Impact of Micro Finance on Poverty Reduction - Economics Essay Example

NATIONAL UNIVERSITY OF RWANDA FACULTY OF ECONOMICS AND MANAGEMENT DEPARTMENT OF APPLIED STATISTICS ACADEMIC YEAR: 2010 DEDICATION To Almighty GOD, For your immeasurable help, mercy and grace, To my beloved foster mother, For her immeasurable help, care and advices To my family and friends, For your care, love and help To my late mother This dissertation is dedicated - Impact of Micro Finance on Poverty Reduction introduction. DECLARATION

I, HIRWA Pacifique, a student at the National University of Rwanda, Faculty of Economics and Management (FEM), Department of Applied Statistics (DAS), hereby declare that this dissertation entitled«The impact of women entrepreneurs on economic development of Rwanda a case study of Expo 2010 at Rwanda Private sector federation Gikondo from26th/08 to 8th/9/2010» is my own work and it has not been submitted anywhere for the award of any degree. Name of the student: HIRWA Pacifique Signature of the student Date 8t/10/2010 ACKNOWLEDGEMENT The following work is not only an individual work .

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I could never have accomplished it without help, support, guidance and efforts of a lot of people to whom I owe my thanks. I would like to gratefully and sincerely thank all individuals who helped me during my education career. Here I want to mention my beloved foster mother MUKABASHIMA Agnes for her advices, financial support, encouragement, moral support, my family member especially my brother BYIRINGIRO Jean Pierre, NSHIMIYIMANA Jean Pierre and all my family, friends all your advices, moral, love has contributed to successful accomplishment of this work. I would like to thank my research supervisor Ms.

NIWEMAHORO Celine for her immeasurable commitment, effort, positive criticisms and willingness to spare and given up her scarce time to help me acquire new skills in Statistics . I have to recognize that without her devotion and skills, this work would not have been done. I also have great pleasure to thank the Faculty Management and economic especially applied statistics department’s lecturers for their devotion and professionalism showed during my undergraduate studies. It would be ungrateful to forget to thank all women entrepreneurs who agreed to answer my questionnaires, in Expo 2010 chosen for my study.

Without their answers and recommendations, this work would have been meaningless. I would also like to thank all those who have, in various ways, supported me during this work, and whose their names are not written here, that they find here the expression of my deep recognition. I say God bless you all HIRWA Pacifique iv TABLE OF CONTENTS DEDICATION i DECLARATION ii ACKNOWLEDGEMENT iii TABLE OF CONTENTS iv LIST OF ABBREVIATIONS AND ACRONYMS vii LIST OF TABLES ix LIST OF FIGURES x LIST OF APPENDICES xi ABSTRACT xii CHAPTER ONE: INTRODUCTION 1 1. 1. Background to the study 1 1. 2 Statement of the problem 2 . 3 Objectives of the study 3 1. 3. 1 General objective 3 1. 3. 2 Specific objectives 3 1. 4 Research hypotheses 4 1. 5 Significance of the study 4 1. 6 Methodology 4 1. 6. 1 Primary data 4 1. 6. 2 Secondary data 5 1. 6. 3 Data processing 5 1. 6. 4 Data analysis 5 1. 7 Scope of the study 5 1. 8 The Organization of the Study 6 CHAPTER TWO: LITERATURE REVIEW 7 2. 1. Introduction 7 2. 2 Definitions of the concepts 7 2. 2. 1 Entrepreneurship 7 2. 2. 2 Entrepreneur 7 V 2. 2. 3 Historical background of Entrepreneurship 7 2. 3 Women entrepreneurship 8 2. 3. 1 Women entrepreneurship in the global economy 8 . 3. 2 Women entrepreneurship in Africa 9 2. 3. 3 Women entrepreneurship in Rwanda 11 2. 4 Economic development 11 2. 4. 1 Definition 11 2. 4. 2 Women Entrepreneurship and economic development 12 CHAPTER THRE: RESEARCH METHODOLOGY 13 3. 1. Introduction 13 3. 2 Sources of data 13 3. 2. 1 Primary Data 13 3. 2. 2 Secondary Data 14 3. 3 Sampling techniques 14 3. 3. 1 Area of study 14 3. 3. 2 Population 14 3. 3. 3 Sample size determination 14 3. 4 Data processing 15 3. 5 Data analysis 15 3. 6 Limitation to the study 16 CHAPITER FOUR: DATA ANALYSIS AND INTERPRETATION OF RESULTS 17 4. . Introduction 17 4. 2 Socio-economic characteristics of women entrepreneurs in EXPO 2010 17 4. 2. 1. Demographic characteristics of women entrepreneurs in EXPO 2010 18 4. 2. 2 Cross tabulation between business type and age of respondents, marital status, education background 19 4. 2. 3 Reasons why women become entrepreneurs 21 4. 2. 4 Source of finance when they become entrepreneurs 22 4. 3 Analysis of the contribution of women entrepreneurs on economic development of Rwanda 23 vi 4. 3. 2 Contribution of women entrepreneurs to export development 24 4. 3. Contribution of women entrepreneurs to local development 25 ————————————————- 4. 3. 4 Presentation and analysis of Contribution of women entrepreneurs to family development 27 4. 3. 4. 1 Improvements in lifestyle of women entrepreneurs after becoming entrepreneurs 27 4. 3. 4. 2 Impact of the increase in family size on current monthly expenditures of women entrepreneurs 29 ————————————————- 4. 3. 5 Analysis of women entrepreneurs’ economic situation before and after becoming entrepreneur 30 4. 3. 5. 1 Comparative analysis of monthly savings 30 . 3. 5. 2 Comparative analysis of monthly expenditures 32 4. 3. 5. 3 Comparative analysis of working capital at the start and currently in business 34 4. 3. 6 Analysis of the challenges faced by women entrepreneurs 35 4. 3 Results interpretation and hypothesis testing 36 CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS 38 5. 1 Summary 38 5. 2 Conclusion 39 5. 3 Recommendations 39 REFERENCES 41 APPENDICES 43 vii LIST OF ABBREVIATIONS AND ACRONYMS ADB : Africa Development Bank ANOVA : Analysis of Variance FHH : Female Headed Household GDP : Gross Domestic Product

GE : Global Entrepreneurship GEM : Global Entrepreneurship Monitor GNP : Gross National Product MSMs : Micro-Small and Medium sized Enterprises NGOs : Non Government Organizations NISR : National Institute of Statistics of Rwanda OECD : Organization of Economic Cooperation and Development RWF : Rwandan Franc RPSF : Rwanda Private Sector Federation SAMEN : South Africa Women entrepreneurs’ Network SAWE : South Africa Women Entrepreneurs SMEs : Small and Medium Enterprises SPSS : Statistical Package for the Social Sciences UNIDO : United National Industrial Development Organization

USA : United States of America WB : World Bank WBSR : World Bank Study Report LIST OF TABLES Table 4. 1: Demographic characteristics of the respondents 18 Table4. 2: Cross tabulation between sector of activities and the three variables in table 4. 1 19 Table 4. 3: Number of employees by sector 23 Table 4. 4: Family size of women entrepreneurs 29 Table4. 5: Model Summary 29 Table 4. 6: ANOVA Table 29 Table 4. 7: Coefficients 30 Table 4. 8: comparison of monthly mean savings 31 Table4. 9: Test about mean monthly savings 31 Table 4. 10: comparison of mean monthly expenditures 33 Table 4. 1: Test about mean monthly expenditure 33 Table 4. 12: Mean working capital at the start and after 34 Table 4. 13: Test about mean working capital 34 LIST OF FIGURES Figure4. 1: Reasons why women become entrepreneurs 21 Figure4. 2: Source of finance 22 Figure 4. 3: Market for women entrepreneurs 24 Figure 4. 4: activities women contribute more in the development of the society 26 Figure 4. 5: Changes in live standards after becoming entrepreneurs 28 Figure 4. 6 Mean monthly savings before and after becoming entrepreneurs 32 Figure 4. 7: Challenges faced by women entrepreneurs 35 i LIST OF APPENDICES Questionnaire on women entrepreneurs in expo 2010 at Rwanda Private Sector Federation GIKONDO from 26th/August to 8th/September 2010 ————————————————- ABSTRACT Women entrepreneurs in Rwanda have been making a significant impact in all segment of the economy. Women entrepreneurs in Rwanda contributes to the development of Rwanda in various ways, the study’s purpose were to extend the existing few statistical baseline on women entrepreneurs’ contribution to economic development of Rwanda and their challenges.

