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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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The aim of this chapter is to present a summary of the study, general conclusion and recommendations for improvement and areas for further research. The general objective was to assess the role of small and medium enterprises on Rwandan rural development. Findings on the role of Urwibutso Enterprise as a small and medium enterprise on rural development have been based on some of objectives presented in the earlier chapter and on the conceptual framework about role of small and medium enterprises in Rwanda. Views from other authors have been cited to provide a strong background for studying the effectiveness of small and medium enterprises on rural development and the case study of Urwibutso Enterprise was appropriate.

There were 30 respondents in total. The study shows that the rural development in Rwanda is highly dependent on the intervention of small and medium enterprises positively.

Further, findings show that all sampled respondents were equally distributed questionnaires, regardless of their sex, qualification and experience at work. Thus the data got was of good quality and representative for the research. The characteristics of respondents show that a big number of Urwibutso Enterprise's stakeholders have dealt with it from 0-5years.

Further still, analysis shows that small and medium enterprises especially Urwibutso Enterprise have increased food production thus reducing the problem of food insecurity, rural-urban movement and increasing value addition to local production, job creation by diversifying its activities, local population literacy by introducing school containing three academic levels, adult education for those who had not attaint and left school; these elements show the strong change in rural area around it. All in all, findings indicate that small and medium enterprises accompanied by other approaches like infrastructure improvement can lead to rural development in Rwanda. Basing on the results of the study; the following conclusions are put forward:

Due to the fact that Rwandan economy depends on Agriculture with 90% of working population in Rwanda are mainly employed in this sector, including 23% in urban areas and that 89% of that population are classified as self employed (typically family members working in family farms) with this percentage of people engaged in primary sector, the Rwandan government should invest much in small and medium enterprises in rural areas for more development.

It has been proved that Urwibutso Enterprise satisfies the stakeholder's needs as they cultivate according to the needs of Urwibutso Enterprise which also wants to satisfy its customers needs.

Lastly but not least, one can conclude that small and medium enterprises lead to rural development in Rwanda, by using factors that greatly influence rural development like income of people, education level, investment level and so on.

In addition, it can be said that the objectives of the study were successfully achieved. Findings and conclusions were found in line with the interpretation of the data.

The research was carried out on the role of small and medium enterprises on Rwandan rural development with reference to Urwibutso Enterprise. Thus we bring certain recommendations:

For government

Reinforce the capacity of MINAGRI in cultures diversification, to maintain agricultural actual politic of financing small and medium enterprises which are agro-based enterprises, to give favor on public and private investors in rural areas which depend highly on agriculture.

For Urwibutso Enterprise

To negotiate with funds donors favorable conditions for financing projects, to inspire or follow example of innovative industries of developed countries for being competitive in the region, to maintain its politic for products of quantity and quality, to negotiate with public authorities, aid (subventions, tax exemptions etc), to maintain its facilities to shareholders, maintain and increase quality services where is possible.

For stakeholders

To diversify their cultures for gaining more money and to continue well utilization of gained money for their development.

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