Alternative entrepreneurial finance mechanisms for women entrepreneurship in sub-Saharan Africa

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Simba, A. ORCID: 0000-0002-0276-8211, Ogundana, O. ORCID: 0000-0002-0121-7231 and Braune, E., Alternative entrepreneurial finance mechanisms for women entrepreneurship in sub-Saharan Africa. In: M. Harry Morris and S.C. Santos, eds., De Gruyter handbook of poverty, disadvantage and entrepreneurship. De Gruyter handbooks in business, economics and finance . De Gruyter. ISBN 9783111212203 (Forthcoming)

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Abstract

This study deploys a multiple correspondence analysis (MCA) method to examine finance for women entrepreneurship. It uncovers distinguishable connections women entrepreneurs establish as they engage with Ajo – a traditional savings club, family financial contributions, and the bank. A survey of 909 Nigerian women entrepreneurs suggests that the impact of an overlay of elements in their gendered micro–macro–meso-environments dictate a financial source(s) for them to use. Contrary to the bank-firm theory of formal financial relationships, our multivariate analysis reveals that these women entrepreneurs frequently use Ajo, and family contributions compared with bank credit. Against expectations, we uncover a phenomenon in which informal finance takes precedence over formal finance, thus engendering a scholarly conversation with the context in a way that induces theoretical perspectives on the informal finance and women entrepreneurship nexus reflective of how women entrepreneurs relate to informal finance in a developing world setting with academic, policy, and social implications.

Item Type:

Chapter in book

Creators:

Simba, A., Ogundana, O. and Braune, E.

Publisher:

De Gruyter

ISBN:

9783111212203

Identifiers: