Credit Market Access and Women Entrepreneurship in Enugu State: An Economic Analysis

Access to formal credit markets is a pivotal enabler of women's entrepreneurship, yet structural barriers in developing economies continue to exclude a disproportionate share of female business owners from these financing channels. This study analyzes the relationship between credit market access and women entrepreneurship outcomes in Enugu State from 2021 to 2024. The study is anchored on the Theory of Credit Rationing as developed by Stiglitz and Weiss, which demonstrates how information asymmetry between lenders and borrowers leads to systematic under-provision of credit, with women entrepreneurs bearing a greater share of rationing due to collateral and documentation constraints. A survey research design was adopted, targeting female entrepreneurs across urban and rural areas of Enugu State. From an estimated population of 9,500 female business owners, a sample of 368 respondents was drawn using proportionate stratified random sampling. Structured questionnaires were the principal data instrument. Logistic regression was applied to identify predictors of credit access among respondents. Findings indicate that only 29 percent of female entrepreneurs surveyed had successfully accessed formal bank credit, with lack of collateral and burdensome documentation requirements cited by 81 percent of excluded respondents. Women who accessed microfinance credit showed significantly higher business revenue and employment growth compared to those relying solely on personal savings. The study concludes that credit market exclusion remains a binding constraint on women entrepreneurship in Enugu State. It is recommended that banks develop gender-responsive lending products and that government guarantee schemes be expanded to support women-led enterprises.

Keywords: Credit market access, women entrepreneurship, credit rationing, Enugu State, microfinance