DETERMINANTS OF BUSINESS PERFORMANCE OF SMALL AND MEDIUM SIZE ENTERPRISES IN RWANDA

Edward Mutandwa, Nathan Kanuma Taremwa and Theoneste Tubanambazi
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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

Journal of Developmental Entrepreneurship (JDE), 2015, vol. 20, issue 01, 1-12

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

Keywords: SMEs; performance; Musanze; factor analysis; Rwanda (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (6)

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DOI: 10.1142/S1084946715500016

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