CONTRIBUTION OF SMALL AND MEDIUM ENTERPRISES TO POVERTY REDUCTION IN RWANDA CASE STUDY OF MOCHA CAFE PERIOD: 2019-2022

Abstract

The research project aimed to assess significant role that Small and Medium Enterprises (SMEs) play in poverty reduction in Rwanda, The research employs a case study approach, centering on Mocha Cafe, a local coffee and restaurant establishment, to illustrate the practical implications of SMEs in alleviating poverty within the context of Rwanda. Rwanda, a country known for its remarkable economic development in recent years, has been emphasizing the importance of SMEs as a driving force behind its socio-economic transformation. Through a comprehensive analysis of Mocha Cafe's business operations, financial performance, and the socio-economic impact it has had on its community, this dissertation delves into the specific mechanisms through which SMEs contribute to poverty reduction. The research employs a mixed-methods approach, combining quantitative data analysis and qualitative interviews with business owners, employees, and local residents. Findings indicate that Mocha Cafe has not only created employment opportunities but has also served as a catalyst for skills development and income generation among marginalized populations. The study uncovers the multifaceted ways in which Mocha Cafe has played a role in community development, from promoting local entrepreneurship to supporting the supply chain of coffee production. Moreover, it provides insights into the challenges faced by SMEs, offering recommendations for policymakers, business owners, and stakeholders interested in further harnessing the potential of SMEs in reducing poverty. This research contributes to the growing body of knowledge on the contribution of SMEs to poverty reduction, shedding light on the specific dynamics at play within the Rwandan context. It is hoped that the findings of this dissertation will inform future policy decisions and inspire further research on the role of SMEs in achieving sustainable development goals.