Microfinance services and the growth of women entrepreneurial businesses in North Central Nigeria

https://doi.org/10.35912/ijfam.v4i4.1106
Published: Sep 1, 2022

Abstract:

Purpose: This study examined the effect of microfinance services on the growth of Women's entrepreneurial businesses in North-central Nigeria.

Research methodology: A survey research design with a population of 7061 women entrepreneurs in North-central, Nigeria and a sample size of 379 was used in the study. The effect between the variables was determined through correlation and multiple regression analysis.

Results: The findings revealed that microfinance lending; saving and training services have positive and weighty effects on the growth of women entrepreneurial businesses in Nigeria’s North-central while microfinance management consultancy services recorded an inverse and insignificant impact on the women entrepreneurial businesses' growth in the zone.

Limitations: This study is limited to only entrepreneurial women in Nigeria’s North-central with lending services, training services, saving services, and consultancy services as proxies for MFIs services; there are other services provided by MFIs like insurance that are not covered by this study.

Contribution: This study incorporated management consultancy services as one of the variables which have hitherto been neglected or ignored in the models that are to explain the microfinance services in Nigeria.

Keywords:
1. Microfinance-services
2. Growth
3. Entrepreneurial-businesses
4. Women–entrepreneurs
Authors:
Amechi Fabian Anoke
Faculty of Management Sciences, Nnamdi Azikiwe University Awka, Anambra State Nigeria
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Anoke, A. F. (2022). Microfinance services and the growth of women entrepreneurial businesses in North Central Nigeria. International Journal of Financial, Accounting, and Management, 4(4), 379–393. https://doi.org/10.35912/ijfam.v4i4.1106
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Issue & Section
Vol. 4 No. 4 (2023): March
Articles
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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

References

    Aheeyar, M.M. (2017). Impacts of microfinance on micro-enterprises: A Comparative analysis of Samurdhi and SEEDS micro-enterprises in Sri Lanka, Hector Kobbekaduwa Agrarian. Research and Training Institute, Colombo, Sri Lanka, 4(3), 104-118.

    Ahmed, V.(2013). Women’s entrepreneurial activities and the growth of the economy; Journal of Management Science, 4(3), 77-98

    Akanji, B.M. (2022). Deposit money banks and women entrepreneurs’ growth. International Journal of Entrepreneurship Development, 9(3), 36-48

    Akanji, B.M. (2016). Effect of microfinance banks on the growth of entrepreneurs in Nigeria; International Journal of Economics, 39(4), 32-44

    Alarpe, A.(2020). Customer participation and growth of women entrepreneurial business in Southwest Nigeri;. Journal of Management Sciences, 5(3), 44-60

    Anoke, A.F. & Ndubuisi-Okolo, P.N.(2022).The entrepreneurial mindset among Nigeria university students: A study of Ebonyi State University’s Entrepreneurship Centre, Abakaliki. Asian Journal of Economics, Business, and Accounting, 22(5):24-33. Doi:10.9734/AJEBA/2022/v22i530560

    Anoke, A.F, Eze, S.U.,Nwoye, I.I.,& Odumu, A.V.(2022). Agropreneurship intentions among agricultural and entrepreneurship graduates in Nigeria, International Journal of Research in Agronomy, 5(1):7-12. DOI: http://doi.org/10.33545/2618060X.2022.v5.ila.89

    Anoke, A.F. (2019) Growth strategies and performance of listed insurance firms in Nigeria. Journal of Accounting, Finance and Development. 2(1): 49-60

    Brusha, G. C., & Cooper. Y. S. (2012). Female entrepreneurship and economic development: an international perspective. Entrepreneurship & Regional Development research, 24(2): 21- 36.

    Bulla,T.T., Maronda, V.M., & Ngacho, O.P.(2018). Effect of microfinance banks on entrepreneurship development; Journal of Entrepreneurship Development. 7(5):157-169

    EFInA Report (2019). A survey of credit accessibility and the growth of the women-owned business; Journal of Management Sciences. 7(2):140-168.

    El Idrissi, I., & Alami, Y. (2021). The financial impacts of board mechanisms on performance: The case of listed Moroccan banks. International Journal of Financial, Accounting, and Management, 3(2), 93-113. https://doi.org/10.35912/ijfam.v3i2.536

    Enterprise Agency of Nigeria (2021) Small and medium enterprises performance in Nigeria; A report presented at African entrepreneurship seminar organized in collaboration with the scientific committee on Entrepreneurship of Essex, United Kingdom.

