FREE UNIVERSITY OF THE GREAT LAKES REGION

ULPGL/GOMA

B.P : 368/ Goma

FACULTY OF ECONOMIC SCIENCES AND MANAGEMENT

DIFFICULTIES IN ACCESSING FINANCING BY THE

WOMEN ENTREPRENEURS IN THE CITY OF GOMA

By: ELIZA MWANGAZA

Thesis presented for the attainment of the degree of
Bachelor's Degree in Management Sciences

Management Sciences

Directeur : Augustin MUMBERE SIBAYIRWANDEKE

Doctor
Supervisor: Adolphe KANKISINGI SADIKI
Works Manager

January 2024
 Resume
The present study, focused on a purely descriptive approach, dealt with the
difficulties accessing funding for women entrepreneurs in the city of Goma. It has
It has been a question of successively understanding the explanatory factors of the difficulties in accessing the

financing and highlighting the characteristics of companies owned by the

women as well as their sources of financing.

Based on a sample of 100 women entrepreneurs, the results of this study have
showed that the offer of financial products and services not suited to needs remains.
main constraint that explains the lack of access for women entrepreneurs in the city of
Goma. This mainly concerns the high interest rate level, the deadlines of
reimbursements not suited to the revenue production cycles of business activities
women, the almost complete absence of material guarantees as well as the problem of rationing of
credit in terms of the requested amount.

Indeed, the rigidity of the conditions for access to financing explains this exclusion of
women entrepreneurs since financial providers want to protect themselves against
consequences arising from the problem of information asymmetry. Due to the above,
Most women entrepreneurs are forced to rely on their own funds.
as a preferred source of funding, it is observed that their activities are experiencing a
slow growth rate due to the modesty of the starting capital.
 GENERAL INTRODUCTION
Problematic
Female entrepreneurship plays a dominant role in financing activity.
economic in many developing countries. It not only contributes to
gross domestic product, to the reduction of poverty and to the creation of jobs,
female entrepreneurship has demonstrated its ability to break social inequality.
traverse empowerment of the woman (Akouerabou, 2020; Kouevi,
2018; Obada & Alliou, 2015.

However, beyond this merit, women face chronic issues related to

access to adequate sources of funding to support their initiatives
entrepreneurial. Indeed, the low financial inclusion of women has been the subject of
many debates as they have fewer economic opportunities than the
men (OECD, 2017).

According to studies, women and men finance businesses differently. The

entrepreneurial women more often use their own personal resources to
finance their businesses and have little recourse to external financing (Coleman and
Robb, 2009). They face serious difficulties regarding access to sources of
external financing (Marlow & Patton, 2005).
From the above, several factors explain the difficulties in accessing financing by
the women. By order of grandeur one can note the absence of
guarantees (Byrne&Fayolle, 2010; Carrier&Menvielle, 2006), the lack of information on
the funding opportunities as well as the level of education (Bekhtaoui&Bentouati,
2015); the lack of transparency in the selection process of beneficiaries and the
burden of funding application procedures (Badia&Kertudo, 2013;
Leclair & Akouwerabou, 2017.
Based on the observation mentioned above, funding for women entrepreneurs has become a
prodigious economic and social fact, a subject of attention as well as a field of education
and education in almost all countries. According to some studies, access to
Financing is very difficult for women entrepreneurs as they are less favored.
by society. Indeed, women are placed in the most disadvantaged category and the
poorer.
Furthermore, women are excluded from traditional financing systems. The tools
financial habits are not suited to their situations, as very often to access
when borrowing from financial institutions, one must necessarily have gold mortgages
Very few women own movable and immovable property.
Given the social status granted to them by tradition, women do not have access
to the ownership of family assets and means of production. The titles of property to
The head of a household is most often in the name of the man.

Also according to Cornet & Constantinidis (2004), when women take out loans in
outside the family circle, it is always out of necessity and most often they are small ones
amounts. Because they are trying to make efforts to reduce the level of their debt
micro enterprises to avoid exposing their families to a situation of precariousness.

According to Lightstone (1998), women do not often resort to institutions.

financial resources to avoid the humiliation of having to rely on the spouse's surety
for the loan. As for Akouwerabou (2017), Hisrich & Brush (1984), they believe that the
women are cautious and avoid over-indebtedness to better protect their family. A
prudence due to an awareness of risks or fear that institutions
financial institutions refuse loans.
The debate thus convened in the previous paragraphs sufficiently proves that the
The main bottleneck in the emergence of female entrepreneurship remains access.
limited to the sources of funding available in the formal market. It goes without saying that one
witnesses a stagnation in the income-generating activities of women, even their death
precocious.
In the DRC, women entrepreneurs make up a significant part of the economic fabric.
congolais mais elles restent caractérisées par l’informel et l’entrepreneuriat individuel. Elles
are looking to promote themselves and keep themselves busy by creating at least one Activity

Revenue Generating (AGR) or social utility despite their very limited capital resources.
limited.

In this regard, the conditions for granting are more difficult for women because they have a
low levels of education and income, low professional qualifications and are
in the face of sociocultural weight and family constraints.
The bank has always occupied (and still occupies) a crucial place in financing.
of Congolese companies. Access to bank credits is therefore an essential condition
of women's business development. However, these businesses are often
faced with funding constraints that can lead to the failure of their projects.
The process of their growth and development thus appears problematic in turn.
and this, due to the obstacles most often encountered during their financing.

In addition, their activities have low productivity, low profitability and

that they often operate in the informal sector. Moreover, women prefer
always borrowing from the family circle and very rarely seeking help from institutions
traditional financial. All these factors, combined with the difficulties of access to
bank financing demotivates women from becoming self-employed.

