Microfinance Institution Services and Performance of Small and Medium Enterprises (SMEs) In Rwanda: A Case Study of Reseau Interdioscesain of Microfinance (Rim), Nyarugenge District
DOI:
https://doi.org/10.53819/81018102t4379Abstract
This is the reason researcher conducted a study to assess the microfinance institution services and performance of small and Medium Enterprises (SMEs). The specific objectives in this research were to determine microfinance institution services that contribute to performance of SMEs in Nyarugenge District, to assess the performance of SMEs resulting from financial support of microfinance institution and to determine extent to which training facilities contribute to the performance of SMEs. This research used descriptive research design with two mixed methods (quantitative and qualitative). The target population was officials of credit department, employment team in finance department, officials in operation department of reseau Interdioscesain of Microfinance, Nyarugenge District. The total population was 111 from which a sample of 87 respondents were drawn. Simple random sampling techniques was used to select a sample and data were collected by using questionnaire and interview. Data analysis was done through Statistical Package for Social Science (SPSS) version 16. Research findings showed that 62.1% highlighted saving service facility to assist microfinance operations, 31% of respondents indicated that microfinance offers credits facilities, 6.9% of respondents said that the institution provide additional support services like financial advice as indicated by 48.2%, trainings facilities as indicated by 39.1% and business planning as indicated by 12.6%. Therefore, researcher recommends this institution to continuous cut off problems related to capital market, costs of financial services, capital access, collateral requirements, capital management, cost of registration, structural weakness in terms of governance, portfolio management and internal control for its sustainability.
Keywords: Microfinance, Institution, performance, small and medium enterprise
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