ABSTRACT

 In this study, the relative performances of small and medium scale agro-processing enterprises were evaluated. Specifically, the study analyzed the features of small —and medium-scale Fresh Fruit Bunches (FFB), cassava and feed processing enterprises, determined annual operating profit, estimated economic efficiency of FFB, cassava and feed processing enterprises, compared the mean efficiency of pooled small-and pooled medium —scale enterprises and examined the factors affecting performance of SMEs in the study area. A multi-stage stratified random sampling technique was used in selecting four hundred and eighty enterprises (80 each of small scale FFB, cassava and feed processing and 80 each of medium scale FFB, cassava and feed processing enterprises). Data were collected on features of the enterprises, output, inputs and their prices. Descriptive statistics, cost and returns and financial ratios were used in analyzing the data. A translog profit frontier function model was estimated using the Maximum Likelihood Estimation (MLE) technique to obtain economic efficiency of both enterprises. A mean difference model that made use of the t-statistics was used in comparing the efficiency between pooled small and pooled medium scale enterprises in the area. The MLE was also used in determining the effect of some enterprise's features on the performance in both enterprises. The small scale FFB, cassava and feed processing enterprises niade a net profit of N732,877.33, N625,982.57and N58 1 .002.05 and N2,389,654.58, N2,945,243.13 and N2,058,337.5lrespectively for medium scale FFB, cassava and feed processing enterprises. The financial ratios result showed favourable result for both enterprises. The result showed small and medium scale FFB, cassava and feed processing enterprises were not economically efficient including the pooled small and pooled medium enterprises. The mean economic efficiency for pooled small and pooled medium scale enterprises were 57.00% and 54.00% respectively. There was no significant difference between the mean efficiency of the pooled small and pooled medium scale enterprises in the state. It was found that access to credit, and business experience significantly and positively influenced the enterprise's efficiency. On the other hand, number of employee's negatively influenced efficiency. Therefore, policies that geared towards improving SMEs in Imo State should focus on enhancing access to redit; cooperative formation and attracting young entrepreneurs.