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 around 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 66.3 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,86.3% 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.
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