Assessing Nigerian female entrepreneurs access to finance for business start-up and growth

Abstract

Research emphasis in many transition economies highlights the impact of finance for start-up and growth as the principal factor affecting women’s entry into business and their subsequent growth. The need to conduct studies specifically on Nigerian female entrepreneurs is based on the fact that very little is known about such firms, thus a better understanding is needed. The study explored Nigerian female entrepreneurs based on a survey of 132 female-owned firms. The study sought to construct a typology in terms of their demographic characteristics and motivation for going into business, as well as access to finance when starting or expanding their business venture. The findings revealed that Nigerian female entrepreneurs are particularly constrained by their weak financial base and lack of collateral. Many of the women in the study were seen to resort to internal sources of finance for their start-up and working capitals. While many of the challenges faced by female entrepreneurs can also be linked to the inferior status of women in many African societies, their underestimation as economic agents, as well as gender bias embedded in tribal and cultural norms, the finding showed gender is extraneous to the practices of financial institutions when dealing with female entrepreneurs. Key words: Female entrepreneurs, women, finance, motivation, characteristics, Nigeria, start-up, growth.