Peer-to-Peer Mentorship Networks for Financial Literacy Skills Development and Enterprise Growth among Female Traders in Coastal Areas of Rivers State, Nigeria

Abstract

Informal women-led enterprises significantly drive economic activities in coastal communities in Sub-Saharan Africa but face severe geographical isolation and financial exclusion. This study examines how informal peer-to-peer mentorship networks build financial literacy and enterprise growth among female traders in coastal communities in Rivers State. Employing a quantitative survey design, this study purposively sampled riverine communities across Andoni, Degema, and Opobo/Nkoro Local Government Areas. A snowball sampling technique was utilized to select 120 female traders (40 per LGA) since there is no formal sample frame for these traders. Data were collected using structured questionnaires and systematically analyzed using mean, standard deviation, Chi-square and multiple linear regression analysis. The findings from the study reveals that 61.67% of traders actively participate in collaborative networks. Peer mentorship significantly fosters critical financial capabilities, particularly profit calculation and seasonal savings management. The regression analysis confirms these acquired skills explain 46.8% of the variance in enterprise growth (R2 = 0.468, F = 33.97, p < 0.001). Similarly, seasonal savings management emerged as the most powerful individual predictor of business expansion, effectively driving capital accumulation and reducing product spoilage. The study concluded that grassroots peer networks serve as essential alternative institutional safety net for these traders. Based on the findings of the study, it was recommended that governments and NGOs should integrate formal microfinance initiatives directly into these existing structures for improved enterprise growth among these traders. Additionally, targeted investments in solar-powered storage facilities and ecological protection are vital to eliminate structural barriers hindering market expansion.