Socio-Cultural Barriers to Financing Women Entrepreneurs in Oyo State, Nigeria: Implication for Employment Generation and Inclusive Economic Growth

Abstract

 Persistent gender inequality has continued to foster the exclusion of women. Women are particularly at risk of social and economic exclusion because of institutional factors and systemic barriers that limit their financial participation in society. This study examines the socio-cultural barriers that affect women entrepreneurs’ access to finance and their implications for employment generation and inclusive economic growth in Oyo State, Nigeria. This study was hinged on institutional theory and also employed a mixed method of data collection. For the qualitative data, twelve (12) female traders were interviewed across the three markets, with a total of four (4) from each market. Using survey data sourced from one hundred and fifty (150) female traders across three (3) major markets in Ibadan, Ogbomosho, and Saki, the study identifies gender norms, limited collateral ownership, time constraints, documentation and religious constraints as key constraints to accessing formal credit. The findings reveal that these barriers significantly reduce financing outcomes, limiting enterprise performance in terms of sales growth, business asset accumulation, and employment generation. The findings further demonstrate that restricted financial access
undermines household economic security, thereby fostering gender inequality and economic exclusion of women. The study concludes that socio-cultural barriers such as gender norms, patriarchal restrictions, time constraints, documentation requirements, and religious constraints significantly affect women traders’ access to finance in Oyo State, Nigeria. The paper highlights the importance of policy interventions that promote equitable financial inclusion for women, as strengthening women’s economic participation is critical for driving sustainable and inclusive development in Oyo State and Nigeria as a whole.