The study analyzed effect of formal financing and investment on the
performance on bakery enterprises in Abia State, Nigeria. Multi-stage
random sampling techniques were employed in the selection of 120 respondents.
Primary data were collected with the use of questionnaires using enumerators.
Relevant descriptive and inferential statistics such as frequencies,
percentages, means, multiple regression models were used for data analysis. The
result shows that 53.3 percent of the bakery enterprise operators in Abia state
were females while 46.7 percent were males and their average age was 39 years.
Majority (92.5%) of the respondents in the study area had one form of formal
education or the other and about 65.8% were married. The mean household size
was 6 persons and the mean baking experience in their line of business was of
19 years. Majority of the respondents (66.7%) belonged to one association or
the other. The average amount of
credit accessed by the respondents was
The major condition for accessing loan was secured and realizable collateral. The gross profit and net profit
for an average enterprise per month were N86,852.91
and N82,533.93 respectively. The result showed that
the average investment and amount of loan received were N 178,579.93 and N139,583.00
respectively, while the owners ‘equity was N38,996.93.
Also the debt to equity ratio of the bakers is 3.58. A positive
(direct) and significant relationship between loan amount with corporative
membership, interest payment, equity capital and loan duration while a negative
and significant relationship exists between leverage ratio, cost of supervision
and marketing expenses. Amount
of loan (1%), revenue from sales (10%), number of bakery product (10%) all move
in the same direction (positive) with level of investment while volume of
investment was negatively related to depreciation of farm equipment. Furthermore
performance was positively related to amount of loan, location of
business, number of
bakery product, while transportation and levies were negative and
significant variable that influence the performance of bakery enterprise. Furthermore,
a positive (direct) and significant relationship exist between amount invested, size of business and
frequency of processing while a negative and significant relationship exist
between price of product and performance. The major problems associated with loan access were delayed
approval (0.817), long protocols (0.713) and poor government policy (0.68). The
study recommends that conscious efforts should be geared towards increased
encouragement of the bakery enterprise in order to meet the demands of bakery
businesses for food security in both the study area and the country (Nigeria)
CHUKWUMA, C (2023). Effect Of Formal Financing And Investment On The Performance Of Bakery Enterprises In Abia State, Nigeria. Repository.mouau.edu.ng: Retrieved Dec 04, 2023, from https://repository.mouau.edu.ng/work/view/effect-of-formal-financing-and-investment-on-the-performance-of-bakery-enterprises-in-abia-state-nigeria-7-2
CHUKWUMA, CHUKWUMA. "Effect Of Formal Financing And Investment On The Performance Of Bakery Enterprises In Abia State, Nigeria" Repository.mouau.edu.ng. Repository.mouau.edu.ng, 08 May. 2023, https://repository.mouau.edu.ng/work/view/effect-of-formal-financing-and-investment-on-the-performance-of-bakery-enterprises-in-abia-state-nigeria-7-2. Accessed 04 Dec. 2023.
CHUKWUMA, CHUKWUMA. "Effect Of Formal Financing And Investment On The Performance Of Bakery Enterprises In Abia State, Nigeria". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 08 May. 2023. Web. 04 Dec. 2023. < https://repository.mouau.edu.ng/work/view/effect-of-formal-financing-and-investment-on-the-performance-of-bakery-enterprises-in-abia-state-nigeria-7-2 >.
CHUKWUMA, CHUKWUMA. "Effect Of Formal Financing And Investment On The Performance Of Bakery Enterprises In Abia State, Nigeria" Repository.mouau.edu.ng (2023). Accessed 04 Dec. 2023. https://repository.mouau.edu.ng/work/view/effect-of-formal-financing-and-investment-on-the-performance-of-bakery-enterprises-in-abia-state-nigeria-7-2