ABSTRACT

This study evaluated the risk management strategies of agriprenuers in South - East Nigeria. The specific objectives are to examine and analyze the socio-economic profile of the agriprenuers in the South East Nigeria, Identify the major types of risk of concern to the agriprenuers in the South East Nigeria, ascertain the level of adoption of risk management strategies (ex-ante) – risk identification, evaluation and mitigation - as a management practice and its effect on financial performance among agriprenuers in South East Nigeria, estimate the effect of the level of adoption of  risk management strategies (ex-post) on financial performance of agriprenuers in South East Nigeria, assess the effect of risk exposure on agriprenuers’ investment decisions among the respondents in South East Nigeria, ascertain the determinants of risk attitude of owner-manager agriprenuers and factors influencing their attitude towards risk. The multistage random sampling technique was adopted in the selection of the agripreneurs that was used to select 300 respondents from Abia, Imo, Ebonyi, Enugu and Anambra States. Well structured questionnaires were used to elicit the required data from the respondents. Descriptive statistics, correlation analysis, multiple regression analysis, cost and returns, risk exposure analysis and multinomial logit were used to analyze the data. The major types of risks facing the agripreneurs are economic and financial risks, production risks, market risks, political risks, personnel risk and legal risks. The agripreneurs adopted risk identification, risk evaluation and risk communication as ex-ante risk management strategies while diversification, hedging, labour saving, consumption reduction and insurance policy are the significant ex-post risk management strategies. The mean risk exposures for all the agripreneurs are slightly high with a mean risk exposure of 0.69. Agripreneurs should be enlightened that risk is essential in the success of a business as entrepreneurs with high risk attitude may earn more returns. Government should come up with policies meant to protect agripreneurs from undue exposure and exploitation from the political environment to reduce the level of political risk.