Effects of financial inclusion on entrepreneurship in Togo
DOI:
https://doi.org/10.18559/rielf.2025.1.2278Keywords:
financial inclusion, entrepreneurship, instrumental variable, TogoAbstract
Objective : This article examines the effect of financial inclusion on individual entrepreneurship in Togo.
Design/Methodology/Approach : An instrumental variable strategy was adopted to control for endogeneity bias due to the bidirectional relationship between financial inclusion and entrepreneurship. The data used come from the Harmonized Survey on Household Living Conditions in Togo (EHCVM, 2019).
Findings : The results show a positive effect of financial inclusion on entrepreneurship. Through interaction effects, the impact remains positive depending on the geographical area but is not significant by gender and decreases as the level of education increases.
Originality/Value : Policy interventions would be more effective by creating an enabling environment for access to financial services for all, regardless of gender, and by integrating entrepreneurial culture into educational training.
JEL Classification
Entrepreneurship (L26)
Financial Markets • Saving and Capital Investment • Corporate Finance and Governance (O16)
Open Innovation (O36)
Africa (O55)
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