ANALYSIS OF DETERMINANTS OF SMALL AND MEDIUM ENTERPRISES ON THE FINANCIAL PERFORMANCE IN RWANDA

Abstract

The study was about the analysis of determinants of Small and medium Enterprise on the financial performance in Rwanda, a case of Musanze District. Target population of this study was 72 owners of small and medium enterprises by using stratified and simple randomly sampling techniques, 61 respondents was selected as sample size. Data collection methods were questionnaire and documentation while data analysis methods were descriptive statistical method, correlation matrix and multiple regression models.  The achievement of first objective showed  the findings from SMEs of Musanze District access to finance has presented overall average of (=1.84 and SD=0.874) in stimulating the financial performance of small and medium enterprises of Musanze District; that means there is moderate mean and evidence of the existence of the fact and heterogeneity of responses. Second objective achievement confirmed that SMEs of Musanze District access to business information presented overall average of (=1.828 and SD=0.874) on financial performance of small and medium enterprises in Musanze District, there is moderate mean and evidence of the existence of the fact and heterogeneity of responses. Third objective showed the findings present the SMEs of Musanze District confirmed availability of managerial experience which represented by overall average of (=1.844 and SD=0.872) on financial performance of small and medium enterprises in Musanze District as moderate mean and evidence of the existence of the fact and heterogeneity of responses for the SMEs. Fourth objective achievement on the findings showed the SMEs of Musanze District where there is an access to infrastructure that represented by an overall average of (=1.826 and SD=0.856) on financial performance of small and medium enterprises in Musanze District. As to conclude based on the results which indicated that determinants of SMEs in Musanze District on findings showed the value of R-square in this study is 0.573 means that the proportion of financial performance is explained by the determinants of SMEs at 57.3%. Based to the findings for this study, the problem of the study was solved, the research objectives were achieved, and research questions were answered.

Key words: Determinants, Small and Medium Enterprises, Financial performance

CITATION:  Cyizihiro, S., Kihooto, E. M., & Muhimpundu, M. (2022). Analysis of determinants of small and medium enterprises on the financial performance in Rwanda. The Strategic Journal of Business & Change Management, 9 (1), 296 – 310.