Role Of Microfinance Banks On Youth Entrepreneurial Intention: The Mediating Effect Of Entrepreneurial Self-Efficacy In Yola Metropolis, Adamawa State, Nigeria

Abstract

This study investigates the influence of role to microloans, business training, and entrepreneurial self-efficacy on youth entrepreneurial intentions among Batch B National Youth Service Corps (NYSC) members in Adamawa State, Nigeria, during the 2024-2025 service year. The study was motivated by the need to fill an identified gap in the literature, as existing research scarcely examined, in one study, the combined effects of microloans and business training on youth entrepreneurial intentions, including the mediating role of entrepreneurial self-efficacy. A crosssectional survey research design was used, and the Taro Yamane (1973) formula was adopted to determine the sample size. A total of 340 questionnaires were distributed, with 300 valid responses obtained, yielding an 88.2% response rate deemed suitable for multivariate analysis. Stratified sampling was employed based on NYSC platoons, 34 respondents from each platoon were selected. Data were collected using a structured questionnaire based on validated scales adapted from previous studies. Analysis was conducted using confirmatory factor analysis (CFA) and structural equation modeling (SEM) via AMOS version 22. The findings reveal that ROLE to microloans significantly impacts youth entrepreneurial intention in Adamawa State (β = 0.62, p < 0.05) but does not significantly influence entrepreneurial self-efficacy (β = 0.12, p > 0.05). Business training programs, conversely, exhibit a substantial positive effect on both entrepreneurial intention (β = 0.78, p < 0.01) and self-efficacy (β = 0.68, p < 0.01). However, entrepreneurial self-efficacy does not directly affect youth entrepreneurial intention (β = 0.05, p > 0.05) and does not mediate the relationship between either role to microloans or business training and entrepreneurial intention. These results suggest that while financial support and skill-based training significantly foster entrepreneurial intentions, selfefficacy may play a less critical role as a direct mediator. It is recommended that policymakers and stakeholders prioritize microloan schemes and effective entrepreneurial training programs to enhance youth entrepreneurial activities and address unemployment challenges.