Start-up Capital Source and Credit Access Participation of Household Nonfarm Enterprises in Nigeria: Evidence from Logistic Regression Model

Abstract

The main focus of this study is to estimate the influence of the main startup capital source on credit access participation by household nonfarmenterprises. The General Household Survey data for 2018 was adopted to construct a measure of credit access participation. Through binary logistic regression estimation, the result shows that main start-up capital source positively and significantly influences credit access by household nonfarm businesses in Nigeria. This also implies that household nonfarm enterprises that borrowed as main start-up capital source have better chances of credit access participation when compared to those household nonfarm enterprises who do not borrow. However, this study suggests that there is a need for policies that motivate individuals or a group of individuals to borrow as their main start-up capital source in Nigeria, with a view to strengthening their operations on a sustainable basis.