The research hypothesis state that there is positive correlation between women entrepreneurs’ economic improvements and increase in their family welfare, savings, Export promotion, job creation. The hypothesis also states that the challenges that women entrepreneurs are facing affect their performance. To test this hypothesis primary data were collected on 60 women entrepreneurs in expo 2010, and analyzed. Descriptive and inferential statistics were used to present and analyze the contribution of women entrepreneurs on economic development of Rwanda.

The results from the research analysis has shown that women entrepreneurs contribute a lot to the development of Rwanda 40% of women entrepreneur participate in decision making at local level, they contribute to national savings since their mean monthly savings contribution is 186,300 Rfw, only 36. 7% of women entrepreneurs sell outside of their immediate local markets, women entrepreneurs (51%) contribute a lot in tax payment. The 60 women entrepreneurs included in the study have created 2439 jobs for themselves, their family and others (or an average of 40 per women entrepreneur).

Therefore, the large majority (38. 33%) of the women entrepreneurs had to depend on cooperatives for start-up finance. Research findings also show that 38. 3% of women entrepreneurs faced the problem of lack of market while 21. 67% lack trainings. The recommendations given to the government of Rwanda for the development of women entrepreneurship were to increase women entrepreneurs’ trainings, reduce taxes, enable raw materials for women entrepreneurs and expand the market for women entrepreneurs. CHAPTER ONE: INTRODUCTION 1. 1. Background to the study

Increasing the number of women entrepreneurs involved in starting new businesses is critical for a country’s long-term economic growth (GEM 2000). In addition to their economic and income-generating activities, women assume multi-faceted roles in society, i. e. as breadwinner of a family, unpaid family workers, service providers in the communities and mother/care-taker of the family In spite of their important contributions to socio-economic development; women suffer from various constraints, which inhibit them from fully realizing their potential for development (UNIDO 2003).

Africa has enormous unexploited potential, especially the potential of women. Specifically, it pointed out that women comprise one of Africa’s hidden growth reserves, providing most of the region’s labor, but their productivity is hampered by widespread inequality in education as well as unequal access to land and productive inputs (World Bank report 2000). African women entrepreneurs follow a path that is in most cases different from entrepreneurial activities in the developed countries of the West in an attempt to find an African answer to the applicability of models and theories developed in other parts of the world.

In Africa, Many women tend to be in small sector microenterprises, mainly in the informal sector. It is inappropriate and undesirable for Africa to import entrepreneurial techniques wholesale from developed countries (SAMEN 2005). In east Africa Women-owned businesses in Kenya are making a significant contribution to the Kenyan economy. Their businesses account for about one-half (48 percent) of all micro-, small-, and medium-sized enterprises (MSMEs), which contribute round 20 percent to Kenya’s GDP. Of the 462,000 jobs created annually since 2000 in Kenya, 445,000 jobs have come from the informal sector, where 85 percent of women’s businesses are found (IFC 2008) while in Tanzania Women entrepreneurs still remain disadvantaged compared to their male counterparts. At 80. 7 percent, the labor force participation rate for women in Tanzania is slightly higher than for men, which is 79. 6 percent.

Yet, more than twice as many men than women are in paid jobs, with only 4 percent of women, compared to 10 percent of men in formal employment. Women tend to predominate in agriculture and trade while men predominate in manufacturing, construction, transport and finance (IFC 2008). However Given a bigger population projection of 10,117,029(NISR; 2008) the government of Rwanda play a key role for entrepreneurship development for women because women can also perform better in entrepreneurship activities.

Rwanda is world leader in promoting gender equality, In just over a decade reforms in the political and legislative arena have placed women’s empowerment at the forefront of government’s priorities and granted women in Rwanda sweeping rights, In that aftermath of the genocide, they were seen as key to the country’s recovery and development (IFC 2008), Rwanda is one of the Sub-Sahara African countries that has made greater strides in Promoting gender equality and empowerment of women as evidenced in its achievements: (i)The reduction of poverty among Female Headed Households (FHH) from 66. percent to 60. 2 Percent (between 2001 and 2006) and expected to further decline to 48 percent by 2012; (ii)Gender parity in primary education; (iii) gender equality in participation in policy making (56 Percent share of women in parliament); and (v) the institutional structure for gender Mainstreaming established (Africa Development Bank report 2008). As a result of these reforms, 41 per cent of Rwandan businesses are now owned by women as compared for instance with 18 per cent in Congo.

They also comprise 58% of enterprises in informal sector which accounts for 30% of GDP and they make a significance contribution to the country’s economy through their business activities which are well distributed across sectors (World Bank 2008). ————————————————- 1. 2 Statement of the problem In the global economy women are an emerging force that policy makers cannot afford to ignore. What are the implications of this for businesswomen throughout the world? How can women business associations best channel this potential and maximize it to improve the status of women in the world economy? (Susanne E.

Jalbert 2000). Increasing entrepreneurship among women and providing needed capital to women entrepreneurs are decisive components in Africa’s long-term struggle for prosperity. These are deserving of the attention and widespread support of world leaders, the development institutions whose actions they influence, and the private sector (World Bank report 2000). According to the Rwanda has the second-highest ratio of female entrepreneurs in Africa, behind Ghana with 44 per cent World Bank (2008) however according to NISR 2005/2006 integrated household living condition survey, 60,2% of household under poverty line are female headed,86. % women (71. 2% men) are engaged as labourers and other unskilled workers, only 14. 8% of women earn cash money and it is generally agreed that 80% of agricultural share of GDP is contributed by women. Topic of women in entrepreneurship has been largely neglected both in society in general and in the social sciences Brush (2002) In-depth information on the share of women as owners of micro, small and medium enterprises, the area of concentration, challenges, and opportunities and strengths and weaknesses of their economic associations and networking is limited.

Given the achievement and increase role of Rwanda women entrepreneurs in the development of Rwanda there are still problems and achievements that need to be investigated and this study attempts to identify achievement and problems within women entrepreneurs in Rwanda, despite all these constraints, women in Rwanda are key players in economic and social development. ————————————————- 1. 3 Objectives of the study The objectives of the study were categorized as general and specific objectives as shown below: 1. 3. 1 General objective

This study aiming at gathering all statistical baseline data on the contribution of women entrepreneurs on the economic development of Rwanda the case of expo 2010 held at Gikondo. 1. 3. 2 Specific objectives · To identify challenges faced by women entrepreneurs and how they are addressed. · The contribution of women entrepreneurs to the development of their families · To investigate the contribution of women entrepreneurs to economic development of Rwanda through taxes, job creation, export, savings, export and economic development of their society. To propose and give recommendations for the promotion of women entrepreneurship. ————————————————- 1. 4 Research hypotheses · There are positive correlation between the increase in women entrepreneurs’ economic improvement and the increase in family welfare, increase in job creation, savings, and economic development of the society as a whole. · Poor or good performance of women entrepreneurs depend on challenges faced by women entrepreneurs. ————————————————- 1. 5 Significance of the study

The lack of gender statistics in various areas makes evidence-based planning and Resource allocation difficulty (NISR; 2010). According to OECD (2004), while without a doubt the economic impact of women is substantial, we still lack a reliable picture, describing in detail that specific impact. The study will give detail information for people interested in improving their knowledge about women’s performance in Rwandan economy on characteristics of women entrepreneurs in Rwanda (age, marital status, income, Number of children, Education,.. that will enlighten the Rwandan society more about the role of women in socio-economic development and it will alert planners on the current situation of women entrepreneurs in Rwanda by providing update information and analysis from the state of women entrepreneurship in expo 2010. After investigating the problems of women entrepreneurs in Expo 2010 organized by Rwanda private sector federation, the study will give recommendations and solutions to some problems hindering the development of women entrepreneurship. ———————————————— 1. 6 Methodology The study intends to assess the impact of women entrepreneurs on the development of Rwanda through the study of 60 women entrepreneurs in Expo 2010. The study will use both primary and secondary sources of data. 1. 6. 1 Primary data Data observed or collected directly from first-hand experience. According to Gilbert A. Churchill (1992), primary data refers to the information collected specifically for the purpose of investigation at hand. Audrey et al (1989) adds that «primary sources come straight from the people or workers you can collect. » The primary data method will be used where sample women entrepreneurs will be asked using Questionnaire in other to assess their contribution to economic development of Rwanda. A questionnaire which is According to business dictionary (2009) a list of a research or survey questions asked to respondents, and designed to extract specific information, was designed and it helped the researcher to get information on a sample of 60 women entrepreneurs in expo 2010 at Gikondo. . 6. 2 Secondary data The research will use secondary data methods to get additions information not provided by the primary data such as literatures that will help the comparability with other countries. 1. 6. 3 Data processing Data will be entered in statistical software like Excel, SPSS which enabled to correct, to code, to edit, and to make statistical analysis regarding the findings in questionnaire. 1. 6. 4 Data analysis This form of analysis is just one of the many steps that must be completed when conducting a research experiment.

