IDEAS home Printed from https://ideas.repec.org/a/acg/journl/v8y2020i4p1-11.html
   My bibliography  Save this article

Rural Electrification and Profitability among Rural Women - Owned Microenterprises in Nigeria

Author

Listed:
  • Emilia Olanrewaju

    (University of Ibadan)

  • Olumuyiwa Olanrewaju

    (University of Ibadan)

Abstract

In most developing countries, higher numbers of women depend on microenterprise for survival, and access to electricity supply is considered to be vital to the operations of microenterprise businesses. Despite the significance of rural electrification, microenterprises are still battling with a lack of quality and stable electricity supply. To this end, this study analyzed the effect of grid electricity supply on the profitability of microenterprise among rural women. Primary data were used for this study. The data collected were analyzed using descriptive statistics, the Probit model, and the ordinary least square (OLS) method. The result shows that hairdressing (16.8%) is the most common form of businesses followed by tailoring (14.1%), oil palm processing (12.4%), grain milling (7.9%), traditional birth attendants and retail shop (7.1%). Also, the result reveals that age, years of schooling, connection charge, enterprise share of electricity bill with household, and duration of power outage supported the adoption of electricity service among microenterprise owners. The study further shows that the billing method of electricity supply negatively affects the profitability of microenterprise. On the other hand, grid electricity adoption, years spent in business, duration of power supply, and expenditure on alternative sources of energy significantly have a positive impact on the profitability of microenterprise. The study, therefore, recommends that the Government should intensify action in providing rural communities with reliable and affordable electricity services, which is one of the indispensable tools in microenterprises establishment, expansion, and performance.

Suggested Citation

  • Emilia Olanrewaju & Olumuyiwa Olanrewaju, 2020. "Rural Electrification and Profitability among Rural Women - Owned Microenterprises in Nigeria," Shanlax International Journal of Economics, Shanlax Journals, vol. 8(4), pages 1-11, September.
    • Handle: RePEc:acg:journl:v:8:y:2020:i:4:p:1-11
    DOI: 10.34293/economics.v8i4.3381
    as

