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Start-up Capital Source and Credit Access Participation of Household Nonfarm Enterprises in Nigeria: Evidence from Logistic Regression Model

Author

Listed:
  • Obed I. Ojonta

    (University of Nigeria, Nigeria)

  • Divine N. Obodoechi

    (University of Nigeria, Nigeria)

  • Paschaline N. Ugwu

    (University of Nigeria, Nigeria)

Abstract

The main focus of this study is to estimate the influence of the main startup capital source on credit access participation by household nonfarm enterprises. The General Household Survey data for 2018 was adopted to construct a measure of credit access participation. Through binary logistic regression estimation, the result shows that main start-up capital source positively and significantly influences credit access by household nonfarm businesses in Nigeria. This also implies that household nonfarm enterprises that borrowed as main start-up capital source have better chances of credit access participation when compared to those household nonfarm enterprises who do not borrow. However, this study suggests that there is a need for policies that motivate individuals or a group of individuals to borrow as their main start-up capital source in Nigeria, with a view to strengthening their operations on a sustainable basis.

Suggested Citation

  • Obed I. Ojonta & Divine N. Obodoechi & Paschaline N. Ugwu, 2021. "Start-up Capital Source and Credit Access Participation of Household Nonfarm Enterprises in Nigeria: Evidence from Logistic Regression Model," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 19(3 (Fall)), pages 249-267.
    • Handle: RePEc:mgt:youmgt:v:19:y:2021:i:3:p:249-267
    DOI: 10.26493/1854-6935.19.249-267
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    References listed on IDEAS

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    Cited by:

    1. Edith C. Obiefuna & Obed I. Ojonta & Jonathan E. Ogbuabor, 2023. "Impact of Employment on Access to Credit of Non-Agricultural Household Enterprises in Nigeria," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 13(3), pages 96-112.

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    More about this item

    Keywords

    credit access; household; enterprise; binary logistic regression; Nigeria;
    All these keywords.

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • G5 - Financial Economics - - Household Finance

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