MICROFINANCE SERVICES AND WOMEN’S SMALL AND MEDIUM ENTERPRISES GROWTH IN RUSIZI DISTRICT A CASE OF RIM MICROFINANCE Ltd

Authors: Bumbali Machiavel, (MBA) & Musanganire Innocent, (MA),

ABSTRACT

This research reports the microfinance and women’s small and medium enterprises growth in Rusizi District, a case of RIM Ltd. This study was aimed to assess the contributions of Microfinance on the women’s small and medium enterprises growth in Rusizi Distrit. The specific objectives were: To determine Microfinance services offered by RIM Ltd to Women SME owners in Rusizi District; To analyze the contribution of microfinance on Women’s SMEs growth in Rusizi District; To examine the challenges facing the business growth of women SMEs owners in Rusizi District. In carrying out this study, the literatures related to microfinance and women’s small and medium enterprises were reviewed to consolidate data findings. A case study approach was followed at RIM Ltd Rusizi branch, where data were collected and analyzed by use of both quantitative and qualitative approaches. The simple random sampling technique allowed us to choose from a population of 417 (clients and employees from RIM Ltd) a sample of 81 respondents to meet the purpose of the study. The data were collected through questionnaires and interview guide. The collected data were analyzed using Statistical Package of Social Sciences (SPSS). The results obtained from the study showed that microfinance services have a positive contribution on the business growth of women Small and Medium Enterprises, and its sustainability. On one side, the loan facilities provided by microfinance lead to increase in working capital reported by 59.3% of respondents, and an increased profitability (28.4%) thus, the business growth of the enterprises. On another hand, the advisory services and managerial skills offered by RIM Ltd to women SMEs owners are playing a considerable role on enterprises to be successful in achieving their goals (reported by 9.8%). Limited capital was the major challenge that hinders women’ SMEs from growing as reported by 79% of all respondents. Consequently, it is concluded that Microfinance institutions have a positive effect on the women’ Small and Medium Enterprises growth in Rusizi district. The researchers came up with the following recommendations: Women SMEs owners should apply for loans from RIM Ltd so as to constitute capital for their enterprise growth; MFIs should provide training for women SMEs owners to improve their skills and competitiveness to the market; MFIs should also adjust their interest rate and give affordable Credits to its women clients for starting the business.

Keywords: Microfinance services, small and medium enterprises and growth.

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