CONTRIBUTION OF MICRO-ONLINE PRODUCTS ON SOCIO-ECONOMIC WELFARE OF BENEFICIARIES OF MICROFINANCE FINANCE INSTITUTIONS IN RWANDA CASE STUDY OF RULINDO DISTRICT
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Abstract
The integration of micro-online products within microfinance institutions (MFIs) has emerged as a crucial tool for enhancing financial inclusion and improving the socio-economic welfare of beneficiaries. This study examines the contribution of micro-online products to the socio-economic well-being of individuals and small businesses benefiting from MFIs in Rulindo District, Rwanda. The study employs a mixed-methods approach, combining quantitative surveys and qualitative interviews with MFI beneficiaries, managers, and financial experts. Key areas of focus include access to digital financial services, business growth, income levels, and overall financial resilience. The study adopted a descriptive survey involving both qualitative and quantitative approaches. Qualitative analysis included a review of existing literature. The target population comprised of 550 respondents. The sample size of 302 was determined. A combination of purposive, stratified and random sampling techniques was adopted. The study used both primary and secondary data. Primary data was collected through a questionnaire while secondary data included peer reviewed published journal articles. A preliminary test was done on the data collection tools and procedures to identify likely problems. This test was conducted at Umurenge Sacco based in Gasabo District, whereby 39 questionnaires were administered to the employees in the respective departments. The filled questionnaires were later checked for consistency. Qualitative and quantitative data was triangulated to corroborate findings and enhance the validity of the results. Inferential statistics involved conducting linear regression analysis to examine the relationships between independent and dependent variables, providing insights into their predictive power and statistical significance. Hypotheses were tested by evaluating the regression coefficients, using p-values and confidence intervals to determine whether the relationships are statistically significant. The study interpreted the analyzed data in light of the research objectives and theoretical framework. The unstandardized coefficients show the impact of each predictor variable on the dependent variable, socio-economic welfare. The regression analysis presented indicates a strong positive relationship between Micro-online Services and Socio-Economic Welfare, with an R value of 0.777 and an R Square value of 0.604, suggesting that approximately 60.4% of the variance in Socio-Economic Welfare can be explained by Micro-online Services. The low standard error of the estimate (0.16015) further confirms the model’s reliability. ANOVA results reinforce this, with a significant F-statistic of 434.403 and a p-value of 0.000, indicating that the relationship is statistically significant. The model effectively explains the variance in Socio-Economic Welfare, with Micro-online Services showing a substantial positive impact. The results provide valuable insights for policymakers, microfinance institutions, and development organizations seeking to optimize financial services for low-income populations.
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