the processors’ along the value chain in the study area;
v.
analyze the influence of entrepreneurial competency and
associated socio-economic variables performance on the processors entrepreneurial
performance in the study area;
vi.
identify the constraints militating
against the processors entrepreneurial performance.
1.5 HYPOTHESIS
Ho: There is
no significant difference between the processors’ entrepreneurial competencies
and their performance
H1:
There is a significant difference in the entrepreneurial performance of the
cassava processors along the value chain.
1.6 JUSTIFICATION OF THE STUDY
The importance of food to human existence cannot be
over emphasized because it is one of the necessities. It is from the foregoing
backdrop that this study is justified and was useful in numerous ways.
This
study will guide potential entrepreneurs and or farmers in selecting the most
profitable cassava value chain for processing to ensure high quality and
profitability of cassava by-products. This study was also useful to all stakeholders, government at
federal and state level especially Abia State Government as the finding will
spur Government in understanding the dynamics of cassava processing as data
gathered will enhance the understanding of major factor that militates against
entrepreneurial performance of processors and participation in development processes
and the best strategies for eliminating the constraints.
Based
on this, government and other stakeholder was able to mount effective policies
and empowerment programmes that was beneficial to farmer and or entrepreneurs
as well as effective allocation of resources.
Apart
from contributing to the existing body of knowledge this research on
entrepreneurial education was used as a proactive strategy to build
entrepreneurial personalities, organizations and societies. Entrepreneurial
education is vital as entrepreneurs who undergo an entrepreneurial education
will show a high propensity to take risk, creativity, motivation, growth
mindset and awareness of cassava / farm support services and Researchers- who
will conduct on further research on the need to harness entrepreneurial
competences and their benefits to the economy. This research was use to expound
on the birth and growth of entrepreneurial mindset and the effect of such a
mindset in an emerging economy such as Nigeria.
Lastly,
it is hoped that information from the study will form a source of reference
material to students, institutions, and researchers and provide a basis for
further studies on related issues.
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