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Author(s): Nwagwu Chika, Agu Monica N. (Ph.D.), Iorpuu Timothy (Ph.D.).

Volume/Issue: Volume 9, Issue 1 (2026)

Page No: 62-76

Journal: International Journal of Entrepreneurship and Business Innovation (IJEBI)

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Abstract:

This study adopts a survey research design and investigated how educational attainment and income level determine insurance patronage among micro-entrepreneurs in South-East Nigeria. A sample of 461 respondents was calculated with the Krejcie and Morgan (1970) formula and reached through convenience sampling across the region’s five commercial hubs. Data collected via structured questionnaires were analysed with Partial Least Squares Structural Equation Modelling (PLS-SEM). The model assessed the direct effects of education and income on insurance uptake. Results show that income level exerts a strong positive influence on patronage (β = 0.652, p < 0.001), while education level has no significant effect (β = –0.088, p = 0.082), with the two predictors explaining 39.9 % of the variance in uptake and demonstrating good predictive relevance (Q² = 0.401). These findings indicate that affordability, rather than formal schooling, is the binding constraint on insurance participation among micro-entrepreneurs. Accordingly, insurers should introduce flexible, low-premium payment plans supported by targeted subsidies or tax incentives and pair these with concise, market-based insurance-literacy drives so that rising incomes can translate into tangible coverage gains.

Keywords:

Educational Level, Income Level, Insurance Patronage.

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