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

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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)

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.

Suggested Citation

  • Dr. Abdulhadi Ibrahim & Mohammed Indimi Garba, 2022. "An Examination of the Determinants of Access to Credit among Rural Agricultural Entrepreneurs in Yobe State, Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(11), pages 1006-1010, November.
    • Handle: RePEc:bcp:journl:v:6:y:2022:i:11:p:1006-1010
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    References listed on IDEAS

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    1. O. A Adekoya, 2014. "The Patterns and Determinants of Agricultural Credit Use among Farm Households in Oyo State, Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(10), pages 1290-1297.
    2. World Bank, 2017. "World Development Indicators 2017," World Bank Publications - Books, The World Bank Group, number 26447.
    3. O . A Adekoya, 2014. "The Patterns and Determinants of Agricultural Credit Use among Farm Households in Oyo State, Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(10), pages 1290-1297, October.
    4. W.O. Siyanbola & O.O. Afolabi & O.A. Jesuleye & A.A. Egbetokun & A.D. Dada & H.O. Aderemi & Maruf Sanni & M.A. Rasaq, 2012. "Determinants of entrepreneurial propensity of Nigerian undergraduates: an empirical assessment," International Journal of Business Environment, Inderscience Enterprises Ltd, vol. 5(1), pages 1-29.
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