Influence of Self Help Group Support Mechanisms on Micro Enterprise Development: Case of Self Help Groups Supported by African Evangelistic Enterprise in Rwanda, Gasabo District

The purpose of this study was to assess the influence of Self Help Group support mechanisms on micro enterprise development. The objectives of the study were to establish the extent to which group cohesion influences microenterprise development among SHG members, to determine how group funding influences microenterprise development among SHG members and to assess the extent to which business training influences microenterprise development among SHG members. The researcher utilized a descriptive and analytical survey design. The target population were 9, 980 members of SHGs supported by AEE Rwanda in Gasabo district from 2011 to 2017 The sample comprised 384 members of SHGs that had benefited from AEE support, with the sample calculated using Yamane formula of determining sample size. Stratified Radom sampling was used to categorize groups and individual group members across the seven sectors in which AEE operates, while simple random sampling method was applied to identify individual group members, from whom data was collected. Data was collected using questionnaires administered by trained interviewers Data was analyzed and presented using descriptive statistics using SPSS and Binary Logistic Regression model was used to assess the influence of SHG support mechanisms on micro enterprise development. The study established that three aspects of Group cohesion increased the likelihood of SHG members to initiate successful enterprises Laws by three times, good relationship within SHGs by (41 %) and networks with other SHGs in community by (82 %). Capacity building through budgeting and loan management skills had increased the likelihood SHG members to succeed in business ventures by 2.5 times. The study recommends regular assistance for SHGs to elaborate sound Laws, strengthening working relations within SHG members and promote Networks with other Self Help Groups, consistent provision of budgeting and loan management skills, routine coaching and supervision of SHG members to enhance micro enterprise development.