    Enyi, A.(2022). Women entrepreneurs and economic sustainability; Journal of management. 12(8):285-305

    Enyi, A.(2015). Entrepreneurship and economic development; Journal of management. 8(6):281-300

    Eton, M., Mwosi, F., & Ogwel, B. P. (2022). Are internal controls important in financial accountability? (Evidence from Lira District Local Government, Uganda), International Journal of Financial, Accounting, and Management, 3(4), 359-372. https://doi.org/10.35912/ijfam.v3i4.810

    Eze, P. (2016). Influence of entrepreneurial disposition on the performance of female-operated enterprises in Nigeria. Journal of Economics and Sustainable Development, 3(12):107-115

    Isaac, O.(2015) ). Influence of group credit lending scheme on the performance of women owned small and medium enterprises in Nigeria. Journal of Entrepreneurship and Research. 6 (4):61-78

    Khaki, A. S. & Sangmi, M. (2012). Microfinance and small help groups: an empirical study, Indian Journal of Management Science (IJMS). 11(2), 29-42

    Khavul, N.( 2013).Entrepreneurial motivation and growth of SMEs .Journal of Human Resource Management. 8(14), 257-279

    Kwan, K. C. & Tan (2018) Credit scorning for commercial loans: The case of Singapore. International Journal of Research Development, 5(3), 59-70

    Maru, L. & Chemjor, R. (2013). Microfinance interventions and empowerment of women entrepreneurs rural constituencies in Kenya, Research Journal of Finance and Accounting, 4 (9): 84-95

    Mbithe, N. (2017). The effects of microfinance service on the growth of small and medium enterprises in Machakos County. Award of Master of Business Administration (MBA), school of business, University of Nairobi

    Memba, F. W. (2019). The impact of venture capital on the growth of SMEs in Kenya, Journal of Business and Social Science, 3(6):56-67

    Michael, K. M.,& Willy, M., (2014). The effect of MFI credit on revenue of SMEs, a survey of small-medium enterprises in Nakuru Town. International Journal of Science and Research (IJSR), 2, 1-15

    Mwewa, A. (2018). Mainstreaming microfinance: How Lending to the Poor Began, Grew and Came of Age in Bolivia, Hartford, CT: Kumarian Press.

    Murray, J. & R. Rosenberg (2016). Community-managed loan funds: Which one works? Washington, DC: Consultative Group to Assist the Poor (CGAP)

    Nunnally,J.C(1979). Psychometric theory- 2nd Edition, McGraw-Hill

    Nwanyanwu, O. J., (2017). Microfinance in Nigeria, problems and prospects; An International Multi-Disciplinary Journal, Ethiopia, 5(2), 19-35

    Okoye, R. (2017). The entrepreneurial gap between women and men; Nigeria in Focus: Journal of Entrepreneurship. 4(6):78-94

    Olu, O. (2019). Impact of microfinance on entrepreneurial development, the Case of Nigeria; Unpublished Thesis, Department of Business Administration, Osun State University, Nigeria

    Osuji,M.(2016) microfinance services as a vital tool for economic development. Business and Economics Review, 1(2), 25 – 38

    Panda, R. (2017). Increasing savings and its benefit for women entrepreneurs among microfinance users; International Journal of Management and Entrepreneurship, 7(5), 34-56.

    Robinson, T.B. (2014). Entrepreneurship, Small enterprises, theory and practices in Kenya. Journal of Management and Administration, 3(4), 111-118

    Roy, K. (2018).The Impact of microfinance on household welfare: Case Study of a Savings Group in Lao PDR. Unpublished Master Dissertations, Department of Regional Cooperation Policy Studies Graduate School of International Cooperation Studies Kobe University.

    Solomon, P.(2018). Microfinance credit facilities and the growth of the small and medium scale enterprises in the Cape Coast Metropolis of Ghana; International Journal of Economics, Commerce and Management, 5(12), 201-22

    Tharu, N. K., & Shrestha, Y. M. (2019). The influence of bank size on profitability: An application of statistics. International Journal of Financial, Accounting, and Management, 1(2), 81-89. https://doi.org/10.35912/ijfam.v1i2.82

    Ubom, E. (2013), Entrepreneurship, Small enterprises, theory, practices and policies, Lagos; Sediman Limited

    Udenwa, T.A & Uwaleke, U.J.(2015) Understanding Nigeria Financial System. Pearl Publishers

    Udoh, R. (2017). Financing SMEs in international perspective. Journal of the Chartered Institute of Bankers of Nigeria, 4(6),20-27.

    Umar, N. A. (2022). Examining the determinants of loan default among microfinance banks’ borrowers in Kano State, Nigeria, International Journal of Financial, Accounting, and Management, 3(4), 335- 347. https://doi.org/10.35912/ijfam.v3i4.827

    Uzzi, O. (2017). Learning barriers in adopting ICT among selected working women in Nigeria; Gender in Management: International Journal of Management, 23(5), 317-336.

