ABSTRACT

This study examined the sources of financing poultry production by small and medium scale enterprise in Enugu State Nigeria. The objectives were to — examine the socio-economic characteristics of the respondents; examine their various sources; examine the amount of loan obtained and the related amount invested; and determine the factors influencing access to loan. It utilized data obtained through administering well-structured questionnaires to 120 respondents selected, multi-stage and random sampling methods were adopted. Descriptive and inferential statistical tools were used to analyze the data and to test the hypothesis formulated. Majority (56.6%) of the respondents were literate youths aged 40years and below, and a mean household size of 6persons, experience of 6years and income of N2 15744.5. It was found out that medium scale have a greater share of total loan obtained and invested than the small scale enterprises. Credit access was statistically and significantly determined by age, educational level, farm size, savings, distance to financial institute and net farm income, while marital status, farm size and cost of production significantly influenced net farm income. Credit access was most seriously constrained by savings, age, and distance to financial institutions. This study therefore recommends the following: Improvement in the farmers' access to loan for enhanced productivity and food security would be guaranteed through the formulation of policies that would ensure credit availability and accessibility; Government and financial institutions should ensure that credit facilities meant for farming were used for farming by putting in place measures to check abuse and Securing an appropriate operational environment for informal credit operators and markets for their products as well as providing appropriate educational services, training and skill development on how to manage effective and efficient business are needed amongst the operators of credit markets.