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The role of SMEs in rwanda from 1995 to 2010

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par Clotilde MUKAMUGANGA
National University of Rwanda - A0 2011
  

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4.4. Status of urwibutso enterprise

Urwibutso enterprise is a private enterprise and individual one, totally of SINA Gerard. Its characteristics confer to the status of individual enterprise.

4.5. Geographical situation

Urwibutso enterprise is located at Nyirangarama in Bushoki sector, Rurindo district, Northern Province (in past Kigali ngali), near by 45km from Kigali town on roard Axe of Kigali-Musanze-Rubavu.

4.6. Principle mission of urwibutso enterprise

From its creation, the owner and founder of urwibutso enterprise has as principal mission of industrial valorization of local agricultural production. Due to valorization of local matter; which the owner of enterprise thinks to play a great important role in rural areas and bring important contribution to rural economy.

4.7. Objectives of enterprise

All enterprises such as small, medium or great have necessarily to fixe objectives to achieve. It is in regards that urwibutso enterprise has fixed major objectives that we can classify in two categories:

Economic objective

Social objective

v Economic objective

Economic objective pursuit by enterprise is justified by its considered true interest center. Then, enterprise wants to maximize the production in order to satisfy the potential demand and insurer rational management which contribute to the reduction of its charges, keep and ameliorate the quality of its products, maintain good image in front of actual consumers, develop the competence in front of its personal, maximize the profits, etc.

The chosen economic objective is in the same orientation with the Rwandan government which actually consists of population's food auto-financing in order to fight against food insecurity in the following ways:

To increase local population revenues

To procure taxes to the state in considering commercial surplus and diversification of rentability judged activities for enterprise.

v Social objective

The social objective of urwibutso enterprise is to generate the revenues to the rural population of the region by introducing selected seeds, encouraging that population to form and join associations with the cooperation, solidarity and creativity sprit. The urwibutso enterprise plays a role in job creation for local population according to the capacity and competence of each of it which fight against rural urban movement.

4.8. Basic activities of enterprise

Urwibutso deals with a range of the following activities:

Ø Organic agriculture and livestock farming;

Ø Processing activities;

Ø Range of products and services;

Ø Assistance to local

Organic agriculture and livestock farming

Agriculture

Fruit horticulture

Goose barriers farming

Vegetable horticulture

Chill

Tomatoes

Table 4.1: Area occupied by agriculture production

Items

Occupied area (ha)

Annual production (T) per ha

Total production per year

Fruit horticulture

1. Passion fruit farming

2. Strawberries farming

3. Pineapple farming

4. Banana farming

26.50

6.00

4.50

2.50

6.8T

3T

50T

20T

180.20T

18.00T

225.00T

50.00T

Vegetable horticulture

1. Pepper culture

2. Other vegetable cultures

2.00

2.20

15T

15T

30.00T

33.00T

Cereal crops

1. Wheat, Maize, Sorghum

4

15T

60.00T

Table 4.2: The level of livestock farming production

Items

Quantity

1. Cow farming

15

2. Goat and sheep farming

62

3. Pig farming

268

4. Chicken farming

3567

5. Other birds

142

6. Rabbit farming

214

7. Fish farming

2 ponds

8. Bees keeping

12 modern beehives


Processing activities

Bakery and pastry

Juice and wine plant

Natural honey production

Bricks and titles work

Chilli sauce and powder

Organic manure and Restaurant

Range of products and services

Agashya fruit juice

Akarusho fruit wine

Fruit jam

Natural honey

Akabanga chilli sauce and powder

Bricks and titles

Fast foods

Animal foods

Organic manure production

Other activities

Assistance to local farmers

Graph 4.1: Organization chartManaging Director Officer

Internal Audit

Public Relations

Agro-Pastoral Activities

Department

Administrative and Financial Department

Commercial, Marketing and Communication Department

Technical, Production, and Engineering Department

Source: NKUNDAYEZU Alexie, (2005:6)

