Influence of Internal Business Environment on the Growth of Microfinance Institutions in Rwanda (Case Study Musanze District)

Abstract

The objectives of this study is to examine the influence of internal business environment on the growth of microfinance institutions in Musanze district particularly the three internal factors employee satisfaction internal controls and technologies. This objectives aims to get the results that will invite MFIs to change their mind and adopt new technologies, ensuring good internal controls as well as satisfying their employees so that they can get more profits. The objectives also aim to link employee satisfaction internal controls and technology on the growth of Microfinance institutions in the country which have been left back in the market industry. Probability sampling method was used whereby Stratified sampling technique was applied. Data were collected from 121 employees of 18 microfinance institutions; a researcher used quantitative method for data collection whereby questionnaire instrument of data collection was applied. Descriptive and inferential statistics were used for data analysis. Multinomial regression model and SPSS 24 SOFTWARE were also used for Data analysis. The Findings of the study indicates that there is a significant relationship and positive contribution of Employee satisfaction and technology on the growth of Microfinance institutions. This study recommends that Microfinance institutions should ensure that, they adopt technologies, good internal controls and satisfying their workers to ensure the daily MFIs tasks are well achieved.