Article Peer-Reviewed
Climate Change Risk Management Strategies: The Case of Small and Medium Scale Enterprises in Southwest Nigeria
1
Department of Agricultural and Resource Economics, Federal University of Technology, P.M.B. 704, Akure 340110, Ondo State, Nigeria
2
Department of Electrical and Electronics Engineering, Faculty of Engineering, University of Lagos, Akoka, Lagos 100213, Nigeria
3
Department of Electrical Engineering and Information Technology, Institute of Digital Communication, Ruhr University, 44801 Bochum, Germany
*
For correspondence.
Academic Editor:
Received: 31 December 2022 Accepted: 6 March 2023 Published: 7 March 2023
Abstract
The study determined the critical variables inducing the choice of mitigation and adaptation methods adopted by the Small and Medium Scale Enterprises (SMEs) against the effect of climate change on their enterprises in Southwest Nigeria. A multistage sampling procedure was employed to choose 200 SMEs Managers/Chief Executive Officers (100 mitigating climate change and 100 not mitigating) as respondents for the study. Descriptive statistics and a multinomial regression model were employed to investigate the data collected. The findings show that the mean age of Managers/CEOs mitigating climate change was 41.8 years, and the level of education of climate change mitigating Managers/CEOs (80.0%) was significantly different from the non-mitigating (50.0%). The net profit margin ratio for the mitigating SMEs was 32.04%, and 17.83% for the non-mitigating SMEs. The multinomial logit model showed that income, enterprise experience, access to credit, enterprise size, and enterprise type significantly induced the choice of climate change mitigation approaches used by the SMEs in the study area. The study suggested that government and Non-Governmental Organizations (NGOs) should assist SMEs by enhancing their income-generating ability to ameliorate the impact of climate alteration over the years on their enterprises.
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Keywords
climate change; small and medium enterprises (SMEs); climate change risk management strategies; multinomial logit model; Southwest Nigeria
Copyright © 2023
Thompson et al. This article is distributed under the terms of the Creative Commons Attribution License (CC BY 4.0), which permits unrestricted use and distribution provided that the original work is properly cited.
Funding
The work of Agbotiname Lucky Imoize is supported in part by the Nigerian Petroleum Technology Development Fund (PTDF) and in part by the German Academic Exchange Service (DAAD) through the Nigerian-German Postgraduate Program under Grant 57473408.
Cite this Article
Thompson, O. A., Imoize, A. L., & Amos, T. T. (2023). Climate Change Risk Management Strategies: The Case of Small and Medium Scale Enterprises in Southwest Nigeria. Highlights of Sustainability, 2(1), 35–49. https://doi.org/10.54175/hsustain2010004
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