Nexus Between Financial Inclusion and Sustainable Entrepreneurship in the Emerging Economies: The Mediating Role of Financial Resilience

Abstract

Drawing on resource-based view theory and financial intermediation theory, this study examines how financial inclusion influences sustainable
entrepreneurship through the mediating role of financial resilience in an emerging economy characterised by high entrepreneurial failure, with
evidence from Nigeria. A quantitative crosssectional survey design was employed using structured questionnaires and non-probability convenience sampling, yielding 296 usable responses from entrepreneurial firms. Data were analysed using partial least squares structural equation modelling (pls-sem) via smartpls. The findings revealed that financial inclusion has a significant positive effect on sustainable entrepreneurship and also positively influences financial resilience. Financial resilience significantly
mediates the relationship between financial inclusion and sustainable entrepreneurship. The findings established that financial resilience is a mechanism through which financial inclusion influences sustainable entrepreneurship within the emerging economies. It also provided practical insights for policymakers and financial institutions to design targeted financial inclusion initiatives, including digital financial services, credit access and financial literacy programs, to enhance sustainable entrepreneurship. However, the cross-sectional design limits causal inference and the ability to capture the dynamic evolution of financial resilience over time. Future research should adopt longitudinal approaches to better understand these dynamics.