This painted landscape is a reality present in the context of entrepreneurial dynamics.

in the city of Goma. Therefore, to highlight the determinants behind the lack of access
on the financing by women entrepreneurs in the city of Goma on one hand, and on the other
part, to propose solutions, would be promising with a lot of hope both on the
theoretical and practical plan.

Thus, to conduct this study we started from the following main question:
What are the difficulties for women entrepreneurs in accessing financing?
city of Goma?

From this main question, specific questions arise as follows:

1) What are the explanatory factors for difficulties in accessing financing?

female entrepreneurship in the city of Goma?

Which of these factors most explains the problem of lack of access to financing?

3) What are the characteristics of women-owned businesses and the sources of

their funding?

Research hypotheses
To answer the previous questions, the following provisional responses have been
advances:
The explanatory factors for women's difficulties in accessing financing would be
their weak control of credit mechanisms, the almost complete absence of guarantees as well as
the offering of products unsuitable for their needs;

The factor that would most explain this problem of access to financing for women.
would be due to the offer of products unsuitable for their needs characterized by interest rates
higher, shorter refund periods as well as the rationing of the amount of
requested credit.

3) Les entreprises détenues par les femmes ont une dimension modeste et un rythme de
slow growth and most often rely on equity.

Research objectives
The overall objective of this work is to understand the factors that limit access to
financing by women and proposing solutions to overcome these obstacles.

The specific objectives we aim to achieve at the end of our work are:

1) Identify the main factors that explain the lack of access to financing by
women entrepreneurs of Goma
2) Highlight the most determining factor that explains the access problem to
financing by women entrepreneurs of the city of Goma;
3) Determine the characteristics of women-owned businesses and the sources of
their funding.

Methods and techniques used

We will conduct our study using analytical and descriptive methods.

The analytical method will help us analyze the collected information and
the interpretation of results related to women's access to financing difficulties
entrepreneurs from the city of Goma.

the descriptive method will allow us to condense the information in the form of
names, to represent the processed data in the form of a table.

As for the techniques:

The documentation: it will allow us to gather all the literature related to

our work
The questionnaire survey technique: It will allow us to collect the data.
related to the financing difficulties of female entrepreneurship in the city of Goma,
through a questionnaire that will be addressed to women entrepreneurs

Choice and interest in the subject

The choice of this subject was motivated by the concern to highlight the factors underlying
lack of access to financing for women entrepreneurs in the city of Goma.

As for the interest, it is expressed in these terms:

a) On a personal level: this work will allow us to deepen our knowledge in

the field of financing for women entrepreneurship.

b) On a practical level:

We believe we are providing support for women entrepreneurs by bringing a

contribution to the improvement of their management by formulating recommendations that can
help them improve their growth and immerse themselves in the form of financing as well as
other factors that allow them to expand their economic activities.

c) On the scientific level: this work complements previous studies that dealt with
the issue of financing women's entrepreneurship and thus, constitutes a
document that may serve other researchers in the same field.

Delimitation of the research

Our work is limited to identifying the factors of inaccessibility for women.
entrepreneurs from the city of Goma seeking funding from financial institutions. The
data used to develop the empirical part of this study were collected at
from November to December 2023.

Document plan
In addition to the introduction and the conclusion, this work consists of three chapters. The first chapter
constitutes the framework for analysis related to the theoretical and empirical literature review of

financing of women's entrepreneurship. The second chapter, for its part, presents the state of
places of entrepreneurship funding in the city of Goma. Finally, the last chapter.
empirically presents the issue related to difficulties in accessing financing
banking by women entrepreneurs of the city of Goma.
 CHAPTER I :
LITERATURE REVIEW ON FINANCING OF
WOMEN'S ENTREPRENEURSHIP

As noted in the introductory section of this study, female entrepreneurship plays a

dominant role in financing economic activity in many countries in
development. Thus, this chapter aims to present the foundations
theoretical and empirical related to the financing of female entrepreneurship.

Thus, initially, the clarification of the concepts will be presented. In a second

In this section, the literature review, both theoretical and empirical, will be developed.

I.1. THEORETICAL REVIEW

In this section, we will define the different concepts used to enable our
readers to have an understanding of all the concepts that will be used in our work

1.1.1. NOTIONS ON ENTREPRENEURSHIP

1. Definition of entrepreneurship

There are several designs and definitions of entrepreneurship according to different thoughts.
Entrepreneurship can be defined as the act of creating a new
organization and particularly business creation

According to Schumpeter, "entrepreneurship is a process of seeking evaluation and

opportunity exploitation, carried out by an entrepreneur or an entrepreneurial team
who, as part of a creation, takeover or business development, develops
an organization implementing a strategic vision, and contributing to create value
″.

For [Link] and Peter Drucker, entrepreneurship consists of taking risks.

According to Gasse, entrepreneurship is understood as the 'appropriation and management of resources.'
human and material, with the aim of creating, developing and implementing solutions
allowing to meet the needs of individuals.

Fayolle and Verstraete (2005) believe that entrepreneurship is a field that is too complex and
too heterogeneous to be limited to a single definition and therefore propose to classify the
different definitions put forward by the authors according to four schools of thought or
paradigms.

Business opportunity paradigm: in this context, entrepreneurship is defined

as the ability to create or identify opportunities and to exploit them, and also to
gather the resources to pursue the opportunity.

Paradigm of organizational creation: in this paradigm, entrepreneurship

is defined as the creation of an organization by one or more people.
However, the notion of organization is not limited solely to that of a company.

