CHAPTER IV: DATA ANALYSIS AND INTERPRETATION
4.1. Introduction
This chapter consists of practical part of the study. It first
presents the field study, second concentrates on data presentation, the
analysis of field findings (from the respondent) in relation to the objectives
and hypothesis of the researcher. And finally this discusses the interpretation
emanated from results.
Furthermore the study concerning the assessing the
contribution of small and medium enterprises to the economic development of
Rwanda case of Huye water enterprise was conducted using a
questionnaire, observation and interview schedules as tools of data collection
from respondents.
Similarly throughout this part, the researcher interpreted and
analyzed the data that were collected from the field. It is on this note that
the researcher uses percentages, tables, frequencies as well as statistical
references and econometric view as ways of analyzing, interpreting, and
presenting results.
4.2. Background of Small
and medium enterprises to the economic development
4.2.1. The development of
SMEs and their potential contribution to the world economy
There has been considerable interest in the economic
development of SMEs, and in reducing the tendency of failure because of the
potential contribution to the world economy. Entrepreneurship through small
businesses has been signaled as having potential in the creation of sustainable
development (Tilley & Parrish, 2006) and poverty alleviation in
transitioning and developing countries (Morris, Woodworth, & Hiatt, 2006).
SMEs are recognized worldwide as vital and significant contributors to economic
development, job creation, and the general health and welfare of economies
(Haron, 2001; Korsching & Allen, 2004).
SMEs are an integral part of the economic lifeline of most
countries around the world. They are a major source of ideas and employment and
they both sustain and stimulate the growth of national economies. According to
Schlogl (2004), he stated that small and medium-sized firms dominate our
economies in terms of employment and number of companies, yet their full
potential remains remarkably untapped. Although there is a broad assumption
stating that SMEs generally has positive effects on country's economic growth,
the notion of economic imperatives for SMEs remains largely untested.
Given the important contribution of SMEs to national economy,
it is opportune to investigate how the potential of this sector can be fully
harnessed.
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