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Contribution of small and medium enterprise to the economic development of Rwanda

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par Valens NYANDWI
Universite Nationale du Rwanda - Licence 2013

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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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