Analysis of risk-taking behaviour of female entrepreneurs in the informal sector of Oyo state economy Ogbomosho area

Abstract

Risk-taking is a major component of entrepreneurial activity and this is the reason entrepreneurs bear substantial risk. Entrepreneurship in developing countries and Nigeria reside in the informal sector because of its heterogeneous nature. Women have been involved in entrepreneurship since time immemorial, learning the traditional family trades and services. Economic recession had increased the number of female entrepreneurs but they are usually limited to a narrow range of activities in more precarious types of employment thereby, yielding low growth. The aggravating socio-economic crisis in Nigeria coupled with the precarious situation in which female entrepreneurs carry out their economic activities now require an alternative analytical and policy approaches. Such identified policy options to address this menance is the stimulatory, supporting and sustaining human resource development through the growth of entrepreneurship from the informal sector to the more stable and vibrant formal sector. The study adopted the descriptive survey research design, using a total of one hundred and twenty-eight (128) female entrepreneurs as participants from (4) four purposively selected skills. Risk-Taking Behaviour among Female Entrepreneurs Scale with reliability co-efficient of 0.86 was used to elicit responses from the participants. However, it was complemented with 4 Focus Group Discussion sessions (FGDs) with female entrepreneurs from the 4 selected skills. Anova and multiple regression were used to analyse the data collected. The qualitative data were analysed with content analysis and summaries. The result showed that there is a significant correlation between entrepreneurship and the female entrepreneurs‟ risk-taking behaviour (r = .421 n = 114, p<0.005). Obviously, a good measure of risk-taking is still imperative in entrepreneurship but this risk-taking behaviour, should meet the growth potential in socio-economic development of the individuals involved and the society at large. The existing practice is labour intensive as it affects female entrepreneurs who are mostly poor and thus invest less in their projects which also affects their business size. In line with the findings above, the study recommends a policy option that embraces financial risk-taking and risk-sharing abilities both on the side of the government and non-governmental authorities promoting entrepreneurship. They should also provide support in the supply of scarce raw materials, marketing of products, modernization and diversification of products, good infrastructural development for industrial extension and product preservation.