The Effect of Microfinance Factors on Women Entrepreneurs' Performance in Nigeria: A Conceptual Framework

Supporting women entrepreneurship to reduce poverty

This study presents a conceptual framework to measure the effect of credit, savings, training and social capital on women entrepreneurs’ performance in Nigeria.

Women entrepreneurs in developing countries do not have easy access to microfinance, and therefore, show low business performance when compared to their male counterparts. The study explores the premise that provision of microfinance would improve women’s business performance. It draws on studies, literature, survey of women entrepreneurs and data from MFIs to offer different hypotheses about women entrepreneurs in Nigeria.

The study is based on Shane’s entrepreneurship theory that consists of opportunity, discovery, evaluation of opportunity and decision to exploit opportunity. The underpinning theory suggests that:

  • Opportunities are created by institutional or external environment for entrepreneurs who could identify them;
  • Ability to identify and tap such opportunities differs between entrepreneurs;
  • Changes in business environment affect discovery of opportunity;
  • Type and concentration of industries in a particular location could also influence discovery of entrepreneurial opportunity;
  • Appropriate use of the acquired resources in terms of business strategy and organizational design could lead to profit performance;
  • Environment plays greater role in opportunity exploitation than individual attributes.

About this Publication

By Ekpe, I., Mat, N. , Razak, R.