Influence of Entrepreneurial Dimensions on Growth of Women Micro Businesses in Rwanda

Abstract

The study focused on influence of entrepreneurial dimensions on growth of women micro business in Rwanda. Four specific objectives formed the basis of this study: to identify the influence of innovation on growth of women micro business in Rwanda, to examine entrepreneurial finance on growth of women micro businesses in Rwanda, to identify the influence of entrepreneurial training on growth of women micro businesses in Rwanda, to establish the effects of entrepreneurial awareness on growth of women micro businesses in Rwanda. Diffusion of innovation theory, trade-off theory, Finance theory and knowledge spillover theory were used for the study. Mixed research approach was adopted. The target population comprised all registered women micro businesses across different business sectors Bugesera district. There were 8,629 registered businesses as at 01st January 2017. A sample size of 324 women micro businesses was drawn from the target population using Slovin’s formula. Stratified sampling technique was used to select the sample size of 324 from the different business/activity sectors. Simple random sampling was then used to select the sample. Both primary and secondary data were collected. The questionnaires were the primary tools used for collection of data where they were self-administered by the researcher and response of 317 was obtained. In analyzing the responses, the Statistical Package for Social Science (SPSS) Version 22.0 was used to present descriptive statistics such as percentages, frequency distributions, measures of central tendencies, and measures of variations. Data analysis and interpretation was based on descriptive statistics and measures of dispersion as well as inferential statistics; bivariate and multivariate regression analysis, Pearson correlation, factor analysis and analysis of variance were employed, Based on ANOVA results study revealed that innovation had (F = 84.546, p = 0.000), Entrepreneurial finance (F = 29.652, p = 0.000), entrepreneurial training (F = 100.763, p = 0.000) and entrepreneurial awareness (F = 88.748, p = 0.000). Multilinear regression model was used in explaining the influence of entrepreneurial dimensions on growth of women micro business in Rwanda. The study results concluded that entrepreneurial dimensions (measures of innovation entrepreneurial finance, entrepreneurial training and entrepreneurial awareness) had significant and positive influence on growth of women micro business (in terms of profit, change in net-worth and sales turnover) in Rwanda. The study recommends that managers should be able to enhance their entrepreneurial dimension through acquisition of broad information to make informed entrepreneurial decisions. Cashflow techniques should be adopted to reduce bankruptcy risks, maintain control of the business as well as allocating business funds and income into viable projects that will increase the value of the enterprise. The study further recommended women micro businesses to operationalize training which will improve production and quality. The study recommends that improving on cash management policies on transactions in order to optimize use of cash and maintain optimum liquidity.