FINANCIAL INCLUSION, ENTREPRENUERIAL BUSINESS PERFORMANCE, AND AGRICULTURAL OUTPUT NEXUS: EVIDENCE FROM STRUCTURAL EQUATION MODELS (SEM)

Abstract

The study examined the relationship between Financial Inclusion, Entrepreneurial Business Performance, and Agricultural Output in Adamawa State, Nigeria. The data for the study was primary in nature, which was sourced from the structured questionnaire. nine-teen (19) out of the twenty-one (21) local governments of Adamawa states was sampled in line with the sample size developed by Sakaranj (2003).  The data then were analysed with the applications of Structural Equation Models (SEM). The findings of the study revealed that, the relationship between access to financial services, Entrepreneurial business performance, and Agricultural output are 0.68 and 0.71. that is, I unit increase in access to financial services, entrepreneurial business performance Agricultural output increase by 68% and 71%. This implies that access to financial services significantly affects both Entrepreneurial business performance and Agricultural output. On the other hand, the result with respect to the relationship between usage of financial services, Entrepreneurial business performance, and Agricultural output are 0.50 and 0.49. this indicates that Entrepreneurial business performance, and Agricultural output increases by 50% and 49% as a result of the 1% increase in usage of financial services. Furthermore, in regard to the relationship between product quality and service delivery, Entrepreneurial business performance, and Agricultural output, the result indicates that, Entrepreneurial business performance increase by 65% and Agricultural output increase by 55% due to 1% increase in product quality and service delivery. It has been observed from the result of the study that, access to financial services carries high magnitude of the effect of financial inclusions than that of the usage of financial services and product quality and service delivery. The study recommends that measures have to be put in place to standardised financial inclusions so as to improved Entrepreneurial business performance, and Agricultural output.