Paradigm of value creation: it defines entrepreneurship as a phenomenon

or a process creating value whether individual, economic, or social.

Paradigm of innovation: this paradigm places innovation at the center of the definition
entrepreneurship.

1.1. Definition of the entrepreneur

According to the father of entrepreneurship, Schumpeter, the entrepreneur is a risk taker who
exercises a new function by innovating, by combining factors differently
production, thereby generating profits. He distinguishes four types of entrepreneur: the
manufacturer, merchant, the captain of industry, the salaried director and the founder.

As such, the entrepreneur is that woman who seeks personal fulfillment,

financial independence and control of one's existence through the launch and management of
his own business (Belcourt et al. 1991 cited by Bouzekraoui 2014)

1.2. Definition of the company

According to A.C. MARTINET and A. SILEM, a company can be defined as an entity
organized economy that, by combining the factors of production, produces goods and
services for a specific market pursuing multiple objectives

The company is any organization that ensures the production of goods or services in
bringing together its three factors of production [nature, labor, and capital] for the purpose of exchange and

for profit

2. The characteristics of the entrepreneur

According to Blawat, the characteristics of the entrepreneur are divided into three dimensions:
the personality (the profile), motivation, and entrepreneurial skills
a) The profile of the entrepreneur

A vast literature devoted to the study of entrepreneurial personality has revealed a

a certain number of dominant characteristics in entrepreneurs such as:

The need for accomplishment,

The propensity to take risks,

Entrepreneurial optimism,

Creativity.

Summary table of the characteristics and qualities of an entrepreneur

Characteristic quality

Self-confidence believe in your own abilities;

Determined will stubborn, persistent, and determined

Focus on the tasks to be accomplished or Concerned about success; Hard worker,

results to achieve dynamic, energetic; Takes initiatives.

Acceptance of risks Take calculated risks; Love challenges.

 Offer from a chief Concerned about the development of others.
Good communicator;

Good contact with others;

Attentive to suggestions and criticism;

Take an interest in others;

Concerned about the development of others.

Originality Innovative, Creative; Flexible and open-minded

Clever; Adapts quickly and

easily

Turned towards the future ["Foreseeing","Visionary","Intuitive"]

c) The skills of the entrepreneur

Entrepreneurship is a profession in its own right that requires specific skills.

to perform its various functions related to creation, planning, organization,
Coordination... In the field of entrepreneurship, several authors have proposed
typological classifications of entrepreneurs' competencies that concern
essentially the identification of opportunity; strategic vision; network management
business; time management, work management; financial management, marketing, human resources
management of laws and regulations

3. Types of entrepreneurship

1. Formal and informal entrepreneurship: formal entrepreneurship includes activities

related to the formal economy, that is to say, the activities authorized and recognized by the State
whereas informal entrepreneurship relates to activities that take place in the shadows, not
recorded by the State. We may also have underground entrepreneurship, by analogy to
the underground economy which concerns prohibited and illicit activities.

2. Individual entrepreneurship and collective entrepreneurship: individual entrepreneurship,

it is a person's desire to stand out, to gain more independence and freedom
without any authority intervening, explains Régis LABEAUME The individuals who borrow
this path seeks to be realized on personal, professional, and financial levels.
Sole entrepreneurship actually corresponds to self-employment. Entrepreneurship
collective or community is characterized by a group of individuals who discern a common
need and choose to unite their efforts to meet this need. In
In collective entrepreneurship, individuals share the profits and the risks. They have a desire
to undertake together and not to be in competition.

3. Occasional entrepreneurship and sustainable entrepreneurship: depending on the duration of the activity,

occasional entrepreneurship takes up temporary, daily activities,... while

sustainable entrepreneurship refers to activities and especially companies whose operations
lasts a long time.

4. Female entrepreneurship and male entrepreneurship: certain activities may be

exclusively exercised by women while others may be specific to
men.

5. Private entrepreneurship, public entrepreneurship, and social entrepreneurship: here the criterion
is the legal status of the company. The private concerns companies in the private sector;
public, public sector companies and social entrepreneurship concern the different
businesses in the social economy sector.

4. Le processus entrepreneurial :

The entrepreneurship process is considered to be the essential element of the approach.

entrepreneurial. The entrepreneurial process is based on the dialogue between the individual and the project that

it is in perpetual interaction with the environment, it evolves in a

diachronic perspective; it undergoes the double dimension of space-time as it also acts.
on this one. During this process, several steps can be distinguished.

First step: The idea and the opportunity

The idea is a starting point that can lead a project to its realization, that is to say to
action. The entrepreneur recognizes an idea and exploits it. Finding a creation idea
Business is sometimes a difficult problem to solve. It can stem from creativity.
of the individual or an analysis of the environment. On one side, the idea can be conceived
only from the individual's imagination. There is no notion of opportunity. A
Conversely, an inherent opportunity in a singular environment can lead to an idea.
in the mind of the individual

Deuxième étape: Le projet

A project is the image of a situation, a state that we think we can achieve. It is about what
It is proposed to do at some point. The project and its implementation before the creation.
business seems to be a condition for success. The project of undertaking is a concept
evolutionary since any initial project of undertaking is realized, if it succeeds in the form
of an organization that partially shapes it to adapt to the demands of the environment.

The entrepreneurial strategy is both deliberate and emergent: deliberate in its

orientation and emerging in these details to allow adaptations along the way.

Third step: The business model

The business model was originally specifically used in the context of creation.
business and more specifically startups. The design of business models is
indivisible from the concept of value. This value is relative to the market and the partners
with which the exchange relationship is established.

