Journal of Rural Res. & Information (Vol.5; No.

1:2011)

Okunade and Oladosu

ASSESSMENT OF WOMEN LIVELIHOOD ENTERPRISES IN OGBOMOSO METROPOLIS OF OYO STATE, NIGERIA. By

*

OKUNADE, E.O (Ph.D) and OLADOSU, I.O (Ph.D)

Department of Agricultural Extension and Rural Development Ladoke Akintola University of Technology,Ogbomoso. E-mail:* okunade.eo@lautechaee-edu.com & ayaba0604@ahoo.com Tel. No. 08035029438/08078002006 ABSTRACT The study was conducted to examine the current situation and perspective of womens enterprises in Ogbomoso metropolis of Oyo State. Specifically, types of livelihood enterprises available, reasons for embarking on the enterprise, obstacle to their enterprise growth, sources of funds available and their needs to get going on the enterprise were determined. The relationship between socio economic characteristics and number of enterprises was also determined. All households in Surulere local government consistitute the study population, 80 households were randomly selected from the list of registered household from which eighty women were selected through simple random sampling technique and were interviewed using a well structured interview schedule. Data were described using frequencies and percentages while chi square was used to determine the relationship between socio economic characteristics and the livelihood enterprises in which the respondents are involved. The result shows that majority of the women are into more than one enterprise for diverse reasons. Most of the women indicated scarcity of financial support and low purchasing power of clients in the area as the major obstacle being faced in their enterprises. The result of the chi-square analysis showed that there is a positive and significant relationship between marriage(X2= 64.67), years of experience (X2 =53.11), household size (X2 =28.32) and livelihood enterprises. Also age, years of schooling, ,religion and occupation had positive but insignificant relationship with livelihood enterprise. The result implied that marriage is a sign of being responsible and mature, when this is combined with experience on the job will allow for better management. However, that there is the need for regular training on the management of family size, source of funding and enterprise to maximize profit. Key Words: Enterprise, Entrepreneur, Management and Empowerment

INTRODUCTION Entrepreneurship can be defined as the willingness and ability of an individual to seek for investment opportunities to establish and run an enterprise successfully (Suleiman 2006) Drucker viewed an entrepreneur as a person who perceives business opportunities ,takes advantage of the scarce resources and uses them profitably. However, enterprise could be referred to as business run by an individual or a group of people. Nigerian and African women entrepreneurs in general are in the micro 30

Journal of Rural Res. & Information (Vol.5; No.1:2011)

Okunade and Oladosu

enterprise sector because of the challenges which borders on gender issues, economic or socio-cultural barriers as well as government unfavorable policies. Akpera and Sunday ( 2008) Culture and social practices discriminate against women to be enterprise successors/inheritors or own independent assets which could easily serve as collaterals. Such unequal land rights are reflected in the smaller land sizes of women farmers, thus limiting them economically. The UNDP (1995) estimated that, about 60% of the world-poors, are women. Women are poorer because they are more vulnerable economically. In spite of these women have always worked and played key roles in the survival of many families and Womens livelihood activities have also contributed to their family upkeep (Bullock, 1994). Yahaya and Olowu (1998) also confirmed that women were able to achieve this especially in rural area by engaging in many livelihood activities including monetized and non-monetised activities in agricultural and non-agricultural sectors. However insecure access to productive and natural resources, environmental degradation and economic instability has threatened the sustainability of many of these activities (Olawoye, 2001). Women in general are naturally endowed with some exceptional abilities, which if properly harnessed for entrepreneurship purpose, could result in positive and enviable results. Women by nature have creative abilities, are blessed with ability to persist and pursue their desires, are good and patient nurturers of children (Department of Agricultural Economics, University of Ibadan, Ibadan, Nigeria 2000). This tenacity is usually transferred into business, thus make them good innovators, have ability to develop passion for what they believe in. Like other women in other parts of the country, women in the study area engaged in different livelihood activities to obtain food, housing and money. Some of these activities include farming, sewing, hairdressing and trading in both agriculture and non agricultural products. The essence of being engaged in any enterprise is to be empowered economically. This study therefore seeks to examine the women livelihood enterprises in the study area and provide answers to the following questions: (i) what are the type of enterprises of the respondents? (ii) what are the reasons for embarking on the enterprise? (iii) what are the obstacles to the growth of the enterprise? (iv)what are the needs to get the enterprise going? Objective of the Study The main objective of the study is the assessment of women livelihood enterprises in Ogbomoso metropolis of Oyo State, Nigeria. The specific objectives are to: (i) identify the type of enterprises of the respondents (ii) examine the reasons for embarking on the enterprise (iii) examine the obstacles to the growth of the enterprise (iv) examine the needs to get the enterprise going. Hypothesis of the Study (i) There is no significant relationship between socio-economic characteristics of the women and the number of enterprises they are involved in.

