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Gender differences in financial inclusion amongst entrepreneurs in Zimbabwe

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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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Correspondence to Terrence Kairiza.

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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