FINANCIAL INCLUSION, ENTREPRENEURIAL DEVELOPMENT AND PRODUCTIVITY IN RURAL COMMUNITIES OF KATSINA STATE

Abstract

This study investigates the relative impact of financial inclusion on entrepreneurial productivity in rural communities of Katsina State. The study utilizes primary data sourced from the administration five hundred and forty-five (545) questionnaires distributed based on non-probability sampling technique. It employs both parametric and non-parametric method of estimations. These includes tabular presentation of responses on sources of loan, Availability and Access to financial services and reasons for financial exclusion which are shown in frequencies and percentages. While Regression analysis was conducted to ascertain the elative effects of the major determinants of financial inclusion of the access to finance and the productivity of entrepreneurs within the study area. Findings from the study that a considerable number of the respondents prefers borrowing from friends and members of their families, Relative distance of financial institutions from the rural areas, the inconvenient banking hours as well as the lack of collaterals to be pledge and access loan are the major reasons for financial exclusion. It was also discovered that Level of Education, Household income Assets position and Farm ownership are the determinants that exert varying degrees of influence of financial inclusion. It was also discovered that Level of Education, Household income Assets position and Farm ownership are the determinants that exert varying degrees of influence of financial inclusion. Lastly, the study revealed the Forty-six Percent (46%) of variations in the level of financial inclusion is caused by changes in the determinants of financial inclusion. It is therefore recommended that the cost of borrowing from financial institution should be reviewed downward to stimulated access to financial facilities, improvement in the disbursement of loanable fund to potential investors has no sufficient collaterals to pledge is also recommended which should be done with an effective and efficient risk control management strategies.