The Role of Networking and Financial Services on the Performance of Youth-Owned Enterprises in Kigali City, Rwanda

Abstract

Youth - owned small and medium enterprises play a critical role in a community's economic well-being and serve as engines of social and economic development in both urban and rural areas. The efficacy of Entrepreneurs has been recognized in many countries as being essential for the global fight against poverty, corporate development, and rapid industrialization. Young entrepreneurs have a crucial role in the processes of creating and maintaining a successful economy as well as insuring inclusive distribution, both in developed nations and in countries still in the process of developing the national economy. Financial services and networking services contribute a lot in the world's financial markets, and in recent decades, its growth has accelerated Financial and networking services are an essential element in both government and non-government activities to increase employment, increase income, and deliver a stable economy. Nevertheless, firms in Rwanda are performing poorly, with business output falling from 58% in 2020 to 30% in 2021. These barriers can be overcome by using financial and networking services as approaches. Consequently, the purpose of this article was to examine the impact of social networking services and the impact of financial services on the performance of youth-owned businesses in Kigali, Rwanda. The key theories comprised resource-based theory, dynamic capacity theory, Schumpeter's Theory of Innovation, Stages of Development Theory, and contingency theory. The research philosophy adopted in this in investigation was positivism. An explanatory study design was used on a sample size of 154 enterprises chosen from a target population of 256 enterprises in Kigali, Rwanda. The research suggests policies and practical implications for improving financial and networking services on the performance of Rwandan youth-owned business entities. The investigation suggests that executives of youth-owned businesses boost their networking and financial services so that firms can learn more and gain vital prospective, allowing them to more effectively handle their businesses and improve their future success and profitability. The Rwandan government should assess the charges levied by the enterprise and the procedure of acquiring a permit to engage in the company's activities. This will make it possible for young business owners to understand and take advantage of numerous financial services and networking services, which will ultimately improve their business performance.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 4 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.