Start-up Capital Source and Credit Access Participation of Household Nonfarm Enterprises in Nigeria: Evidence from Logistic Regression Model

Obed I. Ojonta, Divine N. Obodoechi and Paschaline N. Ugwu
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Obed I. Ojonta: University of Nigeria, Nigeria
Divine N. Obodoechi: University of Nigeria, Nigeria
Paschaline N. Ugwu: University of Nigeria, Nigeria

Managing Global Transitions, 2021, vol. 19, issue 3 (Fall), 249-267

Abstract: The main focus of this study is to estimate the influence of the main startup capital source on credit access participation by household nonfarm enterprises. The General Household Survey data for 2018 was adopted to construct a measure of credit access participation. Through binary logistic regression estimation, the result shows that main start-up capital source positively and significantly influences credit access by household nonfarm businesses in Nigeria. This also implies that household nonfarm enterprises that borrowed as main start-up capital source have better chances of credit access participation when compared to those household nonfarm enterprises who do not borrow. However, this study suggests that there is a need for policies that motivate individuals or a group of individuals to borrow as their main start-up capital source in Nigeria, with a view to strengthening their operations on a sustainable basis.

Keywords: credit access; household; enterprise; binary logistic regression; Nigeria (search for similar items in EconPapers)
JEL-codes: E51 G5 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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DOI: 10.26493/1854-6935.19.249-267

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