Abstract:
The study is about the impact of entrepreneurship on poverty reduction in Rwanda. A case of women entrepreneur in Rwamagana. Specifically this study identified challenges faced by women entrepreneur to poverty reduction in Rwamagana District, and assessed impact of Entrepreneurship to poverty reduction in Rwanda In virtue to the main purpose of this study, researcher designed an appropriate research methodology and used the interview, documentary and questionnaire techniques to collect and analyse relevant data which allowed the researcher to obtain the following findings:
Regarding to the challenges faced by women entrepreneur to poverty reduction in Rwamagana District almost all respondents representing 88.6% of the total respondents strongly agreed that lack of enough capital is a challenge to their business and 11.4% agreed with this statement. It was also observed that 56.8% disagreed that cultural constraints inhibit the efficient conduct of business by women in my neighborhood and 43.2% agreed with the statement. On the other side 59.1% strongly agreed that lack of collateral limit women entrepreneurs to access on business loan in Kigabiro sector and 40.9% agreed with this statement. On the issues of impact of Entrepreneurship to poverty reduction in Rwanda, a comparison between the income of selected entrepreneurs before operating business and after shows that there is a considerable change where 56.8% of respondents were only getting income between 10,000-50,000Frw, 28.1% of respondents were getting income between 50,001-150,000Frw as income before being entrepreneurs. After being entrepreneurs the majority of respondents with 43.2% said that their income has increased as they are on the range between 150,001-500,000Frw and those who obtained above 500,000Frw as the income per month was 2.3% before but after being entrepreneurs they have increased up to 15.9%. The correlations matrix also shows that there is a strong relationship between the variables studied where the significant level is 0.01, the results indicate that independent variable has positive high correlation to dependent variable equal to .883** and the p-value is .000 which is less than 0.01. When p-value is less than significant level, therefore researchers concludes that variables are correlated. Therefore, these allowed researchers to confirm the second hypothesis stipulating that “Entrepreneurship contribute a lot to the poverty reduction in Kigabiro sector”.
