The Impact of Finance on Nigeria’s Rural Entrepreneurial Development

Abstract

The rural area is disadvantaged in terms of access to infrastructure and
amenities and lack of productive resources. This makes entrepreneurial
activities and productivity in the area to be low. This study is aimed at
investigating the effect of finance on rural entrepreneurial development.
Using time series data from 1981 to 2013, the study employs OLS method to
assess the effect of finance on rural enterprises in Nigeria. Findings show
that lending rate, loans and advances as well as banks’ performance had
positive and significant relationship with rural entrepreneurship. The study
recommends the need to improve on economic climate in Nigeria; the
importance of increasing the quality and quantity of loans and advances to
the rural area and the need to put in place policies that will engender
banks’ performance.