The main purpose of this study was to investigate the role of financial institution services on the development of small size businesses in Rwanda. This design of study was a descriptive and correlation research. The population of this research was 31 managers of small businesses financed by Unguka bank in Bigogwe sector. The questionnaires were used to collect primary data and various books, journals, and internet for secondary data. In this research, financial institution services is an independent variable while development of small size businesses in Rwanda is a dependent variable.
The data collected from respondents were analyzed using SPSS version 22 and the result from analysis, interpretation, and presentation of data was displayed in the tables. The correlation method was used to find out if there is a relationship between financial institution services and development of small size businesses in Rwanda.
Table of Contents
CHAPTER 1
INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Research Questions of the Study
1.4 Objectives of the Study
1.5 Hypothesis of the Study
1.6 Significance of the Study
1.7 Justification of the Study
1.8 Theoretical and conceptual framework
1.9 Scope of the Study
1.10 Definition of Key Terms
CHAPTER 2
REVIEW OF LITERATURE AND RELATED STUDIES
2.1 Financial Institution Services
2.1.1 Saving services
2.1.2 Loan Provision
2.1.3 Financial Guidance
2.2 Development of Small Size Business
2.3 Challenges Facing Small Size Business Development in Rwanda
2.3.1 Increase of Customers
2.3.2 Increase of Revenues
2.3.3 Productivity Improvement
CHAPTER 3
RESEARCH METHODOLOGY
3.1 Research Design
3.2 Population and sampling techniques
3.2.1 Sampling techniques
3.3 Research Instrument
3.4 Data gathering procedures
3.5 Statistical Treatment of Data
3.6 Correlation
3.7 Ethical Consideration
CHAPTER 4
PRESENTATION OF FINDINGS, ANALYSIS AND INTERPRETATION
4.1 Demographic Information
4.2 Perception of Respondents on financial institution services
4.3 Perception of Respondents on development of small size businesses in Rwanda
4.4 Analysis of correlation and Hypothesis Testing
CHAPTER 5
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary
5.2 Conclusion
5.3 Recommendations
Research Objectives and Key Topics
The primary objective of this study is to investigate the role of financial institution services provided by Unguka Bank on the development of small size businesses in the Bigogwe sector, Rwanda. The research aims to assess how financial services contribute to business growth and to identify areas for potential improvement through a descriptive and correlational analysis of 31 selected businesses.
- Role of financial institution services in business development.
- Impact of saving services, loan provisions, and financial guidance.
- Indicators of small business growth (customer base, revenue, and productivity).
- Correlation analysis between financial support and business performance.
- Strategies for enhancing financial service delivery in Rwanda.
Excerpt from the Book
Loan Provision
Loan can be broadly classified into: fund-based lending and non-fund based lending. Fund based lending: This is a direct form of lending in which a loan with an actual cash outflow is given to the borrower by the Bank. In most cases, such a loan is backed by primary and/or collateral security (Robert, 2011). The loan can be to provide for financing capital goods and/or working capital requirements. Non-fund based lending: In this type of facility, the Bank makes no funds outlay. However, such arrangements may be converted to fund-based loans if the client fails to fulfil the terms of his contract with the counterparty. Such facilities are known as contingent liabilities of the bank. Facilities such as 'letters of credit' and 'guarantees' fall under the category of non-fund based loan (Goldsmith, 2010).
A substantial quantum of loans is granted by banks to small and medium enterprises (SMEs). While granting credit facilities to smaller units, banks often use a cluster-based approach, which encourages financing of small enterprises that have a homogeneous profile such as leather manufacturing units, chemical units, or even export oriented units. For assessing the credit risk of individual units, banks use the credit scoring models. Banks also facilitates the flow of credit at reasonable interest rates to the SME sector (Slaking, 2009)
Summary of Chapters
CHAPTER 1: This chapter provides the introduction, background, problem statement, research objectives, and the theoretical framework governing the study on financial institution services and small business development.
CHAPTER 2: This chapter reviews existing literature regarding financial services (saving, loans, guidance) and the challenges faced by small businesses, establishing the conceptual basis for the study.
CHAPTER 3: This chapter details the research methodology, including the descriptive and correlational research design, sampling techniques used for the 31 participants, and the instruments applied for data collection.
CHAPTER 4: This chapter presents the findings derived from the collected data, including demographic information, respondent perceptions on financial services, and the results of the correlation analysis and hypothesis testing.
CHAPTER 5: This chapter concludes the research by summarizing key findings, drawing final conclusions, and offering specific recommendations for Unguka Bank to improve its service offerings to small businesses.
Keywords
Financial Institution Services, Small Size Businesses, Rwanda, Saving Services, Loan Provision, Financial Guidance, Economic Development, Business Growth, Customer Satisfaction, Revenue Generation, Productivity Improvement, Unguka Bank, Bigogwe Sector, Pearson Correlation, Microfinance.
Frequently Asked Questions
What is the core focus of this research?
The study focuses on evaluating the influence of financial institution services, specifically those provided by Unguka Bank, on the development and growth of small businesses in the Bigogwe sector of Rwanda.
What are the primary themes examined in the study?
The study examines three main financial service areas: saving services, loan provision, and financial guidance, and relates them to business outcomes like customer growth, revenue increase, and productivity.
What is the main research objective?
The goal is to determine if there is a significant positive correlation between the services offered by financial institutions and the developmental success of small size enterprises in the local Rwandan market.
Which scientific methodology was employed?
The researcher utilized a descriptive and correlation research design, employing a four-point Likert scale questionnaire to gather primary data from 31 business managers, which was then analyzed using SPSS version 22.0.
What topics are covered in the main body of the work?
The main body covers the theoretical framework of financial services, the literature on small business challenges in Rwanda, the methodology for data collection, and a detailed statistical analysis of the respondents' perceptions.
Which keywords define the scope of this research?
The research is characterized by terms such as financial institution services, small business development, Rwanda, saving mobilization, loan provision, and financial guidance.
How did the researcher ensure the validity of the sample size?
Since the population consisted of 31 managers of small businesses financed by Unguka Bank in the specific region, the researcher chose to survey the entire population rather than using a representative subset, ensuring total coverage of the target group.
What did the correlation analysis conclude regarding the research hypothesis?
The study found a Pearson correlation coefficient of 0.814, indicating a high positive correlation, which led the researcher to reject the null hypothesis and confirm that financial institution services have a significant positive impact on business development.
What practical recommendations does the author make for the bank?
The author recommends that the bank streamline its loan access procedures to make them quicker and revisit its interest rate policies to ensure they remain affordable for small business owners.
- Arbeit zitieren
- Ines Uwamahoro (Autor:in), 2021, Financial institution services and the development of small size businesses in Rwanda. Analysis and interpretation, München, GRIN Verlag, https://www.grin.com/document/1031032
