THE ROLE OF CORPORATE SOCIAL RESPONSIBILITY IN ENHANCING FINANCIAL INCLUSION AMONG MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMEs) THROUGH COMMERCIAL BANKS IN RWANDA CASE OF EQUITY BANK RWANDA PLC MAIN BRANCH MSMEs CUSTOMERS PERIOD: 2021-2023

Abstract

This study aims to investigate the Role of Corporate Social Responsibility in Enhancing Financial Inclusion among Micro, Small, and Medium Enterprises (MSME’s) through Commercial in Rwanda, Case Study: Equity Bank Rwanda PLC Main Branch PLC MSMEs Customers (2020-2023). The general objective was examining the role of Corporate Social Responsibility on financial inclusion of commercial banks in Rwanda. The analysis employed a cross sectional research design combined with descriptive and analytical methods. Data was collected from 250 MSMEs Customers of equity Bank Rwanda PLC main office using questionnaires. Data was analyzed and interpreted using SPSS Program Version 22. Key findings include: The statistical data provided by 16 shows that he highest mean score of 5.36 is related to the bank keeping clients informed of any changes to its activities. This indicates that respondents feel the bank is reliable and transparent in its communication, which is essential for maintaining trust and ensuring that businesses can plan accordingly. The findings on table 17 shows the statistical information reflects respondents' views on various aspects of financial inclusion, particularly concerning their ability to access and benefit from financial services. The mean scores, which range from 5.22 to 5.68, indicate a generally positive perception of financial services among the respondents, while the standard deviations suggest a relatively low variability in their responses, indicating a consensus on these views. Financial services are considered safe (mean = 5.64, SD = .687) and reliable (mean = 5.45, SD = .761), which indicates trust in the providers. Convenience is slightly less positively perceived (mean = 5.38, SD = .736), suggesting that while the services are generally seen as convenient, there can be areas for improvement. The findings on table 18 shows the correlation analysis provided presents the relationships between four variables: Transparency, Competitiveness, Responsibility, and Financial Inclusion. These relationships are measured using the Pearson correlation coefficient, which indicates both the strength and direction of linear relationships between pairs of variables. A significant correlation at the 0.01 level (2-tailed) suggests that there is less than 1% chance that the observed correlation is due to random variation, meaning the correlations are statistically significant. The R Square value is 0.828, indicating that approximately 82.8% of the variability in the dependent variable can be explained by the model that includes the independent variables (Responsibility, Transparency, Accountability, and Competitiveness). This is a high proportion, signifying that the model is quite effective in explaining the variation in the dependent variable. The findings on table 21 above shows the constant (intercept) in the model is 2.717, with a standard error of 0.261, and a highly significant t-value of 10.412 (p < 0.001). This indicates that when all independent variables are held at zero, the baseline level of financial inclusion is 2.717.