Effect of Financial Institutions Services on the Performance of Small and Medium Enterprises in Rwanda: A Case of Gasabo District

Florent Nsanzubuhoro & Osiemo Athanas Kengere
Mount Kenya University
https://orcid.org/0009-0008-6185-206X
Email: nsanzubuflorent@gmail.com

Abstract: The primary aim of this study was to examine the effect of financial institution services on the performance of small and medium enterprises in Rwanda, with specific reference to Gasabo District. Data were collected using questionnaires and documentary review, while SPSS version 25 was used for descriptive, correlation, and regression analysis. The response rate was 97.24%, as 106 questionnaires were returned out of 109 distributed. The findings revealed that deposit services had a positive and statistically significant effect on SME performance (B = 0.214, t = 3.981, p = 0.000). Loan services also had a positive and statistically significant effect on SME performance (B = 0.345, t = 6.125, p = 0.000). Financial literacy services had the strongest positive and statistically significant effect on SME performance (B = 0.484, t = 9.165, p = 0.000). The study concluded that financial institution services significantly improve revenue growth,operational efficiency, and customer satisfaction among SMEs in Gasabo District. The study recommended that SMEs should strengthen the use of deposit services, financial institutions should improve loan accessibility and repayment flexibility, and financial literacy programmes should be expanded to support better financial decisions.