WOMEN ENTREPRENEURSHIP AND FAMILY SOCIO-

ECONOMIC DEVELOPMENT IN RWANDA

A CASE STUDY OF REBA UNYURWE HANDCRAFT

COOPERATIVE IN MUHANGA DISTRICT

KAGOYIRE SOPHIE

MDS/0063/13

A Thesis Submitted in Partial Fulfillment for the Award of a Degree in

Master of Development Studies of Mount Kenya University

MARCH 2015

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DEDICATION

With special admiration, I dedicate this thesis to Almighty God, my husband

HABIMANA J.Paul and my children Lebéni, Benson, Bruce, Benita, Belise and

L’Homme-Béni.

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ACKNOWLEDGEMENT

First and foremost my sincere thanks to God, who has truly given me the required energy

to undertake this tremendous work and love in abundance and above all the sufficient

grace.

I am also indebted to many others who have contributed their ideas, their help and their

encouragement to this book. I am thankful to my husband whose early enthusiasm for this

topic helped me to begin it. Throughout the writing of this research, his assistance has

been invaluable to me. My deepest appreciation goes also to my family, and relatives who

have shared with me the joys and the frustrations of writing and for their continued moral

and financial support.

Academically, I owe special thanks to my supervisor Anne Eboi who already knows

everything in this book and whom I am blessed to call my role model, for the exceptional

manner in which she guided me through this process. Her time, the many corrections,

realignments and insights and above all, her kindness, patience and invaluable

atmosphere were very treasured.

I appreciate my colleagues and classmates, who in one way or another became my

extended family, because of their advice to enhance my research skills. Other than

individuals and myself, I am also grateful to the entire Mount Kenya University

management and lecturers who impacted me with skills and knowledge.

Finally I am so thankful to the proud women members of Reba Unyurwe Cooperative

who accepted to answer my questionnaire and whose life fascinated and inspired me.

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ABSTRACT

The study on women entrepreneurs and family social economic development aimed at

assessing whether there was a positive correlation between women in entrepreneurship

and their family socioeconomic development. The number of women all over the world is

larger than the number of men, but their contribution in socio-economic development is

still low especially in developing countries. The main objective of this research was to

assess the contribution of women entrepreneurs on the socio-economic development of

their families and households. It was guided by three specific objectives: To identify

challenges faced by women entrepreneurs and how these are addressed; to assess the

drivers that influence women socio-economic development in Reba - Unyurwe

cooperative and to highlight the correlation between entrepreneurship and socio-

economic development. This research focused on women members of a handcraft making

cooperative in Muhanga District with a connection to Gahaya Links Company. The

research reviewed the studies related to women entrepreneurship and socio-economic

development. The target population was 200 women members of craft making from Reba

unyurwe Cooperative. The sample size was 67 people. The study used stratified and

simple random sampling techniques. To get the findings, quantitative and qualitative

research was focused on both primary and secondary data which were collected by the

use of questionnaires. The data entry and management was undertaken using the

Statistical Package For Social Sciences (SPSS, 16 version). This research concluded that

there was a positive and strong relationship between women entrepreneurship and family

socio-economic development. The study revealed that women entrepreneurs affect social

economic development at the rate of 78.3%. The research recommends that women

entrepreneurs must minimize all loss caused by lack of training and low level of

education that leads to lack of managerial skills in order to achieve high level of

performance in their routine activities of business. Hence, the level of socio-economic

development depends on the performance of their business. This study is significant to the

Government of Rwanda for policy making purposes. The Government needs to promote

women entrepreneurs by encouraging grassroots self-help efforts in several ways,

including funding direct operations, training, and education and subsidiary activities of

community groups.

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TABLE OF CONTENT

DECLARATION.................................................................. Error! Bookmark not defined.

DEDICATION...................................................................................................................iii

ACKNOWLEDGEMENT ................................................................................................ iv

ABSTRACT ........................................................................................................................ v

TABLE OF CONTENT .................................................................................................... vi

LIST OF TABLES ............................................................................................................ ix

LIST OF FIGURES ........................................................................................................... x

LIST OF ACRONYMS AND ABBREVIATIONS ........................................................ xi

DEFINITIONS OF KEY TERMS .................................................................................. xii

CHAPTER ONE: INTRODUCTION .............................................................................. 1

1.0. Introduction ............................................................................................................... 1

1.1 Background of the Study ............................................................................................. 1

1.2 Statement of the Problem ............................................................................................ 4

1.3 Objectives of the Study ................................................................................................ 5

1.3.1.General Objective ..................................................................................................... 5

1.3.2. Specific Objectives ................................................................................................... 5

1.4. Research Questions ..................................................................................................... 6

1.5 Significance of the Study.............................................................................................. 6

1.6 Limitations of the Study .............................................................................................. 7

1.7 The scope of the Study ................................................................................................. 7

1.7.1 Content Scope ........................................................................................................... 7

1.7.2 Geographical Scope .................................................................................................. 7

1.7.3 Time Scope.............................................................................................................. 8

1.8 Organization of the Study ............................................................................................ 8

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CHAPTER TWO: REVIEW OF RELATED LITERATURE ..................................... 9

2.0 Introduction ............................................................................................................... 9

2.1 Theoretical literature ................................................................................................... 9

2.1.1 Overview of entrepreneurship .................................................................................. 9

2.1.2 Women entrepreneurship ....................................................................................... 12

2.1.3 Socio-economic development .................................................................................. 16

2.2 Empirical literature ................................................................................................... 18

2.3. Critical review and Research Gap Identification ...................................................... 21

2.4 Theoretical Framework ............................................................................................. 22

2.4 Conceptual Framework ............................................................................................. 24

2.6 Summary ................................................................................................................... 26

CHAPTER THREE: RESEARCH METHODOLOGY .............................................. 28

3.0 Introduction .............................................................................................................. 28

3.1 Research design ......................................................................................................... 28

3.2 Target Population ...................................................................................................... 28

3. 3 Sample Design .......................................................................................................... 29

3.3.1 Sample Size ............................................................................................................. 29

3.4 Data collection mmethods .......................................................................................... 30

3.4.1 Data collections’ instruments .................................................................................. 30

3.4.2 Administration of data collection instruments ........................................................ 30

3.4.3 Reliability and validity ............................................................................................ 31

3.5 Data analysis procedures ........................................................................................... 31

3.6 Ethical considerations ................................................................................................ 31

CHAPTER FOUR: RESEARCH FINDINGS AND DISCUSSION ........................... 33

4.0 Introduction .............................................................................................................. 33

4.1.Demographic Characteristics of Respondents ............................................................ 33

4.2 Presentation of Findings ............................................................................................ 35

4.2.1 Challenges Faced By Women Entrepreneurs in Reba-Unyurwe Cooperative ......... 35

4.2.2 The Drivers That Influence Women Socio-Economic Development in Reba-Unyurwe

cooperative ...................................................................................................................... 41

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4.2.3 Relationship Between Women Entrepreneurship And Family Socio-Economic

Development ................................................................................................................... 53

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSIONS AND

RECOMMENDATIONS ................................................................................................. 56

5.0 Introduction .............................................................................................................. 56

5.1 Summary of the Major Findings .......................................................................... 56

5.1.1 Challenges Faced By Women Entrepreneurs .................................................... 56

5.1.2 The drivers that Influence Women Socio-Economic Development In Reba -

Unyurwe Cooperative ..................................................................................................... 57

5.1.3 Relationship Between Entrepreneurship And Family Socio-Economic Development

........................................................................................................................................ 58

5.2 Conclusion ................................................................................................................. 59

5.2 Recommendations ................................................................................................ 61

5.3 Suggestions for Further Studies ................................................................................. 63

REFERENCES ................................................................................................................. 64

APPENDICES .................................................................................................................. 68

Appendix I: Questionnaire .............................................................................................. 69

Appendix II: Reba - Unyurwe Cooperative Research Authorization letter ......... Error!

Bookmark not defined.

Appendix III: Mount Kenya University Research Authorization letter .............. Error!

Bookmark not defined.

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LIST OF TABLES

Table 3.1: sample size ........................................................................................................ 29

Table 4.2: Cooperative registration.................................................................................... 33

Table 4.3: Way of registration ........................................................................................... 34

Table 4.4: Accessibility to bank account ........................................................................... 34

Table 4.5: Experience in the business ................................................................................ 35

Table 4.6: Challenges faced by women entrepreneurs in Reba-Unyurwe Cooperative .... 36

Table 4.7: Views of respondents on Government policies ............................................... 41

Table 4.8: Views of respondents on ownership of the business ........................................ 41

Table 4.9: Opinions of respondents on source of money in startup of the business .......... 42

Table 4.10: Views of respondents on influencing factors in business ............................... 43

Table 4.11: Views of respondents on special treatment as a woman entrepreneur ........... 44

Table 4.12: Views of respondents on respect within the society, easy access to loan,

improvement in living standards ........................................................................................ 44

Table 4.13: Views of respondents on policies concerning women entrepreneurship in

Rwanda .............................................................................................................................. 45

Table 4.14: Views of respondents on the sufficiency of a handcraft market in Rwanda .. 46

Table 4.15: Views of respondents on being a member of other associations as an element

that affects entrepreneurship .............................................................................................. 46

Table 4.16: Views of respondents on services obtained from the Government of Rwanda

............................................................................................................................................ 47

Table 4.17: Views of respondents on improvement of socio-economic development ...... 48

Table 4.18: Views of respondents on educated women and poor household’s income .... 49

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Table 4.19: Relationship between women entrepreneurs and socio-economic development

............................................................................................................................................ 53

LIST OF FIGURES

Figure 2.1: Women entrepreneurs and socio-economic development ............................... 25

Figure 4.2: Perception of respondents on level of taxes .................................................... 38

Figure 4.3: Views of respondents on lack of training ........................................................ 39

Figure 4.4: Views of respondents on lack of social media plan ........................................ 40

Figure 4.5: Views of respondents on availability of training ............................................. 50

Figure 4.6: Views of respondents on the effects of business experience to improve socio-

economic development ...................................................................................................... 51

Figure 4.7: Views of respondents on financial resources as a tool of household’s income

............................................................................................................................................ 52

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LIST OF ACRONYMS AND ABBREVIATIONS

ADB : Africa Development Bank

GDP : Gross Domestic Product

GE : Global Entrepreneurship

GEM : Global Entrepreneurship Monitor

GNP : Gross National Product

ILO: International Labor Organization

MFI Microfinance Institutions

MINICOM: Ministry of Commerce, Trade, Industry and Cooperatives

NGOs : Non Government Organizations

NISR : National Institute of Statistics of Rwanda

OECD : Organization of Economic Cooperation and Development

RCA: Rwanda Cooperative Agency

RPSF : Rwanda Private Sector Federation

SAMEN : South Africa Women Entrepreneurs’ Network

SAWE : South Africa Women Entrepreneurs

SMEs : Small and Medium Enterprises

SPSS : Statistical Package for the Social Sciences

UNDP: United Nations Development Programs

UNIDO : United National Industrial Development Organization

USA : United States of America

WB : World Bank

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WBSR : World Bank Study Report

DEFINITIONS OF KEY TERMS

Development: Development is the act or process of growth, progress and

improvement within a physical setting.

