A survey of the awareness and barriers to financial inclusion among rural youth entrepreneurs

This study explores the awareness and barriers to financial inclusion among rural youth entrepreneurs. Data for the study werw collected from 618 rural youth entrepreneurs across seven selected wards in Iramba District, Tanzania using a cross-sectional survey. Descriptive statistics were used to analyse the data. The findings reveal a sensible awareness of financial products and services, with a notable preference for informal financial mechanisms over formal institutions. The prime barriers to greater financial inclusion include unreliable income, stringent collateral requirements, limited financial literacy, and high transaction costs. In addition, factors such as religious beliefs and the distance to financial institutions further exacerbate exclusion. Accordingly, the study recommends implementing targeted financial literacy programmes and awareness campaigns to equip rural youth with the necessary knowledge and skills required to navigate formal financial systems. Moreover, offering flexible repayment schedules, reduced documentation requirements, lower interest rates, and minimised transaction fees could enhance the accessibility and usage of formal financial services. Leveraging these interventions would empower rural youth to make informed decisions about financial products and address awareness gaps and barriers to inclusion, thereby contributing more effectively to socio-economic development and sustainable growth in rural areas.