Abstract:
This study was conducted to analyze the effects of policy on the development of Agro-based micro-enterprises in the informal sector of Bayelsa State of Nigeria. Structured questionnaires were used to collect data from 150 micro-enterprises that were randomly selected. Descriptive statistics, multiple regression, Access model and the t- statistics were employed for data analysis. Among the major findings were that the agricultural micro-enterprises span the entire agricultural sector of crop production, animal, fisheries, processing and trading. The age range of the entrepreneurs were between 31-65 years (85.4%), with women dominating the sector (58.0%). The level of education was appreciable with 44.0% having more than primary education, the enterprises were relatively new with experience range of 1-10years and 80.7% employed between 1 and 10 persons. The average income was N100,000 per annum and an asset holding of N100,000 to N150,000. Econometric estimation showed that experience, size, income level, value of asset-holdings and credit history affected the amount of micro-credit obtained significantly. Also, age, gender of entrepreneur and level of education did not affect the amount of credit obtained significantly. Further findings showed that only 23.3% had access to training and only 9.3% have benefited in government market facilities. The access index of micro-credit was 0.26 representing 26.0% in the entire state. The survey also showed that tax policy also significantly affected the development of urban and rural micro-enterprises. Also poor transportation, poor road network, poor electricity supply, inadequate market infrastructure, inadequate subsidies and micro-credit were the identified constraints to micro-enterprises development. It is therefore recommended that the government, NGOs multinationals should re-address the infrastructural policies, micro-credit policies, tax, training programmes and if possible partner with private companies for a total over-haul of the sector.
