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    Access to finance and rural youth entrepreneurship in Benin: Is there a gender gap?

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    Journal Article (974.5Kb)
    Date
    2022
    Author
    Senou, M.M.
    Manda, J.
    Type
    Journal Article
    Review Status
    Peer Review
    Target Audience
    Scientists
    Metadata
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    Abstract/Description
    Rural entrepreneurship is an important employment generation intervention for the fast-growing young labour force in developing countries. Many bottlenecks including access to finance impede rural youths from performing in their new ventures. This paper examines the impact of access to finance on rural youths' entrepreneurship in Benin using data from the second wave of the School-To-Work Transition Survey, involving over 900 youths. The paper employs the endogenous switching regression technique, combined with propensity score matching, to investigate the drivers of rural youths' access to finance and its impact on entrepreneurship intention and performance. The results indicate that age, education, poverty status, experience, working in the agricultural sector and the existence of a bank branch are important determinants of rural youths' access to finance. The results also show that access to finance increases the probability of youth entrepreneurship by 15.2% on average. Moreover, the study shows a significant gender gap in rural entrepreneurship of 5.24% among youths with access to finance in Benin. These results suggest that policymakers should facilitate the access of youth, especially young women, to finance by encouraging formal financial institutions to reduce their credit eligibility conditions for those who do not have collateral.
    https://dx.doi.org/10.1111/1467-8268.12623
    Multi standard citation
    Permanent link to this item
    https://hdl.handle.net/20.500.12478/7404
    IITA Authors ORCID
    Melain Modeste Senouhttps://orcid.org/0000-0002-9759-1307
    Julius Mandahttps://orcid.org/0000-0002-9599-5906
    Digital Object Identifier (DOI)
    https://dx.doi.org/10.1111/1467-8268.12623
    Research Themes
    Social Science and Agribusiness
    IITA Subjects
    Capacity Development; Policies and Institutions; Socioeconomy
    Agrovoc Terms
    Rural Development; Entrepreneurs; Youth; Benin; Benin; Finance
    Regions
    Africa; West Africa
    Countries
    Benin (Dahomey)
    Hubs
    Headquarters and Western Africa Hub
    Journals
    African Development Review-Revue Africaine de Developpement
    Collections
    • Journal and Journal Articles4835
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