An Analysis Of Savings And Investment Behaviour Of Micro Business Entrepreneurs In Port Harcourt Local Government Area Of Rivers State

ABSTRACT

This research study was designed to analyze the savings and investment behaviour of micro-business entrepreneurs in Port-Harcourt Local Government Area in Rivers State. Data for the study was collected from a random sample of 72 micro business Entrepreneurs selected from seven autonomous communities in the local government area. Data was collected with the aid of questionnaires which were used to interview respondents. Data Analysis was done using frequency tables, percentages, mean, and regression analysis. The result showed that taxes, income, level of education, staff strength and profit affects the level of savings directly while Age and expenditure affects the level of savings indirectly. Likewise tax, household size, staff strength, income, interest rate and profit affect the level of investment directly while Age and educational level do not affect the level of investment directly. Using the double log function, it was revealed that the coefficient of multiple determinations R2 which is 50.7% implies that 5 0.7% of the variations in the dependent variable are explained by the independent variables. The F value which is 5.613 is significant at 1% level which implies that the variables included in the model arc relevant in explaining the variations in savings. Likewise, the investment function showed that the R2 is 99.4% which implies that 99.4% of the variations in the dependent variable are explained by the independent variables. The F value which is 577.820 and is significant at 1% level showed that the coefficient of determination is significant in explaining the variations in investment. Recommendations were also proffered based on the research findings.