Evidence from Rwandese manufacturing industry

This paper, an output of the African Policy Dialogues in Rwanda, looks at the effects of corporate governance on corporate entrepreneurship and firm performance in Rwandese manufacturing industry.  The objectives of this paper are to determine effects of corporate governance on corporate entrepreneurship of Rwandese manufacturing firms, and evaluate effects of corporate governance on Rwandese manufacturing firms.

Key messages

  • The background of top managers contributes significantly to both corporate entrepreneurship and corporate performance.
  • The sole proprietorship organizational form harms entrepreneurial activities and is negatively related to financial performance of manufacturing firms because of considerable financial constraints.
  • Electricity and raw materials expenses contribute significantly and positively to financial performance of Rwandese manufacturing firms.
  • Informal competition has no effect on entrepreneurial activities of manufacturing firms, however it harms their financial performance because firms are more interested in the short term business development rather than in the long term strategic innovative actions.

Recommendations

  • In order to boost internal entrepreneurial activities of manufacturing firms, focus more on the background and motivation of top managers.
  • Manufacturing firms require access finance as a key element for their internal entrepreneurship development.
  • Avail electricity and raw materials in order to improve manufacturing firms’ financial performance and corporate entrepreneurship.

 

Downloads
  • Effects of corporate governance on corporate entrepreneurship and firm performance Download Report
Share this post

Related items

Reflections on a Symposium: Decent Jobs for Youth and Women in Nigeria’s Low-Carbon Transition

INCLUDE recently hosted a high-level symposium titled "Decent Jobs for Youth and Women in Nigeria’s Low-Carbon Transition: Insights from Nigeria," which brought together lawmakers including a large array of members of the House committee on renewable energy, climate change and youth among others.  Experts and other key policy stakeholders were also gracing the event to explore the intersection of renewable energy and inclusive job creation.

5 Key insights for greening TVET in the solar industry in Africa

This year INCLUDE joined the Solar Hands-on Training and International Network of Exchange (SHINE). In this EU-funded consortium, we are working together with African VET schools and European partners on greening Technical and Vocational Education and Training (TVET) for the solar industry in Africa. As the research partner, we are laying the project's theoretical foundation. Through literature review and discussions with experts and practitioners, we have gleaned key insights that are shared in this blog. 

Infographic: How to Make Plastic Waste Work for Green & Decent Jobs for Youth in Africa

Plastic waste recycling presents an opportunity to create sustainable jobs while benefiting the environment. But the question remains, how can stakeholders contribute to a conducive waste recycling ecosystem, unlocking its green job potential among Africa’s youth? We are excited to present an infographic showcasing the pathways and recommendations for Green & Decent Jobs for Youth in Africa.

Closing the loop: 3 barriers to decent youth employment in Africa’s waste management sector

This blog is part of a research project on the opportunities for decent work for youth in Africa’s Waste Recycling Sector, in collaboration with the Challenge Fund for Youth Employment (CFYE). Waste management in Africa is a major challenge for sustainable and inclusive development. Due to poor management, 90% of the waste generated in Africa is disposed of in landfills and uncontrolled dumpsites with severe consequences for the environment and people working in the waste management sector.

Green jobs & the future of work in Africa: the story of Olivia Onyemaobi and Pad-Up Creations

In this video, we present the story of Olivia Onyemaobi, Nigerian entrepreneur and founder of Pad-Up Creations, a social enterprise producing affordable and eco-friendly sanitary pads in partnership with CFYE.