Academic Research Journal of Agricultural Science and Research
 

Academic Research Journal of Agricultural Science and Research 

Vol. 5(5), pp. 391-403. September, 2017.

ISSN: 2360-7874 

 DOI: 10.14662/ARJASR2017.100

Full Length Research

Efficiency Consideration among Selected Small and Medium Scale Enterprises in Ogbomoso Agricultural Zone of Oyo State, Nigeria

¹Binuomote S. O. and ¹Ajetomobi, J. O., ¹Olaiya, K. and ²T. O. Olawuyi

¹Department of Agricultural Economics, Ladoke Akintola University of Technology,

P.M.B. 4000, Ogbomoso. Nigeria. E-mail: sobinuomote@lautech.edu.ng; +2348033879828

²Research Outreach Department, National Cereals Research Institute, P.M.B 8, Badeggi. Niger State.

Accepted 3 August 2017

This study investigates the efficiency of selected small and medium scale enterprises in Ogbomosho agricultural zone of Oyo state using cross sectional data randomly collected from 70 micro- enterprises selected from block making Sawmilling, Poultry, Poultry Feed- mill, Sachet water, Charcoal- making and Bakery enterprises. Stochastic Frontier Analysis was employed to examine the efficiency level of the firms. The level of education of enterprise owners, age of business and level of investment into the businesses were found to be major determinants of the level of efficiency of the sampled micro- enterprises. The estimates obtained from the frontier production indicate that the firms were generally inefficient with wide variation in technical efficiencies found within and across firm groups. The wide variation in the level of efficiency is an indication that there is ample opportunity for these enterprises to raise their level of efficiency. Policies that improve the process of industry specific technological adoption via education and increased in level of investment into the micro-enterprises will help move the enterprises towards the efficiency frontier.

Keywords: Microenterprises, Technical Efficiency, Stochastic Frontier, Maximum likelihood

How to cite this article: Binuomote S.O., Ajetomobi, J.O., Olaiya, K., Olawuyi T. O. (2017). Efficiency Consideration among Selected Small and Medium Scale Enterprises in Ogbomosho Agricultural Zone of Oyo State, Nigeria. Acad. Res. J. Agri. Sci. Res. 5(5): 391-403

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