Entrepreneur: An entrepreneur may be described as a person who has the ability to

explore the environment, identify opportunities for improvement, mobilize resources and

implement actions to maximize those opportunities. He is the catalyst of change able to

carry out new combinations, instrumental in discovering new opportunities.

Entrepreneurship: Entrepreneurship is the process of creating something new with

value by devoting the necessary time and effort, assuming the accompanying financial,

psychic, and social risks, and receiving the resulting rewards of monetary and personal

satisfaction and independence. Entrepreneurship is more than the mere creation of a

business, seeking opportunity, taking risks, and having the tenacity to push ideas into

reality are special characteristics that permeate individuals. Entrepreneurship is an

integrated concept that has revolutionized the way business is conducted.

Family socio-Economic Development: Family Socioeconomic is an economic

and sociological combined total measure of a family's work experience and of an

individual's or family's economic and social position in relation to others, based on

income, education, and occupation. When analyzing a family's social economic

development, the household income, earners' education, and occupation are examined, as

well as combined income, versus with an individual, when their own attributes are

assessed.

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Socio-economic development: Socio-economic development is the process of social

and economic development in a society. Socio-economic development is measured with

indicators such as GDP, life expectancy, literacy and level of employment.

Woman entrepreneur: Woman entrepreneur is a woman or group of women who

initiate, organize and run a business enterprise or women who innovate, imitate or adopt a

business activity. A woman entrepreneur can be defined as a confident, innovative and

creative woman capable of achieving self-economic independence individually or in

collaboration, generate employment opportunities for others through initiating,

establishing and running the enterprise by keeping pace with her personal, family and

social life.

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CHAPTER ONE: INTRODUCTION

1.0. Introduction

This chapter covers introduction to the study, background of the study, statement of the

problem, objectives of the study, research questions, limitations of the study, significance

of the study, scope of the study and organization of the study.

1.1 Background of the Study

Entrepreneur is the key factor of entrepreneurship and now women are successful in this

as they have qualities desirable for entrepreneurship development. Entrepreneurship is

considered as one of the most important factors contributing to the economic

development of the society. Entrepreneurs have been considered instrumental in initiating

and sustaining socio-economic development (Sanjay, 2013).

According to Angela (2011) the East Asia and Pacific region has been the most

economically dynamic region in the world. In most countries in the region, incomes have

grown dramatically, and with that growth, absolute poverty has declined rapidly. Most of

the region’s economies have also shifted away from agriculture and toward

manufacturing and services. Rapid growth, structural transformation and poverty

reduction have been accompanied by progress toward gender equality in several key

areas. Economic development has led to the closing of gender gaps in school enrollments

and a decline in maternal mortality rates: girls in the region as a whole now enroll in

secondary schools at a higher rate than boys, and maternal mortality has fallen by half

over the past 20 years. Access to economic opportunities has also increased, particularly

among younger, better educated women. In many ways, women in East Asian and Pacific

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countries are better positioned than ever before to participate in, contribute to, and benefit

from development (Morrison, 2006).

As is common with many other academic fields of study, there exists little consensus as to

a universally accepted definition of entrepreneurship, and the combination of the term

with family business adds to the complexity. Entrepreneurial activities have been found to

be capable of making positive impacts on the economy of a nation and the quality of life

of the people. Entrepreneurship is the differential operations of its roles in different levels

of socio-economic development. In other words, entrepreneurial activities have been

found to be functioning differently in different levels of socio-economic development

(Oluremi & Gbenga, 2011).The effective manifestation of the functions and roles of

entrepreneurship in socio-economic development have often been attributed to the

presence of certain factors in the external environment of the entrepreneur over which he

has little or no control.

According to Singh (2004) women have established their own economy i.e.,

entrepreneurial empire and are now ruling their world as they wished to. The hidden

entrepreneurial potentials of women have gradually been changing with the growing

sensitivity to the role and economic status in the society. Skill, knowledge and

adaptability in business are the main reasons for women to emerge into business ventures.

A woman entrepreneur is a person who accepts the challenging role to meet her personal

needs and become economically independent. A strong desire to do something positive is

an inbuilt quality of entrepreneurial women who are capable of contributing values in

both family and social life. Women entrepreneurs are engaged in business due to push

and pull factors. Pull factors include personal ambition, creativity, self-realization and

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desire for independence. Push factors include lack of an alternative source of income,

unemployment and unsatisfactory employment conditions. In the process of

entrepreneurship, women have to face various problems and these problems get doubled

because of their dual role as bread earners and homemakers. Obstacles faced by women

entrepreneurs include being accepted as a woman in business, lack of a role model, lack

of professional interaction, difficulties in gaining the confidence of their clients and

suppliers, lack of adequate training, and lack of related experience (Fedex, 2008).

However, the theoretical and empirical cases for understanding the role of

entrepreneurship are not yet solid. Evidence on whether entrepreneurship matters for

economic growth is not straightforward. Closer scrutiny of the relationship between

entrepreneurship and economic development is therefore needed. In order to stimulate the

development entrepreneurship discourse, it may be necessary to first attempt to formalize

or reconcile the role of entrepreneurship in the grand ideas of development economics,

and to consider how this resonates with available evidence, and what this means for

policy (Wim, 2013).

According to Abbott et al., (2011) the Rwandan government envisions to create a middle

income, knowledge-based society with a middle class of entrepreneurs as the backbone of

development processes in which women and men equally participate. Empowering

women and ensuring gender equality ultimately enriches communities and entire nations.

This is something that the Rwandans understood long before gender equality became

fashionable or the catch-phrase emerged in development discourse. Economically,

women are said to be less empowered in terms of independent employment and access to

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financial services (Vis, 2012). Reba - Unyurwe cooperative was created in 2006 with the

aim to uplift the living standards of its 95 members who were formally street vendors and

vulnerable farmers through basket weaving, knitting beds work, woven trays and other

handcraft skills. Today the cooperative has increased its number up to 200.

Reba - Unyurwe Cooperative is designed as a meeting place that bridges the gap between

urban buyers and rural women. It is a place where rural entrepreneurs can incubate

businesses so they can transition from subsistence farming to larger-scale farming and

other entrepreneurial activities. It also offers classroom space where women can learn

new business skills and where cooperative, support networks and other groups can meet

regularly. Since then, more than 250,000 Rwandan women have gained new job skills,

knowledge about health and wellness and learned how to be decision-makers in their

families and communities through training program (Reba-Unyurwe Cooperative, 2014).

1.2 Statement of the Problem

According to Sanjay (2013) entrepreneurship is the core of economic development.

Entrepreneur is a key factor of entrepreneurship; in the present times, women are an

emerging economic force. According to Asiyanbola (2012), women are the pillars of the

family, who together constitute the society. In society spheres, the number of women is

greater than the number of men all over the world even in Rwanda, hence social and

economic development of women is necessary for the development of any country. The

majority of Rwandan citizens need to change their routine activities from agriculture to

other the sectors is crucial for reducing poverty, achieving economic transformation, and

attaining Vision 2020 goals. Poverty rates for those working in agriculture are 60%,

compared to just 23% for those working off-farm (Government of Rwanda, 2013).

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Due to the different challenges faced and the high levels of poverty rate in Rwanda,

whereby the education, health care and low income in the families still need

improvement, the Government of Rwanda undertook a variety of development activities

to alleviate poverty while using various approaches and implementing a number of

strategies for this purpose. Some of the strategies include: granting loans for

reconstruction and development, giving business, encouraging industrialization and last

but not least gender balance. Despite these attempts, the level of poverty has not been

significantly reduced. Because women are the majority in the Rwandan society, there is

need to empower them with skills and finances. Moreover, efforts to uplift her have not

been that successful. Thus, this study seeks to identify women’s ability to improve socio

and economic status of their families through their own merits in the male dominated

society.

1.3 Objectives of the Study

The objectives of this study are categorized into the general objective and specific

objectives of the study.

1.3.1.General Objective

The general objective of this study is to assess the contribution of women

entrepreneurship on the socio-economic development of their families / households

1.3.2. Specific Objectives

(i) To identify challenges faced by women entrepreneurs in Reba-Unyurwe

cooperative;

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(ii) To assess the drivers that influence women socio-economic development in Reba-

Unyurwe cooperative ;

(iii)To establish the relationship between entrepreneurship and family socio-

economic development.

1.4. Research Questions

(i) What are the challenges faced by women entrepreneurs in Rwandan cooperatives?

(ii) What are the drivers that influence women socio-economic development in Reba-

Unyurwe cooperative?

(iii) Is there any relationship between entrepreneurship and socio-economic

development in Rwandan cooperatives?

1.5 Significance of the Study

The study was envisaged to produce a reference research model of promoting women

entrepreneurship in rural areas and to be replicated in urban areas as well.

This study enabled the researcher to deeply understand the contribution of women in

upgrading the family socio-economic development in Rwanda.

The study would be of interest to NGOs, and serve as an opportunity to better understand

how women can impact households’ living standards and therefore strive to empower

them and encourage cooperatives for mutual support.

This research was a basis for future policy formulation and decision making purposes and

to refocus on women needs for development as it is often said that “educating a man is

educating a family but educating a woman is educating the whole nation.” To the

beneficiaries who are the women entrepreneurs, the study gives them light and enables

them to valorize their job, correct mistakes and learn from their experiences.

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1.6 Limitations of the Study

The probability of limitation that this study was likely to face included the language

proficiency as the target population comprised of semi-literate kinds of respondents. It

presented itself as a challenge because there was a translation of the research instruments

and sometimes it was very hard to find appropriate wording, terminology and

vocabularies. Another limitation was withholding information, as some people are very

reluctant to be open and share information, especially about their personal and financial

status. Fortunately, the number of respondents who did not release useful information

were only 3, therefore this did not affect the research findings.

1.7 The scope of the Study

The scope of the study was classified into three categories: content scope, time scope and

geographical scope.

1.7.1 Content Scope

This study was conducted in a women handcraft cooperative to investigate their

entrepreneurship and how this impacted the socio-economic status of their families.

