Disruptive financial innovations: the case of Nigerian micro-entrepreneurs

Abstract

PurposeDespite the noticeable consequences of disruptive financial innovations, access to finance remains a major factor inhibiting the sustainable-growth potentials of young micro-entrepreneurs in informal settings. This study examines the determinants of financing options among micro-entrepreneurs in informal settings. Specifically, the study seeks to establish whether credit history, income, asset, gender, awareness and network capability have effects on formal and informal financing options among micro-entrepreneurs in informal settings.Design/methodology/approachThis article uses the survey research design and administers a structured questionnaire among 300 purposively selected micro-entrepreneurs within the University of Lagos, Nigeria. Only 291 completed questionnaires are retrieved. This article also uses the multiple regression analysis to estimate the empirical model and test the research hypotheses respectively.FindingsThis article establishes that: (1) credit history and assets-based financing are significant determinants of formal financing options among young micro-entrepreneurs in informal settings, (2) gender and network capability are significant determinants of informal financing options among young micro-entrepreneurs in informal settings and (3) awareness is significant of both formal and informal financing options among young micro-entrepreneurs in informal settings.Originality/valueThis article examines the determinants of financing option among young micro-entrepreneurs in informal settings. Specifically, the study seeks to establish whether credit history income asset gender awareness and network capability have effects on formal and informal financing options among micro-entrepreneurs in informal settings.

Determinants of the intellectual capital efficiency of listed banks in Nigeria: a DEA approach

“…In the last 2 decades, a drastic transition of economies has emerged, from a traditional-driven approach to a more knowledge-intensive driven approach (Ali and Anwar, 2021; Vidyarthi, 2018). The change is in line with the catch-up of economies with Industrial Revolution 4.0 with particular insights into competitiveness and value creation (Adeosun et al. , 2021; Ofori-Sasu et al.…”

“…In the last 2 decades, a drastic transition of economies has emerged, from a traditional-driven approach to a more knowledge-intensive driven approach (Ali and Anwar, 2021;Vidyarthi, 2018). The change is in line with the catch-up of economies with Industrial Revolution 4.0 with particular insights into competitiveness and value creation (Adeosun et al, 2021;Ofori-Sasu et al, 2019). Thereafter, knowledge became a vital tool for achieving a sustained competitive advantage for the economies and firms domiciled in such economies (Nitkiewicz et al, 2014).…”

Mediating effect of innovation capability between entrepreneurial resources and micro business performance

“…Previous studies have empirically confirmed the significant effects of HC, SC, OC and financial capital on business performance in emerging markets (Al Mamun et al, 2018;Huang, 2016;Jordão et al, 2022;Jordão and de Almeida, 2017) and developed economies (Ju et al, 2019;Liu et al, 2020;Sardo et al, 2018). For instance, HC enhances performance by solving firms' problems (Jordão et al, 2022;Khan et al, 2021a;Liu et al, 2020;Sallah and Caesar, 2020), SC by building positive relationships (Jordão et al, 2020;Jordão and de Almeida, 2017;Li et al, 2021;Sardo et al, 2018), OC by raising the process value and promoting growth (Chege et al, 2020;Jordão et al, 2020;Jordão and de Almeida, 2017;Lau and Rowley, 2021;Sardo et al, 2018) and AFC by facilitating success and overall performance (Adeosun et al, 2021;Ju et al, 2019;Kee et al, 2019;Khan et al, 2021a). In addition, TR and PR significantly affect business performance.…”

“…Scholars have defined these resources based on their significance. For instance, AFC from formal financial institutions and informal sources (friends, family and money lenders) have been determined to be a significant factor in achieving business success and improving overall performance (Adeosun et al , 2021; Kee et al , 2019; Khan et al , 2021a). HC is described as the accumulation of abilities, knowledge and skill sets to increase competitiveness (Jordão et al , 2020; Samad, 2020).…”

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