Social Capital and Loan Repayment Capacity of Agripreneurial Groups' in Abia State, Nigeria

Year 2021, Volume: 3 Issue: 3, 117 - 132, 27.07.2021

Chidinma Rosemary Okezıe Ifeanyı Moses Kanu Cynthia Chisom Iwu

https://doi.org/10.47103/bilturk.941862

Abstract

Entrepreneurship is the ability to take significant amount of risk while managing and organizing a new or existing business enterprise with the sole motive of making profits. Agricultural entrepreneurship, also known as agripreneurship is the ability of farmers or farm firms to take substantial risks while producing, managing, directing and marketing their agricultural produce. Agripreneurs are the agricultural entrepreneurs. Selected social capital variables such as years of membership in social groups/organizations, number of meeting attendance, cash and labour contributions of members, etc., were incorporated into the research to determine the agripreneurs’ loan repayment capacity in Abia State, Nigeria. A multi-stage purposive sampling technique was employed to select the respondents. Greater percentage of the agripreneurs were male. Mainstream of them were in their active and productive age, hence could form groups for easy access to credit or loans in their respective enterprises. The agripreneurial groups’ sourced their loans from money lenders, ROSCA (Rotating Savings and Credit Association), family and friends/relatives. Others sources were through microfinance banks, commercial banks, self-help groups, cooperative societies and savings collectors/mobile bankers. Majority of the agripreneurs were regarded as good credit risk. The major factors affecting the agripreneurial loan repayment capacity was trust, assets, interest rate and the loan duration. Agripreneurs should be encouraged to participate more actively in group activities, not just for what they can benefit but for what they can give; as effective participation accelerates access to pooled productive resources.

Keywords

Agripreneurs, Social Capital, Loan Repayment, Farmers Groups, Abia State Nigeria

Social Capital and Loan Repayment Capacity of Agripreneurial Groups' in Abia State, Nigeria

Abstract

References

• Abbink, K., Irlenbusch, B. and Renner, E. (2006). Group size and social ties in microfinance institutions, Economic Inquiry, vol. 44(4), pp. 614–28.
• Ado, S. G. (2017). Agriculture: Panacea for Nigeria’s Economic Recession. Invited Paper presented at the 22nd Amah Convention held at Sultan Muhammad Macedon Institute for Qur’an and General Studies, Soot, April 15-17, 2017, 30 pp.
• Agbemava, E., Nyarko, I. K., Adade, T. C. and Bediako, A. K. (2016) Logistic Regression Analysis Of Predictors Of Loan Defaults By Customers Of Non-Traditional Banks In Ghana. European Scientific Journal. Vol.12 (1), Pp 175-189.
• Ajani, O. I. Y and Tijani, G. A (2009), “The role of Social Capital in Access to Micro Credit in Ekiti State, Nigeria”, Pakistan Journal of Social Sciences vol 6(3), pg 125-132.
• Armendariz de, A. B. and Morduch, J. (2005) The Economics of Microfinance, Cambrdge MA: MIT press.
• Guttman M. J. (2007). Repayment Performance in Microcredit Programs: Theory and Evidence, Working Paper-11, Networks Financial Institute, Indiana State University.
• Kanu, I. M. (2020). Analysis of cocoa farmer’s poverty status in Abia State, Nigeria: The Foster, Greer and Thorbeck (FGT) decomposable poverty measure. International Journal of Agriculture, Environment and Food Sciences, Vol. 4 (2), Page 188-199.
• Kanu, I. M. and Nwaru, J. C. (2020). Analysis of Resource Use Efficiency and Elasticity of Production among Smallholder Broiler Producers in Ikwuano Local Government Area of Abia State, Nigeria. International Journal of Agriculture, Environment and Food Sciences, Vol. 4 (4), Page 432-438.
• Karlan, D. (2006). Social Connections and Group Banking. Economic Growth Center, Yale University New Haven, CT 06520.
• Lawal, J. O, Omonona, B. T, Ajani, O. I. Y and Oni, O. A (2009), Effects of Social Capital on Access to Credit among Cocoa Farming Households in Osun State, Nigeria”, Agricultural Journal vol. 4 (4), pg 184-191.
• Okezie C. R., Kanu I. M. and Nwosu R. O. (2020). Effect of social capital on private adaptation measures to climate change among farmers in Ezinihitte Mbaise, Imo State, Nigeria. International Journal of Agriculture, Forestry and Life Sciences, Vol 4 (2): Page 303-310.
• Oladeebo J. O, Oladeebo O. E.( 2008) Determinants of Loan Repayment among Smallholder Farmers in Ogbomoso Agricultural zone of Oyo State, Nigeria. Journal of Social Science, vol 17(1): pg 59-62.
• Olomola, A. S. (2008) Social Capital, Microfinance Group Performance and Poverty Implications in Nigeria. Nigeria Institute of Social and Economic Research (NISER) Ibadan.
• Uche, C. and Familusi, L. C. (2018) The Adoption of Agripreneurship as a Mitigating Measure to Unemployment in Nigeria: A Topical Review. Global Journal of Management and Business Research. Volume 18 Issue 2 Version 1.0. Pp 24-31.
• Yusuf, S. A. (2008). Social capital and households’ welfare in Kwara State, Nigeria. Journal of Human Ecology, Vol. 23, pg 219–229.