Study of Microfinance and Women Entrepreneurship in Anambra State

Microfinance institutions serve as critical financial intermediaries for women entrepreneurs excluded from conventional banking, and examining their role in supporting female-owned businesses in South East Nigeria contributes to evidence on gender-inclusive economic development. This study examined the effect of microfinance access on women entrepreneurship in Awka South, Idemili South, and Onitsha North Local Government Areas, Anambra State. A cross-sectional survey was conducted among 250 female business owners, of whom 130 were microfinance clients and 120 were non-clients. A structured questionnaire collected data on business capital, revenue, employment created, and business survival rates. Independent samples t-tests and logistic regression were applied. Results showed that microfinance client female entrepreneurs demonstrated significantly higher average monthly revenues (N284,000 versus N162,000, p < 0.001) and significantly greater employment generation than non-clients. Loan amounts averaged N150,000 per cycle with 6-month repayment terms. Business survival rate over three years was 78.5 percent among clients compared to 61.2 percent among non-clients. However, high interest rates averaging 28 percent per annum were identified as a significant burden. Loan diversion away from intended business use was reported by 22.3 percent of clients, primarily for household emergencies. The study concludes that microfinance positively supports women entrepreneurship but is constrained by high borrowing costs. Recommendations include interest rate regulation for MFI lending to women, business development services alongside credit, and group guarantee lending models to reduce default risk. Keywords: microfinance, women entrepreneurship, Anambra State, female business, financial inclusion