1.7.2 Geographical Scope

The Reba Unyurwe Handcraft Cooperative is a member of Gahaya Links Limited. Today

the company manages a network of over 4,000 weavers across the country organized in

52 saving cooperatives, among which is REBA UNYURWE COOPERATIVE under this

study. Reba Unyurwe Cooperative is located in Muhanga District.

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1.7.3 Time Scope

The study covered the period between 2010 and 2013. This helped to ensure that research

is specific to determine period of time.

1.8 Organization of the Study

The first chapter is composed of the introduction to the study, background to the study,

problem statement, objectives of the study, research questions, significance of the study,

limitations of the study, scope of the study and then organization of the study.

The second chapter is composed of the introduction to literature review, theoretical

literature, empirical literature, critical review and research gap identification, conceptual

framework and then summary of literature review.

The third chapter is composed of the introduction to the research methodology, research

design, target population, sample design, sample size, sampling techniques data collection

methods, data analysis procedures and then ethical consideration.

The fourth chapter is on the research findings and discussion, demographic characteristics

of respondents and then presentation of findings.

The fifth chapter includes the introduction to the chapter, recommendations, summary of

findings and conclusions whereby the answers to research questions are presented,

recommendations made and suggestions for further study.

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CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.0 Introduction

This chapter introduces concepts defined by different authors on women entrepreneurs

and terms related to it. Relevant literature was drawn from various sources. The

researcher believes that any relevant literature, irrespective of the place or time would still

be imperative to form a basis of analyzing the study findings. The review gives light to

different contributions of women entrepreneurs. In this study, the key words were:

Entrepreneurship, poverty alleviation, women empowerment, and women entrepreneurs.

Critical review in this chapter is described to show the gap that needed to be exploited

and finally the theoretical/conceptual framework is presented to show the relationship

between the two variables under study.

2.1 Theoretical literature

2.1.1 Overview of entrepreneurship

Entrepreneurship researchers are hampered by the lack of a common conceptual

framework for the concept entrepreneurship. The lack of consensus on the meaning of

this term makes it imperative that researchers provide a clear statement of their meaning

when they use it. According to Mirjam (2007) the terms ‘entrepreneur’ and

‘entrepreneurial firm’ are used interchangeably. Entrepreneurial firms are defined as

firms that satisfy one of the following conditions: (i) They employ fewer than 100

employees; (ii) they are younger than seven years old; (iii) they are new entrants into the

market. Entrepreneurship is a multi-faceted phenomenon, which comprehends both the

start-up of new companies (start-up entrepreneurship) as well as the carrying out of new

strategic initiatives within existing business (Thomas & Moisey, 2006).

10

The concept of entrepreneurship has such a complex tradition within economic theory

that formulating a succinct definition is extremely difficult, and any attempt to do so will

inevitably exclude a valuable element of this history. Entrepreneurship has been

considered as the heart of economic development and the unit of analysis of studies on it

has basically been the individual. Entrepreneurship is the manifest ability and willingness

of individuals, on their own, in teams, within and outside existing organizations, to

perceive and create new economic opportunities (new products, new production methods,

new organizational schemes and new product market combinations) and to introduce their

ideas in the market, in the face of uncertainty and other obstacles, by making decisions on

location, form and the use of resources and institutions (Orser & Madill, 2006).

According to Kanchana (2013) an entrepreneur is one who plays a significant role in the

economic development of a country. Basically an entrepreneur can be regarded as a

person who has the initiative, skill and motivation to set up a business or an enterprise of

his own and who always looks for high achievement. He is a catalyst of social change and

works for the common good.

He looks for opportunities, identifies them and seizes them mainly for economic gains.

An entrepreneur is a person who is able to express and execute the urge, skill, motivation

and innovative ability to establish a business or industry of his own either alone or in

collaboration with his friends. His motive is to earn profit through the production or

distribution of socially beneficial goods or services (Carrington, 2006). The essence of

entrepreneurship is innovation; an innovative entrepreneur innovates new products, new

processes and new methods or ventures into new markets. Joseph Schumpeter placed

focus on the innovative role of an entrepreneur in his theory of Economic Development.

He was of the view that economic development is the outcome of dynamic changes

11

brought by entrepreneurs by instituting new combination of factors of production

(Morrison, 2006).

Today, entrepreneurship is the dynamic process of creating incremental wealth. The

wealth is created by individuals who assume the major risks in terms of equity, time

and/or career commitment or provide value for some product or service.

The product or service may or may not be new or unique, but value must somehow be

infused by the entrepreneur by receiving and locating the necessary skills and resources

(Abbott, Batoni & Mugisha, 2011). According to Jeremy (2009) despite increased

interest in social entrepreneurship, scholarly research has been challenging. Because

definitions of social entrepreneurship have been developed in a number of different

domains, such as not-for-profits, for-profits, the public sector, and combinations of all

three, a unified definition has yet to emerge.

The promoter of entrepreneurship believes that everyone is an entrepreneur when he

carries out new combinations but finding new combinations of factors of production is a

process of entrepreneurial discovery that will become the engine that drives economic

development. These new combinations constitute better ways to meet existing demands or

create new products, often making current technologies and products. The firm of the

innovative entrepreneur will consequently grow through the dual process of taking market

share from existing suppliers and increasing overall demand for the products offered in

the market by extending the boundaries of economic activity (Angela, 2011).

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2.1.2 Women entrepreneurship

With the significant increase in the number of women involved in entrepreneurship in the

last 20 years, more and more scholars are exploring the reasons for women wanting to set

up their own businesses. Carrington (2006) argued that most women are motivated by

different reasons for starting a business. Most of these are related to social, cultural,

political and economic factors (Mirjam, 2007). Turner shows that the personal factor is a

strong motivational factor to starting one’s own business and he shows that this personal

factor is divided into two categories: Pull Factors: Personal ambition, creativity, self–

realization, desire for independence. Push Factors include lack of an alternative source of

income, unemployment and unsatisfactory employment conditions (Jeremy, 2009).

There are perhaps as many definitions of entrepreneurship as there are entrepreneurs. For

the purpose of this study however, we adopt the functional view of entrepreneurship as a

type of activity or practice with implications for generating jobs, fostering innovation and

increasing productivity by means of which the creation of incomes and wealth is

enhanced. Economic development of any region is an outcome of purposeful efforts by

different sections of the society. One of the major role players is an entrepreneur.

Entrepreneur is a person who organizes and operates the business and is responsible for

the result i.e. loses and gains in the business. In this dynamic world, women entrepreneurs

are an important part of economic development and social progress (Fedex, 2008).

Women entrepreneurs contribute to economic development by producing goods and

services, and that they also play an important role in the social development because they

recognize and respond to their social responsibility. They contribute funds towards social

causes such as education, health, environment and other social cultural activities. Women

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entrepreneurs also generate employment. They provide direct employment in their

business units. The indirect employment is provided in other supporting units that provide

inputs and other services to the entrepreneur or that depend on the entrepreneur for their

inputs and services. Interest in the study of entrepreneurship has flourished among

scholars in recent years (Mirjam, 2007).

Skills are essential to the development of any economy. It is through skills that products

in the form of goods and services are produced to the desires and satisfaction of

customers. With the skills, an individual will be employable and participate in the

production of goods and services. The rewards of this participation are income that will

be earned. Now, when one is skilled, the rewards in terms of whatever income will be

greater than one who is not skilled. With skills the individual is able to perform a task

confidently and is able to sell him or herself with less difficulty. With these capacities

developed, one is able to earn a livelihood regardless of whatever form it may come

(Kanchana, 2013).

Wim (2013) stated that there are different pathways to enterprise creation namely escape

from previous jobs-jobs that from their perspective, offer few rewards in terms of salary,

challenging work and promotion opportunities. Secondly are the enterprisers’ experiences

putting deals together from other firms which form the basis for the business start-up.

Thirdly, enterprisers who held positions in which they used technical skills and expertise

similar to those required in the new business may tend to start a business after discovering

that job advancement and career and salary growth were blocked. And so they start a

business as a risky effort. The fourth one is family inheritance and assistance from family.

Another factor according to the same researcher is the need to pursue and build on

14

previous work or educational training. The environment requires that these entrepreneurs

have specific professional or technical expertise.

Entrepreneurship offers tremendous opportunities for women across the world by opening

doors to greater self-sufficiency, self-esteem, education, and growth – not only for the

women themselves, but also for their families and their employees. And women are

changing the face of business ownership internationally; between one-quarter and one-

third of the world’s businesses are owned by women. As their numbers grow and as their

businesses prosper, they will change the way the world does business (Carrington, 2006).

Worldwide, many women are entrepreneurs. Entrepreneurship emerges from an

individual’s creative spirit into long-term business ownership, job creation, and economic

security. Women bring commitment and integrity because they care about economic

empowerment, entrepreneurial development and innovation. Female entrepreneurs seek

the professional and personal support that is found in business associations. Economic

globalization has encouraged the expansion of female business ownership. The growing

economic power and influence of women-owned businesses are changing the shape of the

global economy.

In a study of women entrepreneurs in the western world, Cooper ( 2000) proposed that

three factors influence entrepreneurship – antecedent influences (i.e., background factors

such as family influences and genetic factors that affect motivation, skills and

knowledge), the “incubator organization” (i.e., the nature of the organization where the

entrepreneur was employed just prior to starting a business; the skills learned there) and

environmental factors (e.g., economic conditions, access to venture capital and support

services, role models) and the study indicates the challenges faced by women

15

entrepreneurship such as access to finance, access to markets, access to training, access to

networks, access to policy makers and statistical invisibility.

Female entrepreneurs have demonstrated the ability to build and maintain long-term

relationships and networks, to communicate effectively, to organize efficiently, to be

fiscally conservative, to be aware of the needs of their environment, and to promote

sensitivity to cultural differences. The global impact of women entrepreneurs is just

beginning to gain intensity. Worldwide, the number of female business owners continues

to increase steadily. Women in advanced market economies own more than 25% of all

businesses and women-owned businesses in Africa, Asia, Eastern Europe, and Latin

America are growing rapidly (Orser & Madill, 2006).

Increasing entrepreneurship among women and providing the needed capital to women

entrepreneurs are decisive components in Africa’s long-term struggle for prosperity. Pro-

active measures to build the assets of women and to connect women to markets are

essential if Africa is to succeed in meeting the challenges of shared growth. A

distinguishing characteristic of African economies is that gender differences lead to men

and women playing substantially different economic roles (Angela, 2011).

Although the research on African women entrepreneurs is limited, anecdotal evidence

supports the belief that the creation of SMEs and the income generated by business

operations and wages paid to employees help to alleviate poverty and empower women.

Despite the growing recognition of the importance of African women’s contributions to

economic growth and their dominance of certain sectors, particularly agriculture and

textiles, women generally remain marginalized, shut out of the formal economy, or

constrained due to lack of access to capital (Ismail, 2006).

