Bank Finance in developing small and medium enterprises: An appraisal of relevant determinants in Rwanda

Abstract

This study examines the perceived non-availability of adequate bank financing to Small and Medium Enterprises (SMEs) with reference to Rwanda. Evidence from both developed and developing countries show that SMEs are more constrained in their operations and growth than large enterprises and access to finance features importantly among the constraints, with their proprietors typically perceiving finance as their most pressing input constraints. The problem is more severe in less developed countries like Rwanda.