FINANCIAL INCLUSION AND ENTREPRENEURIAL SUCCESS OF MUSLIM WOMEN IN NORTHWEST NIGERIA: A MIXED-METHODS STRUCTURAL EQUATION MODELLING APPROACH

Abstract

This study delves into the multi-dimensional relationship between financial inclusion and entrepreneurial success, with the mediating role of financial literacy and the moderating role of socio-cultural norms in an Islamic financial environment for Muslim women in Northwest Nigeria. Although the link between gender and finance has gained traction over the last few years, the empirical evidence on the interaction between gender, religion and entrepreneurship in sub-Saharan Africa is still nascent. This was done with a sequential explanatory mixed methods design involving 487 valid questionnaires that were analyzed using Quantitative (Structural Equation Modeling, AMOS-SEM) and 32 semi-structured interviews that were analyzed using Qualitative (Thematic Analysis) procedures with a geographical stratified random sampling across the study areas of Kano, Kaduna, Zamfara, Sokoto, Katsina, Kebbi and Zamfara States each. Results show that the use of credit, mobilization of savings, DFS and Islamic microfinance play very important role in the success of Muslim women entrepreneurs. Financial literacy in part enhances this link as they gain access to financial services and access to financial services is linked to outcome of the business, which is affected by socio-cultural norms. The qualitative results also highlight issues of structural exclusion, adaptive financial solutions that are compatible with Sharia law, and the empowerment function of solidarity networks within the community. This study not only fills the literature gap in financial inclusion and Muslim women entrepreneurship in the Northwest geopolitical of Nigeria but also for the first time is an integration of the Women Financial Inclusion Framework with the Social Feminist Theory and Islamic Finance Theory to create a Contextualised Islamic Financial Inclusion–Entrepreneurial Success (CIFIE-S) model.
The keywords used in this study are financial inclusion, Muslim women entrepreneurs, Islamic microfinance, entrepreneurial success and Sharia-compliant finance.