Informal Financial Group Services (Ibimina) and Women’s Entrepreneurship Development in Rwanda: Evidence from Shyorongi Sector

Abstract

This study examined the effect of informal financial group services (Ibimina) on women entrepreneurship development in Rwanda, focusing on Shyorongi Sector, Rulindo District. The study was motivated by challenges faced by women entrepreneurs in starting, expanding, and sustaining businesses. A descriptive survey research design was employed, and multiple linear regression analysis was used to examine the relationship between informal financial group services and women entrepreneurship development. The target population comprised 897 women participating in Ibimina in Shyorongi Sector, from whom 90 women were purposively selected. Data were collected using structured questionnaires and analysed using percentages, means, standard deviations, and multiple linear regression. The findings showed that informal financial group services had a positive and significant effect on business start-up (adjusted R2 = 0.349, F = 25.352, p < .001), business expansion (adjusted R2 = 0.116, F = 6.966, p = .002), and business sustainability (adjusted R2 = 0.081, F = 5.004, p = .009). Furthermore, informal financial group services significantly influenced overall women entrepreneurship development (adjusted R2 = 0.091, F = 10.154, p = .002). Consequently, all four null hypotheses were rejected. The study concludes that Ibimina play an important role in supporting women’s entrepreneurial activities. It recommends strengthening financial literacy and savings practices among women participating in Ibimina to enhance their ability to mobilize financial resources and establish sustainable businesses.

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