16

2.1.3 Socio-economic development

Socio-economic development is the process of social and economic development in a

society. Socio-economic development is measured with indicators such as GDP, life

expectancy, literacy and level of employment. Changes in less tangible factors are

considered, such as personal dignity, freedom of association, personal safety and freedom

from fear of physical harm, and the extent of participation in civil society refers to

qualitative measure of progress in an economy It refers to development and adoption of

new technologies, transition from agriculture-based to industry-based economy, and

general improvement in living standards (Mirjam, 2007).

Economic development is a process through which over time sustained increase occurs in

a nation’s per capita real income(output) accompanied by significant structural changes

that allow for elevated income distribution and a large increase in an individual’s

economic well-being . And the rise in income must be evident through such changes in

basic living conditions as improved nutrition and high nutritional and clothing standards,

improved (modern) housing, improved health and health care, low infant mortality rate,

higher literacy rate, and a general environmental face-lift from a predominantly rural to

an increased metropolitan flavor (Kanchana, 2013).

The poorest of the poor are usually women because discrimination cuts off their escape

routes from poverty - education, health services, equal pay employment, access to land

and finance. It is becoming increasingly clear, however, that there will only be sustainable

development in the Third World when women play an equal part in decision making

17

(Angela, 2011). No developing country can afford to ignore women's existing and

potential economic contribution, or their pivotal role in determining the health and

welfare of a nation's children. All the evidence points to one conclusion: economic

growth and improvement in the quality of life for everyone is faster in areas where

women's status is higher (Jeremy, 2009).

Augmenting rates of enterprise births in local areas and the facilitation of the

development of new women-owned firms can have positive impacts on job creations,

productivity growth, tax revenues, the availability of goods and services and the provision

of positive role models. Entrepreneurship among women is important for local

development and for economic development more broadly (World Bank, 2012).

Development in all societies must have at least the following three objectives according

to Wim (2013): to increase the availability and widen the distribution of basic life-

sustaining goods such as food, shelter, health and protection; to raise levels of living

including, in addition to higher incomes, the provision of more jobs, better education and

greater attention to cultural and human values, all of which will serve not only to enhance

material wellbeing but also to generate greater individual and national self-esteem; to

expand the range of economic and social choices available to individuals and nations by

freeing them from servitude and dependence not only in relation to other people and

nation-states, but also to the forces of ignorance and human misery.

(Carrington, 2006) argues that the role of women in development has become

increasingly an important issue in recent years and this has been due to the shift of

emphasis away from equity concern to the recognition role of the productive roles women

play and the contribution they can make to economic growth and development.

18

This research has brought to light, among other things, the important role of

entrepreneurship and innovation in economic growth. The studies know that innovative

entrepreneurs, those who bring new products and processes to the market, are

disproportionately responsible for the breakthrough or ‘disruptive’ innovations that

change our daily lives and allow for the rapid improvement in standards of living that

developed countries have experienced over the past century, and also disproportionately

responsible for job growth in industrialized economies.

2.2 Empirical literature

Singh (2004) carried out a study called women Entrepreneurship Issues, Challenges and

Empowerment through Self Help Groups: An Overview of Himachal Pradesh. In his

research, he assessed other studies already done in India and concluded that women

workforce ratio in the country is increasing due to the increase in the women literacy rate

in India. The concept of Self Help Groups (SHGs) is proved to be a boon for rural women

in some states of India. It has not only raised their income but also their social status. An

overview of the working of self Help Groups (SHGs) in Himachal Pradesh is also

depicted in this paper.

Angela (2011) carried out a study called Rural and urban women entrepreneurs: A

comparison of service needs and delivery methods priorities in Canada. His study

expanded the knowledge base of women entrepreneurs’ needs, specifically their needs in

terms of service areas and service delivery method preferences. His study also examined

the differences between urban and rural based entrepreneurs. Two service need areas

“how to find mentors and role models” and “legal issues” exhibited statistically

significant priority differences. Service delivery methods did not produce any statistically

19

significant differences. He concluded that regardless of location, women entrepreneurs’

training and support needs are not significantly that different

Wendy and Siong-Choy (2007) carried out a study called Theorizing a Framework of

Factors Influencing Performance of Women Entrepreneurs in Malaysia. The main

objective of their study was to identify a comprehensive list of factors influencing the

performance of Malaysian women entrepreneurs. They focused on other studies carried

out by other researchers and suggested that social psychological and organizational

approaches were widely used to explore and analyze the relationship between the

influence of women’s individual characteristics, parental influence, their business

management and business strategies, goals and motives, networking and entrepreneurial

orientation towards their business performance. This resulted in the development of a

comprehensive theoretical framework which provides significant insights related to

women entrepreneurship practices and their performance levels in Malaysia

Varghese (2011) carried out a study called Women Empowerment in Oman: A study

based on Women Empowerment Index. The objectives of his study was to measure the

women empowerment in Oman by identifying the household decision making ability of

women, to assess the economic decision making capability of women and evaluate the

freedom of mobility of women. During his study, he had taken a sample of 150 women in

Sohar region, Sultanate of Oman, with a structured questionnaire. Statistical Package for

Social Science (SPSS) was the main tool for data analysis and he used regression model

and frequency tables. For quantitative analysis, he selected five main variables as

independent variables and total women empowerment as dependent variable. In

qualitative analysis he had framed total women empowerment index that shows that

women in Sohar were good decision makers. Another finding was that women in Oman

20

are better in household decision making and economic decision making than social

empowerment. He had also taken perception analysis via addressed different issues in

legal and political side. The result showed that majority of women in Sohar region were

aware about their rights and duties.

Duflo (2012) investigated women empowerment and economic development in the

United Kingdom (UK). The objective of his study was to establish the interrelationship

between Women Empowerment and Economic Development in the United Kingdom. He

used documentary analysis and found that the interrelationships are probably too weak to

be self-sustaining, and that continuous policy commitment to equality for its own sake

may be needed to bring about equality between men and women.

Adebowale (2012)carried out a Study of Women Attitudes Toward their Socioeconomic

and Political Empowerment: Nigeria Women and National Development. The objective

of the study was to ascertain if women have favourable attitudes towards their

empowerment in the areas of socio-economic and political issues, to find out if the

concept of women empowerment is gaining currency among women themselves and to

know whether the women are ready for their socio-economic and political empowerment.

The methodology used was descriptive because it revealed current attitudes of the women

towards their empowerment in the stated areas. The research revealed that 72 (36.0%)

respondents contribute 75%-100% of their earnings to family expenses, followed by 64

(32.0%) respondents who contribute 25% - 50% of their earnings, while 16 (8.0%)

contribute nothing to family expenses.

21

Aregawi and Haileslasie (2013) analyzed the Role of Cooperatives in Promoting Socio-

Economic Empowerment of Women: Evidence from Multipurpose Cooperative Societies

in South-Eastern Zone of Tigray, Ethiopia. The objective of the study was to analyze and

assess the role of cooperatives in promoting socio-economic empowerment of women.

Both primary and secondary sources of data were used. The data collection instruments

were interviews, questionnaires and focus group discussions and secondary data were

collected from internal documents of the cooperatives. Out of 75 Multipurpose

Cooperative Societies (MPCs), the sampling technique used was purposive sampling

method. The collected data was analyzed using descriptive statistics. The results indicated

that women participation in cooperatives is very limited. More than 80% of the

respondents are involved in farm activity and only 5% are engaged in paid work. 90% of

the respondents have joined their cooperatives to access financial sources and improve

their bargaining power. They also revealed that women members have improved their

income, livestock holdings, autonomous decision making and spending power after

joining their cooperatives, but, its regularity is limited.

2.3. Critical review and Research Gap Identification

Singh (2004) carried out a study called women Entrepreneurship Issues, Challenges and

Empowerment through Self Help Groups: An Overview of Himachal Pradesh. In his

research, he assessed other studies already done in India and concluded that women

workforce ratio in the country is increasing due to the increase in the women literacy rate in

India. His study particularly focuses on various issues pertaining to women entrepreneurship,

challenges and future perspective in India. His study was very important, but he did not focus

on the challenges faced by women entrepreneurs and analyzed them using both primary and

secondary data.

22

Wendy and Siong-Choy (2007) carried out a study called Theorizing a Framework of

Factors Influencing Performance of Women Entrepreneurs in Malaysia. The main

objective of their study was to identify a comprehensive list of factors influencing the

performance of Malaysian women entrepreneurs. In their research, Wendy and Siong-

Choy did not focus on the the contribution of women to socio-economic development.

Angela (2011) carried out a study called Rural and urban women entrepreneurs: A

comparison of service needs and delivery methods priorities in Canada. His study

expanded the knowledge base of women entrepreneurs’ needs, specifically their needs in

terms of service areas and service delivery method preferences. His study focused on

documentary review and did not focus on challenges that women entrepreneurs face in

their routine business activities especially in developing countries.

Even if the above researchers carried out their studies related to women entrepreneurship

and family socio-economic development, they did not establish the relationship between

variables under study using correlation coefficient. Hence, the researcher intends to

bridge this gap using this research entitled women entrepreneurs and socio-economic

development, with the case study of a handcraft cooperative in Muhanga District.

2.4 Theoretical Framework

This study was guided by economic theory, whereby Naudé (2013) postulated that

economic theory is based on certain assumptions which are broadly classified into four

categories. Psychological or Behavioural Assumptions, are assumptions about the

individual human behaviour. Institutional Assumptions in economic theory relate to

social, political and economic institutions. All economic theories have been developed on

the assumption of a capitalist economy in which the means of production and distribution

23

are privately owned and used for personal gain. Structural assumptions relate to the

nature, physical structure or topography of the economy and the state of technology.

In order to consider the impact of one factor at a time, the other factors are held constant.

In the real world, there may be a number of factors operating simultaneously. If all of

them are included in the analysis, it would become complex. Closer scrutiny of the

relationship between entrepreneurship and economic development is needed. In order to

stimulate the development-entrepreneurship discourse it may be necessary to first attempt

to formalize or reconcile the role of entrepreneurship in the “grand ideas” of development

economics, and to consider how this resonates with available evidence, and what this

means for policy. There are at least three “grand” ideas in development economics. The

first is that development requires a structural transformation of what, how and where

production and consumption takes place: from low-value added, low productivity and

rural-based activities to more productive, higher value added activities in services and

manufacturing located in cities. The second idea is that development is a multi-

dimensional concept that requires more than just the eradication of income poverty. The

third is the idea that market failures are prevalent and that the state has an important

coordinating and regulatory role to play in development. All of these grand ideas are

currently at the forefront of thought in development, and much of what development

scholars are occupying themselves with either directly or indirectly (Naudé, 2013).

