Valuation of financing methods for wooden pallats enterprise in Benin Metropolis, Edo State, Nigeria

Abstract

The study was carried out on financing methods for wooden pallet enterprise in Benin metropolis, Edo State. Ninety respondents were randomly selected using 80% and 20% sampling intensity where the number of producers were <14 and >350 respectively. Interviews were carried out with use of well structured questionnaire. Data were analysed using descriptive statestics, ‘t’test and ANOVA with arcsine tramsformation. Results showed that most commonly tree species used were khaya spp. (12.50 %) and Triplochiton scleroxylon (12.50%), the most commonly used families were Meliaceae and Sterculiaceae which stood equally at 16.67% each. The most preferred tree species was Alstonia boonei (12.50 %) while Meliaceae (18.18 %), Bombaceae, Combretaceae and five other famles stood at 9.09% as the most preferred families. It was shown that there was significance difference (P <0.05) among various pallet dimensions observed, indicating that pallet dimension in Guiness company dominated all the dimension observed in the study under review. Personal savings dominated all other sources of finanacing and there was significant difference among various sources of finananc (P <0.05). Results showed no significance difference (P>0.05) among various constraints faced by pallet enterprise and there was significant difference (P<0.05) among location effects on the contraints considred in the forgoing analysis. It is recommended that government should encourage specialized financial institution to assist in the funding of wooden pallet enterprise and also encourage commercial banks to lend money to the entrepreneur at low interest rate instead of leaving the financing of this important forestry sector to personal saving as main source of financing.