IDEAS home Printed from https://ideas.repec.org/a/eme/jfeppp/jfep-08-2019-0159.html
   My bibliography  Save this article

Financial inclusion in Africa: does it promote entrepreneurship?

Author

Listed:
  • Folorunsho M. Ajide

Abstract

Purpose - Financial inclusion policy focuses on bringing the less privileged groups into the formal financial system. Financial inclusion has a lot of benefits in the society. It can reduce the level of poverty, inequality and encourage business startup. This study aims to examine the impact of financial inclusion on entrepreneurship in selected African countries. Design/methodology/approach - This paper examines how financial inclusion impacts entrepreneurship in 13 selected African countries using data from World Bank Development Indicators, IMF’s International Financial Statistics, doing business and World Bank Entrepreneurship Survey for the period of 2005-2016. It uses panel data regression techniques such as random effect, IV estimation and robust least square. Findings - The results show that financial inclusion has a significant and positive effect on entrepreneurship in Africa. This result is robust to both alternative measures of financial inclusion and alternative estimators. Originality/value - The possible relationship between financial inclusion and entrepreneurial development has been an ongoing debate in other developing countries. However, this issue has been neglected in the African region. There are little or no evidence to support the possible relationship in Africa. This paper makes an important contribution in this respect and further provides insightful information in the ongoing debate.

Suggested Citation

  • Folorunsho M. Ajide, 2020. "Financial inclusion in Africa: does it promote entrepreneurship?," Journal of Financial Economic Policy, Emerald Group Publishing Limited, vol. 12(4), pages 687-706, January.
    • Handle: RePEc:eme:jfeppp:jfep-08-2019-0159
    DOI: 10.1108/JFEP-08-2019-0159
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/JFEP-08-2019-0159/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/JFEP-08-2019-0159/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/JFEP-08-2019-0159?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yang, Xiaolan & Huang, Yidong & Gao, Mei, 2022. "Can digital financial inclusion promote female entrepreneurship? Evidence and mechanisms," The North American Journal of Economics and Finance, Elsevier, vol. 63(C).
    2. Usman Alhassan, 2023. "E-government and the impact of remittances on new business creation in developing countries," Economic Change and Restructuring, Springer, vol. 56(1), pages 181-214, February.
    3. Romero-Castro, N. & López-Cabarcos, M.A. & Piñeiro-Chousa, J., 2023. "Finance, technology, and values: A configurational approach to the analysis of rural entrepreneurship," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    4. Abdul Jalloh*, Mamoud, 2023. "Determinants Of Financial Inclusion In Sierra Leone: Evidence From Findex Surveys," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 10(1), pages 32-45, June.
    5. Aarakit, Sylvia Manjeri & Ntayi, Joseph M. & Wasswa, Francis & Buyinza, Faisal & Adaramola, Muyiwa S. & Ssennono, Vincent F., 2022. "The role of financial inclusion in adoption of solar photovoltaic systems: A case of Uganda," Renewable Energy, Elsevier, vol. 198(C), pages 984-998.
    6. Ajide Folorunsho M., 2021. "Financial Inclusion and Labour Market Participation of Women in Selected Countries in Africa," Economics and Culture, Sciendo, vol. 18(1), pages 15-31, June.
    7. Liu, Aiping & Urquía-Grande, Elena & López-Sánchez, Pilar & Rodríguez-López, Ángel, 2023. "Research into microfinance and ICTs: A bibliometric analysis," Evaluation and Program Planning, Elsevier, vol. 97(C).
    8. Wen, Xin & Cheng, Zhiming & Tani, Massimiliano, 2024. "Rural-urban migration, financial literacy, and entrepreneurship," Journal of Business Research, Elsevier, vol. 175(C).
    9. Nkambule, Maxwell Banele, 2022. "The financial inclusion status of rural households in Eswatini," Research Theses 334766, Collaborative Masters Program in Agricultural and Applied Economics.
    10. Antonella Francesca Cicchiello & Amirreza Kazemikhasragh & Stefano Monferrá & Alicia Girón, 2021. "Financial inclusion and development in the least developed countries in Asia and Africa," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-13, December.
    11. M. Ajide, Folorunsho, 2020. "Asymmetric Influence Of Financial Development On Unemployment In Nigeria," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 7(2), pages 39-52, June.
    12. Ozili, Peterson K, 2024. "Financial inclusion, financial crime, and fraud detection," MPRA Paper 121566, University Library of Munich, Germany.
    13. Isaac Koomson & Raymond Elikplim Kofinti & Esther Laryea, 2024. "Financial inclusion and multidimensional child poverty," Review of Economics of the Household, Springer, vol. 22(1), pages 237-260, March.
    14. Folorunsho M. Ajide & James T. Dada, 2023. "Poverty, entrepreneurship, and economic growth in Africa," Poverty & Public Policy, John Wiley & Sons, vol. 15(2), pages 199-226, June.
    15. Wen Wu & Leow Hon-Wei & Siyao Yang & Iskandar Muda & Zhaoyi Xu, 2023. "Nexus between financial inclusion, workers’ remittances, and unemployment rate in Asian economies," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-10, December.
    16. Chen, Ping & Xi, JunYa & Li, Yuming & Ozturk, Ilhan & Ullah, Sana & Hafeez, Muhammad, 2024. "How do mineral resources trade and financial development affect green entrepreneurship in resource-rich economies?," Resources Policy, Elsevier, vol. 88(C).
    17. Mohammed Seid Hussen & Mustafe Abdi Mohamed, 2023. "Impact of financial inclusion on household welfare in Ethiopia," Future Business Journal, Springer, vol. 9(1), pages 1-12, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:jfeppp:jfep-08-2019-0159. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.