According to Kanchana (2013), as well as the “Schumpeterian”, an entrepreneur is above

else an innovator. Scholars who share this view of entrepreneurship do not consider

entrepreneurship to be very important in earlier stages of economic development – they

see the contribution of entrepreneurship to be much more important at later stages of

development, where economic growth is driven by knowledge and competition. At earlier

24

stages of development, entrepreneurship may play a less pronounced role because growth

is largely driven by factor accumulation. Patriarchy is a social system in which: males

hold primary power; males predominate in roles of political leadership, moral authority,

social privilege and control of property; and, in the domain of the family, fathers or

father-figures hold authority over women and children. Many patriarchal societies are

also patrilineal, meaning that property and title are inherited by the male lineage. The

female equivalent is matriarchy.

2.4 Conceptual Framework

Conceptual frameworks are structured from a set of broad ideas and theories that help a

researcher to properly identify the problem they are looking at, frame their questions and

find suitable literature. Most academic researches use a conceptual framework at the

outset because it helps the researcher to clarify his research question and objectives.

These are represented under figure 2.l.

25

Figure 2.1: Women entrepreneurship and socio-economic development

INDEPENDENT VARIABLE DEPENDENT VARIABLE

Source: Researcher

Figure 2.1 indicates relationship between variables under study; women entrepreneurship

is determined by managerial skills, access to market, access to credit, lack of training,

while socio – economic development is determined by health status, living standards, net

worth and purchasing power. They are other intervening variables such as, Culture, ethics and

government policies.

The independent variables demonstrate women entrepreneurship that impact on the social

economic development of the households, either positively or negatively.

Managerial skills refer to getting things done through people. There are also others like

financial resources, infrastructural resources, inventory resources, and others whose

optimum use is essential for effective business management

Women entrepreneurs

Managerial skills

Access to Market

Access to credit

Lack of training

Socio-economic development

Health status

Living standards

Net worth

Purchasing power

Intervening variable

Culture

Ethics

Government policies

26

Access to market refers to the strong links to market for rural women producers. It is

measured by how strong the handcraft products for women can be marketed.

Access to credit refers to the ability to access affordable credits to boost growth of

entrepreneurship growth and training especially in the area of specialization has a positive

or negative impact on return on investment, on purchasing power and net worth.

The dependent variables of the study is social economic development of households

which are expressed in terms of health status, living standards, net worth and purchasing

power. These were measured by the number of women entrepreneurs who have attained

medical services, bought other utensils and improved living standards due to having

business in place. The independent variables have a non negligible impact on the

dependent variables

The intervening variables are all factors that are in the intermediate between women

entrepreneurs and socioeconomic development. These factors are cultural and social

barriers which affect women position in society and business environment. These can be

internal or external factors. These are measured by the number of women who

acknowledge these external forces within the grounds of women entrepreneurship.

2.6 Summary

The role of women entrepreneurs as an engine to economic growth has garnered

considerable public attention. Despite the uncertainties and risks in business, many are

born and operate with just minimal gains to maintain business with no growth. However,

despite their commitment, women entrepreneurs’ business performance is still low.

Therefore, this implies that the performance of enterprises cannot be considered in

terms of profitability and productivity alone but must also take into account the fact

27

that entrepreneurs’ access to entrepreneurship will play a vital role in their

performance. This study aimed to fill the gap in knowledge, with a particular focus on

the attributes of rural Rwandan women entrepreneurs and socio-economic development.

28

CHAPTER THREE: RESEARCH METHODOLOGY

3.0 Introduction

In this chapter, the following sub-topics are discussed: Research design, target population,

sample technique, sample size, research instruments, data collection, data analysis,

validity and reliability, administration of research instrument and ethical consideration.

3.1 Research design

According to the Nipissing University ( 2009), research is any original and systematic

investigation undertaken in order to increase knowledge and understanding, and to

establish facts. This study was mainly qualitative and quantitative; qualitative research

refers to any inquiry that explorers social or human problems and the understanding of

how things occur. A qualitative approach enabled the researcher to reveal the complexity

of the livelihoods of women working in the craft making cooperatives. This research used

both case study and descriptive study. The research is also quantitative because some

statistics were collected and analyzed to measure the achievements of women members of

craft making women in different fields.

3.2 Target Population

Determining the population is fundamental to identify the respondents for the study and

knowing to whom the results may be generalized. This study involved 200 women

members of craft making cooperative from Reba Unyurwe.

29

3. 3 Sample Design

3.3.1 Sample Size

From a target population of 200 women who work in the handcraft cooperative, a sample

size of people were obtained; each group was considered as strata, and a sample size was

taken from each stratum using proportion techniques. Using Taro Yamane formula

(1967),

n = N / 1+ N*e2 ; n: Sample size, N: Population size = 200, e: Error of precision : 0.1

n = 200 / 1+ 200*(0.1)2 = 66.66

n= 67 people

Hence, the sample size is 67 people

Table 3.1: sample size

Category Target population Percentage Sample size

Management 36 17.91 12

Other employees 164 82.09 55

Total 200 100 67

Source: Reba Unyurwe, 2014 and Researcher

This study used both stratified and simple random sampling method, where all

respondents from each group have equal chance to be selected. They were classified into

two groups as it is indicated in the table 3.1.

3.3.2 Sampling techniques

The choice of sampling technique is based on the feasibility and sensibility of collecting

data to answer the research questions and to address the objectives. This research used

stratified sampling method and simple random sampling method. The first strata

30

composed by management and second strata composed by other employees as they are

indicated in the table 3.1. After, making groups the researcher used systematic random

sampling method, whereby they had equal chances to be selected.

3.4 Data collection mmethods

3.4.1 Data collections’ instruments

Data was collected through two primary data collection methods: Semi-structured

questionnaire and interview guide. Primary qualitative data was collected by the use of

the interview guide while primary quantitative data was gathered by the use of semi-

structured questionnaires administered to the women members of Agaseke Handcraft

Cooperative in Muhanga District, Southern Province. During the administration of the

questionnaire, the respondents were supposed to record their responses in the

questionnaire, and unstructured interviews were administered to both women members of

cooperative as well as the cooperative management team.

A semi-structured questionnaire was designed to collect information from the

respondents. It contained both closed-ended and open-ended questions.

3.4.2 Administration of data collection instruments

The researcher distributed the questionnaires to the respondents and waited for them for

two days. The researcher made sure the number of questionnaires distributed were to be

filled by all respondents. The main techniques of primary data collection were interviews

and questionnaires.

31

3.4.3 Reliability and validity

To ensure the validity of the instrument, research advisors checked the questionnaires for

the consistency of the items, intelligibility and clarity, for adjustment and realignment

purposes. As for reliability, the concept refers to the degree to which the same results

would be obtained in repeated attempt of the same tests. To ensure the reliability of the

instruments, the study was conducted into two phases: In the first place, the researcher

used a pre-test to see whether the questions were well formulated, by delivering ten

questionnaires to ten members of Reba Unyurwe Cooperative. In the second phase, after

making necessary corrections, the instruments were re-administered, this time to the main

respondents.

3.5 Data analysis procedures

After gathering data, the researcher went through the electronic and paper copies of the

instruments responses and coded all names to maintain confidentiality as stated in the

consent form. The responses to the open-ended questions were tabulated based on the

frequency of responses and to analyze data, the researcher used the questionnaire where

different reactions of women entrepreneurs were occupied in handcraft cooperatives

sector. They were recorded and analyzed using different statistical indicators like

percentages and frequencies.

3.6 Ethical considerations

With regard to this study, the aims and objectives were conveyed to all the relevant

authorities during the process of acquiring permission to do research, and to the members

of the handcraft cooperative involved during the data collection stage. Respondent’s

32

participation was voluntary and they had the right to withdraw from the study at any time

if they would wish so.

The following ethical issues, though not exhaustive, have been identified by various

authors as important to be considered during any research: Informed consent, avoidance

of harm, violation of privacy, anonymity and confidentiality, deceiving respondents or

concealing of information, respect for human dignity that include the right for full

disclosure, debriefing respondents and presentation and interpretation of data, of which

the researcher took care of.

33

CHAPTER FOUR: RESEARCH FINDINGS AND DISCUSSION

4.0 Introduction

In this chapter the researcher presents the findings which were collected from the field by

using the questionnaires. The questionnaires and interview were administered to the

respondents whereby they were required to answer and give out their information based

on their understanding on the topic of women entrepreneurs and socio-economic

development. In this chapter presented in tables, the researcher distributed 67

questionnaires but 3 questionnaires were not returned. This implies that the researcher

analyzed 64 questionnaires in this research.

4.1.Demographic Characteristics of Respondents

The researcher presents the respondents’ demographic characteristics in terms of

Cooperative registration, way of registration, education and experience. This was done in

order to form a basis of making conclusions on the views that respondents gave on

women entrepreneurship and socio-economic development.

Table 4.2: Cooperative registration

This study focuses on cooperative registration, as it was indicated by the respondents.

Frequency Percent

Yes 64 100.0

Source: Primary Data

Table 4.2 shows that all 64 respondents (100 %) confirmed that their cooperative is

registered under cooperatives’ law. The data collected from the respondents during the

research study were appropriate since all respondents operate under the cooperative

which is known by the cooperative’ law.

34

Table 4.3: Way of registration

In relation to Table 4.3, this study indicated the way of registration, where respondents

confirmed that Reba –Unyurwe is registered as cooperative.

Frequency Percent

Cooperative 64 100.0

Source: Primary Data

Table 4.3 indicates that all respondents confirmed that they are registered as an

independent cooperative. This implies that all cooperative members are identified through

the sunshade of cooperative.

Table 4.4: Accessibility to bank account

Table 4.4 presents the views of respondents on accessibility to bank account as follows,

Frequency Percent

Yes 64 100.0

Source: Primary Data

Table 4.4 indicates that, out of 64 respondents, 100% of respondents confirmed that they

own and have access to bank accounts. This shows that a registered cooperative with its

own account number helps in its full identification, and that accessibility and financial

management is certain.

35

Table 4.5: Experience in the business

In relation to Table 4.5, the study focused on the experience that Reba Unyurwe

Cooperative’s members have.

Frequency Percent

1-2 years 8 12.5

3-4 years 40 62.5

5-6 years 16 25.0

Total 64 100.0

Source: Primary Data

Table 4.5 indicates that out of 64 respondents, 12.5% had a business experience of 1-2

years, 62.5% had experience of 3-4 years, and 25.0% of them had experience of 5-6

years. This implies that the more the cooperative remains in business the more it increases

adherents, and it becomes easier to determine performance. Therefore, as long as the

respondents have enough experience in their business, that helped the researcher to get

accurate information concerning research objectives.