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Journal of Rural Res. & Information (Vol.5; No.1:2011) METHODOLOGY

Okunade and Oladosu

The study was carried out in Ogbomoso metropolis in Oyo State. The samples were selected through a multistage sampling procedure. 80 households were randomly selected from the list of registered households in Ogbomoso metropolis, from which 80 women respondents were selected through simple random sampling. Information was gathered through the use of a well validated and structured interview schedule. Data were analyzed using frequency counts, percentages and chi-square to determine the relationship between the type of enterprise and socio-economic characteristics of the women. Measurement of Variable The dependent variable was the number of enterprise embarked upon by the respondents. This is measured using 3 point Likert scale: Very Involved (VI) = 3 points; Involved= 2 points; Rarely Involved = 1 point. The maximum score for livelihood Enterprises is 42 while the minimum score is 14. The independent variables are socio-economic characteristics, sources of funds, constraints/obstacles, reasons for engaging in the enterprise and the needs to keep going the enterprise. RESULTS AND DISCUSSION Socio- Economic Characteristics of the Respondents Table 1 shows the distribution of respondents by socio-economic characteristics. The results show that about 38.8 percent of the respondents were in the range of less than 20 to 30 years, 27.5 percent were between 31 and 40 years, 11.3 percent are equal or greater 61 years, 10 percent are less or equal to 20 years while 8.8 percent are between 51 and 60 years of age. The mean age is 37.4 years which implies that the respondents are in their active age which suggests that they will be very agile and active in the pursuance of their daily bread. The result also showed that 62.5 percent of the respondents are married, 26.3 percent are single, 6.3 percent are widow, 2,5 percent are separated while 1.3 percent are divorced. The result shows that majority of the respondents have responsibility towards their homes, hence they cannot but be engaged in one form of enterprise or the other for sustenance. Also, 53.8 percent of the respondents are Christians, 42.5 percent practice Islamic religion while 3.8 percent are into traditional religion. About 37.5 percent of the respondents had secondary school education complete, 33.7 percent had primary school education, 7.5 percent each had years of schooling between 7-9 years and 13-16 years. Also, 10 percent of the respondents had no formal education at all while 3.7 percent had years of schooling greater or equal to 17 years. It implied that majority of the respondents had one form of education or the other. It was also revealed that 58.8 percent of the respondents had between 1-10 years of experience, 25.0 percent had livelihood enterprises experience between 11 and 20 years, 8.8 percent had years of experience greater or equal to 31 years while 7.5 percent had experience between 21 and 30 years. The result shows that 51.3 percent had family size between 1 and 5, 43.8 percent had between 6-10 members, 3.7 percent had between 11-15 members while only 1.3 percent had equal or greater than 16 members. This shows the level of responsibility of the respondents in maintaining their homes. About 62.5 percent had business enterprise as their primary occupation while 37.5 percent of the respondents had business enterprise as secondary occupation. 32

Journal of Rural Res. & Information (Vol.5; No.1:2011) Type of Livelihood Enterprises Available

Okunade and Oladosu

The data in Table 2 showed the distribution of respondents by type of enterprises. The result shows that above average (56.3%) of the respondents were into gari processing. About 48.8 percent of the respondents sells provisions, 28.8 percent are into soap making, 22.5 percent of the respondents are food vendors, 11.3 percent each are involved in the sales of condiments and sewing respectively. About 10 percent of the women are hair dressers and sale of Ogi respectively. Also, about 8.8 percent of the respondents engaged in telephone services operators and confectionaries, 6.3 percent are involved in catering business, 5 percent are into farming business, 3.75 percent each are into decorations and knitting. The implication of this results is that majority of the respondents are involved in enterprises that are quick yielding which do not require any special skill for its practise. In all the respondents were involved in thirteen different enterprises in the study area. Livelihood Enterprises involved in by the Respondents The data in Table 3 showed the rank order of respondents involvement in the different livelihood enterprises. The result revealed that gari processing ranked highest with Weighted Mean Score (WMS) of 2.4. This is followed by the sale of provision with wms of 2.3. Next is soap making having wms of 2.0. Others are in the following order : sewing(0.7), hairdressing (0.7), sale of condiment (0.7), sale of ogi (0.6), farming (0.4), confectionaries (0.40, telephone operators (0.3), catering (0.2) while decoration, food vendors and knitting ranked least each with wms of 0.1 respectively. The study area being rural in nature reflects the type of livelihood enterprise that are most prevailent hence gari processing is the enterprise that most of the women engaged in.

