Role of Bank Services in Promoting Small and medium enterprises (SMES) in Rwanda Case Study: Selected SMEs Located in KIMIROKO Financed By I&M BANK Period: (2021-2023)

Abstract

The purpose of the study was to find out the role of Banking Services in promoting Small and Medium enterprises in Rwanda. The study was based on two specific objectives, that is, to examine the financial services offered by I&M BANK PLC to Small and Medium enterprises. to analyze the contribution of I&M BANK PLC to promote the development of SMEs To achieve these objectives, the research adopted descriptive study design. Data were collected through questionnaires, face to face interviews and direct observation methods. Table 4.8, shows the summary of the findings about Saving Services 87.4% of respondents strongly agreed 12.6% agreed that they are voluntarily engaged on savings culture. Interest on savings is always communicated; respondents indicated that 68.6% of respondents strongly disagreed, while 31.4% agreed that Interest on savings is always communicated. On question asked if Saving and withdrawal services in I&M BANK PLC are settled appropriately, respondents indicated that 74.5% of respondents strongly agree and 25.5% Agree that saving and withdrawal services in I&M BANK PLC are settled appropriately. the majority of respondents were agreed about the statement of saving, linked with the first objective, researcher realized that saving is the one of financial services equity offer to its customers SMEs. Table 4.11 respondents reported that 78.4% strongly agreed, and 21.6% Agreed that I&M BANK PLC helping their clients to elaborate business plan. I&M BANK PLC provide technical advices for its members about business skills, respondents indicated that 72.5% strongly agree and 27.5 % agree that I&M BANK PLC provide technical advices for its members about business skills. For third statement respondents 66.6% strongly agreed, and 33.4% of respondents Agree that I&M BANK PLC has officers helping members to run projects. The table 4.15 shows that majority respondents 74.5% said that before using services of I&M BANK PLC their saving was very low between 3,000,000-5,000,000 Rwf but after obtaining loans and other services of Bank of Kigali Main Branch, SMEs’ savings was improved as the saving increased between5,000,001-8000,000Frw and above 8000,000Rwf. Management of I&M BANK PLC should offer the trainings on business plan to the customers engaged to start business in order to help them growing of their Small Business Enterprises.