New research by CBISS Affiliate Member Poh Yen Ng and colleague shows why improving access to finance requires more than introducing new loan schemes.
Access to finance is often presented as a technical business issue. Does the entrepreneur have collateral? Is the business creditworthy? Can the owner demonstrate sufficient turnover?
These questions may appear neutral. However, they are asked within societies where access to property, networks and decision-making power is not equally shared.
The paper, published in the International Journal of Gender and Entrepreneurship, examines how women and men running businesses in Nigeria experience access to finance within a patriarchal context.
Rather than simply confirming that women face greater financial barriers, the findings encourage us to look more closely at how those barriers are created, how entrepreneurs respond to them, and why financial policy alone may not be enough to bring meaningful change.
Collateral is not a neutral requirement
One of the clearest messages from the research is that access to finance begins long before an entrepreneur approaches a bank.
When women have fewer opportunities to inherit land or property, they are also less likely to own the collateral required for a conventional business loan. A lending condition can therefore appear to apply equally to everyone while producing very unequal outcomes.
This means the problem cannot be solved simply by encouraging more women to apply for finance. If the assets needed to secure a loan are already distributed unequally, the financial system may reproduce inequalities that began elsewhere.
Women-focused loan schemes are a positive step, and some participants in the study had benefited from them. However, their impact may remain limited if the underlying collateral requirements are unchanged.
Financial inclusion must therefore be connected to wider questions about property ownership, inheritance rights and how lenders assess the potential of a business.
Networks provide support—but not all networks provide the same opportunities
The research also shows that women and men use their networks differently.
Women participating in the study drew on trusted relationships and collective saving arrangements, including Esusu, to raise finance when formal options were difficult to access. These networks provided more than money. They also offered trust, encouragement and practical support.
This is a strong example of entrepreneurial agency. Women were not simply waiting for institutions to change. They created workable responses within the conditions around them.
However, we should be careful not to romanticise this resilience.
Community-based finance can help someone start or sustain a business, but it may not provide the larger sums needed to enter capital-intensive sectors or achieve substantial growth. In the study, male entrepreneurs were generally better able to use wider business connections to reach investors, secure faster approvals and access larger or international sources of finance.
The practical lesson is that advising entrepreneurs to “build their networks” is not enough. The reach, influence and resources within those networks also matter.
Enterprise-support programmes should create meaningful introductions to lenders, investors and industry decision-makers, particularly for entrepreneurs who have historically been excluded from these circles.
Gender expectations affect everyone—but not in the same way
An important feature of the research is that it includes the experiences of both women and men.
Women faced structural disadvantages, family opposition and expectations that they should prioritise domestic responsibilities. Men generally had better access to financial options, but some also described considerable pressure to act as the family breadwinner, support extended family members and provide employment to relatives.
Recognising these pressures on men does not remove or reduce the structural inequalities experienced by women. Instead, it shows that patriarchal systems create different expectations for different people. They distribute power unequally while also placing restrictive responsibilities on individuals and families.
This wider perspective is important for policymakers and business-support organisations. Entrepreneurs do not make financial decisions in isolation. Family expectations, caring responsibilities, social approval and personal wellbeing can all influence how a business is started and developed.
Mentoring and wellbeing support should therefore be considered alongside financial assistance and business training.
The business sector also matters
The study draws on interviews with 30 entrepreneurs working in two contrasting sectors: food and accommodation, where women are more strongly represented, and real estate, which is male-dominated and generally requires more capital.
The findings suggest that gender cannot be separated from the sector in which someone is trying to build a business.
Informal collective finance was more visible among women in food and accommodation, but it was less able to provide the level of funding required in real estate. This raises an important question: do support programmes only help women succeed within sectors where they are already concentrated, or do they also enable women to enter sectors with higher financial barriers and greater growth potential?
A small loan may be valuable, but it is not a complete solution to unequal access. More inclusive financial systems may also require cash-flow-based lending, credit guarantees, patient finance and stronger routes into investment networks.
The type and scale of support should reflect the entrepreneur’s sector, business model and ambitions.
Moving beyond financial products
The paper points towards a more joined-up approach to inclusive entrepreneurship.
Financial education remains valuable, but the issue should not be framed as though women simply lack knowledge or confidence. Training needs to be combined with fairer asset ownership, more flexible lending criteria, targeted grants and credit, access to influential networks, relevant mentoring and support for wellbeing.
There is also a need to involve financial institutions more directly in the conversation.
This study focuses on the experiences of entrepreneurs in major Nigerian cities and across two sectors. Future research involving lenders, policymakers, rural entrepreneurs and other industries would provide a broader understanding of where institutional practices need to change and which solutions work in different settings.
Building genuinely inclusive entrepreneurial ecosystems
For CBISS, this research speaks directly to the importance of building business and innovation ecosystems that are not only productive but also inclusive.
A financial system should not be judged simply by the number of products it offers. We also need to ask who can realistically access those products, whose business is viewed as credible, and who remains dependent on informal alternatives.
The wider message is clear: finance is never only about money. It is also about rights, relationships, social expectations and opportunities.
If entrepreneurship is to contribute meaningfully to inclusive and sustainable development, these wider conditions must become part of the solution.