Financial Institutions Contributions and Development of Small and Medium Enterprises in Nyagatare District- Rwanda

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Kampala International University, College of Economics and Management
This study determined the relationship between Financial Institutions contribution and Development of SMEs Nyagatare District in Rwanda. To achieve this main purpose of the study, four research objectives were set and these included: to determine the profile of respondents; to determine the level of Financial Institutions; to determine the level SMEs; and to establish whether there is relationship between Financial Institutions and Development of SMEs. The design that was used in this study was descriptive correlation and the study sample size was 141 and this was derived from the population of 218 through Slovene's formula. Systematic random and purposive sampling techniques were used to select respondents. Self-administered questionnaires were used in this study. The reliability and validity of the questionnaires were established using Content validity Index and pretesting. The research findings indicated that the level of Financial Institutions in Nyagatare district was high (mean =3.36); the level of Development of SMEs was also found to be high (mean=3.18); there is significant relationship between Financial Institutions and Development of SMEs in Nyagatare district (r. value of; 0.247, R2 value of 0.0644; F. ratio of, 3.244; Beta of 2.433 and a very small level of significance of 0.000). It was concluded that there is a significant relationship between Financial Institutions and Development of SMEs. It was also recommended that there is need for financial institutions to always carry out project feasibility before offering credit to its clients and also there is need to improve on paying of bills and utilities, though it was interpreted as high, it was still ranked last.
A Thesis Presented the College of Higher Degrees and Research (CHDR) Kampala International University Kampala, Uganda in Partial Fulfillment of the Requirement for the Degree Master in Business Administration
Financial Institutions Contributions, Development, Small and Medium Enterprises, Nyagatare District- Rwanda