Abstract
Using a large sample of micro, small and medium enterprises (MSMEs) data in Zimbabwe, this paper investigates gender gap prevalence in financial inclusion. It further assesses existence of gender heterogeneity in the returns to financial inclusion amongst MSMEs. We construct composite indices that measure the entrepreneurs’ financial inclusion. Using Tobit and OLS regressions, we find statistically weak evidence of female financial exclusion in the formal financial sector after controlling for background characteristics and the industry of the entrepreneurs. On the other hand, female entrepreneurs are no less likely to be financially included in the informal financial markets than their male counterparts. Moreover, financial inclusion in informal financial markets by female entrepreneurs is associated with higher firm performance vis-à-vis their male counterparts.
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Appendices
Appendix 1: Financial products considered for the formal financial inclusion index
Product number | For each product listed below, the questionnaire asks whether the entrepreneur currently owns or owned in the past the mentioned financial product |
---|---|
Type of bank account | |
1 | Savings account |
2 | Current/cheque account |
3 | Deposit account (fixed term or notice deposit) |
4 | Call account/investment account |
5 | POSB savings account |
6 | Loan account with building society |
7 | Loan account with POSB(Peoples Own Savings Bank) |
8 | Bank account outside Zimbabwe |
9 | Cooperative account/village bank |
10 | Loan from a bank |
Financial products | |
11 | ATM card/Debit card |
12 | Cheque card |
13 | Credit card, i.e. Visa, Master Card |
14 | A savings book |
15 | Garage card/petrol card |
16 | Internet banking |
17 | Cell phone banking (not SMS notification but to check balances, transfer money or pay third parties) |
18 | Car or vehicle loan from a bank directly or via a dealer |
19 | An overdraft facility |
20 | Mortgage bond |
21 | Store credit card (OK etc.) |
Personal risk insurance | |
22 | Personal accident insurance |
23 | Life insurance or cover |
24 | Disability insurance or cover |
25 | Workman’s compensation |
26 | Dreaded disease insurance |
27 | Taxi commuter insurance (covers you when you travel in a taxi) |
Health insurance | |
28 | Medical Aid/medical scheme |
29 | Hospital plan |
30 | Funeral plan or cover |
31 | Household insurance |
32 | Home contents insurance |
33 | Home property/building insurance |
Business insurance | |
34 | Business contents insurance for office equipment |
35 | Business contents insurance for specialised tools and machinery |
36 | Property/structure of business premises insurance |
37 | Accidental damage to goods in transit |
38 | Legal insurance/assistance cover, Legal Aid, Legal Wise |
39 | Crop insurance |
40 | Loss of earnings insurance |
41 | Professional indemnity cover |
42 | Public liability/liability insurance |
Portable effects insurance | |
43 | Cell phone insurance |
44 | Jewellery, camera, watch insurance |
Other insurance and investments | |
45 | Motor vehicle insurance |
46 | Travel insurance |
47 | Insurance that pays your loan or borrowing when you die, lose your job or are disabled |
48 | Educational insurance (include investments and policies taken at a bank or insurance company) |
49 | Key man insurance |
50 | Pension or provident fund |
51 | Money market account |
52 | Shares |
53 | Unit trusts |
Appendix 2: Financial products considered for the informal financial inclusion index
Product number | For each product listed below, the questionnaire asks whether the entrepreneur knows |
---|---|
1 | Burial societies |
2 | Savings clubs/rounds |
3 | Saving at home |
4 | Buying livestock or other materials |
5 | Lending to others, e.g. chimbadzo |
6 | SACCO’s |
For each product listed below, the questionnaire asks whether the entrepreneur uses | |
7 | Burial societies |
8 | Savings clubs/rounds |
9 | Saving at home |
10 | Buying livestock or other materials |
11 | Lending to others, e.g. chimbadzo |
12 | SACCO’s |
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Kairiza, T., Kiprono, P. & Magadzire, V. Gender differences in financial inclusion amongst entrepreneurs in Zimbabwe. Small Bus Econ 48, 259–272 (2017). https://doi.org/10.1007/s11187-016-9773-2
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DOI: https://doi.org/10.1007/s11187-016-9773-2