Financial Adequacy on the Innovation and Wealth Generation Among Women Entrepreneurs in North-Central Nigeria

Abstract

Over the years, adequate financial resources are very essential for driving innovation and supporting long-term business sustainability. Women entrepreneurs who have access to adequate financial backing are more likely to invest in research and development, which is critical for introducing new products and expanding market presence. Despite their contributions, women entrepreneurs in North-Central Nigeria face significant barriers, with limited adequacy in terms of finance being one of the most pervasive. With this, the study examines the effect of financial adequacy on the innovation and wealth generation among women entrepreneurs in North-Central Nigeria. The study adopted a cross-sectional survey research design and the population was 37,690 and employing the Taro Yamane formula the sample size of the study became 396. Primary data was used to collect information from the respondents by using a structured questionnaire. Also, the Ordinal Logistic Regression tool of analysis was employed to regressed the data gotten from the respondents and the finding revealed that financial adequacy [Asset Quality (ASSQ = 0.1463, p < 0.00); and Cash Flows (CASF = 0.0881, p < 0.01) has a positive and significant effect on innovation and wealth generation (creativity) among women entrepreneurs in North-Central Nigeria. Based on this, the study recommends that because it indicated that financial adequacy promotes innovation and wealth generation, the Central Bank of Nigeria (CBN) and commercial banks should keep on designing innovation-linked financial products that offer larger asset quality and cash flow to women who demonstrate investment in business innovation, such as acquiring technology, hiring skilled workers, or entering new markets. These financial products should also provide flexible repayment terms and financial advisory support to ensure funds are used effectively.