Socio-Cultural Factors and Performance of Small-Scale Enterprise in Agro-Allied Manufacturing Firms in Nigeria

Abstract

Since the collapse of the oil boom of the 1970s, there has been a dramatic increase in the incidence of poverty and unemployment in Nigeria. This arises in part from the dwindling performance of the agro-allied manufacturing sector where a properant majority of the poor are employed. This study examines the influence of socio-cultural factors on the performance of selected small-scale agro-allied manufacturing firms in the SouthWestern Nigeria. Also, the study identifies the existing socio-cultural factors capable of influencing the performance of small-scale agro-allied enterprises. The study made use of both primary data, which were purposively sampled, with the administration of questionnaire on 438 small-scale agro-allied enterprise owners/managers. The areas of coverage included Lagos, Ogun, Oyo, Osun, Ondo, and Ekiti State. The data were analyzed using binary logistic regression model. The finding of the study revealed that there was significant relationship between socio-cultural factors and small-scale agro-allied firms in Nigeria. The result also revealed that religious beliefs, burden of extended family, ostentatious life style, and social spending exerted significant influence on the firms investigated. The study concluded that small-scale agro-allied manufacturing firm is multidimensional in nature as it is largely driven by socio-cultural phenomena.