Graph 4.2:

Source: Survey, July 2011

As shown in graph 4.2, a large percentage (76.7%) of respondents is that cultivators who have 0-1ha of cultivable land which is small for using it in the business because this land is from heritage as people of that region have more children and is confirmed by 46.7% of respondents, but they try to reduce them since the implementation of Government policy which encourages Rwandan people not exceed 3 children. This shows that the big problem in rural areas is the scarcity of cultivable land and to solve it, people have to well use available land by tracing terraces to avoid erosion, using organic fertilizers in order to increase the production and those people need to diversify their activities thus raising their income. For Enterprise to resolve this problem; it purchases land in order to obtain raw materials that will allow it to hire more workers, thus there will be a low level of rural urban movement and will procure a revenue to that rural population.

Graph 4.3

Source: Survey, July 2011

As it is indicated by graph 4.3, the Enterprise Urwibutso encourages population around it to diversify plants they cultivate, this is shown by (23.3%) of respondents but more of them (36.7%) cultivate strawberries because of favorable land and season for it, but there are who cultivate it and other cultures in yellow color on the chart. This diversification allows enterprise to reduce risks of missing raw materials and increase the revenue to the population who brings them. This diversification allows Enterprise to hire more workers for the transformation of the diversified fruits. It in this regards, that Enterprise Urwibutso plays the role of job creation and rising up population revenues which is one of its objectives.

Graph 4.4:

Source: Survey, July 2011

The above graph 4.4 discloses that 46.7% (in red color) of the respondents argued that they deal with Urwibutso Enterprise few years because the Enterprise becomes complex recently due to insecurity in that region and 1994 genocide. But there is a problem of misunderstanding of that people about Enterprise's objectives.

Table 4.3: Does enterprise urwibutso help in as regards better farming practices?

 
 

Answers

Number of Respondents

Percentages

yes

28

93.3

no

2

6.7

Total

30

100

Source: Survey, July 2011

The above table shows that 93.3% of respondents argued that Enterprise helps them in as regards better farming practices as it is the government program in vision 2020 in order to solve food insecurity problems, this shows the importance of encouraging SMEs to implement agricultural policies in rural areas as a great number of farmers live in that region.

Graph 4.5

Source : Survey, July 2011

The above graph 4.5 shows that the Enterprise helps rural population by mostly organizing workshops as it is represented by 63.3% (pink color) of respondents and there are other represented by yellow and sky blue colors represented by 13.4%, which include some are done (over one suggested answer for example: offering fertilizers and selected seeds) and all are done (organizes workshops, offers fertilizers and selected seeds). This gives added information on the importance of Urwibutso Enterprise that it plays in the area where it is located in and this helps Rulindo District to achieve expected performance contracts.

Table 4.4 what amount of money do you get each season from your occupation with urwibutso enterprise (agriculture)?

 Answers

Number of Respondents

Percentages

0-100000

11

36.7

100001-200000

11

36.7

200001-300000

3

10

300001-400000

4

13.3

400001-500000

1

3.3

Total

30

100

Source: Survey, July 2011

This table shows that more people who deal with Enterprise gain money in the interval of 0-200000frw, this amount of money is used in home needs as it is shown by 30%, 13.3% use it to invest in commercial trade, 13.3% keep it to build houses, 20% invest in agriculture and 6.7% pay school fees of children are shown in the table 4.5 below. After, the remained money is saved in bank as it is shown by 36.7%, 26.7% save elsewhere and 6.7% save at home but 30% do not save are shown in the table 4.6. Thus, there is a need of sensitizing people about interest of saving at bank.

Table 4.5

How do you use that money?

 
 
 
 

 Answers

Number of Respondents

Percentages

invest in commercial trade

4

13.3

used for home needs

9

30

kept to build a house

4

13.3

invest in agriculture

6

20

paid school fees of children

2

6. 7

Total

25

100

Source: Survey, July 2011

Table 4.6: When you save that money, you put it where?

