Contribution of Micro Finance Services on the Performance of Small Business Enterprises in Rwanda: A Case Study of Nyarugenge District

This research sought to evaluate how microfinance services influence the financial performance of small businesses in Rwanda, specifically within Nyarugenge District. The study focused on examining the effects of loan services, savings schemes, microinsurance, and financial literacy on the success of these enterprises. From a total population of 283 individuals, a sample of 142 respondents was chosen to facilitate effective data collection. These participants included a range of stakeholders such as SME owners and managers, executive officials, and operators of businesses like wholesalers, pharmacies, bars and restaurants, beauty salons, stationery shops, and others. The study was based on three key theories: Microfinance Credit Theory, Credit Access Theory, and Financial Intermediation Theory. It employed a descriptive and correlational research design. Data were gathered through questionnaires, interviews, and document reviews. Both descriptive and inferential statistics were utilized to analyze the data. The results revealed that microfinance services—such as credit access, savings options, microinsurance, and financial literacy programs—had a significant positive impact on the financial performance of small businesses in Nyarugenge District. Overall, the findings demonstrated that microfinance has substantially contributed to the growth and financial stability of these enterprises.