4.2 Presentation of Findings

The purpose of this section is to present information obtained from the questionnaire and

interview as guided by the objectives of the study.

4.2.1 Challenges Faced By Women Entrepreneurs in Reba-Unyurwe Cooperative

This subsection focuses on the Challenges faced by women entrepreneurship in Reba-

Unyurwe Cooperative, such as lack of market, lack of support from other female business

36

leaders, Afraid of failure, Lack of training, combination of family obligations and

business and lack of strategic plan.

Table 4.6: Challenges faced by women entrepreneurs in Reba-Unyurwe Cooperative

Challenges / Perception Strongly agree Agree Disagree

lack of market 34.4 60.9 4.7

Lack of support from other female business leaders 40.6 59.4

Afraid of failure 53.1 29.7 17.2

Lack of training 56.2 15.6 28.1

combination of family obligations and business 54.7 56.2 43.8

lack of strategic plan 54.7 45.3

lack of an undefined niche 56.2 43.8

Source: Primary Data

Table 4.6 indicates that out of 64 respondents, 22 (i.e 34.4%) strongly agreed that lack of

market is among the challenges faced by women entrepreneurs in Reba-Unyurwe

cooperative,39 (i.e 60.9%) also agreed with the above statement and only 3 (i.e 4.7%)

have not seen lack of market as a challenge. Hence, lack of access to the market affects

the socio-economic development of Reba-Unyurwe to a large extent.

Further more, 26 (i.e 40.6%) respondents strongly agreed that the lack of the support of

other female business leaders is among the challenges faced by Reba-Unyurwe members

and 38( i.e 59.4%%) agreed that the lack of the support of other female business leaders is

among the challenges faced by Reba-Unyurwe members. Hence, Reba Unyurwe

cooperative members recognize lack of support from other women as a challenge and this

is an indicator that these hindrances negatively affect their level of socio-economic

development.

37

It also indicates that 53.1% of respondents strongly confirmed that being afraid of failure

or loss is among the challenges faced by women entrepreneurs; 29.7% also supported the

idea that being afraid of failure is a challenge among others that women entrepreneurs

face while 17.2% disagreed with the statement. Hence, the findings indicated that women

entrepreneurs are afraid of failure or getting losses in their business endeavors, this

discourages women to participate in different types of business.

Concerning family obligations and business, Table 4.6 indicates that 56.2% of

respondents strongly agreed that combination of family obligations and business is among

the challenges faced by their cooperative as women entrepreneurs, 15.6% agreed with the

statement and 28.1% disagreed with the statement. Since, the majority of respondents

confirmed that combination of family obligations and business is among the challenges

faced by Reba-Unyurwe cooperative; therefore, this implies that family obligations affect

the level of performance of women entrepreneurs in their routine activities.

Table 4.6 indicates that out of 64 respondents, 54.7% of respondents strongly disagreed

that lack of a strategic plan is one of the challenges faced by their cooperative as women

entrepreneurs; 45.3% also disagreed . Hence, the findings indicated that lack of a strategic

plan is not among the challenges faced by Reba-Unyurwe cooperative. Therefore, Reba

Unyurwe performance is based on the prepared strategic plan, so that they can solve all

issues concerning them as women entrepreneurs.

Table 4.6 indicates that out of 64 respondents, 56.2% strongly agreed that lack of

undefined niche is among the challenges that women entrepreneurs face and 43.8%

agreed that lack of an undefined niche is a challenge among others. Hence, this research

confirmed that lack of an undefined niche is one of the challenges faced by Reba-

38

Unyurwe cooperative. This implies that there is a need of training concerning marketing

in Reba-Unyurwe Cooperative.

Figure 4.2 presents perception of respondents on level of taxes according to the views of

respondents

Figure 4.2: Perception of respondents on level of taxes

Source: Primary Data

Figure 4.2 indicates that out of 64 respondents, 51.56% of respondents greatly confirmed

that tax is among the challenges faced by its cooperative as women entrepreneurs,

34.38% agreed with the confirmation that tax is among the challenges faced by its

cooperative as women entrepreneurs and 14.06% disagreed with the statement. Hence, the

majority of respondents confirmed that tax is among the challenges faced by Women

entrepreneurs in Rwanda.

39

Figure 4.3 presents Views of respondents on lack of training as among of the challenges

that affect women entrepreneurs in Reba-Unyurwe Cooperative.

Figure 4.3: Views of respondents on lack of training

Source: Primary Data

Figure 4.3 indicates that out of 64 respondents, 51.56% of respondents strongly agreed

that lack of training is among the challenges faced by their cooperative as women

entrepreneurs, 28.1% also confirmed the above while 20.31% disagreed with the

statement. Hence, the study indicated that lack of training is among the challenges faced

by Reba-Unyurwe cooperative members, and therefore a hindrance for their economic

development.

40

Figure 4.4 presents Views of respondents on lack of social media plan as among of the

challenges that affect women entrepreneurs in Reba-Unyurwe Cooperative.

Figure 4.4: Views of respondents on lack of social media plan

Source: Primary Data

Figure 4.4 indicates that out of 64 respondents, 56.25% of respondents strongly agreed

that the lack of a social media plan is among the challenges faced by their cooperative as

women entrepreneurs and 43.75% agreed that a lack of a social media plan is among the

challenges faced by its cooperatives as women entrepreneurs. Hence, this research found

that lack of a social media plan is among the challenges faced by Reba-Unyurwe

cooperative, which has to be enhanced at the community level.

41

4.2.2 The Drivers That Influence Women Socio-Economic Development in Reba-

Unyurwe cooperative

Table 4.7 presents views of respondents on Government policies as among the drivers

that influence women socio-economic development in Reba-Unyurwe cooperative.

Table 4.7: Government policies

Frequency Percent

Equal shareholder 64 100.0

Source: Primary Data

Findings in Table 4.7 indicate that all respondents agreed that government policies

facilitate women socio-economic development. This implies that the Government of

Rwanda promotes gender balance and it has got policies and regulations that facilitate

women to participate in socio economic development.

Table 4.8 presents Views of respondents on ownership of the business as among the

drivers that influence women socio-economic development in Reba-Unyurwe

cooperative.

Table 4.8: Ownership of the business

Frequency Percent

Equal shareholder 64 100.0

Source: Primary Data

Table 4.8 indicates that out of 64 respondents, 100 per cent agreed that they have equal

shares in Reba-Unyurwe Cooperative. This implies that every member of cooperative has

the right to bring on board a new idea according to the business needs. Hence, this means

42

that the ownership of business in Reba-Unyurwe influences the level of its performance

and members on socio-economic development.

Table 4.9 presents opinions of respondents on source of money in startup of the business

as among the drivers that influence women socio-economic development in Reba-

Unyurwe cooperative.

Table 4.9: Source of money in Reba Unyurwe cooperative

This table introduces the source of money in starting business in Reba Unyurwe

Cooperative

Frequency Percent

Borrowed/got loan from

financial institution 50 78.1

Borrowed from a

friend/relative 14 21.9

Total 64 100.0

Source: Primary Data,

Table 4.9 shows that out of 64 respondents, 78.1% confirmed that they got loans from

financial institution and 21.9% confirmed that they got loans from friends. Based on the

findings, even if the initial capital of Reba-Unyurwe came from the members of the

cooperative, women had to seek credits from financial institutions and their friends to

help them grow stronger in business. Hence in entrepreneurship, women members of

Reba Unyurwe Cooperative expanded their business through external financial support to

keep their business on track and to uplift .their socioeconomic development.

43

Table 4.10 presents views of respondents on influencing factors to undergo and keep

business on track as among the drivers that influence women socio-economic

development in Reba-Unyurwe cooperative in the following manner

Table 4.10: Influencing factors in business

Frequency Percent

Managerial skills 50 78.1

Access to credit 14 21.9

Total 64 100.0

Source: Primary Data

Table 4.10 indicates that out of 64 respondents, 78.1% chose managerial skills as the

main attribute that influence business and 21.9% chose access to credit. Hence,

managerial skills are the main factors that facilitate business performance in Reba

Unyurwe cooperative. Therefore there is need to boost the business economy by keeping

managerial skills upgraded for better results.

Table 4.11 presents views of respondents on special treatment as a woman entrepreneur

as among the drivers that influence women socio-economic development in Reba-

Unyurwe cooperative.

44

Table 4.11: Women entrepreneurs ‘special treatment

Frequency Percent

Strongly agree 54 84.4

Agree 10 15.6

Total 64 100.0

Source: Primary Data

Table 4.11 indicates that out of 64 respondents, 84.4% strongly agreed that they were

accorded special treatment of being women entrepreneur and 15.6% agreed with the

statement. Hence, in Rwanda, women have accessibility and right to do business, since

they get special treatment and are also respected as the bread earners, whereas they also

hold on to some other factors that should motivate them, like those Microfinance

institutions (MFis) for women (Duterimbere).

Table 4.12 presents views of respondents on respect within the society, easy access to

loan, and improvement in living standards.

Table 4.12: Views of respondents on respect within the society, easy access to loan,

improvement in living standards

Frequency Percent

Strongly agree 50 78.1

Strongly disagree 14 21.9

Total 64 100.0

Source: Primary Data

Table 4.12 demonstrates that out of 64 respondents, 78.1% strongly agreed that respect

within the society, easy access to loan, improvement in living standards motivate women

45

entrepreneurs and 21.9% agreed that respect within the society, easy access to loan and

improvement in living standards motivate women entrepreneurs. Hence, this research

found that respect within the society, easy access to loan and improvement in living

standards of families motivate women entrepreneurs. Respondents felt that their status

improved in the neighborhood as well as in the family due to their financial position

having become better after they started their business. In fact their better economic

position ensured more stability to their business enterprises, and therefore more respect.

Table 4.13 presents views of respondents on policies concerning women entrepreneurship

in Rwanda

Table 4.13: Policies concerning women entrepreneurship in Rwanda

Frequency Percent

Strongly agree 58 90.6

Disagree 6 9.4

Total 64 100.0

Source: Primary Data

Table 4.13 shows that out of 64 respondents, 90.6% strongly agreed that policies

concerning women entrepreneurship in Rwanda influence the performance in business

and uplift the socio-economic development of Reba-Unyurwe Cooperative; while 9.4%

disagreed with the statement. This shows that nearly all respondents agreed that policies

concerning women entrepreneurs in Rwanda are not hard. Therefore, this implies that the

Government of Rwanda has policies which influence and facilitate women entrepreneurs’

in Rwanda and they are accessible.