Data from various sources is gathered, reviewed, and then analyzed to form some sort of finding or conclusion. Data from different questionnaire after being entered in an SPSS 16 database will be analyzed using descriptive statistics and inferential statistics to test the relationship between variables ————————————————- 1. 7 Scope of the study The study was carried in Kigali city at Gikondo in Expo 2010 which was organized by the Rwanda Private sector Federation (RPSF) from 26th/08 to 8th/9/2010.

Rwanda International Trade Fair is one of Rwanda’s major annual events organized by Private Sector Federation (PSF), in conjunction with the Ministry of Trade and Industry. Such events started far back in 1978, by then organized by the ministry of commerce itself and opened to international participation mainly from neighbouring countries in 1998. The researcher chose expo 2010 as case study because of many women entrepreneurs in the country were represented.

The Private Sector Federation in conjunction with the Ministry of Trade and Industry, for the 13th time organised the Rwanda International Trade Fair (RITF2010). This time, it was the ever biggest, colourful, high standards of stands construction, and big number of exhibitors with lots of exciting things both qualitatively and quantitatively which attracted so many visitors. The study aimed at discovering all information related to the impact of women entrepreneurs on the economic development of Rwanda by using questionnaire on a sample of 60 women entrepreneurs in expo 2010.

The research findings will be generalized in the country situation so that to give suggestion and recommendation relating to the development women entrepreneurs development. ————————————————- 1. 8 The Organization of the Study The study is composed of five main chapters Chapter one is the General introduction of the study, with a brief description of the background to the study followed by the statement of the problem, Research objectives, Research hypothesis, significance of the study, scope of the study and finally the organisation of the research.

Chapter two is the literature review it provides the background and context for the research problem. It should establish the need for the research and indicate that the writer is knowledgeable about the area. Chapter three is the methodology adopted in the study. It contains area and scope of the study, study population, sample, sample size and selection of respondents, sources of data, data collection and entry methods. Chapter four analyses and interpretation of the findings this chapter will deal with research findings and interpretations of results.

Chapter five conclusion and recommendations. CHAPTER TWO: LITERATURE REVIEW 2. 1. Introduction Chapter is concerned with literatures related to the research. It gives overall researches that have been done on the impact of women entrepreneurs on the economic development of Rwanda and enable the researcher to analyze and expand knowledge on the topic. This will help the researcher to draw conclusions and analyze based on other researches done on the topic. 2. 2 Definitions of the concepts 2. 2. 1 Entrepreneurship

Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, and social risks, and receiving the resulting rewards of monetary and personal satisfaction and independence (Hisrich 2005). Entrepreneurship is more than the mere creation of a business. Seeking opportunity, taking risks, and having the tenacity to push ideas into reality are special characteristics that permeate individuals. Entrepreneurship is a integrated concept that has revolutionized the way business is conducted (Kuratko 2004). . 2. 2 Entrepreneur In its broadest sense an entrepreneur may be described as a person who has the ability to explore the environment, identify opportunities for improvement, mobilize resources and implement actions to maximize those opportunities. He is the catalyst of change able to carry out new combinations, instrumental in discovering new opportunities (volsee 1994). However for Schumpeter (1934) the entrepreneur is not a risk bearer, unless he or she owned the resources as well, but rather was the driving or key agent of change. . 2. 3 Historical background of Entrepreneurship According to Bygrave and Hofer (1991), entrepreneurship researchers are hampered by the lack of a common conceptual framework for the concept entrepreneurship. The lack of consensus on the meaning of this term makes it imperative that researchers provide a clear statement of their meaning when they use it. Bygrave and Hofer offer such a meaning by considering the process of entrepreneurship rather than defining the term “entrepreneur. In their work, the entrepreneurial process “involves all the functions, activities, and action associated with the perceiving of opportunities and the creation of organizations to pursue them” (Bygrave & Hofer 1991). Bygrave and Hofer’s hesitancy to offer a single definition of entrepreneurship is perhaps caused by an embarrassment of riches. The concept of entrepreneurship has such a complex tradition within economic theory that formulating a succinct definition is extremely difficult, and any attempt to do so will inevitably exclude a valuable element of this history.

An outline of the development of the term entrepreneurship will illustrate this point. Like Bygrave and Hofer, Long (1983) notes that it is important to come to a common definition of entrepreneurship. To this end, long provides an historical account of the development and uses of the term. The root of the word can be traced as far back as 800 years, to the French verb entreprendre, or “to do something. ” Three hundred years later, a noun form of the term appeared, and soon thereafter both verb and noun entered the English language.

In 1730, Richard Cantillon used entrepreneur to mean a self-employed person with a tolerance for the risk he believed was inherent in providing for one’s own economic well being. Toward the beginning of the Industrial Revolution (1830), Jean-Baptiste Say further expanded the definition of a successful entrepreneur to include the possession of managerial skills. Today Entrepreneurship is the dynamic process of creating incremental wealth. The wealth is created by individuals who assume the major risks in terms of equity, time and/or career commitment or provide value for some product or service.

The product or service may or may not be new or unique, but value must somehow be infused by the entrepreneur by receiving and locating the necessary skills and resources (Hisrich 2005). 2. 3 Women entrepreneurship 2. 3. 1 Women entrepreneurship in the global economy “Entrepreneurship offers tremendous opportunities for women across the world by opening doors to greater self-sufficiency, self-esteem, education, and growth – not only for the women themselves, but also for their families and their employees.

And women are changing the face of business ownership internationally; between one-quarter and one-third of the world’s businesses are owned by women. As their numbers grow and as their businesses prosper, they will change the way the world does business. “(Julie R. Weeks 2001). Worldwide, many women are entrepreneurs. Entrepreneurship emerges from an individual’s creative spirit into long-term business ownership, job creation, and economic security. Women bring commitment and integrity because they care about economic empowerment, entrepreneurial development and innovation.

Female entrepreneurs seek the professional and personal support that is found in business associations. Economic globalization has encouraged the expansion of female business ownership. «.. . The growing economic power and influence of women-owned businesses are changing the shape of the global economy,» Susanne E, (Jalbert 2000). A study (Cooper, as quoted in Das, 2000) of women entrepreneurs in the western world «proposed that three factors influence entrepreneurship – antecedent influences (i. e. background factors such as family influences and genetic factors that affect motivation, skills and knowledge), the «incubator organization» (i. e. , the nature of the organization where the entrepreneur was employed just prior to starting a business; the skills learned there) and environmental factors (e. g. , economic conditions, access to venture capital and support services, role models) and the study indicates the challenges faced by women entrepreneurship such as access to finance, Access to markets, Access to training, Access to networks, Access to policy markers, Statistical invisibility».

Female entrepreneurs have demonstrated the ability to build and maintain long-term relationships and networks, to communicate effectively, to organize efficiently, to be fiscally conservative, to be aware of the needs of their environment, and to promote sensitivity to cultural differences. The global impact of women entrepreneurs is just beginning to gain intensity. Worldwide, the number of female business owners continues to increase steadily, women in advanced market economies own more than 25% of all businesses1 and women-owned businesses in Africa, Asia, Eastern Europe, and Latin America are growing rapidly (OECD 1998). . 3. 2 Women entrepreneurship in Africa The inability of African’s economy to turn the tide of underdevelopment -low food production levels, balance of payment difficulties, inflation, rapid population growth, low or negative GDP growth rates, high cost of borrowing declines in social services and standards, etc, have brought to the fore discussions on the role of women entrepreneurs and the development of the informal productive sector in Africa (LUCIA Quachey 2005).

Lately, attention has begun to fall on the use and benefits of alternative approaches’ to development. It is this new policy setting that brings about the need to explore the potential contribution of women entrepreneurs in the informal and small scale industrial sector to Africa’s economic recovery and development. Entrepreneurship in all its diversity in Africa provides a dynamic and potentially efficient means of meeting many of the emerging challenges of the development and debt crisis in Africa.