Reasons for Embarking on Enterprise The data in Table 4 revealed the distribution of respondents by reasons for going into various enterprises. The result showed that majority (93.8 percent) of the respondents engaged in enterprise in order to have financial independence. About 83.3 percent are into business for self employment purposes, 27.5 percent engaged in enterprise to satisfy their habits while about 8.8 percent are involved in enterprise to have flexible working time. Other reasons include: to test ones business capacity (6.3 percent), to have knowledge and new experience (5. 0 percent) and the least, the use of ones national endowment (1.3 percent). The result implies that the respondents embark on this various enterprises because of financial independency and self reliance to give necessary assistance in the house, Obstacles to Enterprise Development The data in Table 5 revealed the distribution of respondents by obstacles to enterprise. The result showed that majority (77.5 percent) had inadequate of financial support/ resources. About 26.3 percent experienced lack of market/ sales, 23.8 percent identified low purchasing power of clients in rural areas, 16.3 percent experienced lack of time, 13.8 percent identified low scale of production while 6.3 percent identified conflicting role between enterprise and family. Other obstacles are: limited time for vacation and 2.5 percent acknowledged insincerity of partnership being the least. The result implied that the women are facing differs number of constraints which may serve as deterrent to the expansion of their enterprises in the study area especially inadequate financial support for expansion of their livelihood enterprises. Sources of Finance The data in Table 6 shows the distribution of respondents by sources of fund available to the respondents. The result shows that majority (75 percent) of the respondents relied on personal savings. 33

Journal of Rural Res. & Information (Vol.5; No.1:2011)

Okunade and Oladosu

About 28.5 percent uses loans from relatives, 21.3 percent had credit facilities from cooperative societies while 8.8 percent relied on bank loans. The results explain the reason for the micro level of operations of the respondents since majority depend solely on their personal savings from their megar income which was not sufficient for use, talk less of reinvesting in to the business. Needs of the Business Enterprises The data in Table 7 showed the distribution of respondents by the needs of the business enterprise. The results revealed that a hundred percent of the respondents saw the need for financial support. About 87.5 percent needed coordinating body for rural enterprises, 86.3 percent of the respondents needs more training on various entrepreneurship, 75.0 percent of them saw the need for groups formation on enterprises basis while 73.8 percent need regular advice on accountability. The implication of the result is that respondents need all these supports to have a sustainable livelihood enterprises development.

Test of Hypotheses Hypothesis 1: There is no significant relationship between socio-economic characteristics and number of Enterprises involved in. The data in Table 8 shows the relationship between socio-economic characteristics and number of enterprises engaged in by the respondents. The result shows that marriage(X 2=64.68), years of experience(X2=53.11), household size(X2=28.32) had positive and significant relationship with the number of enterprise. However, age(X2=21.13), religion(X2=13.52), years of schooling(X2=8.25) and occupation(X2=5.80) have no significant relationship with the number of enterprise engaged in by the women. The result implied that variables with significant values have a positive influence on the number of enterprise that the respondents can have. A woman by virtue of marriage can have financial support from the husband to either expand the existing business or to diversify into another. Increased experience acquired in business is a sufficient guide to either increase the scope of operation or venture into a new business entirely. Likewise, the higher the household size the more the likelihood of having more hands to assist in the operation of the business. Conclusion and Recommendation Majority of the women farmers are middle aged with mean age of 37.38 years. A higher proportion of them have one form of formal education with only 10% illiterates, 62.5% are married and belong to the three orthodox religions. About 15 different types of enterprises were identified among the respondents, but participation was more in enterprises that are quick yielding and which does not require any special skill for its practice. Positive and significant relationship existed between some socio-economic characteristics and number of enterprises and Source of finance. Majority of the respondents engaged in enterprise for financial independence and employment purposes. The major obstacle to business enterprise in the study area is scarcity of financial support/ resources and only source of finance available to them is personal savings. However, there are areas of needs mentioned such as financial support, group formation, and regular advice on accountability. Based on the findings of this result, it can be concluded that: (i) Women should be encouraged to join cooperative societies to have access to bank loans. (ii) Emphasis should be placed on the need for good accountability in their business. 34

Journal of Rural Res. & Information (Vol.5; No.1:2011)

Okunade and Oladosu

REFRENCES Akpera D.M. and Sunday M. (2008): Strategies for the development of entrepreneurs in Nigeria. A paper presented at the 3-day International workshop on Promoting Entrepreneurship Education Among Nigeria women: Issues and Approaches Abuja 12p Department of Agricultural Economics, University of Ibadan(2002): Women in agriculture in Nigeria: Problems and policies for development. Olawoye, J.E. (2001): Gender Informed Approaches to Sustainable Human Development. A Paper Presented at the training programme on Gender Issues in Economic Development at National Centre for Economic Management and Administration (NCEMA), Ibadan, 27th - 31st August pp.6 -7. Suleiman, A.S. (2006): The Business Entrepreneur; Entrepreneurial Development, Small and Medium Enterprises, 2nd Edition, Entrepreneurship Academy Publishing, Kaduna Yahaya M.K. and Olowu, T.A. (1998): Assessment of the Socio-Economic Profile of Women Farmers in North-Central Nigeria: Lessons for Rural Development Planning. Nigerian Journal of Rural Sociology, 2: 56-61.

