EXPLORING THE NEXUS BETWEEN FINANCIAL INCLUSION AND POVERTY ALLEVIATION AMONG WOMEN SMALL BUSINESS OWNERS
Keywords:
Poverty alleviation, Financial Inclusion, Education level, Gender inequality
Abstract
In today’s fast-evolving world, financial inclusion is a central aspect of financial innovation, making it a significant driver of financial inclusion. It remains a key concept in development policy because it plays a crucial role in reducing extreme poverty and fostering inclusive growth and development. This study investigates the effect of financial inclusion on poverty reduction among women small business owners. The paper utilizes correlation analysis and the binary logit regression technique to show the evidence based on selected samples in Tarauni Local Government, Kano State, Nigeria. The result revealed a negative yet significant association between financial inclusion and poverty alleviation. This is due to the high cost of financial services and poor financial literacy. Also, gender inequality has revealed a positive and significant relationship. Women have been deprived of certain opportunities and benefits due to cultural and social barriers. The findings call for further inquiry into the significant factors that that influence how financial inclusion impact poverty alleviation among women small business owners. The paper offers that the government should invest in financial education to promote responsible financial product use. Because some people have access to financial services but do not know how to use them efficiently. Moreso, financial institutions should be saddled with the responsibility of developing financial services specifically for low-income persons, such as micro-loans with lower interest rates and flexible repayment schedules.
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References
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Aernoudt, R., & De San José, A. (2020). A gender financing gap: Fake news or evidence? Venture Capital, 22(2), 127–134. https://doi.org/10.1080/13691066.2020.1747692
Ahamed, M. M., Ho, S. J., Mallick, S. K., & Matousek, R. (2021). Inclusive banking, financial regulation and bank performance: Cross-country evidence. Journal of Banking and Finance, 124, 106055. https://doi.org/10.1016/j.jbankfin.2021.106055
Ahmad,H.A., Green,F. & Jang, F. (2020). Mobile Money, Financial Inclusion and Development: A Review with Reference to African Experience. Journal of Economic Surveys, 34(4),753-792. DOI: 10.1111/joes.12372
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Djoutsa Wamba, L., & Koye, R. (2023). Accès aux financements externes et pérennité de la très petite entreprise: quelle évidence en temps de crise sécuritaire? Journal of Small Business and Entrepreneurship, 35(1), 108–129. https://doi.org/10.1080/08276331.2021.1878343
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Eze, E. & Alugbuo,J.C. (2021). Financial Inclusion and Poverty Reduction in Nigeria: A Survey-Based Analysis. GSC Advanced Research and Review, 7(3):075-084
Gao, J., Siddik, A. B., Khawar Abbas, S., Hamayun, M., Masukujjaman, M., & Alam, S. S. (2023). Impact of e-commerce and digital marketing adoption on the financial and sustainability performance of MSMEs during the COVID-19 pandemic: An empirical study. Sustainability, 15(2), 1594. https://doi.org/10.3390/su15021594
Ghosh, S., & Vinod, D. (2017). What constrains financial inclusion for women? Evidence from Indian micro data. World Development, 92, 60–81. https://doi.org/10.1016/j.worlddev.2016. 11.011
Goel, N., & Madan, P. (2019). Benchmarking financial inclusion for women entrepreneurship —A study of Uttarakhand state of India. Benchmarking, 26(1), 160–175. https://doi.org/10. 1108/BIJ-01-2018-0023
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Hayes, A. F. (2017). Introduction to mediation, moderation, and conditional process analysis: A regression-based approach. Guilford Press.Hervé, F., Manthé, E., Sannajust, A., & Schwienbacher, A. (2019). Determinants of individual investment decisions in investment-based crowdfunding. Journal of Business Finance & Accounting, 46(5–6), 762–783. https://doi.org/10.1111/jbfa.12372
Kumar, V. (2023). Does Financial Inclusion Affect Poverty? An Analysis of Developing Countries. Asian Economic Letters, 4(3). https://doi.org/10.46557/001c.84842
Kumar, S.S. & Jie,Q. (2023). Exploring the role of financial Inclusion in Poverty Reduction: An Empirical Study. World Data Sustainability,3(1).
Nsiah, A.Y., Yusif,H., Tweneboah,G.,Agyei,K. & Baidoo,S.T. (2021). The Effect of Financial Inclusion on Poverty Reduction in Sub-Sahara Africa: Does Threshold Matter? Cogent Social Sciences, 7(1). https://doi.org/10.1080/23311886.2021.1903138
Odumusor, C.J., Acquah,S.J. & Abiji,E. (2024). Financial Inclusion and its Effect on Economic Growth in Nigeria. International Research Journal of Economics and Management Studies, 3(1): 231-244. DOI: 10.5472/25835238/IRJEMS-v312p129
Omar, M.D.A. & Inaba,K. (2020). Does Financial Inclusion Reduce Poverty and Income Inequality in Developing Countries? A Panel Data Analysis. Journal of Economic Structures, 9(37).