However Entrepreneurship in the African context remains concerned with the graduation of informal sector ventures with a realistic business prospectus to better established and endowed enterprise, as well as promotion of economic diversification, export to niche market, future growth and higher living standards . The World Bank Enterprise surveys (2002-2006) confirm that women entrepreneurs are a minority compared with their male counterparts. However, there is large variation across countries.

Including only manufacturing enterprises with at least 10 employees, women own fewer than 10 percent of firms in Kenya, Morocco, Nigeria, Senegal, and Tanzania, but up to 40 percent or more in Botswana, Cameroon, Cape Verde, and Mozambique. Increasing entrepreneurship among women and providing needed capital to women entrepreneurs is decisive components in Africa’s long-term struggle for prosperity. Pro-active measures to build the assets of women and to connect women to markets are essential if Africa is to succeed in meeting the challenges of shared growth.

A distinguishing characteristic of African economies is that gender differences lead to men and women playing substantially different economic roles (African Development Bank 1994-2000). Although the research on African women entrepreneurs is limited, anecdotal evidence supports the belief that the creation of SMEs and the income generated by business operations and wages paid to employees help to alleviate poverty and empower women.

Despite the growing recognition of the importance of African women’s contributions to economic growth and their dominance of certain sectors, particularly agriculture and textiles, women generally remain marginalized, shut out of the formal economy, or constrained due to lack of access to capital (Africa Development Bank1994-2000). 2. 3. 3 Women entrepreneurship in Rwanda Rwanda is a world leader in promoting gender equality. In just over a decade reforms in the political and legislative arena have placed women’s empowerment at the forefront of government’s priorities and granted women in Rwanda sweeping rights.

In the aftermath of the genocide, they were seen as key to the country’s recovery and development (IFC 2008). Women’s labor force participation is significant, with participation rates at a high 79. 5 percent, and over 50 percent of the labor force. 7 Rwandan women head 42 percent of all enterprises. They also comprise 58 percent of enterprises in the informal sector, which accounts for 30 percent of GDP, and they make a significant contribution to the country’s economy through their business activities, which are well distributed across sectors (IFC 2008).

According a to the same report, A 2002 study of women entrepreneurs found that the majority are engaged in the retail sector (82 per cent), with the rest focusing on services (16 to 17 percent) and manufacturing (1 to 2 percent). Many of their businesses are successful and large, and as some of the case studies in this report illustrate, Rwandan women are increasingly branching out to nontraditional sectors such as Information and Communications Technology (ICTs). 2. 4 Economic development 2. 4. 1 Definition

Economic development refers to Qualitative measure of progress in an economy It refers to development and adoption of new technologies, transition from agriculture based to industry based economy, and general improvement in living standards (Igor Sharshakov 1998). For fidelis ezeala-harrison (1996), economic development is a process through which overtime sustained increase occur in nation’s per capita real income(output) accompanied by significant structural changes that allow for elevated income distribution and large increase in individual economic well-being .

And the rise in income must be evident through such changes in basic living conditions as improved nutrition and high nutritional and clothing standards, improved (modern) housing, improved health and health care, low infant mortality rate, higher literacy rate, and a general environmental face-lift from a predominantly rural to an increased metropolitan flavor. 2. 4. 2 Women Entrepreneurship and economic development Overholt (1986) pointed out that the role of women in development has become ncreasingly an important issue in recent years and this has been due to the shift of emphasis away from equity concern to the recognition role of the productive roles women play and the contribution they can make to economic growth and development. «… Study after study has shown that there is no effective development strategy in which women do not play a central role. When women are fully involved, the benefits can be seen immediately: families are healthier and better fed; their income, savings and reinvestment go up. And what is true of families is also true of communities and, in the long run, of whole countries… (Kofi Annan 2003). «Women are the Third World’s powerhouse. They produce a staggering 60 percent of all food, run 70 percent of small-scale businesses and make up a third of the official labor force – in addition to caring for families and homes. Yet, their status rarely reflects this enormous and vital contribution. By any measure – income, education, health, land ownership, legal rights or political power – women get a raw deal. The poorest of the poor are usually women because discrimination cuts off their escape routes from poverty – education, health services, equal pay employment, access to land and finance.

It is becoming increasingly clear, however, that there will only be sustainable development in the Third World when women play an equal part in decision making. No developing country can afford to ignore women’s existing and potential economic contribution, or their pivotal role in determining the health and welfare of a nation’s children. All the evidence points to one conclusion: economic growth and improvement in the quality of life for everyone is faster in areas where women’s status is higher. ” (Dr. Suryani Motik 2000).

Augmenting rates of enterprise births in local areas and the facilitation of the development of new women-owned firms can have positive impacts on job creations, productivity growth, tax revenues, the availability of goods and services and the provision of positive role models. Entrepreneurship among women is important for local development and for economic development more broadly (OECD 2003). CHAPTER THREE: RESEARCH METHODOLOGY 3. 1. Introduction This chapter consists of the methodology used to collect, process, analyze and interpret data for the study on the impact of women entrepreneurs on economic development of Rwanda.

Research methodology is a way to systematically solve the research problems. It may be understood as a science of studying how research is done systematically. In it we are studying the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them (Kumar 2008). According to the same researcher, Research methods may be understood as all methods, techniques that are used for conducting of research. Research methods or techniques thus refer to the methods the researcher use in performing research operations. 3. 2 Sources of data 3. 2. 1 Primary Data

Audrey (1989) states that primary sources come straight from the people you are researching from and are therefore the most direct kinds of information you can collect. The researcher used primary data in which interview techniques was used to get some information that have not been studied on, the researcher designed a questionnaire which enabled to assess the contribution of women entrepreneurs on The economic development of Rwanda Primary data was collected in expo 2010. Grinnell and Williams (1990) defined a questionnaire as set of written questions which calls for responses on the part of the respondents and be either self-administered.

A set of open-ended and close-ended questions were used in the research to which consisted of 19 questions divided into two part, part one consisted of demographic information of the women entrepreneur Age, Marital status, Education, Business type, Number of children and dependents, Part two consisted of economic information of women entrepreneurs their savings, Family expenses, sources of finance, reasons of being entrepreneur, Contribution to development of Rwanda, number of employee, their market and challenges.

Face to face interview was used using the questionnaire where the researcher asked women entrepreneurs in Expo face to face questions from the questionnaire. 3. 2. 2 Secondary Data The researcher used secondary data that is generally taken from magazine, newspaper, text books, official documents, published reports, internet, statistics, bulletins and other documents they will enable the researcher to get information that are not covered in Primary data methods such as literatures on women entrepreneurs that was used in literature review. . 3 Sampling techniques 3. 3. 1 Area of study In the study, the area of study is the area which the research will be carried out. The research was carried out in Expo 2010 held at Rwanda Private Sector Federation at Gikondo. 3. 3. 2 Population Grinnell and willaims (1990:118), defines population as a totality of persons or objects which the study is targeting.

The population of study was 150 women entrepreneurs where the sample size of 60 women entrepreneurs were determined using the formula of slovin (1960) and the study targeted women entrepreneurs who live in Rwanda because the study was to find the contribution of women entrepreneurs in the development of Rwanda foreigner women entrepreneurs were not concerned by the study. 3. 3. 3 Sample size determination Sampling is the process which involves taking a part of the population, making observation on these representative groups and then generalizing the findings to the bigger population (ary 1991).

To determine the ideal sample size for a population, Slovin’s formula is used which is n = N / (1 + (N*e2)) Where: n = number of samples N = total population e = margin of error N= 150 women entrepreneurs in expo 2010 E=margin error of 10% or 0. 1. According to Cochran (1977), 90% confidence interval is more reliable. Sample size =150/ (1+150*0. 12) = 60 women entrepreneurs 3. 4 Data processing Data from 60 questionnaires were entered in an SPSS database that enabled the researcher to summarize correct errors, analyze or otherwise convert data into usable information.

The SPSS data entry form contains all collected on variables like monthly savings, monthly expenditures, and working capital at the start both at the start of the business and currently in the business. 3. 5 Data analysis Data analysis is defined in business dictionary (2009) as the process of evaluating data using analytical and logical reasoning to examine each component of the data provided. After data processing data from 60 women entrepreneurs were analyzed using SPSS 16, and excel 2007. Descriptive statistics were used where bar chart, cross tabulation table and frequencies tables were used to present the findings.