46

Table 4.13 presents views of respondents on the sufficiency of a handcraft market in

Rwanda

Table 4.14: The sufficiency of a handcraft market in Rwanda

Frequency Percent

Strongly disagree 54 84.4

Agree 10 15.6

Total 64 100.0

Source: Primary Data

Table 4.14 illustrates that out of 64 respondents, 84.4% sharply disagreed that the

handcraft market in Rwanda is sufficient and 15.6% agreed that the market is sufficient.

Hence, the majority of respondents confirmed that a handcraft market in Rwanda is not

sufficient. Hence, there is a need for mobilization concerning marketing of product in

Reba-Unyurwe Cooperative.

Views of respondents on being a member of other associations as an element that affects

entrepreneurship are presented in Table 4.15

Table 4.15: Linkage to other associations and women entrepreneurship

Frequency Percent

Strongly agree 50 78.1

Agree 14 21.9

Total 64 100.0

Source: Primary Data

47

The table 4.15 indicates that out of 64 respondents, 78.1% agreed strongly that being a

member of any association affects entrepreneurship and 21.9% also agreed with the

statement. The conclusion here is that being a member of any other association affects

entrepreneurship, because it affects managerial skills and experience of entrepreneurs.

In relation to the views of respondents on services obtained from the Government of

Rwanda, this study used Table 4.16 as follows;

Table 4.16: Services obtained from the Government of Rwanda

Frequency Percent Valid Percent

Cumulative

Percent

Trainings and

consultation 5 7.8 7.8 50.0

Assistance in

marketing Product 27 42.2 42.2 92.2

Access to

information 32 50 50 100.0

Total 64 100.0 100.0

Source: Primary Data

Table 4.16 shows that out of 64 respondents, 50% of respondents confirmed that access to

information is among the services obtained from the Government of Rwanda, 42.2% said

that assistance in marketing a product is also among the services obtained from the

Government of Rwanda while 7.8% chose training and consultation as some of the

services obtained from Government. The conclusion here, basing on the facts above is

that the Government of Rwanda should focus on the training and consultation for these

small cooperatives that are developing, especially those for women, so that the socio-

economic development should be improved in their household.

48

In relation to views of respondents on improvement of socio-economic development, this

study used Table 4.17 as follows;

Table 4.17: Women entrepreneurship’s socio-economic development

Frequency Percent

Strongly agree 50 78.1

Agree 14 21.9

Total 64 100.0

Source: Primary Data

Table 4.17 indicates that out of 64 respondents, 78.1% strongly approved that their socio-

economic welfare has improved through entrepreneurship, 21.9 % agreed that their socio-

economic life improved through entrepreneurship. Hence, majority of respondents

confirmed that their socio-economic status improved through entrepreneurship. Some of

the indicators include affording tuition fees for their children, paying communal medical

insurance premiums for the family and construction and/ or renovation of residential

houses which changed their quality of life positively. This implies that women

entrepreneurs within Reba Unyurwe cooperative have experienced the socioeconomic

development as a result of having business, as they learn how to turn their creativities into

profits and advance their family’s social status.

49

In relation to Views of respondents on educated women and poor household’s income ,

this study used Table 4.18 as follows;

Table 4.18: Women entrepreneurs’ education and increase of poor household’s

income

Frequency Percent

Strongly agree 54 84.4

Agree 7 10.9

Disagree 3 4.7

Total 64 100.0

Source: Primary Data

Table 4.18 indicates that out of 64 respondents, 84.4% were in total agreement that

education facilitates women entrepreneurs to improve poor household’s income, in Reba-

Unyurwe Cooperative, 10.9% agreed with the statement and 4.7% disagreed. The

majority of respondents confirmed that education facilitates women entrepreneurs to

improve their household’s income. This implies that education coupled with business

boosts business growth.

Concerning the views of respondents on availability of training in Reba Unyurwe

cooperative, this study used Figure 4.5

50

Figure 4.5: Views of respondents on availability of training

Source: Primary Data

Figure 4.5 indicates that out of 64 respondents, 92.2% stridently disagreed with the

availability of training in Reba-Unyurwe Cooperative and 7.8% agreed that they benefited

from training concerning their business. Hence, the Government of Rwanda has a task to

grant and increase the availability of training opportunities for women entrepreneurs in

their routine business.

51

Views of respondents on the effects of business experience to improve socio-economic

development in Reba-Unyurwe cooperative are presented in Figure 4.6

Figure 4.6: Views of respondents on the effects of business experience to improve

socio-economic development

Source: Primary Data

Figure 4.6 indicates that out of 64 respondents, 65.6% agreed that business experience

affect improvement in socio-economic of women entrepreneurs, 26.6% agreed that

business experience influences improvement of socio-economic development while 7.8%

disagreed with the statement. Hence, majority of respondents confirmed that business

experience had improved the socio-economic status of women entrepreneurs. By

implication, years in business matter a lot for the remarkable improvement of socio-

economic development.

52

Views of respondents on financial resources as a tool of household’s income are

presented in Figure 4.7

Figure 4.7: Views of respondents on financial resources as a tool of household’s

income

Source: Researcher

Figure 4.7 indicates that out of 64 respondents, 89.1% strongly agreed that financial

resources are a tool for household’s incomes, 3.1% agreed with the statement and 7.8%

disagreed. Hence, the majority of respondents confirmed that financial resource is a tool

for a household’s income. This implies that women who have embarked on business to

get financial resources have tremendously improved their households’ incomes.

53

4.2.3 Relationship Between Women Entrepreneurship And Family Socio-Economic

Development

Using Pearson correlation coefficient, this study established the relationship between

women entrepreneurship and family socio-economic development as it is shown in Table

4.19

Table 4.19: Relationship between Women entrepreneurs and socio-economic

development

Women

entrepreneurs

Socio-economic

development

Women entrepreneurs Pearson Correlation 1 .783**

Sig. (2-tailed) .000

N 64 64

Socio-economic

development

Pearson Correlation . 783** 1

Sig. (2-tailed) .000

N 64 64

**. Correlation is significant at the 0.01 level (2-tailed).

Source: Primary Data

Using Pearson correlation coefficient, the Table 4.19 indicates that women entrepreneurs

(Reba – Unyurwe women Cooperative) impact the socio-economic development at the

rate of 78.3%.

54

Legend:

[-1.00 - 0.00[ : Negative correlation;

[0.00 - 0.25 [ : Positive and very low correlation;

[0.25 - 0.50 [ : Positive and low correlation;

[0.50 - 0.75 [ : Positive and high correlation and

[0.75 - 1.00] : Positive and very high correlation

Table 4.19 shows that the correlation between women entrepreneurs (Reba – Unyurwe

women cooperative) affects Socio-economic development using primary data. The

researcher used Pearson Correlation Coefficient and established that the coefficient r

equals to 0.783. The variation of Pearson Coefficient Correlation is between -1 and 1.

Pearson Coefficient correlation has significance when it is equal or greater than 0.01

according to the result got from table 4.26 using SPSS program. According to the

research, the correlation of 0.783 (78.3%) is located in the interval [0.75 – 1.0[categorized

as positive and very high correlation. As the significant level is at 0.01 (1%), the p-value

of 0.000 (i.e. 0.0%) is less than 1%. This leads to confirm that there is significant

relationship between women entrepreneurs (Reba – Unyurwe Agaseke Cooperative) and

Socio-economic development.

In relation to the findings of this study, as per the first objective, the researcher discussed

that problems faced by women in socio-economic development in the present system are

based on structure of society, social factors such as illiteracy, economic dependence on

male partners within family and cultural and social norms. The society considers women

of less owners and its thought that they are socially immature, they have less control over

their empowerment and hence have less moral control and physical restraint on socio-

economic development. Therefore, the level of socio – economic development depends

55

on the availability of financial resources. This study examined women's participation in

socio-economic development relative to their husbands and other family members. The

second objective confirmed that Government Rwanda promotes gender balance policies

and regulations that facilitate women to participate in socio economic development.

Women learn how to turn their creativities into profits, advance their family’s social

status. Reba - Unyurwe cooperative members’ homes attained various types of basic

requirements for a comfortable life such as sofa sets, television, telephones, and therefore

earned more respect and better command over their family matters. Therefore, these

confirm the positive relationship between women entrepreneurs and socio-economic

development in Rwanda.

There is a dire need today to sensitize and to empower the female members of the family

to make them understand their rights and responsibilities. It has to be convinced that if

women become empowered and built their confidence, they can play the role of the socio-

economic for society and the whole country in the socio economic development.

56

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSIONS AND

RECOMMENDATIONS

5.0 Introduction

This chapter focuses on summary, conclusions, and recommendations. It gives summary

of findings according to three research objectives, conclusions where the researcher

answers the research questions, recommendations and ends with suggestions for further

study.

5.1 Summary of the Major Findings

This study was carried out on women entrepreneurs and the family’s socio-economic

development in Rwanda. This summary relies on challenges faced by women

entrepreneurs and how they are addressed; the motivation of women to join the

cooperatives for enterprise running, and the relationship between entrepreneurship and

the family’s socio-economic development.

5.1.1 Challenges Faced By Women Entrepreneurs

Basing on the findings and in accordance to the objective one of this study which deals

with the challenges faced by women entrepreneurs and how they are addressed, the

respondents of this study have revealed some challenges that affect them negatively. The

findings from table 4.6 indicate that 34.4% of respondents strongly claimed to have

suffered from insufficient markets for their products, 60.9% also confirmed this challenge

in Reba - Unyurwe Agaseke Cooperative. Apart from market issue, 40.6% respondents

strongly assert that the lack of the support of other female business leaders is a challenge

faced by Reba - Unyurwe members, of which 59.4% also agreed. Moreover 51.56% of

57

respondents consider tax among the challenges faced by women entrepreneurs in their

cooperative. In the same line of issue, while 34.38 % of respondents agreed, 53.1%

confirmed that being afraid of failure is among the challenges faced by their cooperative

as women entrepreneurs. 51% of respondents, members of Reba - Unyurwe Cooperative

stated the lack of training as their big challenges. Women indicate that they need training

in communication skills, management skills and specific training regarding their

particular businesses.

A combination of family obligations and business has also been singled out among the

challenges faced by their cooperative as women entrepreneurs. Therefore, obligatory

women’s participation in development programs positively impacted on women’s

involvement in income generation but did not change their position in the households nor

the attitudes towards the general role of women in society at large. Deeply rooted gender

discrimination is left intact. When women entrepreneurs in Reba - Unyurwe Cooperative

have to talk business with primarily male executives, it can be intimidating. To

compensate and protect themselves, women often feel as though they need to adopt a

stereotypically "male" attitude toward business: competitive, aggressive and sometimes

overly harsh. The challenges quoted above hinder the performance of women

entrepreneurs of Reba - Unyurwe Cooperative who responded at the questionnaire.

