Assessment of the Factors Constraining Women in Business from Accessing Formal Credit in Sokoto State, Nigeria

Abstract

This study examined the factors constraining women entrepreneurs in Sokoto State from accessing formal credit, it is an exploratory cross-sectional survey study that adopted a multi-stage sampling technique, and collecting data directly from the field using a semi- structured questionnaire. The explanatory variables were subjected to a binomial logistic regression. The regression result revealed that of high interest rate (HIR) and lack of strong network system (NET) are not statistically significant while lack of collateral requirement (LCR), nature of business (NB), inadequate information about Loan (IIL) and Lack of regular income (LRI)are significant at 1% level. However, all the variables estimated have positive coefficient values, implying that they all constitute as constraints to accessing formal credit by the women. Nature of business (NB) and lack of regular income (LRI) revealed to be the two factors with the highest influence, with odd ratio values of 2.903 and 2.916 respectively implying that a unit increase in either will constrain the respondents 2.9 times further, other factors controlled. In line with the findings, the study suggests the need for the government of Sokoto state to create an enabling platform to promote interaction between the state and the women aimed at enabling the businesses of the women into the formal sector of the economy, this will improve the nature of their businesses through innovation and modernization, resulting to a more regular income for the women.