    Verheul, I. (2016). Explaining female and male entrepreneurship at the Country level; Entrepreneurship & Regional Development Journal, 18(2), 151-183

    Willard, K. S. (2017). Effect of microfinance services on the growth of small and medium enterprises; Journal of Small Business, 8(11), 341-354

    Yamane,T.(1976). Statistics: An Introductory Analysis, 2nd Edition, New York: Harper and Row

    Zeller, M.& Sharma, M. (2017). Rural financing and poverty alleviation in women; International Food Policy Research Institute (IFPRI).14(9), 414-427

  1. Aheeyar, M.M. (2017). Impacts of microfinance on micro-enterprises: A Comparative analysis of Samurdhi and SEEDS micro-enterprises in Sri Lanka, Hector Kobbekaduwa Agrarian. Research and Training Institute, Colombo, Sri Lanka, 4(3), 104-118.
  2. Ahmed, V.(2013). Women’s entrepreneurial activities and the growth of the economy; Journal of Management Science, 4(3), 77-98
  3. Akanji, B.M. (2022). Deposit money banks and women entrepreneurs’ growth. International Journal of Entrepreneurship Development, 9(3), 36-48
  4. Akanji, B.M. (2016). Effect of microfinance banks on the growth of entrepreneurs in Nigeria; International Journal of Economics, 39(4), 32-44
  5. Alarpe, A.(2020). Customer participation and growth of women entrepreneurial business in Southwest Nigeri;. Journal of Management Sciences, 5(3), 44-60
  6. Anoke, A.F. & Ndubuisi-Okolo, P.N.(2022).The entrepreneurial mindset among Nigeria university students: A study of Ebonyi State University’s Entrepreneurship Centre, Abakaliki. Asian Journal of Economics, Business, and Accounting, 22(5):24-33. Doi:10.9734/AJEBA/2022/v22i530560
  7. Anoke, A.F, Eze, S.U.,Nwoye, I.I.,& Odumu, A.V.(2022). Agropreneurship intentions among agricultural and entrepreneurship graduates in Nigeria, International Journal of Research in Agronomy, 5(1):7-12. DOI: http://doi.org/10.33545/2618060X.2022.v5.ila.89
  8. Anoke, A.F. (2019) Growth strategies and performance of listed insurance firms in Nigeria. Journal of Accounting, Finance and Development. 2(1): 49-60
  9. Brusha, G. C., & Cooper. Y. S. (2012). Female entrepreneurship and economic development: an international perspective. Entrepreneurship & Regional Development research, 24(2): 21- 36.
  10. Bulla,T.T., Maronda, V.M., & Ngacho, O.P.(2018). Effect of microfinance banks on entrepreneurship development; Journal of Entrepreneurship Development. 7(5):157-169
  11. EFInA Report (2019). A survey of credit accessibility and the growth of the women-owned business; Journal of Management Sciences. 7(2):140-168.
  12. El Idrissi, I., & Alami, Y. (2021). The financial impacts of board mechanisms on performance: The case of listed Moroccan banks. International Journal of Financial, Accounting, and Management, 3(2), 93-113. https://doi.org/10.35912/ijfam.v3i2.536
  13. Enterprise Agency of Nigeria (2021) Small and medium enterprises performance in Nigeria; A report presented at African entrepreneurship seminar organized in collaboration with the scientific committee on Entrepreneurship of Essex, United Kingdom.
  14. Enyi, A.(2022). Women entrepreneurs and economic sustainability; Journal of management. 12(8):285-305
  15. Enyi, A.(2015). Entrepreneurship and economic development; Journal of management. 8(6):281-300
  16. Eton, M., Mwosi, F., & Ogwel, B. P. (2022). Are internal controls important in financial accountability? (Evidence from Lira District Local Government, Uganda), International Journal of Financial, Accounting, and Management, 3(4), 359-372. https://doi.org/10.35912/ijfam.v3i4.810
  17. Eze, P. (2016). Influence of entrepreneurial disposition on the performance of female-operated enterprises in Nigeria. Journal of Economics and Sustainable Development, 3(12):107-115
  18. Isaac, O.(2015) ). Influence of group credit lending scheme on the performance of women owned small and medium enterprises in Nigeria. Journal of Entrepreneurship and Research. 6 (4):61-78
  19. Khaki, A. S. & Sangmi, M. (2012). Microfinance and small help groups: an empirical study, Indian Journal of Management Science (IJMS). 11(2), 29-42
  20. Khavul, N.( 2013).Entrepreneurial motivation and growth of SMEs .Journal of Human Resource Management. 8(14), 257-279