Verstraet and Jouison explain that: "the business model is the representation of a business"
expressing how value is generated, compensated, and shared with, for these three
dimensions, questions related to volumes (of generation, of remuneration, of
sharing) and to the channels (through what means is value generated, compensated, shared?).
This is where this representation must become a convention, that is to say a
collective conception strongly influenced by the expectations of stakeholders (notably
the project stakeholders, the clients, the funders, etc.)

Fourth step: the business plan

The business plan is a synthetic file for presenting an entrepreneurial project. It is

resulting from an analytical approach by the entrepreneur. It is both a tool for
communication with the various stakeholders (financers, partners, clients...) and a
strategic thinking tool. Through its content and the analytical reflections that have
leads to its drafting, it helps to reduce the uncertainty emanating from the environment.
the mission is to test the relevance of the idea and thus prove its profitability
the company that will implement it.

5. Importance of entrepreneurship.

The importance of entrepreneurship lies in the contributions made to the economy and to the
society. Indeed, the contributions of entrepreneurship to the economy and society relate to the
business creation, job creation, innovation, development of the mind
to undertake in companies and organizations and the support of
structural changes.

5.1. Entrepreneurship and economic growth:

Growth is the result of innovation that allows for an increase in productivity.

work by introducing new production processes and thus increasing revenue
or to develop new products and services. However, the increase in revenue
will have a positive effect on entrepreneurial dynamics since individuals have the
abilities and resources that allow them to start their own businesses in a
economic environment offering opportunities to exploit. This increase of
entrepreneurial activity generates GDP growth of a country that comes from
entrepreneurial projects that are progressing.

5.2. Entrepreneurship and job creation:

The creation of businesses, especially SMEs, is a potential source of creation and

of jobs and a resolution of the unemployment problem. The act of entrepreneurship has become a
necessity for the social integration of the entrepreneur and their family

6. Specificities of female entrepreneurship

It is generally accepted that women are naturally inclined to undertake for the
survival of the whole family. This is what among other things makes the specificity of entrepreneurship.
female. Moreover, female entrepreneurship is characterized by funding methods
individuals.
Women who succeed in starting their businesses do so at the smallest level.
Due to the variety of obstacles and the different socio-economic levels in
presence, women entrepreneurs do not constitute a homogeneous group as they have
motivations, interests, and especially very diverse potentials. Beyond their
Differences, women-led micro-enterprises have certain characteristics
municipalities :

They generally work in areas of expertise that they have.

acquired in the family sphere;
They have a very low capital;
Production is generally done at home;
They all focus on the least profitable sectors;
Transportation methods are tedious.

7. Characteristics of businesses owned by women entrepreneurs

The characteristics of women-owned businesses are analyzed.

compared to those of companies owned by male entrepreneurs in order to
highlight the differences that will characterize the companies occupied by the
female entrepreneurs. And according to the authors who have taken an interest in this category
from companies we retain:

Women-owned businesses most often address their production

to households and rarely to businesses or the public sector (Bates, 2002).

Female entrepreneurs earn less than male entrepreneurs and

even less than employed women (Clark and James, 1992; Devine, 1994)
A significant portion of businesses created by women entrepreneurs are
held in co-ownership with the spouse who shares the management with his wife
the company (Carter, Anderson and Shaw, 2001).
Businesses created by female entrepreneurs are under-capitalized by
in relation to those created by men. Women start their business with
only 1/3 of the capital used by men for the creation of their business
(Carter, Anderson et Shaw, 2001)
 Companies owned by men generate three times more revenue.
that women-owned businesses (comparative analysis on small
companies present in the USA in 1992) (Bates, 2002).
Women-owned businesses use fewer inputs. They employ the
half the number of employees hired by their male counterparts and use the
half of the financial resources to launch an operation (Bates, 2002).
Women-owned businesses are generally younger. They are
more likely than male-owned businesses to be very young
(Bates, 2002).

8. Financing modes for women's entrepreneurship

According to Professor NSIMBA LUZOLO, the correct financing of a project is one of the
success conditions of this project. It distinguishes 3 sources of capital, including capital
own funds, borrowed capital, and aids.

Equity includes the share capital and self-financing (it is found in

the reserve accounts, retained earnings, provisions, depreciation).

Borrowed capital consists of long-term and medium-term debts. These funds can
from banking and non-banking financial institutions (commercial banks and
savings and credit banks); but also bonds.

The aids are generally distributed by the State or the local community. They are of
financial nature (grants, repayable advances, loan guarantees), tax
(tax exemption, reductions and tax abatements) or even social (exemption from
social contributions)

Charles HOANG believes that to start his business, the creator must make a choice.
optimally of its financial resources. It thus distinguishes two main resources: the
equity and debts.

. Equity represents the contributions made by the partners and the

grants obtained from government agencies. For him, the grants
become directly equity.
 . Debts and indebtedness represent the amounts that will need to be borrowed (in the short term
short, medium, and long term) to compensate for the lack of equity.

We have tried to discuss in this point the main sources of financing for a
business. There are also others that are specific to women's entrepreneurship.

According to recent studies, only about 5% of the African population benefits

of a paid job in the formal sector of the economy (De Hertz and Marysse,). The
the majority is thus condemned to live in the informal sector, engaging in small activities of
survival such as small trade, peri-urban agriculture (particularly the
market gardening), livestock breeding, selling agricultural products, feed, etc. The people
exercising this kind of activities, mostly women, are confronted with the problems of
financing. Because they do not have their own funds and cannot provide to
banks the usual guarantees, they hardly have access to the credit system
formula (Bock and Wilcke,).

