Olaniyi Evans

The Gender Question and Family Entrepreneurship Research

Gender in family entrepreneurship is still exploratory and, despite an increase in family entrepreneurship research, most of the studies give little or no information role of gender in family business. Existing research on family entrepreneurship tends to focus only or primarily on men, and the women appear invisible in the studies. However, there is little evidence that of extensive research focus on the issue of family entrepreneurship with the aim of building a cohesive understanding of gender in family entrepreneurship and the interactions existing between the different dimensions and components. Consequently, this chapter examines how gender issues are addressed in family entrepreneurship research. In particular, the chapter provides a critical review of the literature around the gender question in entrepreneurship, focusing on the resource-based view, organizational studies and gender in family entrepreneurship. Based on the review, a gender-aware framework is developed depicting three key areas for understanding the gendered process in family entrepreneurship: the determinants of women’s entry into family businesses, their gendered roles and the associated outcomes. Finally, implications and future research opportunities are identified and discussed.

Financial inclusion, financial development, and economic diversification in Nigeria

The current oil-induced fiscal crisis in Nigeria has, once again, brought the country into the headlines as suffering great economic hardship. As a result, economic diversification is currently at the center of the debate on how Nigeria can improve its economic performance and achieve higher incomes. This discussion, however, has most of the times lacked an explanation of how financial development and financial inclusion can help to drive economic diversification in Nigeria. The literature is scanty in this regard. The objective of this study, therefore, is to contribute to this empirical evidence to the understanding of the impact of financial development and financial inclusion on economic diversification in Nigeria. The data for the study is from CBN Statistical Bulletin and World Development Indicators, for the period 1981 to 2014. It is well-known in the literature that employing the standard OLS techniques on non-stationary data may lead to spurious results. This study, therefore, uses the fully modified least square (FMOLS) which is designed to provide optimal estimates of cointegrating regressions. The results show that financial development has a positive effect on economic diversification, though the effect is not statistically significant. Additionally, financial inclusion, in terms of financial access and financial usage, has positive and significant effects on economic diversification. In other words, financial inclusion has contributed significantly to the diversification of the Nigerian economy. As well, GDP per capita, capital formation, and human capital development have positive and significant effects on economic diversification. FDI has positive effects on economic diversification, though the effects are not significant. On the contrary, exchange rate and trade openness have negative and significant effects on economic diversification. Financial inclusion can, therefore, be seen as a potent accelerator of economic diversification, and can help realize the national objectives of building shared prosperity and abolishing extreme poverty in Nigeria.

The impact of microfinance on financial inclusion in Nigeria

Many attempts have been made throughout history to establish institutions for supplying credit to the poor. In Nigeria, strategies to increase the income of the poor have existed in the form of rotating contributory savings schemes (referred to as Esusu, Itutu, Adashi, Bambam and Ajo in different parts of the country). However, in recent years, microfinance has become a veritable institutional mechanism for enhancing credit access for low-income groups. With the increasing number of microfinance banks in Nigeria and the mounting drive for inclusive financial systems, therefore, it would be worthwhile to assess the impact of microfinance on financial inclusion in the country. To achieve this objective, this study uses the fully modified OLS (FMOLS) and the Dynamic OLS (DOLS) which were designed to provide optimal estimates of cointegrating regressions. The benefit of using the two approaches was to effectively assess the robustness of the parameter estimates to different specifications. This study, therefore, employs annual data of total commercial banks’ loans and advances, number of microfinance banks in Nigeria, and gross domestic product (GDP) as well as lending interest rates for the 1981–2014 period. The study found that microfinance and financial inclusion are linked by a set of long-run relationships. In the short run, the study found that microfinance has a positive but insignificant impact on financial inclusion, but in the long run, microfinance has a positive and statistically significant impact on the level of financial inclusion. The negative interest rate has a statistically significant impact on the level of financial inclusion both in the short and long run. Therefore, this study has established that microfinance, as well as interest rates, is a significant driver of financial inclusion in Nigeria. To increase financial inclusion in Nigeria, heightened drives for microfinance will be required. Microfinance represents a vehicle for the promotion of financial inclusion in Nigeria and should remain at the core of the pursuit of financial participation across all income levels.

A sectoral analysis of fiscal and monetary actions in Nigeria

There is a unanimity among economists that fiscal and monetary actions are either individually or jointly affecting economic activities. However, the impacts of fiscal and monetary actions differs from country to country and from sector to sector. While there are a few studies which have examined the relative potency of monetary and fiscal policies in the Nigerian economy, no study has delved into the sectoral impacts of monetary and fiscal policies. Our approach is similar to the St. Louis equation based studies, in the sense that money supply and government spending are our explanatory variables. That is, we contribute to this literature with a different approach and infer the effect of fiscal and monetary policies on the sectors of the Nigerian economy. Using the VAR technique, therefore, we investigate whether government expenditure and money supply have impacts on the five sectors of the economy: agriculture, building, services, industry and wholesale. Using sectoral GDP rather than the national GDP has the advantage of a more direct measure of the usefulness of fiscal and monetary policy mix to the subunits of the economy. Compared to the other St. Louis equation based studies, our approach has the advantage that the VAR estimates are more narrowly focused on the sectors of the economy. The study shows that the elasticity of sectoral output with respect to monetary actions are significant for only three sectors of the Nigerian economy: agriculture, services and wholesale, though the significance differs from sector to sector, subject to the strength and the configurations of the institutional factors in each sector. Fiscal actions have no significant impact on any of the sectors. The proper response is not to try to reverse monetary and fiscal actions, which has conferred some benefits overall. Rather, the Nigerian government must continue to work with the financial institutions to advance financial practices and reinforce financial regulation, as well as macro-prudential oversight. The ultimate goal should be to consistently re-drive monetary and fiscal actions in ways that are both productive and conducive to sectoral growth in Nigeria.

The Effects of Economic and Financial Development on Financial Inclusion in Africa

This study provides empirical evidence on the effects of economic and financial development on financial inclusion in Africa, using panel FMOLS for the 2005-2014 period. The study shows that economic growth has a significant positive impact on financial inclusion, meaning that African countries with higher economic growth have more inclusive financial systems. GDP per capita has a significant positive impact on financial inclusion. That is, income is an important factor in explaining the level of financial inclusion in Africa. It is, as well, established in this study, that although both economic and financial development promote financial inclusion, though the effects of economic development are much stronger. Also, inflation is negatively linked to financial inclusion, and as well insignificant across all specifications. Deposit interest rate is positively linked to financial inclusion, though insignificant. The low deposit interest rates in African countries do not encourage inclusive financial systems. Population, though positive, is insignificant. Internet has positive significant impact on financial inclusion, meaning that internet access is indispensable in a fast-moving and digital African economy. Literacy is also statistically significant, meaning that adult literacy is an important factor in explaining the level of financial inclusion in Africa. As well, Islamic banking presence and activity are associated with higher financial inclusion.