The Role of Microfinance Banks in Promoting Financial Inclusion of Women Entrepreneurs in Osun State, Nigeria

This study examined the role of microfinance banks in promoting financial inclusion among women entrepreneurs in Osun State, Nigeria, addressing the limited empirical evidence on how microfinance services enhance women’s participation in the financial system and access to credit. Specifically, the study investigated the extent to which microfinance loans promote financial inclusion and improve access to credit for business growth. A descriptive survey design was adopted, targeting women who own or manage SMEs across major markets in Osun State, including Osogbo, Ile-Ife, Ede, Iwo, Ikirun, Ilesa, and Ilobu. Time–Location Sampling was employed, and an additional 5% margin of safety was applied to account for non-responses, although a sample size of 400 was determined using Yamane’s (1968) formula at a 5% margin of error, resulting in 420 questionnaires distributed and 415 valid responses retrieved (98.8% response rate). Data were collected using structured Likert-scale questionnaires supplemented by secondary sources from the Central Bank of Nigeria, National Bureau of Statistics, and Osun State Ministry of Commerce. Validity was ensured through content, face, and construct validation, and reliability was confirmed using Cronbach’s alpha and test–retest methods. Data were analyzed using ordinary least squares regression in Stata at a 5% level of significance. Findings indicate that microfinance loans significantly enhance financial inclusion and access to credit for women entrepreneurs. The government should expand digital financial services to rural and semi-urban women, while microfinance banks should adopt flexible loan procedures, reduce collateral requirements, and integrate financial literacy and business training into lending processes