People engaged in this kind of activities, mostly women, are faced with
financing problems and the subsequent difficulties.

Due to the fact that they do not have their own funds and cannot provide banks with the
usual guarantees, they practically have no access to the formal credit system. Others
Researchers claim that around the world, women are more ambitious than
men to engage in small businesses requiring individual work. However,
there are other sources of financing such as personal and family savings, the
tontines and the credit granted to micro-enterprises by MFIs.

8.1. Personal and family savings

First of all, women do not have a large income when starting their
entrepreneurial project (limited personal funds, difficulties or recourse to institutions
financial...). Then, autonomous women spend less time on their businesses.
than men. They find themselves obliged to reconcile their responsibilities
entrepreneurial with those familial responsibilities that traditionally fall to them such as the
care provided to children

8.2. The tontines

It is difficult to define African tontines because there are several variants. The most
known in the DRC as the 'LIKELEMBA'. Originally, it is a practice that is very
an ancient practice that used to involve entrusting the clan's treasure into the hands of the "LEMBE"
by requiring him to make the necessary expenditures. Nowadays, in urban areas, they
take the form of an association in which members pool all or part
of their 'salary', their assets and entrust them to one of them, in turn. This practice,
especially observed in women, presents a number of characteristics
notably, informal and personal. In short, the tontine is characterized by collective contribution
fund to address the economic problems of the organization's members. A
a variable group of 5 to 10 people or even more forms a central fund in
to which each member contributes a specified amount at indicated deadlines and at a due date
precise. We take turns putting the available amount until the
last one to be served and so we go back into a new cycle etc.... Above all, this phenomenon
tontines have an informal character. African tontines rely on personalization of
relations that unite the members. This customization of the members allows for better
situate informal finance in relation to institutional finance. Informal finance
has the following characteristics:

absence of conditions: no authorization to request, no steps to take

to carry out, no guarantees to provide, no formalities to complete, no deadlines to
to respect
absence of management fees: administration is reduced to a minimum, a notebook where
the names and the amounts paid and refunded are recorded;
absence of a fixed framework: tontines can group a few members or
a few hundred and last a few weeks or several years;
absence of control by the central bank.

The tontine phenomenon also has a financial aspect. Although mutual tontines do not...
are not accompanied by any interest, the member who pays their share has in return a
equivalent receivable that will increase with each round. The receivables and debts that will
perfectly compensate throughout the cycle cancel out in the last round.

In commercial tontines, on the contrary, the client who puts their money in safety among the
the tontinier sees his debt increase each time. The tontinier sees his debt
progress all the more. These commercial tontines are therefore accompanied by an interest. The debt
The tontine and the claims of its clients progress in parallel until repayment.

8.3. Micro credits granted by MFIs

The conditions for granting microcredit required by the various Microcredit Institutions
Finance (IMF) can be ranked in descending order of importance in the following way
next: to be a member of the cooperative, to have a guarantee (savings in the IMF), to be
landowner, be part of a solidarity group, be a good producer and have a
at least six months of seniority in a revenue-generating activity.

As we can see, these conditions already exclude a number of the micros.

entrepreneurs who cannot meet such or such other condition. As often
the internal objective of microfinance institutions is to have a good rate of
repayment, they would rather want to ensure that the lender is potentially
solvable. In doing so, they leave aside a whole category of applicants who could
may prove effective in managing the loan. That is why women in
individuals resorting to tontines.

Other sources of funding

Other sources of financing for micro and small enterprises can be classified according to
the following typology: extended family, associative savings, cooperative savings, lenders and
usurers.

9. The role of the woman entrepreneur

The role of the woman entrepreneur as an economic agent.

Engine of economic growth

Entrepreneurship is presented as a means of economic development, which fights

against unemployment and poverty.

Development factor

Female entrepreneurship helps improve social status, education, and health.

of women and their families. Women can participate in economic development and
social of his country.
Innovation

From a strictly economic point of view, Ahl (2002), Orhan (2003), and Verheul (2005) have
demonstrated by several surveys that female entrepreneurship was a driver
determinant for a country or a territory. They are the source of the emergence of many
high-potential niche markets

Job creation:

Job creation plays an important role in the country's economy, it

contributes to job creation and the economic wealth of the country, which has an impact
major on unemployment absorption and social development.

Management and organization:

Female entrepreneurship brings different solutions to society and often

innovative solutions to management and organizational problems, as well as exploitation
new opportunities

10. OBSTACLES TO WOMEN'S ENTREPRENEURSHIP

10.1. Obstacles to the development of women's entrepreneurship.

Women entrepreneurs face several structural problems that block

The advancement of women entrepreneurs is explained by: The constraints
Sociocultural: the role of women according to culture is limited to the family unit.

Obstacles come in several types:

Social and cultural obstacles: On the sociocultural level, unfavorable prejudices against
regarding women obstruct their activities. This cultural influence would explain
also the restriction concerning women's choice of industry. To this one
can add the education level of women which is generally low.
The education of the young girl is marked by prejudices. This state of affairs reduces
considerably the chances of girls and women to pursue training
professional.
Professional obstacles: in general, women have fewer opportunities than
men to improve their skills in the structured sector
 Infrastructure obstacles: Regarding infrastructure obstacles, access to credit,
access to technology, support services, and information is difficult for women.
The existing support structures seem very inadequate for
the framework of the female population. It should also be noted here that the system of
transport and communication is very limited.
Legal obstacles: there are regions where it is still difficult for women
to take legal action independently
Psychological obstacles: indeed, it happens that women lack confidence.
in themselves that they have a negative image of themselves, this psychological factor
should not be overlooked concerning women in addition, women experience
difficulties in reconciling their family roles and the time constraints involved
the exercise of economic activity.
Obstacles related to education level: women often have a level
of instruction relatively lower than that of men, they receive a
biased education and their chances of pursuing higher education or
professionals are generally reduced.
Institutional obstacles: not very favorable to the creation and development of
the company in general.

