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Agribusiness entrepreneurship potentials among youths in Nigeria: Case of Ibadan Metropolitan Area
Youth unemployment is a global economic challenge that poses threat to the security of any nation. In Nigeria, youth unemployment is high and recent estimates show an upward trend. Also, the larger percentage of the ever growing youth population will not be able to secure jobs into the formal employment sector in urban areas. This study analysed agribusiness entrepreneurship potentials among youths in Nigeria, the case of Ibadan metropolitan area. Using structured questionnaire, primary data were generated from 213 young people (18-40 years) who were involved in agribusiness and non-agribusiness activities. Respondents were selected using two-stage sampling procedure. Data were analyzed using descriptive statistics, principal component analysis (PCA), tobit regression, gross margin analysis, analysis of variance (ANOVA), multiple linear regression and logit regression. More than half (54.47%) of the agribusiness respondents had tertiary education and engaged in various entrepreneurial activities at the 4 nodes of agribusiness, which generated employment for themselves and others as 52.66% engaged a range of 1-15 employees. Producers had the best access to productive assets, with mean asset index of 1.41, followed by processors (0.26), input suppliers (0.25) and marketers (-0.37) respectively. Tertiary education, household size, annual credit, engaging in production activities and number of employees improve asset ownership. Agribusinesses were profitable (mean gross margin=25.87%) and agribusiness processing activities were the most profitable nodal activities (65.01%). Asset ownership (asset index) and profit level (gross profit) of agribusinesses exhibited a significant positive relationship (at p<0.05). Input supply (p<0.05), marketing (p<0.1) and annual credit (p<0.001) were positively related to profit level (gross profit). Also, there were positive relationships between agribusiness engagement and socioeconomic group membership (p<0.01), work experience (p<0.05) and annual income (p<0.05). Agribusiness, aside from creating entrepreneurs, employs labour. The development and effective implementation of agribusiness policies will help in solving the problem of youth unemployment in Nigeria, leading to overall economic development.