ABSTRACT

This study was carried out to examine gender differentials in financing agribusiness entrepreneurs in South-eastern Nigeria. The study specifically evaluated the selected banks credit market with emphasis on lender-borrower relationships, credit security and associated risks as well as credit-induced performances by agribusiness entrepreneurs – all examined along gender lines. The data for the study were collected from both primary and secondary sources, from both the borrowers and lending institutions comprising of male and female agribusiness entrepreneurs. Data were analyzed using simple descriptive statistics (tables, means, frequencies and charts) as well as inferential statistical tools (bivariate probit, multinomial logit, multiple regression and correlation models).Result showed that male-entrepreneurs received more loans than their female counterparts and with respect to the amount of loan received using the different selected banks loan type, that male agribusiness entrepreneurs were better positioned to receive larger loans without collateral than the female agribusiness entrepreneurs; a strong indication of gender discrimination in loan access. Estimates further showed that female agribusiness entrepreneurs firms have a higher probability of having to pledge guarantees than male firms. Further, smaller sized female firms are even more disadvantaged in credit access than large-sized female firms and inadequate collateral affected loan access mostly the female entrepreneurs.  The chow test result showed significant and statistical difference in the credit demand, access to loan, and performance of the Agribusiness entrepreneurs was in favour of male entrepreneurs at 1% probability level. In conclusion, lender-borrower relationships, credit security and associated risks as well as credit-induced performances by agribusiness entrepreneurs. This study recommends that differences by gender in lending patterns for these existing businesses must be addressed as an issue of credit market imperfections. Credit institutions should give due consideration to policy conditions that favour lower interest rate during policy formulation in such a way that it will be easier to get loans without stringent bureaucratic bottle-necks for both gender. In order to improve female-entrepreneurs’ access to bank loans, female firms should pursue a strategy oriented to expanding their size