There are just as many obstacles that still slow down women's long journey towards their
economic initiative, a necessary step for the creation of businesses that are
growth, women entrepreneurs face various obstacles throughout their
journey, among the obstacles, we can mention:

Access to financing
Work-life balance
Difficulties related to stereotypes and social mindsets
Access to the market and information
Access to the network

10.1.1. Access to financing

Access to financing remains undoubtedly the biggest obstacle for women.

Entrepreneurs, the various aspects of financing that are crucial for women
entrepreneurs are: the importance of capital at the start and during growth,
provenance of the funds and the expectations of borrowing organizations, the quality of the risk of
credits they represent and the specific difficulties encountered in obtaining them
necessary funds.

In general, startup investments in women remain lower.

that of men even if the reputation of women entrepreneurs is enviable,

10.2.2. Difficulties related to stereotypes and social mindsets

Notably for women who invest in male-tinged niches

(example of IBTP, where women entrepreneurs find it difficult to have their orders followed)
by their workers of the opposite sex).

10.2.3. Access to the network

Women entrepreneurs participate little in networks. This is actually a major handicap.

which can translate to the loss of several opportunities (information, training,
support in financing, etc.). This situation is attributed by some authors
mainly due to their lack of information.

In addition, several studies have focused on the differences between entrepreneurs

masculines and their female counterparts, in terms of access to networks. The results
converging towards the idea that the hypothesis of gender-related differences is not verified.

Moreover, several studies have concluded that there are great similarities in terms of
behavior of men and women in a network (LAMBRECHT et al, 2003).

Nevertheless, some studies that have focused on the issue from the perspective of
composition of networks concluded that women entrepreneurs tend to integrate
exclusive female networks, while men integrate mixed networks
completely made up of men.

10.2.4. Conciliation private life/professional life.

Women who run a business generally have to take care of

their family. Due to this dual responsibility, women entrepreneurs may have
a greater aversion to risk, and are therefore more likely to seek loans from a
low amount. Family responsibilities, and the issue of multiple priorities
what this implies can also trigger a certain mistrust from creditors towards
female entrepreneurs.

10.2.5. Access to the market and information

For very small businesses (VSBs), access to information is crucial for their success.
Nevertheless, the minimal resources (material and human) and the non-existence of structures
internal barriers (designed to collect information) hinder women-owned businesses regarding
receipt of information

1.1.2. FINANCING

The term financing evokes the action of financing, the latter means 'to provide capital'
Indeed, financing a company essentially involves making available to it
capital leaders at the right time; the capital they will need at all
guarantees them their independence and freedom of action.

According to the economic dictionary (2000), financing is the action by which a

an organization or a private person allocates funds to a third party with the aim of supporting a
project.

To finance its economic activity and ensure its growth, every business needs to
resource; we can therefore understand that financing is the whole of
resources that the company has for its operation.
The financing is made up on one hand of the financial resources that the company generates from its
the very activity, this is what is called 'internal financing', on the other hand, the
external resources that come from banks or financial markets
a) The concept of small and medium-sized enterprises (SMEs)

The definition adopted by the OECD (Organization for Economic Cooperation and Development
Economic) is based on three criteria which are (the workforce, the turnover and
the independence of the company.

In the DRC, the size of the company is determined by the number of employees and the figures.
business. In the table below, let's look at the categorization
Categories and criteria for businesses according to the Ministry of Small and Medium Enterprises

categories Micro Small Average Big

 company company company company

Name 1 to 5 6 to 50 51 to 200 201 and more

of employees

Number 1 to 10000 10001 to 50000 50001 to 400000 and more

of business in 400000
dollars

Sources; PMEA charter data in the DRC; 2006. This table shows
clearly that any company that employs up to 200 workers whose revenue
does not exceed 400,000 USD is indeed in the categorization of SMEs

The financing needs of a company

A company, if it is poorly managed, risks finding itself in a situation at any moment.

of insolvency which would result in a cessation of its activity and a placement in
liquidation. Insolvency refers to a company's inability to meet its obligations.
a moment given of a debt due to lack of liquidity. This situation can happen to anyone.
a company that does not adequately recognize the importance of sound management
its finances, even in cases where the company experiences good economic activity.
To avoid finding itself unable to repay a debt, the company must establish a
financial analysis that involves studying a company's ability to comply with
deadlines imposed on it by its creditors. Through its activity, a company is
faced with two types of financing needs: a long-term financing need
and a need for short-term financing.

1.1. A long-term financing need

In order to carry out its activities, a company must first equip itself with a certain
number of assets that will be used over a long period such as land for construction
a factory, premises where the machines used in the process will be stored
In accounting, these particular elements of a company are called assets.
assets are accounted for at the top of the balance sheet in accounts of class 2. The
financing of this fixed asset assumes that the company has long-term resources
terms also called stable resources.

1.2. A short-term financing need

Once the company has acquired the essential fixed assets, it will
to finance its daily activity, that is to say, to finance the creation of stocks of
raw materials that will be used throughout a given period to be integrated into
le processus de production. C’est-ce qu’on appelle en comptabilité l’actif circulant.

