Effect of Commercial Bank Services on the Growth of Small and Medium Enterprises in Rwanda: A Case of Manufacturing Small and Medium Enterprises Bankrolled by Bank of Kigali

Q3 Economics, Econometrics and Finance

Afro-Asian Journal of Finance and Accounting Pub Date : 2023-11-07 DOI:10.53819/81018102t2255

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Abstract

The general objective of the study was to investigate effects of commercial bank services on the growth of small and medium enterprises in Rwanda. Specifically, the study evaluated the effect of bank loan services on the growth of manufacturing small and medium enterprises in Rwanda, determine the effect of saving services on growth of manufacturing small and medium enterprises in Rwanda and identify the effect of financial literacy services on the growth of manufacturing small and medium enterprises in Rwanda. Located in Kigali's Special Economic Zone, the branch of Bank of Kigali served as the site for the research. The study included both quantitative and qualitative methods. The research was done with small and medium-sized businesses who regularly utilize Bank of Kigali services. The study's population consisted of 317 small and medium-sized manufacturing businesses that do business with Bank of Kigali and have checking accounts there. The study's sample size was determined via the Solvin formula. Purposive sampling was used to pick a representative sample from the population to assure the validity of the results. Quantitative data on the relationship between commercial bank services and SME growth was gathered via a survey of 177 businesses. SPSS (Statistical Product and Service Solutions) was used for the analysis of the gathered data. There is a correlation between the three predictor variables (financial literacy services, saving services, and bank loan services) and the dependent variable (Growth of manufacturing SMEs of Bank of Kigali-Rwanda). Taking into consideration the total number of predictors, the modified R square value of 0.720 is calculated. Growth of manufacturing SMEs of Bank of Kigali-Rwanda results often differ from the projected values based on the model by an average of 0.34637, which is the standard error of the estimate. The results of an analysis of variance (ANOVA) suggest a significance level of 0.000<0.05, with F=130.431. This indicates the study's author is certain that the study's focus on financial literacy, savings, and bank loan services contributed to the expansion of Bank of Kigali-Rwanda's manufacturing SMEs. The results showed a very significant positive link between Growth of manufacturing SMEs of Bank of Kigali-Rwanda and financial literacy, saving, and bank loan services (p< 0.05). Bank of Kigali should expand lending services with competitive rates, promote tailored savings products, and provide incentives for regular savings to support SME growth. Additionally, enhancing financial literacy programs through workshops and consultations will empower SMEs to make informed financial decisions, contributing to their success in Rwanda. Keywords: Commercial Bank Services, Growth of Small and Medium Enterprises, Bank of Kigali, Rwanda

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商业银行服务对卢旺达中小企业成长的影响:以基加利银行资助的制造业中小企业为例

这项研究的总目标是调查商业银行服务对卢旺达中小型企业成长的影响。具体而言，本研究评估了银行贷款服务对卢旺达制造业中小企业成长的影响，确定了储蓄服务对卢旺达制造业中小企业成长的影响，并确定了金融素养服务对卢旺达制造业中小企业成长的影响。位于基加利经济特区的基加利银行分行是研究的地点。本研究采用定量和定性两种方法。这项研究是在经常使用基加利银行服务的中小型企业中进行的。研究对象包括317家与基加利银行(Bank of Kigali)有业务往来并在那里拥有支票账户的中小型制造业企业。该研究的样本量是通过索尔文公式确定的。有目的抽样是从总体中选取具有代表性的样本，以保证结果的有效性。通过对177家企业的调查，收集了商业银行服务与中小企业增长之间关系的定量数据。使用SPSS (Statistical Product and Service Solutions)对收集到的数据进行分析。三个预测变量(金融知识服务、储蓄服务和银行贷款服务)与因变量(基加利-卢旺达银行制造业中小企业的增长)之间存在相关性。考虑到预测因子总数，计算修正后的R平方值0.720。基加利-卢旺达银行制造业中小企业的增长结果往往与基于模型的预测值平均相差0.34637，这是估计的标准误差。方差分析(ANOVA)结果显示显著性水平为0.000<0.05, F=130.431。这表明，该研究的作者确信，该研究对金融知识、储蓄和银行贷款服务的关注有助于基加利-卢旺达银行制造业中小企业的扩张。结果显示，基加利-卢旺达银行制造业中小企业的增长与金融知识、储蓄和银行贷款服务之间存在非常显著的正相关关系(p< 0.05)。基加利银行应以具有竞争力的利率扩大贷款服务，推广量身定制的储蓄产品，并为定期储蓄提供激励措施，以支持中小企业的增长。此外，通过研讨会和咨询加强金融知识普及计划将使中小企业能够做出明智的金融决策，从而为其在卢旺达的成功做出贡献。关键词:商业银行业务，中小企业成长，基加利银行，卢旺达

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来源期刊

Afro-Asian Journal of Finance and Accounting Economics, Econometrics and Finance-Finance

CiteScore

0.70

自引率

0.00%

发文量

期刊介绍： Finance and accounting are seen as essential components for the successful implementation of market-based development policies supporting economic liberalisation in the rapidly emerging economies in Africa, the Middle-East and Asia. AAJFA aims to foster greater discussion and research of the development of the finance and accounting disciplines in these regions. A major feature of the journal will be to emphasise the implications of this development and the effects on businesses, academics and professionals. Topics covered include: -Asset pricing, corporate finance, banking; market microstructure -Behavioural and experimental finance; law and finance -Emerging economies: finance, audit committees, corporate governance -Islamic finance, accounting and auditing -Equity analysis and valuation, venture capital and IPOs -National GAAP and IASs compliance, harmonisation and strategies -Financial measurement/disclosure, and the quality of information reported -Accountability and social/ethical/environmental measurement/reporting -Cultural, political, institutional impact on financial measurement/disclosure -Accounting practices for intellectual capital and other intangible assets -Provision of non-audit services and impairment to auditor independence -Audit quality and auditor skills; internal control/auditing -Management accounting, control and /use of key performance indicators -Accounting education and professional development, accounting history -Public sector and not-for-profit accounting