PROFIT AND PROSPERITY: SAVING STRATEGIES OF FEMALE SOY CAKE MICROENTREPRENEURS IN GUSAU, ZAMFARA STATE, NIGERIA

Abstract

This study investigates the saving patterns and challenges faced by female microentrepreneurs in Gusau, Zamfara State, Nigeria, who process soy cakes. One hundred soy cake processors were surveyed using a two-stage sampling technique. The data collected were analysed by the use of descriptive statistics and OLS regression model. Data analysis revealed an average age of 22, with most of the respondents being unmarried and possessing only secondary education. About 24% of the soycake micro entrepreneurs reported not saving any money, the average weekly savings however amounted to 19.5% of gross margin (₦2,154). The most popular saving methods were informal rotating savings groups (Maiadashe) followed by home storage and livestock purchase. Banks were rarely used. Primary saving goals included future investment (30%) and immediate consumption (27%), followed by emergencies (22%). Surprisingly, education and marriage were less frequent saving motivations despite the young age and educational level of the respondents. Regression analysis confirmed gross margin and business experience as significant positive determinants of savings. Limited access to financial resources and a lack of financial literacy hinder their growth and stability This research highlights the need for financial inclusion initiatives and financial literacy training to empower these women to save more effectively and achieve greater financial security for their businesses and themselves