Spending pattern and profit performance: a case study of non-farm household enterprises in Nigeria Online publication date: Fri, 31-Mar-2023
by Obed I. Ojonta; Jonathan E. Ogbuabor
International Journal of Sustainable Economy (IJSE), Vol. 15, No. 2, 2023
Abstract: The purpose of this study is to ascertain the influence of spending pattern on the profit performance of non-farm household enterprises. The study used the 2018-2019 General Household Survey data from the National Bureau of Statistics, while descriptive analysis and binary logistic regression were used to unveil the patterns in the data. The results indicate that the spending pattern relating to business cost, transport and purchase of raw material influence the profit performance of non-farm household enterprises in Nigeria positively and significantly, while the influence of the spending pattern relating to demand for products and loan repayment remained negative throughout. The study concluded that government should provide favourable business environment for non-farm household enterprises through policies that will enable these enterprises not only to enhance their business capital but also to invest or engage in spending patterns that will optimise their performance on a sustainable basis.
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