Influence of Capital Structure to the Growth of Women Micro Businesses in Bugesera District
Journal Title: International Journal of Academic Research in Business and Social Sciences - Year 2018, Vol 8, Issue 1
Abstract
Women micro business play a great role in providing employment and contribute towards the Gross Domestic Product (GDP) of Rwanda and any other Nation (Boudreaux, Kenneth. 2007). To achieve this feat, there is a need to properly manage the available financial capital. Working Capital Management which is one of the components of capital structure is expected to play a role in this process. Frank, Murray, & Goyal, Vidhan. (2009). This study therefore examined the influence of Capital structure on the growth of women micro business in Bugesera District. The study was anchored on the research objective which was to examine influence of entrepreneurial capital structure to the growth of women micro businesses establishing whether loan accessibility, cashflow and capital stability, influence the growth of women micro business in Bugesera District. The study adopted a descriptive survey design Cooper, Donald, Schindler, Pamela, & Sun, jianmin. (2006). The target population of this study comprised of all registered women micro businesses by the district authorities as at 01st January 2017 that have been in operation with a focus on the women micro businesses. Primary data was collected by structured questionnaires. Secondary data was collected from district documents and relevant publications in referred journals. The collected data was edited, coded and entered into SPSS software for analysis. Data was analyzed using descriptive and inferential statistics. In particular, Regression Analysis was used to investigate the relationships between hypothesized variables. Analysis of Variance (ANOVA) was also used to investigate whether independent variables had combined effect on the dependent variable. Regression Models were then used. The results of the study indicated that all the components of Capital structure (loan accessibility, cashflow and capital International Journal of Academic Research in Business and Social Sciences Vol. 8 , No.1, January 2018, E-ISSN: 2222-6990 © 2018 HRMARS 169 stability) influence the growth of women micro business in Bugesera District. The study also recommends that women micro business should among other things strive to shorten the cash conversion cycle, utilize the value of relationship with suppliers and develop strong alliance, seek knowledge on stock optimization techniques, introduce more and elaborate credit terms, Government at all levels to be more involved in financing micro-enterprises and financial institution such as commercial banks should also be ready to provide loan facilities to micro business with less stringent conditionality. The findings were presented using figures and tables. The study found out that capital structure was key to making better financial decisions. Loan and capital stability management need to be addressed to keep proper growth. The study however established that, capital structure had significant and positive influence on growth of women micro businesses in Bugesera District. This study is envisaged to aid in the development of policy documents to grow women micro business in Rwanda.
Authors and Affiliations
John Kamanzi, G. S. Namusonge, Dr. Ndabaga Eugene
Keywords
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- EP ID EP530334
- DOI 10.6007/IJARBSS/v8-i1/3802
- Views 114
- Downloads 0
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