Poverty Profiles and Technical Efficiency Nexus: A Case Study of Women Entrepreneurs in Oyo State, Nigeria

The study determined the poverty profiles and technical efficiency of women entrepreneurs in cassava processing in Oyo State, Nigeria. Data were obtained from primary source using a set of structured questionnaire assisted with interview schedule. The multistage sampling technique was used. Data were analyzed using: descriptive statistics, Foster – Greer Thorbecke (FGT) and Stochastic Frontier Production Function Analysis (SFPF). Farm level survey data were collected from 105 women cassava processors. The results revealed that 64.8 percent of the women entrepreneurs in the study area were poor and would need 16.1 percent of 1US Dollar (N160) per day to escape poverty. It was also revealed that poverty incidence was noticed among women entrepreneurs between age ranges 40 – 49, most of them (61%) had a large household size with 4 – 6 members and (95.2%) had low educational level. Results further showed that cassava processing enterprise was in the stage of inefficient production (stage I) as shown by the Returns to Scale (RTS) of 1.264. The variables such as cost of raw material, operating expenses and energy were effectively allocated and used, as confirmed by each variable having estimated coefficient value between 0 and 1. The Technical Efficiencies of the women entrepreneurs varied between 0.637 and 0.994 with a mean of 0.888. The analysis of the inefficiency model revealed that poverty level, method of processing and source of raw material were positive indicating that all these factors led to decrease in technical efficiency of cassava processing enterprise in the study area. The study recommends that to increase the efficiency of the women cassava processors, policies that would promote poverty alleviation, improve education and boost income should be adopted.