Title:
FEMALE ENTREPRENEURS AND FINANCIAL CAPITAL IN DEVELOPING ECONOMIES: THE CASE OF NIGERIA

Authors:
Umar Lawan, PhD, Nigeria

Abstract:

Among the categories of critical resources that influence the development of businesses is financial resource, comprising the money assets and cash of the business. The aim of this study is to review the approaches adopted by Nigerian female entrepreneurs in financing their businesses. Qualitative interviews were used to collect data from purposively selected female entrepreneurs. The data gathered was analysed using thematic method. The study found that most female entrepreneurs use both debt and equity as their capital structure, but they try to maintain a very minimal debt profile. The study also found that the discrimination faced by women entrepreneurs from financial institutions when seeking business finance is primarily gender related, demand for higher collateral, high interest rates and a lack of information. The financial institutions also doubt the ability of female entrepreneurs to meet some of the conditions set by the banks, particularly the provision of business plans. The study recommends that more awareness should be created among female entrepreneurs regarding financing services and programmes.