Marketing Risk Practices and Financial Performance of SMEs Agricultural Value Chain in Ogun State, Nigeria

Abstract

The agricultural sector faces numerous challenges, Small and Medium Scale Enterprises in Agricultural Sector especially in Agricultural Value Chain, need to adopt risk management practices to ensure sustainability and profitability. Based on this, this study aimed at investigating the effect of marketing risk management practices on financial performance of small and medium scale agricultural value chain in Ogun State. Data for the analysis was collected through field surveys filled out by SMEs in the agricultural value chain in Ogun state, with responses gathered from key decision-makers and managers. The study utilized logistic regression for models. the empirical findings indicated that marketing risk management practices and environmental risk management practices were significant determinants of the financial performance of SMEs agricultural value chain. The study concludes that emerges of marketing risk management practices, operational risk management practices and environmental risk management practices were the key determinants of financial performance of SMEs agricultural value chain. The study therefore recommends among others that agricultural SMEs should enhance their market research capabilities to better understand consumer demands and trends, focus on improving operational efficiency through technology adoption, and more so invest in sustainable farming practices such as water and soil conservation.