The role of SMEs in rwanda from 1995 to 2010
par Clotilde MUKAMUGANGA
National University of Rwanda - A0 2011
2. To whom it may concern
3. Letter of access on data
4. Authorization of dissertation submission
The aim of this dissertation is to find out whether small and medium enterprises contribute positively on rural development in Rwanda. The task has been accomplished by designing the questionnaire and carrying out the interview questions, in order to know this role from 2005 to 2010.
Applying spss on questions addressed to the population around URWIBUTSO Enterprise, we test whether the Enterprise has the role in the area it is located. The results of the study show that the URWIBUTSO Enterprise has a great role on Rwandan rural development especially to the population around it. The results also show that the URWIBUTSO Enterprise reacted by giving much importance to the population around Enterprise.
Rwanda is one of the poorest countries in the world; it is landlocked with low industrial production. Its economy is almost based on agricultural productivity since 92% of the population occupies the agriculture sector. It located in central Africa. Since 1991, the existing literature has shown the declining trends of incomes, savings, employment resources, famine, high population growth rate and general drop in the standards of living of people (World bank, 1998; 1)
The Rwandan economy faces a complexity of problems, which are rooted in socio-economic structure and history of violence and injustice. Hence the low agricultural productivity, famine and frequent droughts; high population growth, low human resource development, high transport costs and environmental degradation contribute tremendously to the structural problems which led to huge macroeconomic difficulties.
Besides, social problems, which culminated into 1994 Genocide in Rwanda and caused the destruction of Economic and social infrastructures, the human resource base and the general productive apparatus and systems, were also affected by the war .Hence the destruction of the social fabric, the loss of people's confidence and trust in each other increase more the poverty and vulnerability of the Rwandan people especially in rural areas.
In this context, the Government's ultimate objective is to create a new social, political and economic framework that must address the problems of the country. The government of Rwanda has developed a policy that promote the creation of alternative ways of attaining high incomes, employment, a policy which encourages entrepreneurs to contribute more positively to economic development in the country.
Entrepreneurs are encouraged in implementing small and medium enterprises which play a paramount role on rural development. For the case of «URWIBUTSO» Enterprise which plays a great role as it benefits more than 3000 families in local and other areas, thus improving welfare of the population.