Determinants of Profitability Among Agricultural Equipment Fabricators in Oyo State, Nigeria
The study examined enterprise profitability among agricultural equipment fabricators. It was conducted in Oyo State, Nigeria using a multistage sampling procedure to select the 48 respondents from whom data were collected using a structured questionnaire. Percentage was used to analyse the socioeco...
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| Format: | Article |
| Language: | English |
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Agricultural Extension Society of Nigeria
2024-01-01
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| Series: | Journal of Agricultural Extension |
| Subjects: | |
| Online Access: | https://aesonnigeria.org/ajm/index.php/jae/article/view/3789 |
| _version_ | 1797348990465867776 |
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| author | Benjamin Oyelami Adegbenga Adekoya Iredele Ogunbayo Oreoluwa Akano Enya Effa Adetola Oyegbile Olubusayo Olorunkoya Genesis Osadebamwen Peace Aburime |
| author_facet | Benjamin Oyelami Adegbenga Adekoya Iredele Ogunbayo Oreoluwa Akano Enya Effa Adetola Oyegbile Olubusayo Olorunkoya Genesis Osadebamwen Peace Aburime |
| author_sort | Benjamin Oyelami |
| collection | DOAJ |
| description |
The study examined enterprise profitability among agricultural equipment fabricators. It was conducted in Oyo State, Nigeria using a multistage sampling procedure to select the 48 respondents from whom data were collected using a structured questionnaire. Percentage was used to analyse the socioeconomic and enterprise characteristics of the respondents, while gross margin analysis was used to determine the profitability of the enterprise. A linear regression model was used to ascertain the drivers of enterprise profitability among respondents. Findings revealed that over half (54.4%) of the fabricators produced processing equipment, while fewer (28.2%) produced farm tools. Most of the fabricators operated with a mean workshop space of 1.3 m2. The gross margin analysis showed a total revenue of N95,302,900 exceeding the total cost of production (N20,374,205), indicating (N74,928,695) profitability of their enterprise with a N3.68 return on investment per Naira. Fabrication being a secondary occupation (?=0.340), and business registration with the Corporate Affairs Commission (?=0.473) significantly influenced profitability among the respondents. This study recommends regulating the fabrication sector through policies, ensuring that fabricators register their outfits, provision of credit, and training by the government to significantly enhance the standardization of outputs and increase the units of production, hence, improving the enterprise's profitability.
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| first_indexed | 2024-03-08T12:14:17Z |
| format | Article |
| id | doaj.art-cf393fd6cae041fa86af056c710b4a1a |
| institution | Directory Open Access Journal |
| issn | 1119-944X 2408-6851 |
| language | English |
| last_indexed | 2024-03-08T12:14:17Z |
| publishDate | 2024-01-01 |
| publisher | Agricultural Extension Society of Nigeria |
| record_format | Article |
| series | Journal of Agricultural Extension |
| spelling | doaj.art-cf393fd6cae041fa86af056c710b4a1a2024-01-22T15:18:56ZengAgricultural Extension Society of NigeriaJournal of Agricultural Extension1119-944X2408-68512024-01-01281Determinants of Profitability Among Agricultural Equipment Fabricators in Oyo State, NigeriaBenjamin OyelamiAdegbenga Adekoya0Iredele OgunbayoOreoluwa AkanoEnya EffaAdetola OyegbileOlubusayo OlorunkoyaGenesis OsadebamwenPeace AburimeDepartment of Agricultural Extension and Rural Development, University of Ibadan, Nigeria The study examined enterprise profitability among agricultural equipment fabricators. It was conducted in Oyo State, Nigeria using a multistage sampling procedure to select the 48 respondents from whom data were collected using a structured questionnaire. Percentage was used to analyse the socioeconomic and enterprise characteristics of the respondents, while gross margin analysis was used to determine the profitability of the enterprise. A linear regression model was used to ascertain the drivers of enterprise profitability among respondents. Findings revealed that over half (54.4%) of the fabricators produced processing equipment, while fewer (28.2%) produced farm tools. Most of the fabricators operated with a mean workshop space of 1.3 m2. The gross margin analysis showed a total revenue of N95,302,900 exceeding the total cost of production (N20,374,205), indicating (N74,928,695) profitability of their enterprise with a N3.68 return on investment per Naira. Fabrication being a secondary occupation (?=0.340), and business registration with the Corporate Affairs Commission (?=0.473) significantly influenced profitability among the respondents. This study recommends regulating the fabrication sector through policies, ensuring that fabricators register their outfits, provision of credit, and training by the government to significantly enhance the standardization of outputs and increase the units of production, hence, improving the enterprise's profitability. https://aesonnigeria.org/ajm/index.php/jae/article/view/3789Agricultural equipment fabricators, enterprise profitability, gross margin analysis. |
| spellingShingle | Benjamin Oyelami Adegbenga Adekoya Iredele Ogunbayo Oreoluwa Akano Enya Effa Adetola Oyegbile Olubusayo Olorunkoya Genesis Osadebamwen Peace Aburime Determinants of Profitability Among Agricultural Equipment Fabricators in Oyo State, Nigeria Journal of Agricultural Extension Agricultural equipment fabricators, enterprise profitability, gross margin analysis. |
| title | Determinants of Profitability Among Agricultural Equipment Fabricators in Oyo State, Nigeria |
| title_full | Determinants of Profitability Among Agricultural Equipment Fabricators in Oyo State, Nigeria |
| title_fullStr | Determinants of Profitability Among Agricultural Equipment Fabricators in Oyo State, Nigeria |
| title_full_unstemmed | Determinants of Profitability Among Agricultural Equipment Fabricators in Oyo State, Nigeria |
| title_short | Determinants of Profitability Among Agricultural Equipment Fabricators in Oyo State, Nigeria |
| title_sort | determinants of profitability among agricultural equipment fabricators in oyo state nigeria |
| topic | Agricultural equipment fabricators, enterprise profitability, gross margin analysis. |
| url | https://aesonnigeria.org/ajm/index.php/jae/article/view/3789 |
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