Government Entrepreneurial Interventions, Individual Characteristics, and Growth of Youth-Owned Micro and Small Enterprises in Kigali City, Rwanda

Abstract

Micro and Small Enterprises have been approved as major performers in enhancing economic growth and quality of life by generating employment opportunities and profits in Rwanda. However, they have experienced several problems which diminish their growth. Those growth challenges can be improved by embracing strong entrepreneurial interventions. This research endeavored to investigate how government entrepreneurial interventions affect the growth of youth-owned MSEs in Kigali, in addition, it investigated the moderating effect of individual characteristics on the relationship between the government entrepreneurial interventions and the growth of youth-owned MSEs in Kigali City, Rwanda. The resource-based view and Gibb’s support theory were used. An explanatory research design was used in this research to determine the causal link between variables and establish the nature of the strength of the link. The study used a sample size of 154 MSEs selected from the target population of 252 youth-owned MSEs in Kigali, Rwanda. Data was collected using a questionnaire and analyzed using both descriptive and multiple regression analysis. The study noted that entrepreneurial training, access to credit, technology-based online social media, and market access have been effective government support in increasing the growth of MSEs in Kigali Rwanda. Moreover, the results indicated that individual characteristics positively affected the relationship between government entrepreneurial interventions and the growth of youth-owned MSEs in Kigali City, Rwanda. The study recommended that government should ease the requirements/conditions to be met by MSEs before accessing entrepreneurial interventions this will accelerate the growth of youth-owned SMEs in Rwanda.