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Determinants Of Business Performance Of Small And Medium Size Enterprises In Rwanda

Author

Listed:
  • EDWARD MUTANDWA

    (Department of Rural Development and Agribusiness, ISAE BP 210 Musanze, Rwanda)

  • NATHAN KANUMA TAREMWA

    (Faculty of Agriculture, National University of Rwanda, Rwanda)

  • THEONESTE TUBANAMBAZI

    (Department of Rural Development and Agribusiness, ISAE BP 210 Musanze, Rwanda)

Abstract

Small and medium enterprises (SMEs) are often identified as one of the most important strategies for enhancing the livelihoods of people in Rwanda. This research analyzed the factors influencing the performance of SMEs in the Musanze district in the Northern Province. A survey was conducted with 52 registered SMEs selected from three sectors of Musanze. The sample was obtained by using proportional allocation sampling where the number of SMEs within each sector was considered. Both quantitative and qualitative data from SMEs were collected using structured questionnaires. Factor analysis and bivariate correlation analysis were used to facilitate data analysis. The results of this study showed that starting SMEs incurred a mean annual net income loss of -185,965Rwf (-295US$). However, the average net annual income increased to 970,820Rwf (1540US$). There was a positive correlation between annual net income, business experience and asset size (p

Suggested Citation

  • Edward Mutandwa & Nathan Kanuma Taremwa & Theoneste Tubanambazi, 2015. "Determinants Of Business Performance Of Small And Medium Size Enterprises In Rwanda," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 20(01), pages 1-12.
    • Handle: RePEc:wsi:jdexxx:v:20:y:2015:i:01:n:s1084946715500016
    DOI: 10.1142/S1084946715500016
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    Cited by:

    1. K Mercy Makhitha & Brian Soke, 2021. "Investigating the challenges for the development of independent retailers in South Africa," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(7), pages 16-26, October.
    2. Francis Kipkogei & Ignace H. Kabano & Belle Fille Murorunkwere & Nzabanita Joseph, 2021. "Business success prediction in Rwanda: a comparison of tree-based models and logistic regression classifiers," SN Business & Economics, Springer, vol. 1(8), pages 1-19, August.
    3. Martijn A. Boermans & Daan Willebrands, 2018. "Financial Constraints Matter: Empirical Evidence On Borrowing Behavior, Microfinance And Firm Productivity," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 23(02), pages 1-24, June.
    4. Amare Wubishet Ayele & Abebaw Bizuayehu Derseh, 2024. "Sustainability Time and Its Determinant Factors of Small and Medium-scale Enterprises in East Gojjam Zone: Parametric Survival Regression Model," Global Business Review, International Management Institute, vol. 25(3), pages 656-682, June.
    5. Alexandra Moritz & Joern H. Block & Fuad Morina, 2024. "Entrepreneurship in post-conflict countries: a literature review," Review of Managerial Science, Springer, vol. 18(10), pages 3025-3083, October.

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