The Drivers of the Gender Gap in Financial Inclusion for Entrepreneurial Development: Empirical Analysis from Tanzania

Authors

• Cornel Joseph, University of Dar es Salaam, Mkwawa University College of EducationFollow
• Chakupewa Joseph Mpambije, University of Dar es Salaam, Mkwawa University College of EducationFollow

Abstract

The gender gap in financial inclusion is a significant concern for both the academic community and policymakers, as it represents a critical factor influencing the development of entrepreneurship in Tanzania. Using the World Bank’s Findex database of 2021, this paper examines the drivers of the gender gap in financial inclusion for entrepreneurial development in Tanzania. The study adopts the Fairlie decomposition to examine the contribution of these factors to the gender gap in access and usage of financial services. The empirical results from the Fairlie decomposition analysis confirm the existence of a gender gap in access to financial services in favour of males, to which education (mainly secondary and higher), being in the workforce, owning mobile phones and higher income quintiles contribute positively and significantly to the widening of the gender gap. Thus, policy action geared towards financial inclusion of disadvantaged women should focus on enhancing their level of education and access to employment opportunities to boost their incomes and ultimately increase their opportunities of access to financial services.

Recommended Citation

Joseph, Cornel and Mpambije, Chakupewa Joseph (2026) "The Drivers of the Gender Gap in Financial Inclusion for Entrepreneurial Development: Empirical Analysis from Tanzania," Business Management Review: Vol. 28: No. 2, Article 10.
Available at: https://doi.org/10.56279/bmrj.v28i2.6776