Determinants of Investment Decisions among Agribusiness Investors in South-East, Nigeria

Abstract

The determinants of investment decisions among agribusiness investors in Southeast, Nigeria were studied. The study employed a combination of multistage and purposive sampling techniques in the collection of data from three hundred and sixty (360) agribusiness investors using structured questionnaires. Both descriptive and inferential statistics were employed to realise the objectives of the study. The results of the analysis show that the investors are within their active age (40-59 years) and are actively involved in farm input supply (60%), farm processing (55%), and marketing/distribution (54%). It was equally observed that investors whose annual income ranges between N501,000.00-N1,000,000.00 invested more in farm input supply while investors with annual income of between N101,000-N500,000 invested more in farm production, processing and distribution of agricultural products. With the Chi-square (χ2) value of 9368.836 and the Pseudo R 2 of 0.465 which was grater than the probability level 5% (P>0.05), the study revealed that the socio-economics characteristics of agribusiness investors in South East Nigeria have significant effect on determinants of investment decision. Meanwhile, study showed that apart from the socioeconomic characteristics of the investors; experience, source of investment capital, annual income, and household entrepreneurial history, inadequate start-up capital, business location, favourable government policy on entrepreneurship, experience in self employment, high rate of inflation, market size were at 5% (P>0.05) identified be the determinants of investment decision among agribusiness investors in Southeast Nigeria. The study further revealed that the interrelationship between the entrepreneur's marital status and gender (0.688*), annual income and level of education (0.622*), experience and level of education (0.739**), and household entrepreneurial history and individual experience (0.515*) have strong effect on the agribusiness investment decision. Based on the findings, the study recommended the provision of conducive investment climate for agribusiness investors. This entails the provision of those things that will attract both local and foreign direct investments into agribusiness sector. These include tax holidays, investment infrastructures, reduction in social vices such as kidnapping and activities of religious sect-boko haram.