What Factors Influence Financial Inclusion among Entrepreneurs in Nigeria?

Authors : Fasakin I. J; Salawu M B; Adejoorin M. V; Esezobor O. S

Volume/Issue : Volume 8 - 2023, Issue 10 - October

Google Scholar : https://tinyurl.com/2y268x53

Scribd : https://tinyurl.com/mt3fxytn

DOI : https://doi.org/10.5281/zenodo.10021245

Financial inclusion is a veritable tool of economic development, as it brings a sense of inclusiveness to individuals in the country. Despite this importance, Nigeria is home to a large unbanked population in sub- Saharan Africa, where half or more adults are unbanked. Using the fourth wave of the General Household Survey Data, this study examined the factors that explained financial inclusion among entrepreneurs in rural Nigeria. Descriptive statistics and probit regression analysis were used to analyze the data of 3,349 entrepreneurs. Findings from the study show that most respondents were male (82.36%), with an average age and household size of 47.71 years and five people, respectively. About 56.17% of the entrepreneurs own only agriculture enterprises, 10.96% own non-agriculture enterprises, and 32.88% own both agricultural and non-agricultural enterprises. The probit regression result shows that financial inclusion is driven by sex, age, marital status, household size, education level, asset value, access to the internet, banking distance to the residence, enterprise type, and geographical zones of the entrepreneurs. The study recommends that financial institutions consider the availability and increase the number of their branches in rural communities to reduce the distance spent assessing financial services. Government and financial institutions should also focus more on educating rural entrepreneurs on the benefits of being financially included. The training should be cut across various age groups, sexes, and the six geopolitical zones in the country.

Keywords : Entrepreneurship, Financial Inclusion, Rural Nigeria, Probit Regression.


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31 - December - 2023

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