Loan Accessibility and Socio-Economic Development of Women Entrepreneurs in Rwanda, A Case of Rulindo District, Rwanda
DOI:
https://doi.org/10.53819/81018102t5298Abstract
The purpose of this study was to examine loan accessibility and socio-economic development of women entrepreneurs in Rwanda using a case of Rulindo district. The specific objectives were to assess the effect of secured loan on socioeconomic development of women entrepreneurs in Rulindo District, establish the effect of unsecured loan on socio-economic development of women entrepreneurs in Rulindo District, analyze the effect of revolving loan on socio-economic development of women entrepreneurs in Rulindo district and examine the effect of term loan on socioeconomic development of women entrepreneurs in Rulindo District. A descriptive research design was used. The target population was 884 women entrepreneurs’ secondary information and the sample size was 388. The study utilized primary and secondary data and thus questionnaires, interview guide and documentary analysis were used to collect the data. Data analysis was done using statistical package for social sciences to obtain descriptive and inferential statistics. rom NGO. The study found that various loan strategies employed in promoting women entrepreneurs in Rulindo District, Rwanda, have significant impacts on their socio-economic development. The research identified secured loan strategies such as individual collateral, group collateral, and third-party collateral. Inferential statistics revealed positive correlations between these strategies and socio-economic development, with a p-value of <0.05 indicating statistical significance. This suggests that an increase in group collateral, for instance, correlates with improved socio-economic outcomes for women entrepreneurs. Regarding unsecured loans based on loan tenure, the results indicated mixed opinions: 35.4% agreed, 52.7% strongly agreed, and 31.6% disagreed with the effectiveness of unsecured loans. The Pearson correlation coefficient suggested that these relationships were positive but statistically less significant. Interestingly, each element was found to significantly reduce socio-economic development in the district. The study also examined revolving loan strategies, such as loans through group membership, the choice of personal projects, and NGO funding as sources. A strong positive correlation was found between these types of loans and improved nutrition status, education, accommodation, and health status of women entrepreneurs, with high correlation coefficients (r values > 0.9) and p-values of 0.000, indicating strong statistical significance. Finally, the study's fourth objective revealed statistically significant correlations (p < 0.05) between the increase in revolving group loans and improvements in nutrition, education, accommodation, and health status. This implies a mutually reinforcing relationship between access to these loans and socio-economic benefits for women entrepreneurs in Rulindo District. The study recommends that more training and microcredit schemes to enable women to successfully do their business. A reevaluation of unsecured loan structures is recommended, with a focus on loan tenure to better support women entrepreneurs.
Keywords: Loan Accessibility, Socio-Economic Development, Women Entrepreneurs, Rulindo District, Rwanda
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