THE WILLINGNESS OF WOMEN ENTREPRENEURS TO PATRONISE ISLAMIC BANKS IN NIGERIA

Purpose — This study examines the factors influencing women entrepreneurs’ willingness to patronise Islamic banks in Nigeria, focusing on socio-economic and financial determinants.

Design/Methodology/Approach — Using an ordered probit regression model, the study analysed data collected from 357 women entrepreneurs across various regions in Nigeria. Key variables include education, marital status, business duration, and the availability of Sharīʿah-compliant financial products.

Findings — The results reveal that education significantly and positively influences women entrepreneurs’ willingness to use Islamic banks, with a coefficient of 0.393 (p = 0.003), highlighting the role of financial literacy. Conversely, marital status negatively affects this willingness, with a coefficient of -0.799 (p < 0.001), suggesting that single women are more inclined to use Islamic banking services. Additionally, longer-established businesses demonstrated less likelihood of engaging with Islamic banks, emphasising the need for tailored outreach strategies. Other factors, such as religion and geographical location, were found to have no significant effects.

Originality/Value — Some studies have examined the relationship between women’s entrepreneurial performance and Islamic banking, but are predominantly outside of Africa. This research offers novel insights into the socio-economic and financial factors that drive women entrepreneurs’ engagement with Islamic banking in Nigeria. By highlighting the relationship between education, marital status, and financial decision-making, the study contributes to the broader discourse on financial inclusion and sustainable economic development within the context of Islamic finance.

Research Limitations/Implications — The study is limited to women entrepreneurs in Nigeria and may not capture variations across other cultural or regional perspectives. Further research could explore the influence of cultural norms and rural-urban dynamics on Islamic banking adoption.

Practical Implications — The findings suggest that Islamic banks, such as Jaiz and Taj, should implement tailored financial literacy programmes and awareness campaigns targeting diverse demographic segments. These efforts could include workshops, webinars, and collaborations with business development organisations to enhance women entrepreneurs’ understanding of Islamic financial products. Additionally, culturally sensitive financial solutions can address the unique needs of married women entrepreneurs, further enhancing social equity. This study emphasises the critical role of education and targeted outreach in increasing the adoption of Islamic banking services among women entrepreneurs, ultimately contributing to financial inclusion and sustainable development in Nigeria.