Microfinance Servies and Socio-Economic Development of Rim customers in Kigali city- Rwanda

ABSTRACT The study intended to establish the relationship between access to microfinance services and socio economic development of RIM customers in Kigali City — Rwanda. The study used an ex-post facto, descriptive comparative, correlational and a cross sectional survey design. Using purposive sampling, data was collected from 254 respondents, through a researcher made questionnaire, to answer 3 research questions: respondents’ profile, the level of access to micro finance services and the level of socio economic development of RIM customers. To analyze data, frequencies, percentages means, t-test and Pearson’s Linear Correlation Coefficient were used. The findings indicated that most respondents were female (60%), between 20-39 years of age (80%), majority were primary dropout (54%) and over 61% had spent 1-4 years as members of RIM. The level of access to micro finance services was generally very low (average mean =1.49). The level of socio economic development was also found to be very low with (overall mean of 1.33). The findings indicated a significant difference in the level of access to micro finance services between male and female, (t=16.849, sig. =0.000) and level of socio-economic development between male and female (t=16.571, sig. =0.000). The findings indicated a positive significant relationship between the level of access to micro finance services and socio-economic development in terms of housing and domestic welfare (r=.974, sig. =0.000) level of income (r=.964, sig. =0.000) and health care (r=.975, sig. =0.000) and overall socioeconomic development (r=.983, sig. =0.000). The researcher concluded that an increase in access to micro finance services improves the socio-economic development and its decline leads to poor socio economic development in Kigali city Rwanda. The researcher recommended that there is need to improve the level of access to micro finance services, so as to improve people’s socioeconomic development in Kigali city Rwanda.

TABLE OF CONTENTS

DECLARATION A

DECLARATION B

APPROVAL SHEET iii

DEDICATION iv

ACKNOWLEDGEM ENTS v

ABSTRACT vi

TABLE OF CONTENTS vii

LIST OF TABLES x

LIST OF ABBREVIATIONS xi

CHAPTER ONE THE PROBLEM AND ITS SCOPE 1

Backg round of the Study 1

Statement of the Problem 3

Purpose of the Study 4

Research Objectives 4

General Objective 4

Specific Objectives 4

Research Questions 5

Research Hypotheses 5

Scope of the Study s

Significance of the Study 7

TWO REVIEW OF RELATED LITERATURE 8

Concepts, Ideas, Opinions From Authors/Experts 8

Related Studies 17

v~

THREE RESEARCH METHODOLOGY 19

Research Design 19

Research population 19

Sample size 19

Sampling Procedures 19

Research Instruments 20

Validity and Reliability of the Instruments 20

Data Gathering Procedures 21

Data Analysis 21

Ethical Consideration 22

Limitations of the Study 23

FOUR PRESENTATION, ANALYSIS AND INTERPRETATION OF RESULTS 24

FIVE SUMMARY, CONCLUSION AND RECOMMENDATIONS 37

Findings 37

Conclusions 38

Recommendations 38

Areas for Further Research 39

REFERENCES 40

APPENDICES 42

APPENDIX I: TRANSMITTAL LETTER FROM COLLEGE OF HIGHER DEGREES AND

RESEARCH 42

APPENDIX II: AUTHORIZATION LETTER 43

APPENDIX III: TRANSMITTAL LETTER FOR THE RESPONDENTS 44

APPENDIX IV: CLEARANCE FROM ETHICS COMMITTEE 45

APPENDIX V: INFORMED CONSENT 46

APPENDIX VI A: FACE SHEET 47