FINANCIAL INCLUSION AND CHOICE OF BUSINESS ENTERPRISES AMONG ENTREPRENEURS IN RURAL NIGERIA
Nigeria is the home to the unbanked population in sub-Saharan Africa, where half or more of adults are unbanked; therefore, this study examined the effect of financial inclusion on the choice of business enterprises among entrepreneurs in rural Nigeria. Wave four (2018/2019) of the General Household...
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| Format: | Article |
| Language: | English |
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iVolga Press
2023-10-01
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| Series: | Russian Journal of Agricultural and Socio-Economic Sciences |
| Subjects: | |
| Online Access: | http://rjoas.com/issue-2023-10/article_13.pdf |
| _version_ | 1797368253791600640 |
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| author | Salawu M.B. Fasakin I.J. |
| author_facet | Salawu M.B. Fasakin I.J. |
| author_sort | Salawu M.B. |
| collection | DOAJ |
| description | Nigeria is the home to the unbanked population in sub-Saharan Africa, where half or more of adults are unbanked; therefore, this study examined the effect of financial inclusion on the choice of business enterprises among entrepreneurs in rural Nigeria. Wave four (2018/2019) of the General Household Survey data were analyzed using descriptive statistics, chi-square, and multivariate probit regression analysis. The result showed that less than 15% of entrepreneurs own a bank account, and about 25% had access to credit in rural Nigeria. More male entrepreneurs had access to credit and owned bank accounts than their female counterparts. The distribution of financial inclusion variables across enterprises revealed that a higher percentage of entrepreneurs who did not access credit (58.38%) and own a bank account (54.65%) engaged in agricultural enterprise only. This was followed by entrepreneurs engaged in agricultural and non-agricultural enterprises. The result of the multivariate probit regression indicates that variables such as bank account ownership and bank distance to the residence are the financial inclusion variables influencing the choice of enterprises. Other factors influencing the choice of enterprises were age, sex, marital status, household size, education level, assets owned, income, land area owned, and access to safety net. Thus, more financial institutions closer to the entrepreneurs should be established as this may enhance ownership of bank accounts and the use of other services provided by financial institutions. |
| first_indexed | 2024-03-08T17:30:01Z |
| format | Article |
| id | doaj.art-b30cbe80d4c7489c8302b6defce07bfb |
| institution | Directory Open Access Journal |
| issn | 2226-1184 |
| language | English |
| last_indexed | 2024-03-08T17:30:01Z |
| publishDate | 2023-10-01 |
| publisher | iVolga Press |
| record_format | Article |
| series | Russian Journal of Agricultural and Socio-Economic Sciences |
| spelling | doaj.art-b30cbe80d4c7489c8302b6defce07bfb2024-01-02T16:32:14ZengiVolga PressRussian Journal of Agricultural and Socio-Economic Sciences2226-11842023-10-011421010911910.18551/rjoas.2023-10.13FINANCIAL INCLUSION AND CHOICE OF BUSINESS ENTERPRISES AMONG ENTREPRENEURS IN RURAL NIGERIASalawu M.B.0Fasakin I.J.1Department of Agribusiness Management, Federal College of Animal Health and Production TechnologyDepartment of Agricultural Economics, University of IbadanNigeria is the home to the unbanked population in sub-Saharan Africa, where half or more of adults are unbanked; therefore, this study examined the effect of financial inclusion on the choice of business enterprises among entrepreneurs in rural Nigeria. Wave four (2018/2019) of the General Household Survey data were analyzed using descriptive statistics, chi-square, and multivariate probit regression analysis. The result showed that less than 15% of entrepreneurs own a bank account, and about 25% had access to credit in rural Nigeria. More male entrepreneurs had access to credit and owned bank accounts than their female counterparts. The distribution of financial inclusion variables across enterprises revealed that a higher percentage of entrepreneurs who did not access credit (58.38%) and own a bank account (54.65%) engaged in agricultural enterprise only. This was followed by entrepreneurs engaged in agricultural and non-agricultural enterprises. The result of the multivariate probit regression indicates that variables such as bank account ownership and bank distance to the residence are the financial inclusion variables influencing the choice of enterprises. Other factors influencing the choice of enterprises were age, sex, marital status, household size, education level, assets owned, income, land area owned, and access to safety net. Thus, more financial institutions closer to the entrepreneurs should be established as this may enhance ownership of bank accounts and the use of other services provided by financial institutions.http://rjoas.com/issue-2023-10/article_13.pdfentrepreneursfinancial inclusionbusiness enterprisesrural nigeria |
| spellingShingle | Salawu M.B. Fasakin I.J. FINANCIAL INCLUSION AND CHOICE OF BUSINESS ENTERPRISES AMONG ENTREPRENEURS IN RURAL NIGERIA Russian Journal of Agricultural and Socio-Economic Sciences entrepreneurs financial inclusion business enterprises rural nigeria |
| title | FINANCIAL INCLUSION AND CHOICE OF BUSINESS ENTERPRISES AMONG ENTREPRENEURS IN RURAL NIGERIA |
| title_full | FINANCIAL INCLUSION AND CHOICE OF BUSINESS ENTERPRISES AMONG ENTREPRENEURS IN RURAL NIGERIA |
| title_fullStr | FINANCIAL INCLUSION AND CHOICE OF BUSINESS ENTERPRISES AMONG ENTREPRENEURS IN RURAL NIGERIA |
| title_full_unstemmed | FINANCIAL INCLUSION AND CHOICE OF BUSINESS ENTERPRISES AMONG ENTREPRENEURS IN RURAL NIGERIA |
| title_short | FINANCIAL INCLUSION AND CHOICE OF BUSINESS ENTERPRISES AMONG ENTREPRENEURS IN RURAL NIGERIA |
| title_sort | financial inclusion and choice of business enterprises among entrepreneurs in rural nigeria |
| topic | entrepreneurs financial inclusion business enterprises rural nigeria |
| url | http://rjoas.com/issue-2023-10/article_13.pdf |
| work_keys_str_mv | AT salawumb financialinclusionandchoiceofbusinessenterprisesamongentrepreneursinruralnigeria AT fasakinij financialinclusionandchoiceofbusinessenterprisesamongentrepreneursinruralnigeria |