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ABSTRACT:

Since the middle of the 1980s, microfinance for women has gained popularity among development organizations as a method of reducing poverty. Micro and small businesses owned by women have restricted access to microfinance services, limiting their revenues and adversely affecting their business performance. This study aimed to investigate the effect of microfinance services on the performance of women-owned micro and small businesses in Bujumbura, Burundi. The specific objectives of the study are to examine how microcredit, savings mobilizations, and financial training services affect the performance of women-owned small and microbusinesses in Bujumbura, moreover the study used government regulations as a moderating variable. The theories of this study were resource-based view, dynamic capability theory, contingency theory, and innovation theory. The researcher utilized an explanatory research design. The target population was 366 Women owned Micro and Small Enterprises in Bujumbura, however, a sample size of 191 respondents was selected using a proportionate stratified and random sampling techniques. Data was collected using a questionnaire and analyzed using a multiple linear regression model. The results indicated that micro and small businesses' performance was significantly and positively influenced by having access to microcredit. Additional findings demonstrated that the performance of micro and small businesses was positively and significantly influenced by savings mobilization. Furthermore, the findings indicated that financial education significantly affected performance of micro and small businesses. Plus, the relationship between microfinance services and the performance of micro and small firms was not significantly moderated by government regulations. To enhance financial inclusion for Women in Burundi, MFIs ought to open additional branches, and assign different agents in the various sub-districts. There is need for financial training through additional financial programs, seminars, and campaigns to improves the performance of women-owned micro and small businesses in Bujumbura, Burundi. Finally, the Republic of Burundi through the ministry of finance should women owned enterprise tax breaks and also reduce taxes, and license fees, this will not only enhance financial inclusion but also allow women to conserve more money for future investments, which will improve the business performance.

KEYWORDS:

Resource –Based View, Dynamic capability Theory, Contingency theory, Innovation Theory, Financial Inclusion, Women Owned SMEs, Microfinance Services, and Government regulations.

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