In descriptive statistics also the researcher calculated the mean, standard deviation, minimum and maximum, sum for some numerical variables. Inferential statistics has been used especially to test the relationship between some dependent variables and independents variables using linear regression to test the relationship between the increase in family size and monthly expenses of women after becoming entrepreneurs. Paired- sample T test were used to test the differences between mean monthly savings, expenditure, and working capital both at the start and currently in the business. 3. Limitation to the study During the research process, the researcher encountered some limitations that delayed the work. Among the limitations encountered include the following: Access to statistics on women entrepreneurs, during this research, the researcher had to gather scarce statistics from different places the access to such statistics were a problem so the researcher decided to design a questionnaire since most of the statistical data on women entrepreneurs needed were not available. Another limitation was to reach all the population of women entrepreneurs in expo it were costly and time consuming.

The last limitation encountered it was to ask women entrepreneurs while dealing with the clients. Women entrepreneurs some did not have time to answer the researcher because they were busy dealing with the clients and sometimes the customers interrupted the researcher so the researcher had to wait until the customers are gone. CHAPITER FOUR: DATA ANALYSIS AND INTERPRETATION OF RESULTS 4. 1. Introduction The main concern of this chapter is to analyze data collected in EXPO 2010 on women entrepreneurs, then to interpret the results and test the hypotheses so to generate reliable knowledge on women entrepreneurship in Rwanda.

The analysis intends to test whether economic situation of women entrepreneurs has improved since they started their own businesses. To achieve this goal, the comparative analysis (using paired-samples T test) will be performed on savings, expenditures and working capital patterns. Ultimately, this chapter provides an analysis on the contribution of women entrepreneurs to economic development of Rwanda through reduction of unemployment, fostering exports, and participating to government budget through tax payment. 4. Socio-economic characteristics of women entrepreneurs in EXPO 2010 The women entrepreneurs concerned with in this study belong to different socio-economic and demographic categories, and the sources of the funds they use in their businesses differ. 4. 2. 1. Demographic characteristics of women entrepreneurs in EXPO 2010 Table 4. 1: Demographic characteristics of the respondents Variables| Frequency| Percent| Age less than 20| 1| 1. 7| 20-39| 28| 46. 7| 40-49| 20| 33. 3| 50-59| 8| 13. 3| 60 and above| 3| 5. 0| Total| 60| 100. 0|

Education primary education| | | secondary education| 25| 41. 7| university education| 28| 46. 7| | 7| 11. 7| Total| 60| 100. 0| Marital single| 12| 20. 0| status married| 36| 60. 0| Divorced| 1| 1. 7| widowed| 11| 18. 3| Total| 60| 100. 0| | | | Source: Primary data The Table 4. 1 shows that 1. 67% of the respondents are less than 20 years old, 5% are between 20- 39 years old, 13. 33% are between 40-49 years old, 33. 33% are between 50-59 years old and 46. 67% are 60 and over. The table also depicts a high concentration of women entrepreneurs in the age bracket of 0-39. Table 4. 1 shows that the interviewed women entrepreneurs in Expo having completed primary school represent 41. 7% of the sample. Secondary education has been completed by 46. 7%; and tertiary education was completed by only 11. 7% of the sample. Table 4. 1 also indicates that 1. 7% of women entrepreneurs are divorced, 18. 33% are widowed, 20% are single, and 60% are married. It is evident that a greatest number of women entrepreneurs are married and the smallest number of them is divorced. 4. 2. Cross tabulation between business type and age of respondents, marital status, education background The women entrepreneurs are engaged in miscellaneous sectors of activities depending on their ages, marital status and educational background as highlighted by table 4. 2. Table4. 2: Cross tabulation between sector of activities and the three variables in table 4. 1 Variables| Sector of activities| Total| | Manufacturing| Tradeand services| Art and craft sector| | Age less than 20| 0| 1| 0| 1| 20-39| 3| 12| 13| 28| 40-49| 3| 2| 15| 20| 50-59| 2| 2| 4| 8| 0 and above| 1| 1| 1| 3| Total| 9| 18| 33| 60| Education primaryeducation secondary education university education| 25 2| 5103| 18 132| 25 28 7| Total| 9| 18| 33| 60| Marital single| 2| 8| 2| 12| status married| 3| 9| 24| 36| Divorced| 1| 0| 0| 1| widowed| 3| 1| 7| 11| Total| 9| 18| 33| 60| | | | | | Source: Primary data The Table 4. 2 indicates the relationship between the type of business and three variables which are age bracket, marital status and education background of women entrepreneurs. For the variable age bracket of women entrepreneurs and business types, The table 4. shows that 28 of women entrepreneurs (3 in manufacturing, 12 in trade and services, 13 in art and craft) are concentrated in age bracket of 20-39; It shows that 20 of women entrepreneurs (3 in manufacturing, 2 in trade and services 15 in art and craft) are concentrated in age bracket of 40- 49;The age bracket of 8 women entrepreneurs (2 in manufacturing, 2 in trade and services, 4 in art and craft) is between 50-59 years; the table 4. 2 shows that 3 women entrepreneurs (1 in manufacturing,1 in trade and services, 1 in art and craft) their age bracket is 60years and above, the result from table 4. also shows that 1 women entrepreneurs (trade and services) s in age bracket of less than 20 years. The table4. 2 also shows the relationship between business type and educational background, It shows that the total of 9 women entrepreneurs are in manufacturing sector 2 of them has studied primary school, 5 of them has studied secondary school and 2 of them studied at university level. The table shows that the total of 18 women entrepreneurs in trade and services 5 of them has studied primary school, 10 of them studied secondary school and 3 has studied university.

The table above also depicts that 33 women entrepreneurs in art and craft sector 18 of them has studied primary school, 13 of them has studied secondary school and 2 of them has studied university. Lastly table 4. 2 shows the relationship between business type and marital status, it shows that a total of 9 women entrepreneurs in manufacturing sector 2 of them are single,3 of them are married, 1 of them is divorced and 3 of them are widowed. The total of 18 women entrepreneurs in trade and services 8 of them are single, 9 of them are married and 1 of them is widowed.

In the total of 33 women entrepreneurs in art and craft 2 of them are single, 24 of them are married and 7 of them are widowed. 4. 2. 3 Reasons why women become entrepreneurs There are many reasons that make women make decision to become entrepreneurs. The figure 4. 4 depicts the main reasons. Figure4. 1: Reasons why women become entrepreneurs Source: Primary data The figure 4. 1 above indicates that 46. 67% of the respondents stated that they needed to be independent and self-employee as the government encourages eople to become entrepreneurs; 21. 67% stated that they had too little income and needed more income to improve their life standards; 16. 67% stated that they were unemployed or lost their jobs; 13. 33% stated that they have no education background enough to search for jobs so they decided to become self employed; 1. 67% stated that she became entrepreneur after being handicap. 4. 2. 4 Source of finance when they become entrepreneurs Figure4. 2: Source of finance Source: Primary data The figure 4. above show that when asked about the sources of finance they used at the start of being entrepreneur, 12 out of 60 (20%) stated that they used they own savings or their own funds; 9 out of 60(15%) stated that they used commercial banks loans, 23 out of 60(38. 3) stated that they got money from cooperatives and they work in cooperative, 12 out of 60(20%) stated that they got money from friends and relatives, 4 out of 60(6. 7%) stated that they got money from NGOs or other sponsors. 23 4. 3 Analysis of the contribution of women entrepreneurs on economic development of Rwanda

After the presentation of women entrepreneurs’ socio-economic characteristics of women entrepreneurs this part show how the analysis of data collected in Expo were analyzed according to research questions. It shows how the economic situation of women entrepreneurs has increased as a result of being entrepreneurs by comparing their monthly savings, expenditures, and working capital both before and after being entrepreneurs. It analyzes how women entrepreneurs contribute to family development, Unemployment reduction, Export, local development and the challenges they face. 4. 3. Contribution of women entrepreneurs to community employment Women entrepreneurs contribute to job creation in Rwanda by creating and giving jobs for their neighboring communities as indicated in the table below. Table 4. 3: Number of employees by sector Business type| Number of employee| Percentages| Art and handicraft| 2130| 87,3| Manufacturing| 213| 8,7| Trade and services| 96| 4,0| Grand total| 2439| 100| | | | Source: Primary data employ 87. 3% of total employees because it composed with a combination of many activities which require sometimes working in cooperatives; 8. % of total employees are in manufacturing sector which can extend depending on the raw material they use; 3. 9% are employed in trade which show that trade does not employ many people. The results show that many women entrepreneurs are in art and handcraft sector and they employ many people. 4. 3. 2 Contribution of women entrepreneurs to export development Women entrepreneurs provide goods and services to the market which are either for final consumption or intermediate consumption which are used in the market system.

