The Role of Networking and Financial Services on the Performance of Youth-Owned Enterprises in Kigali City, Rwanda
Loading...
Date
2023-10
Authors
Hakizimana, Samuel
Muathe, Stephen
Kavinda, Lucy
Journal Title
Journal ISSN
Volume Title
Publisher
Science Publishing Group
Abstract
Youth - owned small and medium enterprises play a critical role in a community's economic well-being and serve
as engines of social and economic development in both urban and rural areas. The efficacy of Entrepreneurs has been
recognized in many countries as being essential for the global fight against poverty, corporate development, and rapid
industrialization. Young entrepreneurs have a crucial role in the processes of creating and maintaining a successful economy as
well as insuring inclusive distribution, both in developed nations and in countries still in the process of developing the national
economy. Financial services and networking services contribute a lot in the world's financial markets, and in recent decades, its
growth has accelerated Financial and networking services are an essential element in both government and non-government
activities to increase employment, increase income, and deliver a stable economy. Nevertheless, firms in Rwanda are
performing poorly, with business output falling from 58% in 2020 to 30% in 2021. These barriers can be overcome by using
financial and networking services as approaches. Consequently, the purpose of this article was to examine the impact of social
networking services and the impact of financial services on the performance of youth-owned businesses in Kigali, Rwanda.
The key theories comprised resource-based theory, dynamic capacity theory, Schumpeter's Theory of Innovation, Stages of
Development Theory, and contingency theory. The research philosophy adopted in this in investigation was positivism. An
explanatory study design was used on a sample size of 154 enterprises chosen from a target population of 256 enterprises in
Kigali, Rwanda. The research suggests policies and practical implications for improving financial and networking services on
the performance of Rwandan youth-owned business entities. The investigation suggests that executives of youth-owned
businesses boost their networking and financial services so that firms can learn more and gain vital prospective, allowing them
to more effectively handle their businesses and improve their future success and profitability. The Rwandan government
should assess the charges levied by the enterprise and the procedure of acquiring a permit to engage in the company's activities.
This will make it possible for young business owners to understand and take advantage of numerous financial services and
networking services, which will ultimately improve their business performance.
Description
Article
Keywords
Resource-Based Theory View, Dynamic Capability Theory, Schumpeter's Theory of Innovation, Stages of Development Theory, Contingency Theory, Networking Services, Financial Services
Citation
Hakizimana, S., Muathe, S., & Kavinda, L. (2023). The Role of Networking and Financial Services on the Performance of Youth-Owned Enterprises in Kigali City, Rwanda. Journal of World Economic Research, 12(2), 69-80.