"the impact of women entrepreneurs on economic development of rwanda" case study of women entrepreneur in expo 2010 organized by rwanda private sector federation.

2.4 Economic development

2.4.1 Definition

Economic development refers to Qualitative  measure  of progress in an  economy It refers to development and adoption of new  technologies, transition from agriculture based to  industry based economy, and general improvement in living  standards (Igor Sharshakov 1998).

For fidelis ezeala-harrison (1996), economic development is a process through which overtime sustained increase occur in nation's per capita real income(output) accompanied by significant structural changes that allow for elevated income distribution and large increase in individual economic well-being . And the rise in income must be evident through such changes in basic living conditions as improved nutrition and high nutritional and clothing standards, improved (modern) housing, improved health and health care, low infant mortality rate, higher literacy rate, and a general environmental face-lift from a predominantly rural to an increased metropolitan flavor.

2.4.2 Women Entrepreneurship and economic development

Overholt (1986) pointed out that the role of women in development has become increasingly an important issue in recent years and this has been due to the shift of emphasis away from equity concern to the recognition role of the productive roles women play and the contribution they can make to economic growth and development.

«... Study after study has shown that there is no effective development strategy in which women do not play a central role. When women are fully involved, the benefits can be seen immediately: families are healthier and better fed; their income, savings and reinvestment go up. And what is true of families is also true of communities and, in the long run, of whole countries...» (Kofi Annan 2003).

«Women are the Third World's powerhouse. They produce a staggering 60 percent of all food, run 70 percent of small-scale businesses and make up a third of the official labor force - in addition to caring for families and homes. Yet, their status rarely reflects this enormous and vital contribution. By any measure - income, education, health, land ownership, legal rights or political power - women get a raw deal. The poorest of the poor are usually women because discrimination cuts off their escape routes from poverty - education, health services, equal pay employment, access to land and finance. It is becoming increasingly clear, however, that there will only be sustainable development in the Third World when women play an equal part in decision making. No developing country can afford to ignore women's existing and potential economic contribution, or their pivotal role in determining the health and welfare of a nation's children. All the evidence points to one conclusion: economic growth and improvement in the quality of life for everyone is faster in areas where women's status is higher." (Dr. Suryani Motik 2000).

Augmenting rates of enterprise births in local areas and the facilitation of the development of new women-owned firms can have positive impacts on job creations, productivity growth, tax revenues, the availability of goods and services and the provision of positive role models. Entrepreneurship among women is important for local development and for economic development more broadly (OECD 2003).