5.3. Recommendations
Based on the research findings, skills of the researcher and
other constraints accounted, we can finish this work by giving the following
recommendations that aimed at further improve the production level for the
great success of HUYE top three product clusters.
5.3.1. For Government
? Increasing the levels of formality of
SMEs.
As the study revealed, registered SMEs were more likely to
have a bank account and making use of a credit product. Moreover, because of
the difficulty of separating small business owner's personal finances from that
of the business, registering made it easier to make the distinction because
business registration separates the business at law from its owner, thereby
reducing the probability of an application for credit being rejected.
Increasing levels of formality also mean additional reporting
requirements, thus promoting the availability of information available on a
business, the lack of which can also be an impediment to accessing financing.
In this regard, interventions to increase the levels of formality in the SME
sector would have a positive impact on the SME sector being able to access
finance.
? Improving information available on small
businesses
As noted above, the additional reporting requirements
resulting from registration would increase the information
available on the business as well as improve the quality of that information.
Other policy interventions aimed at improving the availability
and quality of information available to reduce the problems of
information asymmetry.
? Establishment of a Government Department to deal
specifically with SMEs, entrepreneurship and support for this
sector.
Main roles of the proposed harmonized department of SMEs and
Entrepreneurship include;
(h) Facilitate compulsory registration,
(i) Act as a SME one stop shop,
(j) Information dissemination and SME awareness campaigns,
(k) House central repository of information on the SME
sector,
(l) Establishment of a collateral registry, and
(m) Monitoring and evaluation of the schemes available.
5.3.2. For the Owner of
enterprises
? Improving the levels of managerial competence
and skills
Regarding the poor level of managerial competence and skills
of the small business owners, interventions should focus on providing training
and courses that will improve the human resource capacities in this regard.
? Marketing and product awareness
As noted above, there is generally low uptake on available
products, especially on Government schemes. One of the reasons, it is believed,
for this poor uptake of facilities available, including financing, is the lack
of a «single source of information», a one stop shop if you like of
all available support programmers and how to access them .
? Promotion of developmental credit
products/services
The Government of Rwanda sets out all the specific objectives
of the Act; that is «to promote and advance the social and economic
welfare of Rwandans, promote a fair, transparent, competitive, sustainable,
responsible, efficient, effective and accessible credit market and industry,
and to protect consumers, by:
(a) Promoting the development of a credit market that is
accessible to all Rwandans people, and in particular to those who have
historically been unable to access credit under sustainable market
conditions».
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