The Role of Business Development Funds (BDF) in Creating Employment for the Youth in Rwanda

Abstract

The purpose of this study was to assess the role of business development funds in creating employment for the youth in Rwanda. A case study of BDF Musanze; period of the study: 2014-2016. The general objective of this study is to establish the role of business development funds in creating employment for the youth in Rwanda. This study was also based on the following specific objectives: To examine the activities of BDF in creating youth employment in Musanze District, to identify challenges faced by business development funds in creating employment for youth in Musanze District and to establish the relationship between business development funds and youth employment creation. The study used interviews, questionnaire, and documentary methods to correct data. The sample size of 90 respondents was taken purposively from 2000 youth members of BDF in Musanze District. Both qualitative and quantitative data were employed. The study revealed that that the main activities of BDF in youth employment creation are refinancing grant, stimulating SMEs growth and advisory and access to financial service as indicated by 22.2% of the respondents while 13.3% of respondents said business evaluation and follow up, 11.1% of respondents sided with coordination of government grant fund meanwhile 8.9% of respondent agreed with business plan activities. The study founded that BDF faced some challenges in creating employment for youth in Musanze District, unskilled entrepreneur and poor planning takes the first place at 33.3% of respondents, 22.2% of respondents have an obstacle of shortage of fund while 11.1% of respondents agreed with developing new and reliable sources of revenue. Also 50% of the respondents strongly agree that youth employment creation depends on the BDF activities, 40% agree, 10% disagree; this showed the good relationship between BDF and youth employment creation. The study concluded that BDF participate in creating job for youth of Rwanda as business evaluation and follow up, refinancing grant, coordination of government grant fund, stimulating SMEs growth and advisory and access to financial service. As recommendation, BDF should train and equip the workforce with vital skills and attitude.