Financial Inclusion in Bujumbura- Burundi: Why Research on Women Entrepreneurs Need New Directions on Microfinance Services
Journal Title: Journal of Economics, Finance and Management Studies - Year 2024, Vol 7, Issue 07
Abstract
Since the middle of the 1980s, microfinance for women has gained popularity among development organizations as a method of reducing poverty. Micro and small businesses owned by women have restricted access to microfinance services, limiting their revenues and adversely affecting their business performance. This study aimed to investigate the effect of microfinance services on the performance of women-owned micro and small businesses in Bujumbura, Burundi. The specific objectives of the study are to examine how microcredit, savings mobilizations, and financial training services affect the performance of women-owned small and microbusinesses in Bujumbura, moreover the study used government regulations as a moderating variable. The theories of this study were resource-based view, dynamic capability theory, contingency theory, and innovation theory. The researcher utilized an explanatory research design. The target population was 366 Women owned Micro and Small Enterprises in Bujumbura, however, a sample size of 191 respondents was selected using a proportionate stratified and random sampling techniques. Data was collected using a questionnaire and analyzed using a multiple linear regression model. The results indicated that micro and small businesses' performance was significantly and positively influenced by having access to microcredit. Additional findings demonstrated that the performance of micro and small businesses was positively and significantly influenced by savings mobilization. Furthermore, the findings indicated that financial education significantly affected performance of micro and small businesses. Plus, the relationship between microfinance services and the performance of micro and small firms was not significantly moderated by government regulations. To enhance financial inclusion for Women in Burundi, MFIs ought to open additional branches, and assign different agents in the various sub-districts. There is need for financial training through additional financial programs, seminars, and campaigns to improves the performance of women-owned micro and small businesses in Bujumbura, Burundi. Finally, the Republic of Burundi through the ministry of finance should women owned enterprise tax breaks and also reduce taxes, and license fees, this will not only enhance financial inclusion but also allow women to conserve more money for future investments, which will improve the business performance.
Authors and Affiliations
Albert Kwitonda , Stephen Makau Muathe , Eliud E. Obere,
Keywords
Related Articles
- EP ID EP739845
- DOI 10.47191/jefms/v7-i7-11
- Views 43
- Downloads 0
The Impact of Competence, Accountability, Professional Skills, and Professional Skepticism on Audit Quality with Time Budget Pressure as a Moderating Variable
The objective of this study is to examine the influence of auditor competence, accountability, professional skepticism, and professionalism on the audit quality of public accounting firms in North Jakarta. The aim of thi...
Factors Affecting the Application of Green Accounting in Endek Craft SMEs in Klungkung Regency, Bali Province
Culture and the environment greatly affect the types of products sold by SMEs, Klungkung Regency is one of the areas producing Balinese woven fabrics, namely endek, endek fabric is the main commodity that is the flagship...
Performance Evaluation Model – Overview of Some Research
The article is made on the basis of a research method to review published documents related to the current model of performance evaluation according to financial and nonfinancial factors in the world. The review process...
The Effectiveness of Guerrilla Marketing for Small Business: A Systematic Literature Review
The role of small and medium enterprises (SMEs) was encouraged either inclusively or sustainably as a post-pandemic effect of COVID-19 as well as climate and political crisis in the world today. Guerrilla marketing was o...
Joint Consultation as a Determinant of Job Satisfaction in the Insurance Sector
The urge for employees to have a voice in decision making process at workplace has made joint consultation imperative. This study examined joint consultation as a determinant of job satisfaction in the insurance sector....