THE RELATIONSHIP BETWEEN SACCO MEMBERSHIP AND YOUTH START-UPS IN RWANDA: HOW SACCOS DRIVE YOUTH ENTREPRENEURSHIP

This study investigates the relationship between SACCO (Savings and Credit Cooperatives) membership and youth entrepreneurship in Rwanda up to 2015. Using a mixed-methods approach, primary data were gathered through structured interviews, surveys, and focus group discussions targeting SACCO-affiliated youth entrepreneurs, complemented by secondary data from government and SACCO reports. Quantitative findings show a significant increase in youth-focused SACCO loans from 25% in 2010 to 45% in 2015 (p<0.01), with a sixfold rise in financed start-ups. Paired t-tests reveal substantial improvements in entrepreneurial skills (p<0.01), while logistic regression demonstrates that SACCO-supported businesses are three times more likely to sustain operations beyond two years (p<0.05). Key challenges include limited market access and high competition, highlighting areas for intervention. The study concludes that SACCOs are pivotal in promoting youth financial inclusion, skill enhancement, and start-up sustainability. Recommendations include expanding financial inclusion initiatives, enhancing training programs, promoting sector diversification, addressing gender disparities, and strengthening policy frameworks.