Financial credit and performance of selected coffee producers in southern province of Rwanda
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Date
2012-09
Authors
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Publisher
Kampala International University, College of Economics and Management
Abstract
The purpose of this study was to explore the influence of financial credit to the performance of selected coffee producers of southern province of Rwanda, The objectives were to determine the profile of the respondents; to determine extent of financial credit to selected Coffee producers in the area under study; to determine the level of performance of selected coffee producers in the area under study; to establish the relationship between financial credit and performance of selected coffee producers in Southern Province of Rwanda. This study used correlation design. The target population involved a total of 150 people of KOTEKAYA, ABAHUZAMUGAMBI, KARABA and MUGOMBWA cooperatives where we have selected a sample size of 108. Purposive sampling was used to select respondents able to provide relevant information to the research. To meet our objectives, we have collected data using questionnaires. The data were presented, analyzed and interpreted using Statistical Package for Social Science (SPSS). The findings showed that the majority of the respondents are males, married with age between 20 and 40 years. Because of lack of collateral to present bank, high interest rate, problems in loan application and other factors, the majority of the respondents do not borrow money from banks, Thus, these factors influence negatively the performance of coffee producers where the findings revealed that the majority of people get output below 100kg per season. This is a very low quantity of output. It is due also to low level of technology used and small area cultivated with small number of labors used, By conclusion, the Pearson’s correlation coefficient indicates that there is a significant and positive relationship between financial credit and performance of selected coffee producers. The null hypothesis was rejected, As recommendation, bankers should diversify geographically to reach rural areas with people of low income. With regard to low level of access to bank services and despite the high interest rates claimed by loan seekers, people and particularly entrepreneurs could formalize their business so that their increase access to bank services and enjoy finance opportunity included diversified products.
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 Master of Business Administration
Keywords
Financial credit, coffee producers, Rwanda