அரேபியன் ஜர்னல் ஆஃப் பிசினஸ் அண்ட் மேனேஜ்மென்ட் ரிவியூ

Microfinance Products and Enterpreneurship: Analysis of Financial Needs for Socio Economic Development of TUGENDANE N'IGIHE Sacco Clients; Rwanda

Abstract

Harelimana Jean Bosco

The impact of microfinance products on the entrepreneurship needs for socio economic development was assessed in TUGENDANE N’IGIHE SACCO due to 2014 within 149 clients and 3036 accounts holders, Rwanda. The study was accomplished with the aim of assessing the impact of microfinance products and the entrepreneurship needs for socio economic development of the clients in TUGENDANE N’IGIHE SACCO. The method of collecting and analysing data was employed to this study, to both primary and secondary data. Data were collected using self-administered questionnaire, Rwanda PPI scorecard and semi-interview and then analyzed using SPSS, simple poverty scorecard for Rwanda, data entry software and Microsoft Excel. The study found that savings through current deposits (82.6%), security savings (75.8%), savings for children (32.2%) and term deposits (34.9%) and, small loans through commerce loans (41%), agriculture and livestock loans (29%), constructions loans 3%), transport and equipment loans (2%) and emergency loans: 25% (school fees, health insurance, wedding, burial, overdraft) are microfinance products mostly consumed by clients of TUGENDANE N’IGIHE SACCO. The analysis made model for incidence of microfinance products on ENSED of clients showed a strong positive relationship (83.4%). Using the multi linear regression, the equation of the model become as follow: Entrepreneurship Needs for Socio Economic Development (ENSED)=0.551+0.10 Education level+0.54 Main occupation - 0.065 number of dependent/family size+0.97 Membership duration+0.212 Number of loans got from TUGENDANE N’IGIHE SACCO+0.126 Monthly Income after joining TUGENDANE N’IGIHE SACCO+0.044 Government policies against poverty. Or simply ENSED=0.551+0.101Ed+0.54Oc - 0.065Fs+0.097Md+0.212L+ 0.126Y+0.044Gov. The study recommended that TUGENDANE N’IGIHE SACCO should adopt the use of the Rwanda PPI scorecard for assessing its achievement in poverty reduction and more serving its clients.