Microfinance Services and Performance of Women-Owned Micro and Small Businesses in Bujumbura- Burundi.
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Date
2024-11
Authors
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Publisher
Kenyatta University
Abstract
Since the middle of the 1980s, microfinance for women has gained popularity among
development organizations as a method of reducing poverty. Micro and small
businesses owned by women have restricted access to microfinance services, limiting
their revenues and adversely affecting their business performance. This study aimed to
investigate the effect of microfinance services on the performance of women-owned
micro and small businesses in Bujumbura, Burundi. The specific objectives of the study
were to examine how microcredit, savings mobilizations, and financial training services
affect the performance of women-owned small and microbusinesses in Bujumbura,
moreover the study used government regulations as a moderating variable. The theories
of this study were resource-based view theory, dynamic capability theory, contingency
theory, and innovation theory. The researcher utilized an explanatory research design.
The target population was dispersed over 8 sectors from three districts in Bujumbura,
and the sample size was 191 women-owned micro and small businesses selected from
366 micro and small enterprises using a proportionate stratified and random sampling
approach. 191 women-owned micro and small businesses in Bujumbura, Burundi,
received a semi-structured questionnaire for the research using the drop and pick
approach. The study employed descriptive statistics like percentages, means, and
standard deviations and a multiple linear regression model in inferential statistics to
analyze the data. The regression model was utilized since it demonstrates how the
independent variable affects the dependent variable. The results indicated that micro
and small businesses' performance was significantly and positively influenced by
having access to microcredit. Additional findings demonstrated that the performance of
micro and small businesses was positively and significantly influenced by savings
mobilization. Furthermore, the findings indicated that financial education significantly
affected performance of micro and small businesses. Plus, the relationship between
microfinance services and the performance of micro and small firms was not
significantly moderated by government regulations. The study concluded that
microfinance services contribute significantly to the performance of women-owned
micro and small enterprises. The study recommends that microfinance organizations in
Bujumbura, Burundi, need to inform the public of the importance and uptake of their
services. Microfinance institutions ought to make savings accounts easy to operate for
women entrepreneurs. It was further recommended that for the women-owned micro
and small businesses in Bujumbura, Burundi, microfinance institutions should do a
better job of raising awareness of the services they offer so that business owners know
about them and how they can help them succeed if they want to perform well
financially.
Description
A Thesis Submitted to the School of Business, Economics and Tourism Partial Fulfillment of the Requirement for the Award of the Degree of Master of Science in Entrepreneurship of Kenyatta University November, 2024
Supervisors:
1.Stephen M. A Muathe
2.Eliud Obere