Women In Small Scale Business In Nigeria: Challenges In Accessing Credit Facilities

Abstract

The small business sector is recognized as an integral component of economic development and a crucial element to lift countries out of poverty as it drives economic growth, creates employment, and has been found to improve livelihood in developing countries. Yet, the sector is under-financed in Nigeria where 65 percent of economically active population, mostly women, is excluded from accessing credit in formal financial institutions. Although actors in this sector received financing support from money-lenders, friends, relatives and credit unions, low level of loanable funds and lack of regulation make them problematic. The study examined the accessibility of credit facilities to women traders at Agbeni Market by assessing the credit facilities available to them, constraints in accessing funds and strategies adopted to sustain their businesses. Max Weber’s Social Action theory guided the inquiry and the study adopted a descriptive design, combining quantitative and qualitative approaches. While structured questionnaire was used to gather quantitative data from 300 respondents selected through stratified and systematic sampling techniques, 12 in-depth interviews and 2 FGDs of 6 participants each were used to generate qualitative data from purposively selected respondents. Respondents were drawn from Agbeni Market in Ibadan where a large concentration of women traders exists. Quantitative data were analyzed and interpreted through simple frequency and chi-square, while qualitative data were subjected to content analysis and reported through direct quotations. Socio-demographic characteristics of respondents showed that they aged between.