Table 1: Distribution of respondents by Socio-economic characteristics Socio-economic Characteristics Age (years) 20 - 30 years 31-40 41-50 Frequency Percentage

31 22 11 35

38.8 27.5 13.8

Journal of Rural Res. & Information (Vol.5; No.1:2011)

Okunade and Oladosu

51-60 61 Marrital Status Married Seperated Widow Divorced Single Religion Christian Islam Traditional religion Years of Schooling (years) Illiterate 1-6 7-9 10-12 13-16 17 Years of Experience 1-10 11-20 21-30 31 Family Size 1-5

7 9

8.8 11.3

50 2 5 1 21

62.5 2.5 6.3 1.3 26.3

43 34 8

53.8 42.5 3.8

8 27 6 30 6 3

10 33.8 7.5 37.5 7.5 3.7

47 20 6 7

58.8 25.0 7.5 8.8

41 36

51.3

Journal of Rural Res. & Information (Vol.5; No.1:2011)

Okunade and Oladosu

6-10 11-15 16 Field survey, 2009

35 3 1

43.8 3.7 1.3

Table 2: Distribution of Respondents by Type of Livehood Enterprises Type of Enterprise Frequency Sewing 9 Hairdressing 8 Knitting 3 Gari processing 45 Soap making 23 Catering 5 Farming 4 Decoration 3 Convectionaries 7 Telephone Operators 7 Sell Provision 39 Sell condiments 9 Sell Ogi 8 Food vendors 18 Field survey, 2009 *Multiple response Percentage 11.3 10 .0 3.75 56.3 28.8 6.3 5.0 3.75 8.8 8.8 48.8 11.3 10 .0 22.5

Table 3: Rank order of Respondents by Livelihood Enterprises involved in Livelihood Enterprises Sewing Hairdressing Knitting Bag weaving Gari processing Soap making Catering Farming Decoration Convection Telephone Operators WMS 0.7 0.7 0.1 2.4 2.2 0.2 0.4 0.1 0.4 0.3 37

Journal of Rural Res. & Information (Vol.5; No.1:2011) Sell Provision Sell condiments Sell Ogi Selling of cooked food Field Survey, 2009 2.3 0.7 0.6 1.0

Okunade and Oladosu

Table 4: Distribution of Respondents by reasons for in livelihood engaging Enterprise

Reasons for Enterprise For employment Have financial independent Have flexible working time Have knowledge and new experience Use ones national endowment To test ones business capacity To satisfy ones habit Field survey, 2009

Frequency 67 79 7 4 1 5 22

Percentage 83.8 93.8 8.8 5.0 1.3 6.3 27.5

Table 5: Distribution of Respondents by Obstacles to livelihood Enterprises Development 38

Journal of Rural Res. & Information (Vol.5; No.1:2011) Obstacles to Enterprise Inadequate of financial support/resources Low purchasing power of clients in rural areas Scale of productivity Lack of Market/Sales Lack of time Conflicting role between enterprise and family Limited time for vacation Insincerity of partnership Field survey, 2009 Frequency 62 19 11 21 13 5 4 2 Percentage 77.5 23.8 13.8 26.3 16.3 6.3 5.0 2.5

Okunade and Oladosu

Table 6: Distribution of Respondents by sources of funds Sources of Funds Personal Savings Loans from relatives Credit facilities from cooperative societies Bank loans Field survey, 2009 Frequency 60 23 17 7 Percentages 75 28.5 21.3 8.8

Table 7: Distribution of Respondents by needs of the business Enterprise Development Need for the business enterprise Financial support More training on entrepreneurship Set up coordinating body for rural enterprises Regular advice on accountability Formation of groups on enterprises basis Field survey, 2009 Frequency 80 69 70 59 60 Percentage 100 86.3 87.5 73.8 75.0

Table 8: Relationship between Socio-economic Characteristics and number of enterprise. 39

Journal of Rural Res. & Information (Vol.5; No.1:2011) Socio-economic Characteristics Age Marriage Religion Household Size Years of Schooling Years of Experience Occupation Field Survey,2009 Chi- Square 21.131 64.677 13.522 28.319 8.251 53.106 5.800 df 24 30 24 18 10 20 8 P-Value 0.631 0.000 0.957 0.057 0.604 0.000 0.670

Okunade and Oladosu Contigency Coefficient 0.457 0.699 0.380 0.537 0.321 0.646 0.297

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