Some may export their product which boost the capital from abroad and had impact on the GDP of Rwanda and some import goods and services as for resale or raw material for their factory which also has an impact on the balance of payment. Figure 4. 3: Market for women entrepreneurs The figure 4. 3 shows that It is evident that 63. 33% of the women entrepreneurs produce their product for local market which mean sector market, District market, Province level, and at national market, 16. 7% export their market at regional level in east Africa markets, and some African countries,20% export their products in Europe, USA, Japan and others countries Since women entrepreneurs in Expo who said they export their product is 36. 7% they are many compare to other who said they import the raw material from abroad they present 10% of the sample. Most of women entrepreneurs exporters are in art and handicraft sector since most of them has mentioned the country of export. Women’s contributions to Rwanda’s exports are garnering international attention and increasing women’s incomes 4. 3. Contribution of women entrepreneurs to local development Women entrepreneurs contribute to the development of the society through tax payment, they give contributions in for construction local schools, hospitals, and they give advises of all nature for the development of their community as indicated in the bar chart. Figure 4. 4: activities women contribute more in the development of the society Source: Primary data The Figure 4. 4 above shows that women entrepreneurs contribute a lot to the development of their society since they responded according to the activities they think they contribute more to the development of Rwanda. 51. % stated that they pay many taxes which are used by the government in various activities that the government of Rwanda is engaged in, essential government operations such as infrastructure projects, military and educational systems, paying salaries, public investments, and financing various projects; while 40% stated that they participate in decision making at local level which mean that they help orphans, they give vocation trainings at local level for other women to become entrepreneurs, vacancy jobs to students, they participate in taking decisions regarding the development of their districts, sector, cells, some stated that they help homeless, some stated that they pay for poor people health mutual funds, some said they give seeds to poor people for agriculture development, some pay school fees for the youth;8. % others stated that they contribute to environmental protection, they give extra contribution for local security, they give contribution in constructing a local school. 4. 3. 4 Presentation and analysis of Contribution of women entrepreneurs to family development As part of the development, development starts at home and expands to other after raising the wellbeing of the family. Women entrepreneurs contribute to the development of their families since they provide nutrition, school fees, good health, and sometimes they had a big family after the table indicating how their life style has raised as a result of being entrepreneurs we will analyze how an increase in the family size (number of dependent+ Number of children) may affect the increase in current monthly expenses. 4. 3. 4. Improvements in lifestyle of women entrepreneurs after becoming entrepreneurs Women entrepreneurs indicated that after becoming entrepreneurs their life standards has changed some stated that they bought a car or motorbike other stated that they constructed a house etc which show the increase in their quality of life. Figure 4. 5: Changes in live standards after becoming entrepreneurs Source: Primary data The Figure 4. 5 above shows how being entrepreneurs has helped women entrepreneurs improve their life standards. Results show that entrepreneurship enabled 28. 33% of the sampled women to construct a house, 8. 33% bought a car or a motorbike, 36. 67% managed to pay school fees for their children or dependents in primary, secondary school and for some at university level, it help 16. 67% of them to pay their family health mutual funds,1. 6% is at the level in which she has paid money for her family for recreation and leisure in parks,8. 3% consist of other specific contribution to the family not quoted like, feeding the family with quality food, it helped me buy animal for husbandry, it helped me become a land owner, It helped access to clean water. 4. 3. 4. 2 Impact of the increase in family size on current monthly expenditures of women entrepreneurs Women entrepreneurs has sometimes a big family in which they had to contribute much for their well being. Table 4. 4: Family size of women entrepreneurs | | | | | | Std. | | N| Minimum| Maximum| Sum| Mean| Deviation| Children and| | | | | | | Dependents| 60| 1| 16. 00| 390. 00| 6. 5000| 3. 12724| Valid N (listwise)| 60| | | | | | | | | | | | | The table 4. 4 shows that the mean family size of women entrepreneurs is composed by 6. people; the maximum family size is composed of 16 people compared to the minimum family size which is composed of 1 people. The total family size of 60 women entrepreneurs is 390. The tables below analyze how the increase in family affects monthly expenditures of women entrepreneurs after becoming entrepreneurs. Table4. 5: Model Summary Model| R| R Square| Adjusted RSquare| Std. Error of the Estimate| 1| . 254a| . 065| . 048| 81324. 18468| | | | | | a. Predictors: (Constant), Children and Dependents Table 4. 6: ANOVA Table Model| Sum ofSquares| df| Mean Square| F| Sig. | 1 RegressionResidualTotal| 2. 648E10 3. 836E11 4. 101E11| 15859| 2. 648E10 6. 614E9| 4. 003| . 050a| | | | | | | a.

Predictors: (Constant), ChildrenandDependents b. Dependent Variable: Currently in the business? Table 4. 7: Coefficients | Unstandardized Coefficients| Standardized Coefficients| | | Model| B| Std. Error| Beta| t| Sig. | 1 (Constant)| 64120. 104| 24382. 374| | 2. 630| . 011| ChildrenandDependent s| 6773. 830| 3385. 570| . 254| 2. 001| . 050| | | | | | | a. Dependent Variable: Currently in the business? Table 4. 8 indicates the model summary it shows that R square statistic indicates that 4. 8 % of total variation of family size is explained monthly expenses. It is evident that the total variation is very small since it is 4. 8% not more than 50%. Table 4. which is the ANOVA table indicates that the model is significant at 95% confidence interval since the p-value is 0. 05=0. 05. Table 4. 10 indicates the relationship between the increase in family size and current monthly expenses using a model. The result shows Y=64120. 104+6773. 830×1(family size) As explained by the model, increase in family size by 1 person influences monthly expenditure by 6,774 because the increase in family size is followed by increase in education fees, nutrition, and other expenses related to a large family. The regression coefficient is statistically significant since p-value is 0. 05=0. 05 alpha value and the result is extraordinary since it is not less or more than 0. 05. 4. 3. Analysis of women entrepreneurs’ economic situation before and after becoming entrepreneur This part is concerned with the analysis of women entrepreneurs’ situation before and after becoming entrepreneurs, it gives an overview on the improvements made by women entrepreneurs as a result of being entrepreneurs. In this part the researcher uses paired-sample T-test to test differences between means monthly savings, monthly expenses and mean working capital both at the start and currently in the business. 4. 3. 5. 1 Comparative analysis of monthly savings This part highlights the comparison between monthly savings of women entrepreneurs before and after becoming entrepreneurs using paired sample T-Test. Table 4. 8: comparison of monthly mean savings

Paired Samples Statistics | Mean| N| Std. Deviation| Std. Error Mean| Pair 1 Monthly savings beforebecoming entrepreneur| 35800. 00| 60| 56760. 215| 7327. 712| Monthly savings after becoming entrepreneur| 186300. 00| 60| 197388. 570| 25482. 755| | | | | | The table 4. 11above show that the mean monthly savings of women entrepreneurs before becoming entrepreneurs was 35,800 Rfw and after becoming entrepreneurs it shifted and become 186,300 Rfr which represents an increase of 420% Table4. 9: Test about mean monthly savings Paired Samples Test | Paired Differences| t| df| Sig. (2- tailed)| | Mean| Std. Deviatio n| Std. Error Mean| 95% Confidence

Interval of the Difference| | | | | | | | Lower| Upper| | | | Pair 1 Monthly savingsbefore becoming entrepreneur – Monthly savings after becoming entrepreneur| -1. 505E5| 1. 688E5| 2. 179E4| -1. 941E5| – 1. 069 E5| -6. 908| 59| . 000| | | | | | | | | | Table 4. 13 indicates that the mean monthly savings of women entrepreneurs before and after becoming entrepreneurs differ. we reject null hypothesis at 95% which states that the mean monthly savings before becoming entrepreneur equal mean savings after becoming entrepreneurs since p-value is 0. 000<0. 05. It is evident that being entrepreneurs has helped women to increase their monthly savings.

