ISSN: 2222-6990
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This study examined the influence of trade credit and debt finance structure on the growth of SMEs in Rwanda guided by two specific objectives; to investigate the influence of trade credit finance structure on the growth of small and medium manufacturing enterprises in Rwanda and to evaluate the influence of debt finance structure on the growth of small and medium manufacturing enterprises in Rwanda. The study used mixed research design for collecting, analyzing and integrating data using a target population of all the 868 small and medium manufacturing enterprises registered with Rwanda Development Board. Stratified random sampling technique was used to draw a sample size of 273 SMEs. Close-ended questionnaires were used in data collection and data was analyzed by way of Statistical Package for Social Science (SPSS) to generate descriptive statistics. Multiple regression analysis was used to explore the relationship between trade credit, debt finance and growth of small and medium size manufacturing enterprises in Rwanda. Analysis of variance (ANOVA) was utilized to test the significance of the model. Results of R2 indicted the goodness fit of the regression model. Study findings show that trade credit finance structure has a positive and significant effect on growth of small and medium manufacturing enterprise in Rwanda while results on debt finance structure were found to be insignificant. Based on these findings, the study recommends that stakeholders should ensure availability of various financing options for SMEs in Rwanda.
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In-Text Citation: (Rubunda, Namusonge, & Oluoch, 2019)
To Cite this Article: Rubunda, E., Namusonge, G. S., & Oluoch, O. (2019). Trade Credit, Debt Finance Structure and Smes Growth in Rwanda. International Journal of Academic Research Business and Social Sciences, 9(6), 24–43.
Copyright: © 2019 The Author(s)
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