Determinants of Financial Inclusion of Female Entrepreneurs in Somalia

inancial inclusion plays a crucial role in fostering business growth by facilitating the accumulation of capital and enabling access to investment opportunities for businesses over a period of time. This study aims to examine the financial inclusion of female entrepreneurs in Somalia. The determinants considered in this study are age, education, business longevity, the form of the business, and the type of the business. A cross-sectional research design was employed in this study to gather data from a sample of 385 female entrepreneurs situated in key urban centers within Somalia. The data collection process involved the administration of a structured questionnaire. Probit regression models were applied for analysis, and the study presents the marginal effect of each individual observation. According to the findings of this study, among the 385 female entrepreneurs surveyed, a notable proportion of 86% reported having a bank account. Additionally, approximately 59% of the participants stated that they saved money in a bank account. However, a relatively smaller percentage of 19% indicated they had received bank loans. Additionally, the study revealed that female entrepreneurs over 30 years are 4% more likely to have a bank account than their younger counterparts. However, young entrepreneurs are 2% more likely to save money in a bank account and 12% more likely to obtain a loan from a bank. Furthermore, the findings of this study indicate that the level of education plays a significant role in determining female financial inclusion. Specifically, female entrepreneurs with a university degree are 1% more likely to have a bank account, 6% more likely to save money in a bank account, and 12% more likely to borrow from a bank compared to those who had only completed secondary school or had not received formal education. This study\s policy implications emphasize the importance of promoting gender-inclusive financial policies, strengthening financial infrastructure, and providing financial education and entrepreneurial skills to create an enabling environment that fosters female entrepreneurs’ financial inclusion and success in Somalia.