BANK CREDIT SCHEME AND EXPORT PROMOTION OF SMALL MEDIUM ENTERPRISES IN RWANDA: A CASE OF URWIBUTSO ENTERPRISES LTD

Abstract

The study aimed to examine the impact of export working capital loans, export credit insurance, and pre-shipment financing on the export promotion of Urwibutso Enterprises Ltd. The significance of the research extended to various stakeholders including the enterprise, future researchers, Mount Kigali University, the Government of Rwanda, and the general public. The study utilized descriptive and explanatory research designs targeting all 48 employees of Urwibutso Enterprises Ltd. Data collection was conducted using questionnaires and interviews, and the analysis was performed with SPSS Version 23, highlighting means, standard deviations, percentages, correlation coefficients, and regression analysis. Results indicated that the majority of respondents agreed on the importance of meeting financial obligations for the sustainability and success of the enterprise, despite a minority disagreement. The survey also showed that liquidity availability is critical for smooth operations and business sustainability. The influence of working capital loans on export promotion was affirmed, with one question showing disagreement. The cash reporting survey presented an overall average of (x = 2.1000, Std Dev=1.01228), demonstrating a reasonable mean and response heterogeneity. The study concluded that proper financial practices are vital for enterprise sustainability and export promotion. Recommendations included improving the ability to pay short-term liabilities on time, maintaining positive cash flow, and addressing complexities in international markets like currency fluctuations, regulatory differences, and geopolitical risks.