5.1.2 The drivers that Influence Women Socio-Economic Development In Reba -

Unyurwe Cooperative

In relation to the drivers that influence women socio-economic development in Reba -

Unyurwe cooperative, this study found that, all respondents confirmed that they have

equal shares in Reba - Unyurwe cooperative. This research also established that 78.1% of

respondents said that managerial skills, and access to credit are among of the factors that

58

has motivated the spirit of entrepreneurship among women; 84.4% of respondents

strongly agreed that they have received special treatment for being women entrepreneur;

78.1% believed that they have earned respect within the society, easy access to loan,

improvement in living standards of their families motivate women entrepreneurs whereas

21.9% also agreed with that statement. Although 84.4% of respondents viewed that

handcraft market in Rwanda is not sufficient, respondents who are in the range of 78.1%

reasoned that their socio-economic status has improved through entrepreneurship.

Women are natural networkers. Women in Reba - Unyurwe Cooperative point at the

behavioral norms at the society level, by asserting that norms of appropriate female

behavior in social networking can bring success. Effective policies that facilitate women

entrepreneurship have also been ideal to enhance the socioeconomic development. There

is evidence that when women are given support (both financial and emotional) is an

important determinant of entrepreneurial behavior: It shapes the confidence of women

entrepreneurs to achieve their ambitions, enhancing the chances for the growth of their

businesses.

5.1.3 Relationship Between Entrepreneurship And Family Socio-Economic

Development

This research found that there is a positive relationship between women entrepreneurs and

socio-economic development. The researcher used Pearson Correlation Coefficient and

found that the coefficient r equals to 0.783. This leads to confirm that there is a significant

relationship between women entrepreneurs and socio-economic development.

59

5.2 Conclusion

Based on the findings, the study revealed that women entrepreneurs in Reba - Unyurwe

Handcraft Cooperative have improved their families’ social economic development.

In this research study, all research questions that guided the whole research were fully

answered.

According to the first research question, lack of access to market affects the socio-

economic development of Reba - Unyurwe to a large extent. Reba - Unyurwe lacks

experience from other women cooperatives, which in turn among other factors should

negatively impact their level of socio-economic development.

The majority of respondents confirmed that tax is among the challenges faced by women

entrepreneurs in Rwanda. The majority of respondents also confirmed that women

entrepreneurs are afraid of failure. Many of the respondents established that lack of

training opportunities was also among the challenges faced by Reba - Unyurwe

Cooperative members, while majority of the respondents confirmed that having to embark

on their entrepreneurial activities and having to do their ordinary household chores as

women was other big challenges faced by Reba - Unyurwe Cooperative members. All

respondents confirmed that lack of an undefined niche together with insufficiency of

market is among the challenges faced by Reba - Unyurwe Cooperative. This implies that

there is a need for training concerning marketing in Reba - Unyurwe Cooperative.

According to the second research question, the drivers that influence women socio-

economic development in Reba - Unyurwe cooperative, even if the initial capital of Reba

- Unyurwe came from the members of the cooperative, in setting up their business, those

members got money from different credit lines to advance their families ‘social status.

60

Consequently, educational fees for children, mutual health insurance for family,

construction and/ or renovation of houses were changed and the quality of life has

improved as a result of having business. While the majority of respondents confirmed that

education facilitates women entrepreneurs to improve poor household’s incomes, the

Government of Rwanda has a task to increase the availability of training programs for

women entrepreneurs in their day to day routine business

On the other hand, managerial skills and access to credit or financial resources were

found the main factors that facilitate business performance in Rwanda; women have

accessibility and right to do business, whereby there are some facilities are in place to

motivate them, like those MFis for women (Duterimbere), besides effective Government

policies.

This research also concluded that being a member of other associations affects

entrepreneurship because it affects managerial skills and experience of entrepreneurs.

The Government of Rwanda should focus on training and consultation for these small

cooperatives that are developing, especially those for women, so that the socio-economic

environment should be improved. The majority of respondents confirmed that their

socio-economic status has improved through entrepreneurship.

According to the third research question, relationship between women entrepreneurship

and family socio-economic development, using Pearson correlation coefficient, the table

4.26 indicates that women entrepreneurs (Reba – Unyurwe women cooperative) affect

Socio-economic development on the rate of 78.3%.

61

5.2 Recommendations

The study findings yielded the following recommendations in view of women

entrepreneurs and socio-economic development.

5.2.1. Short term Recommendations

Women entrepreneurs must minimize all loss caused by lack of training and low level of

education that leads to lack of managerial skills in their routine activities of business by

seeking various trainings available, especially those related to their business. Training for

entrepreneurship should be built on a thorough analysis of their training needs before,

during and after they move into business.

Women should also expand their markets; participate in different trade fairs since it is an

opportunity for marketing their products, in order to achieve high levels of performance.

Women entrepreneurs’ members of Reba - Unyurwe cooperative should do the awareness

campaigns of their products to attract more clients, they should also integrate exchange

visits; to visit projects and cooperatives that already realized gains/profit to learn more as

they do their businesses.

5.2.2. Medium term recommendations

The Government of Rwanda should formulate policies to ensure that entrepreneurs of

rural areas are guided in a way that it successfully guides rural people through availing

resources and procedures that favor the context of the entrepreneurs ‘needs.

The Government needs to promote women entrepreneurship by encouraging grassroots

self-help efforts in several ways, including funding direct operations, training, education

and subsidiary activities of community groups.

62

Women members of Reba - Unyurwe handcraft cooperative should look for mentors and

coaches for informal learning, exchange of good practices and for resolving real-life

business problems in a sustainable manner. It has come to the attention that the level of

socio-economic development depends on the performance of their business. The

implementation of an international network would provide access to new technology,

could help to reach new markets and could change the community for the better.

Women entrepreneurs’ members of Reba - Unyurwe cooperative, should diversify their

income generating activities to meet the whole and surrounding population.

5.2.3. Long term recommendations

The Government of Rwanda has:

-To initiate entrepreneurial learning at an early start to develop entrepreneurship skills in

boys and girls according to their own needs and interests.

-To initiate that entrepreneurship become a key competence in curricula. Special attention

should be paid to developing leadership skills in girls from the early phases of education

and to broadening their exposure to technology-related issues.

Women in entrepreneurship should not be fearful of the world of business and have self

confidence in their strengths and confidence

The Government of Rwanda and all stakeholders engaged in women entrepreneurship

should make sure that different trainings are provided, and that they should be built on a

thorough analysis of their training needs both before, during and after they move into

business.

63

5.3 Suggestions for Further Studies

As women have the main role in any country, it is necessary to study and analyze their

contribution in business through several stages at micro and macro-economic level. The

future researchers should carry out a research on the contribution of women-owned

businesses in rural areas’ development, women access to credit and household income.

64

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APPENDICES

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Appendix I: Questionnaire

INTRODUCTION

These questions are designed to solicit your views on women entrepreneurs and family

socio-economic development. This study is purely academic and as a matter of fact, the

information you provide here would be kept confidentially.

Thank you for your support

KAGOYIRE Sophie

Please answer all questions below and tick as appropriate to you

Enterprise level information

1. Is your enterprise registered?

Yes [ ]

No [ ]

2. If registered, how is it registered?

Private limited company [ ]

Public limited company [ ]

Cooperative [ ]

3. Does your business have a bank account?

Yes [ ]

No [ ]

4. Number of years in the business

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Under 1 [ ]

1 - 2 [ ]

3 – 4 [ ]

5 – 6 [ ]

7 and above [ ]

5. Are you the sole owner or shareholder of the enterprise?

Sole owner (100% ownership) [ ]

Majority shareholder (over 50% share) [ ]

Equal shareholder (50% share) [ ]

Minority shareholder (less 50% share) [ ]

Challenges

1. Challenges faced by women entrepreneurs: Fill this table using

1: Strongly Agree, 2: Agree, 3:Not sure, 4: Strongly Disagree, 5: Disagree

Challenges 1 2 3 4 5

Lack of market

Lack the support of other female business leaders

High taxes

Women entrepreneurs are afraid of failure

Lack of training

Combining family obligations and business

No strategic plan

No social media plan

Undefined niche

Motivations

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2. What was the major source of money you started this enterprise with?

Borrowed/got loan from financial institution [ ]

Savings over a period of time [ ]

Savings from other enterprises/business [ ]

Borrowed from a friend/relative [ ]

Savings circles [ ]

3. What were the major influencing factors that were helpful in starting this

business?

Managerial skills [ ]

Marketing [ ]

Access to credit [ ]

Experience [ ]

4. Do you enjoy any special treatment concerning entrepreneurship by virtue of

being a women entrepreneur?

Strongly agree [ ]

Agree [ ]

Disagree [ ]

Strongly disagree [ ]

5. Respect within the society, easy access to loan, improvement in living standards

families motivate woman entrepreneurs

Strongly agree [ ]

Agree [ ]

Disagree [ ]

Strongly disagree [ ]

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6. Policies concerning women entrepreneurship in Rwanda are hard

Strongly agree [ ]

Agree [ ]

Disagree [ ]

Strongly disagree [ ]

7. Do you think that the market for handcraft is sufficient?

Strongly agree [ ]

Agree [ ]

Disagree [ ]

Strongly disagree [ ]

8. Do you agree that being a member of associations or network of women

entrepreneurs affect entrepreneurship?

Strongly agree [ ]

Agree [ ]

Disagree [ ]

Strongly disagree [ ]

If you do, what services have you obtained from it/them

a) Trainings and consultation [ ]

b) Assistance in marketing product [ ]

c) Access to information [ ]

d) Loan and working capital [ ]

e) Access to business advisory services [ ]

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9. Educational fee for my children, mutual health insurance for my family,

construction and/ or renovation of house are changes in the quality of life have

come about as a result of having business

Strongly agree [ ]

Agree [ ]

Disagree [ ]

Strongly disagree [ ]

10. What do you think women entrepreneurs can do to improve poor household’s

incomes?

a. Education.

Strongly agree [ ]

Agree [ ]

Disagree [ ]

Strongly disagree [ ]

b. Training

Strongly agree [ ]

Agree [ ]

Disagree [ ]

Strongly disagree [ ]

c. Experience

Strongly agree [ ]

Agree [ ]

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Disagree [ ]

Strongly disagree [ ]

d. Financial aspect

Strongly agree [ ]

Agree [ ]

Disagree [ ]

Strongly disagree [ ]

11. What do you think women entrepreneurs can do to improve poor household’s

income?

………………………………………………………………………………………

………………………………………………………………………………………

…

12. What are the driver influencing women entrepreneurs in socio economic

development?

………………………………………………………………………………………

13. What are the benefits of being a woman entrepreneur in Rwanda?

………………………………………………………………………………….

Thank you

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