Osuma, G. (2024). The Impact of Financial Inclusion on Poverty Reduction and Economic Growth in Sub-Saharan Africa: A Comparative Study of Digital Financial Services. Social Sciences and Humanities Open, Science Direct, 11(1). https://doi.org/10.1016/j.ssaho.2024.101263
Ouechtati, I. (2020). The Contribution of Financial Inclusion in Reducing Poverty and Income Equality in Developing Countries. Asian Economic and Financial Review,10(9), 1051-1061. DOI: 10.18488/journal.aefr.2020.109.1051.1061
Tran, H. & Le, H. (2020). The Impact of Financial Inclusion on Poverty Reduction. Asian Journal of Law and Economics, 12(1). DOI: 10.1515/ajle-2020-0055
Tsouli, D. (2022). Financial Inclusion, Poverty and Income Inequality: Evidence from European Countries. Ekonomika, 101(1).
Adikaram, A. S., & Razik, R. (2023). Femininity penalty: Challenges and barriers faced by STEM woman entrepreneurs in an emerging economy. Journal of Entrepreneurship in Emerging Economies, 15(5), 1113–1138. https://doi.org/10.1108/JEEE-07-2021-0278
Adomako, S., Danso, A., & Ofori Damoah, J. (2016). The moderating influence of financial literacy on the relationship between access to finance and firm growth in Ghana. Venture Capital, 18(1), 43–61. https://doi.org/10.1080/13691066.2015.1079952
Aernoudt, R., & De San José, A. (2020). A gender financing gap: Fake news or evidence? Venture Capital, 22(2), 127–134. https://doi.org/10.1080/13691066.2020.1747692
Ahamed, M. M., Ho, S. J., Mallick, S. K., & Matousek, R. (2021). Inclusive banking, financial regulation and bank performance: Cross-country evidence. Journal of Banking and Finance, 124, 106055. https://doi.org/10.1016/j.jbankfin.2021.106055
Ahmad,H.A., Green,F. & Jang, F. (2020). Mobile Money, Financial Inclusion and Development: A Review with Reference to African Experience. Journal of Economic Surveys, 34(4),753-792. DOI: 10.1111/joes.12372
Alshater, M. M., Atayah, O. F., Hamdan, A., & Atayah, O. F. (2021). Journal of sustainable finance and investment : A bibliometric analysis. Journal of Sustainable Finance & Investment, 1–22. https://doi.org/10.1080/20430795.2021.1947116
Bachmann, N., Rose, R., Maul, V., & Hölzle, K. (2024). What makes for future entrepreneurs? The role of digital competencies for entrepreneurial intention. Journal of Business Research, 174, 114481. https://doi.org/10.1016/j.jbusres.2023.114481
Bentancor, A. (2022). Women’s entrepreneurship and government policy: Facilitating access to credit through a national program in Chile. Social Sciences, 11(1), 14. https://doi.org/10. 3390/socsci11010014
Bhutoria, A., & Vignoles, A. (2018). Do financial education interventions for women from poor households impact their financial behaviors? Experimental evidence from India. Journal of Research on Educational Effectiveness, 11(3), 409–432. https://doi.org/10.1080/19345747. 2018.1465317
Bilal, A. R., Fatima, T., Iqbal, S., & Imran, M. K. (2022). I can see the opportunity that you cannot! A nexus between individual entrepreneurial orientation, alertness, and access to finance. European Business Review, 34(4), 556–577. https://doi.org/10.1108/EBR-08-2021- 0186
Blanco-Oliver, A., Reguera-Alvarado, N., & Veronesi, G. (2021). Credit risk in the microfinance industry: The role of gender affinity. Journal of Small Business Management, 59(2), 280–311. https://doi.org/10.1080/00472778.2020.1844487
Boulton, T. J., Shohfi, T. D., & Zhu, P. (2019). Angels or sharks? The role of personal characteristics in angel investment decisions. Journal of Small Business Management, 57 (4), 1280–1303. https://doi.org/10.1111/jsbm.12409
Daou, A., Talbot, D., & Jomaa, Z. (2022). Redefining boundaries: The case of women angel investors in a patriarchal context. Entrepreneurship and Regional Development, 34(1–2), 137–157. https://doi.org/10.1080/08985626.2022.2037164
de Esteban Curiel, J., Antonovica, A., & Herráez, B. R. (2024). Longitudinal analysis of gender differences regarding entrepreneurial resilience. International Entrepreneurship and Management Journal, 0123456789. https://doi.org/10.1007/s11365-024-01000-5
De Simone, S., Pileri, J., Rapp-Ricciardi, M., & Barbieri, B. (2021). Gender and entrepreneurship in pandemic time: What demands and what resources? An exploratory study. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.668875
Deng, W., Liang, Q., Li, J., & Wang, W. (2021). Science mapping: A bibliometric analysis of female entrepreneurship studies. Gender in Management, 36(1), 61–86. https://doi.org/10. 1108/GM-12-2019-0240
Djoutsa Wamba, L., & Koye, R. (2023). Accès aux financements externes et pérennité de la très petite entreprise: quelle évidence en temps de crise sécuritaire? Journal of Small Business and Entrepreneurship, 35(1), 108–129. https://doi.org/10.1080/08276331.2021.1878343
Emmanuel,A. & Jimoh,N. (2022). Effects of Financial Inclusion on Poverty Alleviation in Nigeria. Lapai International Journal of Administration, 5(1).
