The Effect of Access to Finance on the Performance of Women-Owned SMEs in Nigeria: Evidence From Borno State
DOI:
https://doi.org/10.70861/ujed20250202005Keywords:
Collateral Entrepreneur, Finance, WomenAbstract
Women entrepreneurs play a vital role in economic development through job creation, innovation, and poverty reduction; however, limited access to finance remains a major constraint to their growth and sustainability. This paper evaluates the effects of access to finance on the performance of women-owned Small and Medium Enterprises in Borno state. Nigeria. Data were obtained from primary and secondary sources through structured questionnaire and documents from relevant institutions. Statistical estimations were conducted using correlation, regression, frequency and percentage methods. Key variable in the study include access to finance and business performance indicators such as revenue growth, employee count, and market expansion. The findings indicate that access to finance plays a significant role in enabling women entrepreneurs in Nigeria to grow their businesses and contribute to economic growth. however, the study also reveals that limited access to collateral and high interest rate hinders women’s entrepreneurial ventures. The findings reveal a significant positive relationship between access to finance and SME performance, indicating that improved financial inclusion enhances the operational capacity and competitiveness of women entrepreneurs. The study concludes that addressing financial barriers through gender-sensitive credit policies, capacity building, and institutional support can foster the growth of women-owned enterprises and contribute meaningfully to national economic development. The study recommended that the government prioritize gender sensitive credit schemes. Promotes alternative forms of collateral and encourage public private partnership to support women entrepreneurs
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