Capacity Building Interventions, Entrepreneurship, Promotion of SMEs in Rwanda

There has been a vibrant policy framework for capacity building interventions to improve investment climate and business environment in Rwanda. This has affected the promotion of SMEs and entrepreneurship in Rwanda. But the effect and magnitude of capacity building interventions has not been studied. A survey of 414 SMEs in Rwanda indicates a considerable need large need (by more than 50 per cent f all SMEs) for capacity building interventions. More than 72 per cent of SMEs still tend to cluster in commerce and business. Finance and financial services tops the list of most binding capacity need (binding to 80.7 per cent of the firms) followed by training. Barriers to entrepreneurship and starting new business is risk by 20.3 per cent, financial constraints by 51.4 per cent, education 4 per cent and market conditions 10.4 per cent. Multiple institutions are involved in capacity building interventions but need to be better coordinated for better promotion of SMEs and entrepreneurship. There is still opportunity to diversify the types and location of SMEs.

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Author (s)

Herman Musahara, Felix Akorli and Shakila Rukamba

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