Micro finance services and socioeconomic development of Sim customers in Kigali City- Rwanda
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Date
2012-09
Authors
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Journal ISSN
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Publisher
Kampala International University, College of Economics & Management.
Abstract
The study intended to establish the relationship between access to
microfinance services and socio- economic development of RIM customers in Kigali City — Rwanda. The study used an ex-post facto, descriptive comparative, correlational and a cross sectional survey design. Using purposive sampling, data was collected from 254 respondents, through a researcher made questionnaire, to answer 3 research questions: respondents’ profile, the level of access to micro finance services and the level of socioeconomic development of RIM customers
To analyze data, frequencies, percentages means, t-test and Pearson’s Linear Correlation Coefficient were used. The findings indicated that most respondents were female (60%), between 20-39 years of age (80%), majority were primary dropout (54%) and over 61% had spent 1-4 years as members of RIM. The level of access to micro finance services was generally very low (average mean =1.49)
The level of socioeconomic development was also found to be very low with (overall mean of 1.33). The findings indicated a significant difference in the level of access to micro finance services between male and female, (t=16.849, sig
=0.000) and level of socioeconomic development between male and female (t=16.571, sig. =0.000). The findings indicated a positive significant relationship between the level of access to micro finance services and socioeconomic development in terms of housing and domestic welfare (r=.974, sig. =0.000) level
of income (r=.964, sig. =0.000) and health care (r=.975, sig. =0.000) and overall socioeconomic development (r=.983, sig. =0.000). The researcher concluded that an increase in access to micro finance services improves the socioeconomic development and its decline leads to poor socioeconomic development in Kigali city Rwanda. The researcher recommended that there is need to improve the level
of access to micro finance services, so as to improve people’s socioeconomic development in Kigali city Rwanda
Description
A Thesis presented to the College of Higher Degrees and Research Kampala International University Kampala, Uganda In partial fulfillment of the requirements for the Degree of Master of Business Administration
Keywords
Micro finance services, Socio-economic development, Sim customers, Rwanda