The Impact Of Inclusive Financial Development On Agricultural Firms’ Entrepreneurship Performance:An Empirical Study Of 30 Sub-sahara African Countries

A fundamental idea in finance is inclusive financial development,which aims to make a variety of financial goods and services accessible and cheap to all people and enterprises,especially those who are not already part of the official financial system.Financial literacy is one of the main factors influencing how easily agricultural businesses or entrepreneurs may access financial services.This study investigates the impact of inclusive financial development on agricultural firms’ performance for a panel of 30msub-Sahara African countries between 2009 and 2017.To account for the various aspects of financial development,we used(1)a newly created index of financial development,(2)a diagnostic test that used the Ramsey RESET test,White’s heteroscedasticity test,Breush and Pagan test,and Breusch and Godfrey LM test for serial correlation to take advantage of the presence of heteroscedasticity.(3)To determine the impact the mediating variable has on the independent and dependent variables,the results of the mediation path model estimates and mediating effect findings are shown.(4)To assess the liability of the results,robustness testing is performed using the Augmented Mean Group Panel Estimator and Common Correlation Effects,and(5)we finally examine the performance of entrepreneurs to ascertain profits made by firms,based on inclusive finance using Granger causality test to ascertain the link between variables.Our major finding indicates that inclusive Financial Development displayed cointegrated correlations with the chosen variables according to the Kao panel cointegration test.The correlation matrix now reveals that there is no significant association between any of the independent factors and the dependent variable.The findings of the mediating route analysis indicate that there is a significant and positive association between the growth of inclusive finance and the success of agricultural entrepreneurship firms.They also demonstrate that financial literacy has a direct bearing on this relationship.Our empirical results suggest that Inclusive financial development contributes to firms’ entrepreneurial activities by satisfying the demand for accessible,cheap,and extensive credit for firms and the demand for the efficient and cost-effective management of risk in the interest of investors and firms.