The figure below help to compare monthly savings before and after becoming entrepreneurs. Figure 4. 6 Mean monthly savings before and after becoming entrepreneurs Source: Primary data excel analysis As indicated in figure4. 6 the maximum monthly savings before being entrepreneurs was 220,000 and the mean was 35,800. After becoming entrepreneurs their monthly savings has increased the maximum monthly savings become 900,000 Rfw and the mean become 186,300 Rfw. It is evident that women entrepreneurs contribute to the development through their savings, which according to monetary theory savings foster investments and contribute to capital accumulation of the country. 4. 3. 5. Comparative analysis of monthly expenditures Women entrepreneurs have various expenses which help the researcher to compare their monthly expenses before and after becoming entrepreneurs. This analysis show how being entrepreneur has affected their expenses using paired-sample t test. Table 4. 10: comparison of mean monthly expenditures Paired Samples Statistics | Mean| N| Std. Deviation| Std. Error Mean| Pair 1 Before beingentrepreneur| 47363. 3333| 60| 46177. 05780| 5961. 43253| After being entrepreneur| 108150. 0000| 60| 83368. 25088| 10762. 79491| | | | | | The table4. 13 above show how the mean monthly expenditure has increased after becoming entrepreneurs.

Before becoming entrepreneurs the mean expenditure was 47,363 Rfw and it become 108,150 Rfw after becoming entrepreneurs which represent an increase of 128%. Table 4. 11: Test about mean monthly expenditure Paired Samples Test | Paired Differences| | | | | | | Std. | 95% Confidence Interval| | | | | | Std. | Error| of the Difference| | | Sig. (2-| | Mean| Deviation| Mean| Lower| Upper| t| df| tailed)| Pair 1 Before beingentrepreneur| -| 5. 44037E| 7. 02349| -| | -| | | | 6. 07867E| | | 7. 48406E| -46732. 70402| 8. 655| 59| . 000| After being| | 4| E3| | | | | | entrepreneur| 4| | | 4| | E0| | | | | | | | | | | | The table 4. 14 above indicates that the mean monthly expenditures of women entrepreneur before and after becoming entrepreneurs differ.

We reject null hypothesis which states that mean monthly expenditure before and after becoming entrepreneur are equal, since at 95% confidence interval the p-value is 0. 00<0. 05 alpha value. In a country’s economic wellbeing expenditures create wealth for a country because it is an income for business, transport, agriculture etc. The result indicates that being entrepreneurs had a positive impact on expenditure patterns. 4. 3. 5. 3 Comparative analysis of working capital at the start and currently in business The comparative analysis using paired sample t test help to analyze how working capital of women entrepreneurs at the start of the business and currently in the business has increased or decreased. Table 4. 12: Mean working capital at the start and after Paired Samples Statistics | | | Std. | Std.

Error| | Mean| N| Deviation| Mean| Pair 1 Amount of cash at thestart of the business| 578816. 6667| 60| 1. 17822E6| 1. 52108E5| Current amount of cash| 3943416. 667| 60| 6. 1514E6| 794136. 8701| | | | | | The table 4. 15 indicates that the working capital or the amount of cash women entrepreneurs used at the start has increased since the mean amount of cash used at the start was 578,816 Rfr and are currently in the business 3,943,416 which represent an increase of 581%. Table 4. 13: Test about mean working capital Paired Samples Test | Paired Differences| | | | | | | | 95% Confidence Interval of the| | | | | | Std. | Std. Error| Difference| | | Sig. 2-| | Mean| Deviation| Mean| Lower| Upper| t| df| tailed)| Pair 1 Amount of cashat the start of the| -| | | | -| -| | | | | 5. 71763E| | | | | | | business -| 3. 36460| | 7. 38142E5| -4. 84162E6| 1. 88758E| 4. 558| 59| . 000| Current amount of cash| E6| 6| | | 6| E0| | | | | | | | | | | | Table 4. 16 help to test the null hypothesis which indicate that the mean amount of cash (working capital) at the start of the business and currently in the business for women entrepreneurs are still equal. The results indicate that we reject the null hypothesis since at 95% confidence interval p-value of 0. 000 is less 0. 05. The result indicates that women entrepreneurs ave made a lot of profits in all their activities since their amount of cash they had when they start the business has increased. 4. 3. 6 Analysis of the challenges faced by women entrepreneurs The contribution of women entrepreneurs on the development of Rwanda is important as indicated previously but they are many challenges that hinder their development. In these part women entrepreneurs highlighted their challenges and show how they tried to solve this challenges as indicated in the table below. Figure 4. 7: Challenges faced by women entrepreneurs Source: Primary data The Figure: 4. 7 above indicate 38. 3% of women entrepreneurs stated that the big challenge they are facing is lack of market.

Some women entrepreneur said they had specific customers from abroad not at local level and permanent customers and sometimes when they get a market the payment at time become difficult some said it is caused by poor marketing system; 21% of women entrepreneurs stated the lack of trainings as their big challenges. Women entrepreneurs indicate they need trainings in communication skills, management skills and technical skills and specific trainings regarding their particular business; 15% of women entrepreneurs stated lack of raw material as a challenge for them. This challenge was indicated by women entrepreneur in manufacturing sector who has small factory since they use raw material from abroad and they pay it at high cost; 8. 3% of women entrepreneurs stated high taxes as a challenge for their performance.

Many women entrepreneurs mentioned high taxes as a big challenge but they said it is an obligation no needs to consider it as a challenge one stated that her small factory pay 70% that’s for big company not for a business which operates in art and handicraft sector; 6. 7% of women entrepreneurs stated location as a challenge for their development. A location which is far from infrastructure facilities was mentioned by some women entrepreneurs; 5% of women entrepreneurs stated that they don’t face any challenge in their activities; 3. 3% of women entrepreneurs stated the lack of adequate technology in their activity. As mentioned by women entrepreneur many of them don’t use computer and internet to market their products; 1. % of women entrepreneurs stated they faced discrimination in property ownership since her business was imitated by another and nothing has been done to protect her property right. The challenges quoted hinder the performance of women entrepreneurs who responded at the questionnaire. 4. 3 Results interpretation and hypothesis testing The purpose of this study is to determine the impact of women entrepreneurs on economic development of Rwanda a case study of Expo 2010. This were achieved by analyzing their monthly savings before and after becoming entrepreneurs, their monthly expenditures before and after becoming entrepreneurs and the amount of cash at the start of the business and currently in the business.

To test hypothesis paired-sample t test were used to test if the mean monthly savings, mean monthly expenditure and mean working a capital at the start all before they become entrepreneur and the mean monthly savings, mean monthly expenditure, working capital currently The null hypothesis states that they are equal. As indicated previously we rejected null hypothesis for the three variables since their p-values are less than 0. 05 at 95% confidence interval. Women entrepreneurs contributed to the development of Rwanda as indicated previously in tables, and figures. Different figures and tables help to test other non numerical variables that women entrepreneurs use to contribute to the development of the country.

Women entrepreneurs contribute to export development as indicated since they sell their products outside the country which create capital for the country, they contribute to the development of Rwanda also through taxes payments, participation in local development by participating in decision making and helps orphans, protecting environment etc. Women entrepreneurs also participate in the development of through their development since development start at home by increasing their live standards. To test how an increase in one person in family can affect currently monthly savings of women entrepreneurs the results show y=64120. 104+6773. 830×1(family size) it shows that it can increase monthly savings by 6773. 30 Rfw and the model is significant at 95% since p-value of 0. 05=0. 05 alpha value. The last part analyzed the challenges that women entrepreneurs face and how they tried to overcome this challenges. To test if the challenges exist we used bar chart that ranked the challenges according to percentages and the challenges affect the development of women entrepreneurs in various ways. CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS This chapter presents the overview of the entire on the impact of women entrepreneurs on economic development of Rwanda. It presents the summary of the whole study the interpretation of findings and it gives recommendation. 5. 1 Summary

Women entrepreneurs in Rwanda have made a lot of progress in Rwandan economy and Rwanda is a world leader in promoting gender equality, providing an encouraging example of how countries affected by conflicts can seize the reform momentum in its aftermath to support the empowerment of women. Women entrepreneurs are relatively young, and many turned to business in the years following the genocide. In fact, of the small enterprises operating in Rwanda, almost 70 percent were established within the last 10 years. A 2002 study of women entrepreneurs found that the majority is engaged in the retail sector (82 percent), with the rest focusing on services (16 to 17 percent) and manufacturing (1 to 2 percent) many of their businesses are successful and large. The government’s emphasis on cooperatives has had a positive impact on women’s enterprise development.

