Impact of microfinance bank services on women empowerment: The case for women entrepreneurs in Kaduna State, Nigeria.

Abstract

Generally, women entrepreneurs face the problem of access to finance in addition to other factors that range from cultural values and needs of the communities, family ties, gender discrimination, illiteracy, government policies and lack of business training and skill acquisitions specifically targeted at them. This hinders their entrepreneurial performance or activities. This study was carried out to examine the effect of Microfinance bank services on empowering women businesses in Sabon Gari Local Government area of Kaduna State. The study used a cross-sectional survey research design. The population of the study comprised 20,000 registered women entrepreneurs. A total of 392 women were selected using stratified sampling technique. The analysis of data was done using Partial Least Square Structural Equation Modeling (PLS-SEM) with the aid of SmartPLS3 Software. The findings from the analysis showed that microfinance savings, microfinance loans and financial intervention/ donations have significant and positive impact on empowering women businesses in Sabon Gari local government. The study concludes that microfinance saving deposit is an avenue for women entrepreneurs to save their little incomes and as such, it serves as security to accessing loan and
other microfinance services as a means of empowerment. Thus, it is recommended, among other things, that microfinance institutions should deploy more staff to different business areas where women who are able to make small income from their businesses can save and give their daily contribution. In addition, the federal government through the Central Bank of Nigeria should reduce the interest rate for microfinance banks to attract more women entrepreneurs to access loans for their business as it serves as means of empowerment. Finally, government should create more microfinance banks schemes and other financial intervention packages so as to boost their services and ensure that the donations and funds get to the women entrepreneurs.