Assessment of Benefits and Constraints of Alternative Entrepreneurial Banking Method in Rural Households in Oyo State

Ishola T.A., Abdul K.O. & Salako Y.A.


The study focused on the assessment of alternative entrepreneurial banking method among rural households in Oyo State. The study was carried out in fifteen (15) rural communities of three (3) Local governments of Oyo State namely: Atiba, Ibadan South East and Atisbo. A total 0f 150 respondents were used and all the 150 respondents’ responses were retrieved for analysis. Result of the study indicated that there were more respondents (43.3%) who use mobile bankers (ajo ojojumo) to support their rural entrepreneurial activities than other means of banking in the study area. Results on the perceived factors that affect the choice of alternative banking method has it that availability, convenience and cost of banking services are the major factors to be considered in the choice of banking method for various rural entrepreneurial activities. On the perceived benefit derived in the use of alternative banking to support rural entrepreneurial activities, it was gathered that alternative banking method helps in solving financial problems with a weighted mean score of 1.87. Whilst, on the constraints encountered in the use of alternative banking methods to support rural entrepreneurial activities,  almost all the rural households (89.3%) believes the risk of losing their money to fraudster in alternative banking was the major constraints with a weighted mean score of 1.85. Correlation analysis of tested hypothesis showed that the constraints encountered by respondents in the use of alternative banking method (r = -0.183, p = 0.005) is significantly related with perceived factors that affect respondents’ choice of banking method to support their rural entrepreneurial activities. (r = 0.721, p = 0.000)

Full Text:



  • There are currently no refbacks.