Eze, E. & Alugbuo,J.C. (2021). Financial Inclusion and Poverty Reduction in Nigeria: A Survey-Based Analysis. GSC Advanced Research and Review, 7(3):075-084
Gao, J., Siddik, A. B., Khawar Abbas, S., Hamayun, M., Masukujjaman, M., & Alam, S. S. (2023). Impact of e-commerce and digital marketing adoption on the financial and sustainability performance of MSMEs during the COVID-19 pandemic: An empirical study. Sustainability, 15(2), 1594. https://doi.org/10.3390/su15021594
Ghosh, S., & Vinod, D. (2017). What constrains financial inclusion for women? Evidence from Indian micro data. World Development, 92, 60–81. https://doi.org/10.1016/j.worlddev.2016. 11.011
Goel, N., & Madan, P. (2019). Benchmarking financial inclusion for women entrepreneurship —A study of Uttarakhand state of India. Benchmarking, 26(1), 160–175. https://doi.org/10. 1108/BIJ-01-2018-0023
Gupta, A., John, A., Glan, C., Arunkumar, J. V., & Tripath, V. (2023). Beyond the numbers - decoding the gender gap in (issue July). Villgro Innovations Foundation and LEAD at Krea University https://ifmrlead.org/beyond-the-numbers-decoding-the-gender-gap-in-financing-smes-in-india
Hayes, A. F. (2017). Introduction to mediation, moderation, and conditional process analysis: A regression-based approach. Guilford Press.Hervé, F., Manthé, E., Sannajust, A., & Schwienbacher, A. (2019). Determinants of individual investment decisions in investment-based crowdfunding. Journal of Business Finance & Accounting, 46(5–6), 762–783. https://doi.org/10.1111/jbfa.12372
Kumar, V. (2023). Does Financial Inclusion Affect Poverty? An Analysis of Developing Countries. Asian Economic Letters, 4(3). https://doi.org/10.46557/001c.84842
Kumar, S.S. & Jie,Q. (2023). Exploring the role of financial Inclusion in Poverty Reduction: An Empirical Study. World Data Sustainability,3(1).
Nsiah, A.Y., Yusif,H., Tweneboah,G.,Agyei,K. & Baidoo,S.T. (2021). The Effect of Financial Inclusion on Poverty Reduction in Sub-Sahara Africa: Does Threshold Matter? Cogent Social Sciences, 7(1). https://doi.org/10.1080/23311886.2021.1903138
Odumusor, C.J., Acquah,S.J. & Abiji,E. (2024). Financial Inclusion and its Effect on Economic Growth in Nigeria. International Research Journal of Economics and Management Studies, 3(1): 231-244. DOI: 10.5472/25835238/IRJEMS-v312p129
Omar, M.D.A. & Inaba,K. (2020). Does Financial Inclusion Reduce Poverty and Income Inequality in Developing Countries? A Panel Data Analysis. Journal of Economic Structures, 9(37).
Osuma, G. (2024). The Impact of Financial Inclusion on Poverty Reduction and Economic Growth in Sub-Saharan Africa: A Comparative Study of Digital Financial Services. Social Sciences and Humanities Open, Science Direct, 11(1). https://doi.org/10.1016/j.ssaho.2024.101263
Ouechtati, I. (2020). The Contribution of Financial Inclusion in Reducing Poverty and Income Equality in Developing Countries. Asian Economic and Financial Review,10(9), 1051-1061. DOI: 10.18488/journal.aefr.2020.109.1051.1061
Tran, H. & Le, H. (2020). The Impact of Financial Inclusion on Poverty Reduction. Asian Journal of Law and Economics, 12(1). DOI: 10.1515/ajle-2020-0055
Tsouli, D. (2022). Financial Inclusion, Poverty and Income Inequality: Evidence from European Countries. Ekonomika, 101(1).
Published
2024-10-31
How to Cite
Nageri, K. (2024). EXPLORING THE NEXUS BETWEEN FINANCIAL INCLUSION AND POVERTY ALLEVIATION AMONG WOMEN SMALL BUSINESS OWNERS. J-MACC : Journal of Management and Accounting, 7(2), 303-317. https://doi.org/https://doi.org/10.52166/j-macc.v7i2.11782
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Articles
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