 
 
 

 Answers

Number of Respondents

Percentages

at bank

11

36.7

At home

2

6.7

elsewhere

8

26.7

I do not save

9

30

Total

30

100

Source: Survey, July 2011

Table 4.7: Does Urwibutso Enterprise offer saving services too?

 
 

Answers 

Number of Respondents

Percentages

yes

27

90

no

3

10

Total

30

100

Source: Survey, July 2011

The above table presents the overview of whether urwibutso enterprise offers saving services too. From the views of the 90% of respondents agreed that urwibutso enterprise offers this service by advising them about saving but they are few in saving then urwibutso and government have a great work of sensitizing that people, on the role saving.

The table below 4.8 shows that 70% of respondents argued that, it offers them services by advising about saving, 13.3% of them say that, it offers saving services by charging a certain amount and 6.7% argued that it offers them services by advising about saving and by charging a certain amount and is repayable after a certain period because they not understand importance of saving (all above are done).

Table 4.8: If yes, how?

 Answers

Number of Respondents

Percentages

by charging a certain amount

413.3

by advising about saving

2170

all above are done

26. 7Total27100Source: Survey, July 2011

Table 4.9: Does Urwibutso Enterprise help you in as far as regards health care?

 

Answers 

Number of Respondents

Percentages

yes

27

90

no

3

10

Total

30

100

Source: Survey, July 2011

Depicted from the table above the respondents responded on whether enterprise helps in as far as regards health care, the 90% agreed that enterprise does it by offering them all suggested answers where 53.3% confirmed that urwibutso helps them by offering health insurance, advising them about family planning and fighting against HIV/AIDS. Offering health insurance is represented by 23.3%, advising them about family planning is represented by 3.3% and fighting against HIV/AIDS is represented by 10% and are shown in table below 4.10

Table 4.10: If yes, it helps you to?

 
 
 
 
 

 Answers

Number of Respondents

Percentages

get health insurance

7

23.3

get advices about family planning

1

3.3

fight against HIV/AIDS

3

10

a, b and c are true

16

53.3

Total

27

100

Source: Survey, July 2011

Table 4.11: Is Urwibutso Enterprise helping the poor in the area of education?

Answers 

Number of Respondents

Percentagesyes30100Source: Survey, July 2011

Depicted from the table above the respondents responded on whether Urwibutso Enterprise is helping the poor in the area of education, the 100% agreed that enterprise does it by offering them all above (School fees, School materials and Adult education) suggested answers in questionnaire; they are shown in table below 4.12. Mr. SINA Gerard realized that you can never achieve sustainable development without education to the future generation and hence established 3 levels of academic progression that include one nursery school, primary and secondary schools which is one of government policies in order to attain vision 2020 objectives.

Table 4.12: if yes how?

 Answers

Number of Respondents

Percentagesall above30100Source: Survey , July 2011

This education service offered by Urwibutso Enterprise makes the population becoming intellectuals in their daily activities dominated by agriculture and people become good decision makers and understanding well programs of the government.

Note: all above represents school fees, school materials and adult education.

Graph 4.6

 

Source: Survey, July 2011

The graph 4.6 indicates that respondents views on changes in daily life since working with Urwibutso Enterprise; more of them agreed that most of suggested answers are done and is represented by 36.6%. Changes of nutrition (6.7%), bought your cow (6.7%), built your house (10.0%), paid school fees (13.3%). 16.7% argued that all suggested answers are done. That 36.6% and 16.7% of respondents highlights the role of Urwibutso Enterprise in the area where it is located in as the daily life of people around it has positive changes and is in the line of government policies.

Notes: All percentages in the text are found by using SPSS.

Respondents were allowed to respond only one suggested answer to each question. Those who responded some of these; are those who responded for example: changes of nutrition and paid school fees or bought a cow. Those who responded all are done; are those who did all suggested answers. Respondents who answered others are those who responded non suggested answers.

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