SMALL BUSINESS PRODUCTION AND IMPROVEMENT OF COMMUNITY WELFARE: A CASE OF SOYA PRODUCTION IN GASABO DISTRICT, RWANDA

Abstract

The study’s general objective was to assess small business production and improve community welfare, and it focuses on three specific objectives: To analyze the current challenges faced by small businesses engaged in soya production, to assess the opportunities and resources available for small businesses involved in soya production, and to examine the relationship between soya production, small business development and the improvement of the community's standard of living in Gasabo District. The study was based on three theories, including the human capacity theory, Entrepreneurship Theory and social capacity theory. The research employed a descriptive and correlational research design, utilizing stratified and simple random sampling to select the population for data collection. The target population comprised managers, operators, and technicians from various industries, totaling 80 respondents randomly sampled from 100 targeted population selected from five chosen sectors in Gasabo district (Kimironko, Ndera, Remera, Bumbogo, and Kacyiru). Primary data was collected through a questionnaire using a 5-point Likert scale and SPSS Version 27 was used for quantitative data analysis. The study found that the majority of respondents were female (67.5%), while male constituted 32.5%. The study revealed that small businesses engaged in soya production face several challenges. Despite the presence of these challenges, the findings suggest that they have not adversely affected the small businesses. Instead, these challenges have been effectively addressed and managed, resulting in no harm to the businesses. The study also revealed that managing the opportunities and resources available for small businesses involved in soya production generated huge contribution to the change of community welfare. The data collected reveal that small business production and the improvement of the community's welfare are strongly correlated with the R-squared coefficient of 0.301 indicates that small business production accounts for approximately 30.1% of the variation in community welfare improvement. The study recommends investing in research and innovation in soya production technologies and practices critical to unlocking the sector's full potential, improving access to resources and inputs necessary for soya production, and prioritizing support for small-scale soya producers by providing access to tailored training programs aimed at enhancing their agricultural practices.