Value Addition to Plantain by Women Entrepreneurs in Imo State, Nigeria

Abstract

The study examined value addition to plantain by women who process it into plantain chips in southeast Nigeria. A three stage sampling technique was used to select the entrepreneurs in the area. The objectives of the study described the motivating factors of the entrepreneurs, identified and described the processes the plantain undergo to produce chips, determined the sources of startup capital, ascertained the level of net profit made at the end of production of plantain chips and   sales of the product, determined the staff strength of the entrepreneurs,  isolated the  factors that influenced net profit and identified the constraints faced by these entrepreneurs. Eighty (80) plantain chip entrepreneurs were randomly selected from major selling points in the city. A well structured questionnaire was used to elicit information for this study. Entrepreneurs motivating factors, profit and source of startup capital were measured, using frequency counts, percentages, net profit analysis, and multiple regression analysis. The findings showed that the motivation factors were more of antecedent variables such as education, mentors, past experience and creativity than triggering variables such as unemployment, loss of jobs and loss of one’s spouse. The enterprise employed an average of 4 workers for production and 6 sellers for distribution. The source of startup capital was from personal savings and loan from informal credit sources such as “isusu” clubs with a mean of N 86,600.50 ($687.3) as startup capital.  The business was profitable at net profit of N388, 173 ($2,488) per annum. Household size, cost of inputs such as cost of labor and packaging cost had a negative influence on the entrepreneurs’ net profit. The venture created an average of four employment opportunities in the business.  The constraints faced by the entrepreneurs were scarcity and high cost of raw materials, lack of training on budgeting, epileptic power supply, and unavailability of modern technology to enjoy economies of scale.  This study recommends that soft loans, training in business (budgeting and planning) be given to the entrepreneurs as this will help them remain in business, expand and be employers of labor which will enhance economic development of the nation.

Keywords: women, entrepreneurs, processing, plantain, plantain chips