An Examination of the Determinants of Access to Credit among Rural Agricultural Entrepreneurs in Yobe State, Nigeria

Dr. Abdulhadi Ibrahim and Mohammed Indimi Garba
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Dr. Abdulhadi Ibrahim: Umar Suleiman College of Education, Gshua, Yobe State, Nigeria
Mohammed Indimi Garba: Umar Suleiman College of Education, Gshua, Yobe State, Nigeria

International Journal of Research and Innovation in Social Science, 2022, vol. 6, issue 11, 1006-1010

Abstract: The study examines the determinants of access to credit among rural entrepreneurs in Yobe state, Nigeria. Entrepreneurs are faced with numerous challenges with respect to accessing credit to boost their businesses; hence the study attempts to bring out the major determinants of access to credits among rural agricultural entrepreneurs and offers recommendations on what to do to overcome these challenges. To achieve the objectives of this study, we employ Logit regressions and a sample of 270 entrepreneurs was selected from the three geo political zones in the state using random sampling method. Findings from the study show years of entrepreneurial experiences, business plan, financial literacy, number of bank accounts open and membership of cooperative society influence entrepreneurs’ ability to access credit positively while collateral security and cost of borrowing has a negative influence on the entrepreneurs’ ability to access credit facilities from banking sector. The study recommends the need to reduce the cumbersomeness of the credit process and transaction cost involved to the entrepreneurs. The entrepreneurs can also form cooperative groups to make it easier in accessing credit from the financial sector. The process of opening account should also be simplified to enable more entrepreneurs to open the account.

Date: 2022
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