MICROFINANCE SERVICES AND WOMEN ENTREPRENEURSHIPDEVELOPMENT IN AKWA IBOM STATE, NIGERIA

Abstract

Women entrepreneurship plays a vital role in economic growth, poverty reduction, and
employment generation in developing economies such as Nigeria. Despite its importance,
women-owned enterprises in Akwa Ibom State face challenges in accessing effective
microfinance services, limiting their growth and sustainability. Although previous studies
have examined microfinance and entrepreneurship development, limited empirical evidence
exists on how specific microfinance components, namely access to credit, savings
mobilization, and financial literacy, individually and jointly influence women
entrepreneurship development in Akwa Ibom State. Furthermore, few studies have examined
this relationship within an empowerment-based theoretical framework. This study is
anchored on Empowerment Theory, which posits that empowerment occurs when individuals
gain access to resources, develop competencies, and exercise control over decisions affecting
their lives. In this context, microfinance services are viewed as empowerment tools that
enhance women’s economic agency and entrepreneurial capacity. The study investigates the
effect of microfinance services, including access to credit, savings mobilization, and financial
literacy, on women entrepreneurship development in Akwa Ibom State, Nigeria. A survey
research design was adopted, and data were collected from women entrepreneurs in selected
markets using structured questionnaire. The sample size was determined using Cochran’s
formula for an infinite population. Data were analysed using descriptive statistics and
hypotheses tested using multiple regression analyses. The findings revealed that access to
credit, savings mobilization, and financial literacy have positive and statistically significant
individual and joint effects on women entrepreneurship development. The findings
underscore the need for microfinance institutions, government agencies, and development
partners to strengthen credit accessibility, expand structured savings schemes, and intensify
financial literacy programmes tailored to women entrepreneurs. The study contributes to
literature by validating a multidimensional microfinance model grounded in Empowerment
Theory. It concludes that microfinance services significantly enhance women
entrepreneurship development by improving access to financial resources, strengthening
business start-up and expansion opportunities, enhancing financial stability, and equipping
women entrepreneurs with the financial knowledge and skills necessary for sustainable
business growth.