FINANCIAL INCLUSION AND CHOICE OF BUSINESS ENTERPRISES AMONG ENTREPRENEURS IN RURAL NIGERIA

Nigeria is the home to the unbanked population in sub-Saharan Africa, where half or more of adults are unbanked; therefore, this study examined the effect of financial inclusion on the choice of business enterprises among entrepreneurs in rural Nigeria.Wave four (2018/2019) of the General Household Survey data were analyzed using descriptive statistics, chi-square, and multivariate probit regression analysis.The result showed that less than 15% of entrepreneurs own a bank account, and about 25% had access to credit in rural Nigeria.More male entrepreneurs had access to credit and owned bank accounts than their female counterparts.The distribution of financial inclusion variables across enterprises revealed that a higher percentage of entrepreneurs who did not access credit (58.38%) and own a bank account (54.65%) engaged in agricultural enterprise only.This was followed by entrepreneurs engaged in agricultural and non-agricultural enterprises.The result of the multivariate probit regression indicates that variables such as bank account ownership and bank distance to the residence are the financial inclusion variables influencing the choice of enterprises.Other factors influencing the choice of enterprises were age, sex, marital status, household size, education level, assets owned, income, land area owned, and access to safety net.Thus, more financial institutions closer to the entrepreneurs should be established as this may enhance ownership of bank accounts and the use of other services provided by financial institutions. KEY WORDS Entrepreneurs, financial inclusion,