    Download full text from publisher

    File URL: https://www.shanlaxjournals.in/journals/index.php/economics/article/view/3381
    Download Restriction: no
    File URL: https://www.shanlaxjournals.in/journals/index.php/economics/article/view/3381/2828
    Download Restriction: no
    File URL: https://libkey.io/10.34293/economics.v8i4.3381?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Oona Nanka-Bruce, 2010. "The socio economic drivers of rural electrification in Sub-Saharan Africa," Surrey Energy Economics Centre (SEEC), School of Economics Discussion Papers (SEEDS) 128, Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey.
    2. Nichter, Simeon & Goldmark, Lara, 2009. "Small Firm Growth in Developing Countries," World Development, Elsevier, vol. 37(9), pages 1453-1464, September.
    3. Atsede Woldie & Adebimpe Adersua, 2004. "Female entrepreneurs in a transitional economy: Businesswomen in Nigeria," International Journal of Social Economics, Emerald Group Publishing, vol. 31(1/2), pages 78-93, January.
    4. Bhattacharyya, Subhes C., 2006. "Energy access problem of the poor in India: Is rural electrification a remedy?," Energy Policy, Elsevier, vol. 34(18), pages 3387-3397, December.
    5. Nyanzu, Frederick & Adarkwah, Josephine, 2016. "Effect of Power Supply on the performance of Small and Medium Size Enterprises: A comparative analysis between SMEs in Tema and the Northern part of Ghana," MPRA Paper 74196, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andrea Vaona & Natalia Magnani, 2014. "Access to electricity and socio-economic characteristics: panel data evidence from 31 countries," Working Papers 15/2014, University of Verona, Department of Economics.
    2. repec:dau:papers:123456789/12203 is not listed on IDEAS
    3. Molyneaux, Lynette & Wagner, Liam & Foster, John, 2016. "Rural electrification in India: Galilee Basin coal versus decentralised renewable energy micro grids," Renewable Energy, Elsevier, vol. 89(C), pages 422-436.
    4. Wignaraja, Ganeshan & Jinjarak, Yothin, 2015. "Why Do SMEs Not Borrow More from Banks? Evidence from the People's Republic of China and Southeast Asia," ADBI Working Papers 509, Asian Development Bank Institute.
    5. Youtang Zhang & Eshetu Yesuf Ayele, 2022. "Factors Affecting Small and Micro Enterprise Performance with the Mediating Effect of Government Support: Evidence from the Amhara Region Ethiopia," Sustainability, MDPI, vol. 14(11), pages 1-20, June.
    6. Imam, M. & Jamasb, T. & Llorca, M. & Llorca, M., 2018. "Power Sector Reform and Corruption: Evidence from Electricity Industry in Sub-Saharan Africa," Cambridge Working Papers in Economics 1801, Faculty of Economics, University of Cambridge.
    7. Francesco Quatraro & Marco Vivarelli, 2015. "Drivers of Entrepreneurship and Post-entry Performance of Newborn Firms in Developing Countries," The World Bank Research Observer, World Bank, vol. 30(2), pages 277-305.
    8. Liu, Li & Lockwood, Ben & Tam. Eddy, 2022. "Small Firm Growth and the VAT Threshold : Evidence for the UK," The Warwick Economics Research Paper Series (TWERPS) 1418, University of Warwick, Department of Economics.
    9. Campos,Francisco Moraes Leitao & Goldstein,Markus P. & Mcgorman,Laura & Munoz Boudet,Ana Maria & Pimhidzai,Obert, 2015. "Breaking the metal ceiling : female entrepreneurs who succeed in male-dominated sectors," Policy Research Working Paper Series 7503, The World Bank.
    10. Emiel L. Eijdenberg & Kathrin Borner, 2017. "The Performance Of Subsistence Entrepreneurs In Tanzania’S Informal Economy," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 22(01), pages 1-22, March.
    11. Alex Coad, 2018. "Firm age: a survey," Journal of Evolutionary Economics, Springer, vol. 28(1), pages 13-43, January.
    12. Nordman, Christophe J. & Rakotomanana, Faly & Roubaud, François, 2016. "Informal versus Formal: A Panel Data Analysis of Earnings Gaps in Madagascar," World Development, Elsevier, vol. 86(C), pages 1-17.
    13. Arráiz,Irani & Bruhn,Miriam & Stucchi,Rodolfo Mario, 2015. "Psychometrics as a tool to improve screening and access to credit," Policy Research Working Paper Series 7506, The World Bank.
    14. Trinh, Long Quang & Doan, Ha Thi Thanh, 2018. "Internationalization and the growth of Vietnamese micro, small, and medium sized enterprises: Evidence from panel quantile regressions," Journal of Asian Economics, Elsevier, vol. 55(C), pages 71-83.
    15. Abdelkrim Araar & Yesuf Mohammednur Awel & Jonse Bane Boka & Hiywot Menker & Ajebush Shafi & Eleni Yitbarek & Mulatu Zerihun, 2019. "Impact of Credit and Training on Enterprise Performance: Evidence from Urban Ethiopia," Working Papers PMMA 2019-13, PEP-PMMA.
    16. Rasyad A. Parinduri, 2014. "Family Hardship and the Growth of Micro and Small Firms in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 50(1), pages 53-73, April.
    17. Mohamed Amara, 2016. "The linkages between formal and informal employment growth in Tunisia: a spatial simultaneous equations approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 203-227, January.
    18. Florian Léon, 2022. "The elusive quest for high-growth firms in Africa: when other metrics of performance say nothing," Small Business Economics, Springer, vol. 58(1), pages 225-246, January.
    19. Raha, Debadayita & Mahanta, Pinakeswar & Clarke, Michèle L., 2014. "The implementation of decentralised biogas plants in Assam, NE India: The impact and effectiveness of the National Biogas and Manure Management Programme," Energy Policy, Elsevier, vol. 68(C), pages 80-91.
    20. Kumar, Manashvi, 2020. "Non-universal nature of energy poverty: Energy services, assessment of needs and consumption evidences from rural Himachal Pradesh," Energy Policy, Elsevier, vol. 138(C).
    21. Benavente, Fabian & Lundblad, Anders & Campana, Pietro Elia & Zhang, Yang & Cabrera, Saúl & Lindbergh, Göran, 2019. "Photovoltaic/battery system sizing for rural electrification in Bolivia: Considering the suppressed demand effect," Applied Energy, Elsevier, vol. 235(C), pages 519-528.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:acg:journl:v:8:y:2020:i:4:p:1-11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: S.Lakshmanan (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.