Process Innovation and Employment Generation of Agro-Based Small and Medium Scale Enterprises (SMEs) in Nigeria.
- Author MOLUNO, Shedrack Uwadinisu
- Co-Author EDEWHOR, Vincent
- DOI https://ww
- Country : Nigeria
- Subject : Entrepreneurship
Keywords : Process Innovation, Employment Generation, SMEs, oil palm
Abstract
The study focuses on process innovation and employment generation of small and medium scale enterprises (SMEs) in the agricultural sector, focusing mainly in the oil palm sector in the Niger Delta region of Nigeria. The research design adopted for the work is the survey method. A sample of 525 respondents were drawn from 20 SMEs in four oil palm clusters, one each from one Local Government Area from the four selected Niger Delta States of Akwa-Ibom, Delta, Imo and Rivers. One research hypothesis was tested in the study applying simple regression with SPSS version 21. The research hypothesis was accepted as against the null hypothesis, indicating that the predictor variable (process innovation) significantly affected the criterion variables of interest (employment generation). The statements of findings and the corresponding statistical results are as follows: Process innovation significantly promoted employment generation of small and medium scale enterprises (SMEs) in the agricultural sector (Oil Palm produce) (F (1, 523) = 8540.89, p< 0.05). It is on the strength of the result of this hypothesis that the study concludes that process innovation significantly affected employment generation of SMEs in the agricultural sector, particularly the oil palm sector. In the light of the foregoing conclusion, the following recommendations were made: 1) SMEs in the agricultural sector (Oil Palm produce) should be encouraged by governments and other stakeholders as well as donor agencies to think beyond the basic and traditional processing methods.2) They should consider and explore improved processes that can help to facilitate continuous improvement in the current product line and the addition of other value-added products within the value chain. 2) SMEs in the agricultural sector (Oil Palm produce) should be encouraged by governments and other stakeholders as well as donor agencies to think beyond their current practice of serving their current segment. They can do this by introducing processes and necessary to redirect their effort and focus to customers articulated and un-served needs in the interim and customers’ unarticulated needs in the long-run. This will help them to develop new products for new markets as well as carving out a niche for their organisations.
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