Microfinance Adoption by Young Women Entrepreneurs in Lagos: Financial Sustainability and Economic Growth Analysis

Microfinance services are increasingly recognised as a critical tool for poverty alleviation in developing countries. Despite their potential benefits, the adoption and sustainability of these services among young women entrepreneurs have not been extensively studied in African contexts. A mixed-methods approach was employed, integrating quantitative survey data with qualitative interviews to explore service adoption behaviors and outcomes among a sample of young female entrepreneurs in Lagos Metropolitan Area. Microfinance adoption by young women entrepreneurs showed significant variability across different socioeconomic groups within the region. Specifically, 65% of respondents reported maintaining their business operations for more than two years despite initial challenges. The findings suggest that microfinance services can contribute positively to financial sustainability and economic growth, particularly when tailored to meet specific needs of diverse entrepreneur populations. Policy makers should consider implementing targeted support programmes aimed at enhancing the accessibility and relevance of microfinance services for young female entrepreneurs in Lagos.