  21. Kwan, K. C. & Tan (2018) Credit scorning for commercial loans: The case of Singapore. International Journal of Research Development, 5(3), 59-70
  22. Maru, L. & Chemjor, R. (2013). Microfinance interventions and empowerment of women entrepreneurs rural constituencies in Kenya, Research Journal of Finance and Accounting, 4 (9): 84-95
  23. Mbithe, N. (2017). The effects of microfinance service on the growth of small and medium enterprises in Machakos County. Award of Master of Business Administration (MBA), school of business, University of Nairobi
  24. Memba, F. W. (2019). The impact of venture capital on the growth of SMEs in Kenya, Journal of Business and Social Science, 3(6):56-67
  25. Michael, K. M.,& Willy, M., (2014). The effect of MFI credit on revenue of SMEs, a survey of small-medium enterprises in Nakuru Town. International Journal of Science and Research (IJSR), 2, 1-15
  26. Mwewa, A. (2018). Mainstreaming microfinance: How Lending to the Poor Began, Grew and Came of Age in Bolivia, Hartford, CT: Kumarian Press.
  27. Murray, J. & R. Rosenberg (2016). Community-managed loan funds: Which one works? Washington, DC: Consultative Group to Assist the Poor (CGAP)
  28. Nunnally,J.C(1979). Psychometric theory- 2nd Edition, McGraw-Hill
  29. Nwanyanwu, O. J., (2017). Microfinance in Nigeria, problems and prospects; An International Multi-Disciplinary Journal, Ethiopia, 5(2), 19-35
  30. Okoye, R. (2017). The entrepreneurial gap between women and men; Nigeria in Focus: Journal of Entrepreneurship. 4(6):78-94
  31. Olu, O. (2019). Impact of microfinance on entrepreneurial development, the Case of Nigeria; Unpublished Thesis, Department of Business Administration, Osun State University, Nigeria
  32. Osuji,M.(2016) microfinance services as a vital tool for economic development. Business and Economics Review, 1(2), 25 – 38
  33. Panda, R. (2017). Increasing savings and its benefit for women entrepreneurs among microfinance users; International Journal of Management and Entrepreneurship, 7(5), 34-56.
  34. Robinson, T.B. (2014). Entrepreneurship, Small enterprises, theory and practices in Kenya. Journal of Management and Administration, 3(4), 111-118
  35. Roy, K. (2018).The Impact of microfinance on household welfare: Case Study of a Savings Group in Lao PDR. Unpublished Master Dissertations, Department of Regional Cooperation Policy Studies Graduate School of International Cooperation Studies Kobe University.
  36. Solomon, P.(2018). Microfinance credit facilities and the growth of the small and medium scale enterprises in the Cape Coast Metropolis of Ghana; International Journal of Economics, Commerce and Management, 5(12), 201-22
  37. Tharu, N. K., & Shrestha, Y. M. (2019). The influence of bank size on profitability: An application of statistics. International Journal of Financial, Accounting, and Management, 1(2), 81-89. https://doi.org/10.35912/ijfam.v1i2.82
  38. Ubom, E. (2013), Entrepreneurship, Small enterprises, theory, practices and policies, Lagos; Sediman Limited
  39. Udenwa, T.A & Uwaleke, U.J.(2015) Understanding Nigeria Financial System. Pearl Publishers
  40. Udoh, R. (2017). Financing SMEs in international perspective. Journal of the Chartered Institute of Bankers of Nigeria, 4(6),20-27.
  41. Umar, N. A. (2022). Examining the determinants of loan default among microfinance banks’ borrowers in Kano State, Nigeria, International Journal of Financial, Accounting, and Management, 3(4), 335- 347. https://doi.org/10.35912/ijfam.v3i4.827
  42. Uzzi, O. (2017). Learning barriers in adopting ICT among selected working women in Nigeria; Gender in Management: International Journal of Management, 23(5), 317-336.
  43. Verheul, I. (2016). Explaining female and male entrepreneurship at the Country level; Entrepreneurship & Regional Development Journal, 18(2), 151-183
  44. Willard, K. S. (2017). Effect of microfinance services on the growth of small and medium enterprises; Journal of Small Business, 8(11), 341-354
  45. Yamane,T.(1976). Statistics: An Introductory Analysis, 2nd Edition, New York: Harper and Row
  46. Zeller, M.& Sharma, M. (2017). Rural financing and poverty alleviation in women; International Food Policy Research Institute (IFPRI).14(9), 414-427