2. The types and sources of funding

2.1. The different types of financing

The company must therefore seek resources, that is to say means of financing.
adapted to its financing needs; investment or operation

Investment financing

Financing investments often requires the deployment of capital.

important things that the company cannot ensure with its own resources, namely,
self-financing, therefore, it is obliged to supplement them with
external resources that can come either from the financial market or from the bank

b. The financing of operations

To face competition, companies must make payments to their

clients, they sometimes have to endure delays in payments. Generally speaking,
The company may face cash flow difficulties either due to the length of the process.
of manufacturing, either due to the slowness of sales regulations. To remedy the
In this situation, the company will seek assistance from its banker who will be able to offer it short-term loans.

their duration is less than one year corresponding to the nature of the need to be financed.

2.2. Sources of funding

To meet its needs, the company has several arrangements, first of all, it makes
appeal to its own resources generated by the operating cycle, that is to say

Self-financing. But, when it is unable to meet its capital needs through

self-financing, it relies on external resources, which consist of the market
financier who finances investments through capital increases or
the bond loan and banking institutions through short-term loans,
medium and long term.

2.2.1. Financing by equity

a) L’autofinancement
According to the general accounting normalization code (C.G.N.C), self-financing constitutes "
the monetary surplus (resource) generated by the company and sustainably retained for
ensure the funding of its activities." In fact, it is about financing projects of
the company by deciding to reserve part or all of the profits.
Self-financing represents the difference between self-financing capacity and the
dividends distributed during the fiscal year. Strategically, self-financing
guarantees companies freedom in terms of investment choices. While
Financially, minimizing the use of debt allows companies
to improve their profitability by reducing the burden of financial charges.

The other benefits of self-financing are:

It ensures independence from third-party funding providers (banks,

credit institution, suppliers;
It allows for greater latitude in terms of strategy (notably in
Now the existence of a safety cushion at the credit level...)
It helps to curb debt and therefore the burden of financial charges;
It allows for a more competitive pricing strategy by reducing costs;
It allows for greater freedom in investment choices.
(exploitation, immobilization, replacement ...) ;
It improves the security of funding in the event of an economic crisis (when the
Credit is rare and expensive). See the course on Financial Management

b) The increase in capital

The increase in capital constitutes the creation of new shares purchased by

shareholders already present in the company or by new shareholders. When
the additional funds are provided by new shareholders, this means
the opening of capital and thus a sharing of power and profits with the new ones
subscribers. However, unlike publicly traded companies or the increase in
the capital is open. At the level of SMEs, it is generally closed, given that "the
Majority shareholders are often concerned about preserving their independence and
of their control

2.2.2. Debt Financing

Debt financing represents a necessity for financing with capital.

clean.
Debt can take the form of bank loans by resorting to institutions.
of credit, or in the form of bond loans through the issuance of bond securities
in the financial market.

[Link]. Bank financing

To meet its financing needs, the company can directly solicit the

Financial capacity agents. The place where this meeting takes place is the market.
financier.

This indeed constitutes the means by which the company has the necessary capital.
allowing him to meet his financing needs.

Bank financing is the primary form of external financing to which the

SMEs call for help. Indeed, the difficulty of accessing other financing means and the
the desire to maintain control drives owner-managers of SMEs to prioritize the
bank financing. Bank financing helps to mitigate the shortcomings of
equity on the financial balance of companies. Depending on its maturity, credit
banking can be granted for the short, medium or long term

A. Credit

The credit act is defined by three elements or factors: An economic exchange, a

intervalle de temps et la confiance, c'est -à- dire que tout crédit doit avoir un coût, une
operation that occurred at time t, its due date must be at time t+1 and Trust.

Credit implies an idea of trust because the party delivering its asset has trust.
in the fulfillment of the future service on the agreed date. One must believe without seeing.
for the credit operation to be effective. As a result, the element of trust is very important.
in the concept of credit.

It should be noted that if any of the above conditions are not met, we do not speak of the
credit.

The terms of the Credit

On certain points, this analysis may be more legal than economic. There are four
ways to conceive credit:
the primary steps to be taken to benefit from a bank competition. They are
among others:

the obligation to be a legal entity;

the obligation to have a checking account or a current account in the wallet

bank client;

and the obligation to have saved for at least 3 months in the said account.

Any funding request can only be submitted when these primary conditions
are not filled.

A.1. According to the guarantees

Credit is initially personal, meaning it is linked to the quality of the person who is making the request.
promise to pay at maturity. But to limit risks, the damages of non-payment, the
a person who grants the credit may require a guarantee in such a way that if at time t+1,
the company is not able to fulfill its obligations towards its creditor,
The pledged item can be sold to recover the funds. This guarantee can be movable.
real estate. The difference lies in the fact that the first form of guarantee moves
that is to say can be moved from one place to another while the second form does not move
pass.

One can distinguish between personal guarantees and real guarantees.

[Link] guarantees

Is defined as the commitment made by a natural or legal person (that we

let's call the guarantor) to fulfill an obligation if the debtor does not fulfill it himself, it
materializes in the form of a guarantee or endorsement

The guarantee

The guarantee is the commitment taken by a third party, called the guarantor, to perform in case
of the debtor's default. We can distinguish two types of surety.
simple guarantee and joint guarantee.

The guarantee
It is the commitment made by a third party on a financial instrument to guarantee it.
payment. The guarantor is therefore jointly liable with the principal debtor. The guarantee can be given on

the effect or by separate act

A.1.2. Real guarantees

It consists of assigning an asset as collateral for a debt, that the asset belongs to the
the debtor himself, or to a third party, in which case the security is legally referred to as
real guarantee. It sometimes happens that a guarantor supports their real security with their commitment.

