ROLE OF INNOVATIVE FINANCING MODELS IN DRIVING INCLUSIVE ENTRPRENEURSHIP: INSIGHTS FROM ABUJA

This study investigates the role of innovative financing models in driving inclusive entrepreneurship among SMEs in Abuja, Nigeria. This study examines four key financing mechanisms: credit guarantees, cooperative/community financing, revenue-based financing, and digital/fintech loans. A quantitative survey design was adopted, and a structured questionnaire was used to collect data from 200 SMEs. Multiple regression analysis was employed to assess the impact of each financing model on IE. The results reveal that digital/fintech loans have a significant positive effect on inclusive entrepreneurship, indicating that technology-driven finance enhances access to credit for under-served entrepreneurs. Credit guarantees and revenue-based financing showed significant negative effects, largely due to limited awareness and rigid repayment structures, while cooperative/community financing exhibited no significant impact. The findings underscore the need for a comprehensive financing framework that addresses structural, awareness, and regulatory challenges affecting the uptake of innovative finance. This study contributes to the literature by providing empirical evidence on the multi-dimensional role of innovative financing in emerging markets and highlights the importance of integrating digital finance into EG strategies. The study concludes with recommendations for policymakers and financial institutions to reform financing structures and enhance SMEs’ access to affordable, innovative credit mechanisms