1.3. Statement of
Problem
Rwanda is landlocked and small country located between the
eastern and central Africa. It has a total area of 26,338 km2 of
which 24950 km2 (94.7%) is made of land and 1,388km2
(5.3%) of water. Of the total land area, only 8,600 km2 (32.7%) are
suitable for cultivation, about 94% of this population live in rural areas
where their work is principally related to agriculture and animal husbandry
(91.1%). Rwanda's primary sector occupies the largest part of the population;
it represents 33% of GDP (2006).
It is mainly made of a subsistence agriculture that is mainly
dependent on rainfall, making the production highly volatile across seasons.
But still, the rural area is where poverty is lagging.
Now, it is understandable that small and medium enterprises
contribute positively on rural development basing on that, this study will
focus on whether these Rwandan enterprises have significant role on rural
development especially on the population around the enterprise.
1.4. Purpose of the
study
The study was set to identify the relationship between small
and medium enterprises and rural development in Rwanda.
1.5. Objective of the
study
1.5.1. General objective
The general objective of the study is to find out whether
small and medium enterprises contribute positively on rural development in
Rwanda.
1.5.2. Specific objectives
1. To study the nature and characteristics of small and medium
enterprises in Rwanda.
2. To identify the role of small and medium enterprises in
Rwanda.
3. To identify the relationship between small and medium
enterprises and rural development in Rwanda.
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