As indicated many women entrepreneurs are in art and handicraft sector through their basket weaver cooperatives, others are in trade and service sector others are in manufacturing sector. The study showed that women entrepreneurs being entrepreneurs helped them to raise their standards of living and help them to contribute to the development of Rwanda through taxes payments, savings, jobs creation, export promotion, and they contribute to the development of Rwanda. Women entrepreneurs highlight lack of market, lack of trainings, high taxes, discrimination in property right, and raw materials as their top challenges that hinder their development. Many researches on women entrepreneurship indicates that women entrepreneurs contribute to the development of their country.

This study has shown the socio-economic characteristics of women entrepreneurs, and the study showed how they contribute to the development of Rwanda. The analysis showed that being entrepreneurs had an impact on the increase of their monthly savings, expenditures and their working capital. The results at 95% confidence interval using paired sample t test reject the null hypothesis, which help as an evidence. This research has helped in identifying the performance of women entrepreneurs in Rwanda and increase the existence knowledge on women entrepreneurship. 5. 2 Conclusion This study investigates the impact of women entrepreneurs on the development of Rwanda and it took into account women entrepreneurs in Expo 2010.

The whole study were divided into five parts which helped to The results indicate that there is positive relationship between some variables that women entrepreneurs use to contribute to the development of Rwanda such as savings, taxes, local development, family development and they have been tested using descriptive statistics and inferential statistics especially correlation and linear regression some results indicated poor results and other showed good results according to variables under consideration. The results indicate that women entrepreneurs constitute a driving force in the development of Rwanda since they create more jobs, they pay more taxes, they contribute to savings which boost investments and they contribute to the development of their families. 5. 3 Recommendations

The research findings has shown that there is still much to be done for the development of women entrepreneurs since they are still challenges that affect the development of women entrepreneurs in Rwanda. These recommendations are directed to Rwandan Government for the development of women entrepreneurs in Rwanda. · Expand the market for women entrepreneurs in Rwanda, by increasing the number of trade fairs and provide support for women entrepreneurs to participate in many trade fairs since it is an opportunity for marketing women entrepreneurs’ Products. · Increasing trainings and workshop for women entrepreneurs in communication skills, Business plan, ICT use in their activities, trainings related to their type of business, Trainings that will help women to start and expand their business, management and technical skills. Reduce taxes since it was highlighted as a problem which hinders women entrepreneurs’ development. · Increase in infrastructure facilities road, water and electricity since it is presented as a challenge for women entrepreneurs. · Facilitate women entrepreneurs in getting loans and credit. · Increase researches and surveys on women entrepreneurs to know their challenges. REFERENCES 1. Anne de bruin. 2003. Entrepreneurship: new perspective in global age,Burlington, ashgate publishing company,USA. 2. Anshuja Tiwari sanjay Tiwari. 2007. women entrepreneurship and Economic development,1st ed, New delhi, Sarup & sons. 3. Dr. C. Rajenda kumar. 2008.

Research methodology, New delhi, APH Publishing Corporation. 4. Donald F. Kuratko. 2004. Entrepreneurship: theory, process and practice, Mason, cengage learning, Inc. 5. Fidelis Ezeala-harrison. 1996. Economic development: theory and policy applications, Westport, Greenwood publishing group, Inc. 6. Julie R. Weeks. 2001. Women’s entrepreneurship in Latino America, New York, Main stop publication. 7. Grinnell and Williams (1990), Research in Social Wor,. 1st Ed, USA, A primer peacock publishers, Inc. 8. Paul D. Reynolds , Michael Hay and William D. bygrave. 2000. Global entrepreneurship monitor, London business school. 9. Hisrich, PhD, Robert D. Michael P. Peters, PhD and Dean A. Shepherd, PhD. 2005. Entrepreneurship. 6 ed. New York: McGraw-Hill Irwin. 10. Lucia Quachey. 2005. Millenium development goals and African women entrepreneurs,leiden, Netherlands. 11. Kristen Gibson. 2009. business dictionary, USA, Emerald publishing limited. 12. UNIFEM. 2005. Progress of the world’s women, New York. 13. OECD. 2004. promoting entrepreneurship and innovative SMEs in a global economy: Towards a more responsible and inclusive Globalisation, Istanbul,Turkey. 14. William bygrave & Andrew zacharakis. 2008. Entrepreneurship, 2nd ed, new jersey, Wiley & sons. inc. 15. William G. Cochran. 1977. ampling teqniques,3rd ed, New York, Wiley & sons. inc. 16. World Bank. 2008. Voices of women entrepreneurs in Kenya, Texas, IFC,Washington DC. 17. World Bank. 2007. Voices of women entrepreneurs in Tanzania, Texas, IFC,Washington DC. 18. World Bank. 2008. Voices of women entrepreneurs in Rwanda, Texas, IFC,Washington DC. WEBSITES 1. Susanne E, Jabert. 2000. Women entrepreneurs in the global Economy. Retrieved June 18. 2010. From http://www. cipe. org/programs/women/pdf/jalbert. pdf. 2. South Africa women entrepreneurs special report 2005. Retrieved 4 july. 2010. fromhttp://www. dti. gov. za/sawen/SAWENreport2. pdf. 3. Household survey for ntrepreneurship 2005. Retrived August 16 july. 2010. fromhttp://www. berr. gov. uk/files/file38261. pdf. 4. Dr. suryani motik . 2000.. Significant roles of women entrepreneurs in economic development . Retrieved 20 May. 2010. fromhttp://www. apecwln. org/wpcontent/uploads/2000%20WLN%20-%20Suryani%20Motik%20-%20Roles%20of%20Women%20Entrepreneurs%20in%20Economic%20Development. pdf APPENDICES QUESTIONNAIRE ON WOMEN ENTERPRENEURS IN EXPO 2010 AT RWANDA PRIVATE SECTOR FEDERATION GIKONDO FROM 26TH/AUGUST TO 8TH/SEPTEMBER 2010. PART I. DEMOGRAPHIC INFORMATION 1. How old are you? 2. What is your education background? a) Primary education b) Secondary education ) University education If university what course did you follow 3. What is your marital status? a) Single b) Married c) Separated d) Divorced e) Widowed 4. How many dependents How many children 5. What kind of business is this? a) Manufacturing b) Trade c) Services II PART II. ECONOMIC INFORMATION 6. Do you have a personal bank account? a) Yes b) No | Before you enter the business| Currently| How many savings| | | | | | 7. Which sources of finance have you used to provide funds for your business? a) Savings circles b) Commercial banks c) Cooperatives d) Friends e) leasing f) Micro Finance Institutions g) Other specify 8. What reasons make you engage in the entrepreneurship? a) Unemployed or lost my job ) Too little income and need income c) Self boss d) No education background e) Other reason specify 9. Do you contribute money from your business towards household expenditure? a) Yes b) No III c) If yes, how much did/do you contribute for family expenses every month Before you enter the business Currently in the business 10. What changes in the quality of life would you say have come about as a result of having the business? a) Construct a house b) Buy a car c) Education fees for my family d) Mutual Health insurance for my family e) Recreation and leisure time f) Other specify 11. What do you think is your contribution to economic development of Rwanda? a) I pay much Taxes ) I participate in decision making at local level c) Other specify 12. What was your employment situation immediately before you became entrepreneur? a) Already owned a different business b) Already a part-owner of a different business c) Working full-time as an employee d) Working part-time as an employee e) Unemployed, f) Looking after the home or family g) In education/training IV 13. Excluding yourself, how many people work for your main business? Please includeeveryone who works for the business whether on a full-time or a part-time basis and regardless of whether or not they receive a salary or wage from the business? Number: 14. How long have you been operating this business?

Number of years 15. What are your long-term plans for your business? a) Continue/expand present business/innovation b) Change to another line of business c) Leave and take up wage employment d) Pass the business onto someone else in my family e) Sell the business f) Retire g) Other specify . 16. Which one of the following is your largest market? a) Local or district markets b) Regional or provincial markets c) National markets d) International markets 17. Are you a member of any associations of women entrepreneurs Yes No a) If yes which one . b) What services have you obtained from it/them a) Trainings and consultation b) Assistance in marketing Product ) Access to information d) Loan and working capital e) Access to business advisory services 18. How much was the approximate value of cash and equipment when the business started and how much is it now? | Before you enter the business| Currently| Approximate amount of cash| | | Approximate value of equipment| | | | | | 19. What are the challenges do you face in your business? challenges| | interventions made in case ofthe challenges| recommendation| Lack of market| | | | High taxes| | | | Lack of training| | | | Combining familyand business| obligation| | | Other specify| | | | | | | | THANK YOU VERY MUCH FOR YOUR CO-OPERATION

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