Women entrepreneurship and microfinance: implications on the mental well-being of informal traders in Lagos, Nigeria

Abstract

Purpose Although microfinancing is considered a key tool for fostering women's entrepreneurship development, there is growing concern regarding the impact of loan repayment strategies on the mental health of women entrepreneurs. This study seeks to unravel the implications of microfinance loans on the mental well-being of women entrepreneurs.Design/methodology/approach A carefully structured questionnaire was distributed to a purposive sample of one hundred women entrepreneurs in Lagos State using a mixed-method research approach. Also, interviews were conducted using an interview guide, which directly mirrored the questionnaire administered to five focus groups within Lagos State.Findings The study found that loan repayment and recovery strategies positively and significantly impact women entrepreneurs' mental well-being, with psychological distress serving as a measure for measuring mental well-being. Additionally, other factors such as the number of dependants and household headship trigger psychological distress, while age in business was associated with a reduction in psychological distress.Originality/value This study contributes to the existing literature by delving into the psychological implications of loan repayment strategies on the mental health of female entrepreneurs in Lagos State, Nigeria. Furthermore, it employs a triangulation research approach to validate questionnaire responses through focus group discussions.

Performance of Female Entrepreneurs: An Organized Assessment of the Literature Addressing the Factors Affecting Bangladeshi Women Entrepreneurs' Performance

“…Community Development: Women-owned companies frequently give social responsibility and community development priority, attending to the needs, opportunities, and issues that exist locally. By making investments in infrastructure, healthcare, education, and other social projects, women entrepreneurs in Bangladesh enhance the resilience and general well-being of their communities (Olohunlana, et al, 2023).…”