Mobile Money and the Likelihood of Female Entrepreneurship in Sub-Saharan Africa

Abstract

Female entrepreneurship is crucial for development, as it empowers women and strengthens their communities. However, many women face barriers like limited access to formal financial services and the burden of household responsibilities, which can restrict their ability to start or sustain businesses. This thesis examines the impact of mobile money use on women’s decision to become entrepreneurs in 13 Sub-Saharan African countries, using data from the FinScope Consumer and FinAccess surveys. Findings suggest that mobile money use increases the likelihood of women becoming entrepreneurs by 1.2 percentage points, controlling for other factors. A closer look at Nigeria and Kenya reveals that while mobile money use has a negative and insignificant effect on the likelihood of entrepreneurship for men in Nigeria, the effect is positive and significant for Kenyan men. In both countries, female mobile money users are more likely to pursue entrepreneurship than their male peers. This research contributes to understanding the role of mobile money in promoting female entrepreneurship and emphasizes the importance of country-specific contexts in shaping effective digital financial inclusion policies.