Personnel. Various types of goods can be allocated as collateral, notably the

real estate, business assets, equipment, goods, securities
the receivables generated, and even sums of money

The mortgage

The mortgage is the act by which the debtor grants the creditor a right over a property.
without dispossession and with publicity.

The forms of mortgage

- Conventional mortgage: It is recorded following the signing of a contract. Ex:

loan agreement for acquiring a property

Judicial mortgage: It results from a judgment. E.g.: anxious creditor wanting to reassure.
his claim in view of the debtor's worrying situation

Legal mortgage; It is provided for by law. E.g.: the public treasury for the collection of
taxes.

The effects of the mortgage

Regarding the creditor, the mortgage grants him a real right. Regarding third parties, it confers a ...
right of first refusal and a right of suite.

Right of follow-up: If the property is sold, the guarantee will remain acquired by the creditor as long as

the mortgage will be valid.

Right of preference: In the event of the sale of the property, the creditor will be paid first.
product of the sale

A.1.2. According to the destination

Here we distinguish consumer credit from production credit. Credit to the

consumption, is a form of credit that a household can take on for a
final consumption while production credit is a credit that can be contracted
a company to finance its production cycle.

A.1.3. According to the duration

Credit is differentiated according to the duration of the time gap involved. Three types are distinguished.

types of credit: short-term credit, medium-term credit, and long-term credit.

a. Medium and long-term credit

Medium-term credit is intended for financing various investments.

It is qualified as lasting between 2 to 7 years, regarding long-term credit it
it lasts between 7 and 20 years, and it is used to finance long-term investments.
duration. This type of credit allows for the financing of a company's equity, it is
granted to them after an in-depth study of the project's profitability
investment. By adding to this other factors such as the level of activity and the
financial situation of the company, which Adair and FHIMA (2013) termed the factors
"endogenous", while they add other exogenous factors "such as the cost of
financing and the guarantees required by banks, the requirements of banks, especially regarding
the matter of guarantees largely explains the insufficiency of the grants awarded, by
report on expressed needs

Barneto and Gregorio (2009) add that the granting of credit is related to 'the ability to
reimbursement of the company and its borrowing capacity. It also depends on the
risk incurred by lenders, risk assessed by rating agencies

b. Short-term credit

Short-term credit allows for the financing of current and operational needs.
the company, it has a duration of less than two years.

Another source of funding

The grants

Countries are now aware of the great potential of SMEs, contributing to growth.
These companies contribute to creating more jobs, more wealth, and services/products.
innovative. Governments are now embarking on a new mandate, which consists of
to provide grants to fund innovative small businesses and bridge the gap
gaps in the capital markets.
Government funding has proven to be effective support for...
business development. Thus, the financing of SMEs has become the focus.
the attention of several national organizations, which led to the establishment of
several programs aimed at supporting entrepreneurs.

The Congolese government recognizes the importance of SMEs in the creation of a

strong economy for the whole country. To support these businesses, a wide range of
programs have been created with different objectives and qualification criteria,
government agencies offer funding to which businesses could be
admissible but with the condition of meeting certain criteria

Criteria:

Obtaining a grant is not always easy, as competition is generally strong and

The criteria applied are often strict. Most of the time, the company must invest a
amount equal to the grant and this amount varies greatly from one source to
the other.

The company must generally provide:

a detailed description of his project

an explanation of the advantages of his project

A detailed work plan indicating all costs

A description of the relevant experience and backgrounds of the leaders.

keys

- The evaluation criteria for requests used by most organizations: Importance,

Approach, Innovation, Know-how, Need for the grant...

Reasons why a grant may be denied:

The research or project is not relevant, the company is located in a non

admissible, the applicant did not indicate the relevance of the ideas, the proposal does not provide
not a sufficient justification, the research plan is not precise, the amount of work to
to perform is unrealistic...

3. The obstacles to financing and access for SMEs to bank credit

3.1. The barriers to SMEs' access to bank credit

SMEs resort to bank financing, but it is fraught with difficulties.
to access to credit, mainly due to high interest rates, problems of
borrowed amounts, to the lack of transparency of bankers, that is to say to the lack
information on unreliable credit

3.1.1. The high cost of credits

The high cost of credit is one of the major obstacles to the availability of credit for SMEs.

3.1.2. Discrimination made by the bank under the pretext of information asymmetry

The lack of information (budgets, financial plans, cash flow forecasts,

information about stocks or unpaid debts...) is mentioned as one of the main
barriers to access to financing from bankers. But this information, which does not
are not always voluntary, may be due to the absence of these documents.

3.2. The banking finance obstacles for SMEs

Banks face issues of information asymmetry that cause

the uncertainty of the actual ability of SMEs to repay the loan. Banks are
also confronted with the various problems related to the inability of SMEs to provide
reliable forecasts on the prospects, to the lack of their own funds, to the related problems
to the human factor.

3.2.1. Problem of information asymmetry and the risks that arise from it

For the bank, the information asymmetry resulting from SMEs puts banks in a
very tough engagements, among the risks that arise from SMEs are:

The risk of adverse selection

That is to say, the wrong choice between solvent and insolvent companies that leads to
banks with suboptimal decisions.

The risk of moral hazard

That is to say, the failure of leaders to respect their commitments to

the banks. This tightening of banks appears in certain criteria such as the requirement for
guarantees related to credit rationing or the increase in interest rates to clarify
the situation of the banks.

3.2.2. Difficulties in providing weak forecasts on the company’s outlook

The causes of SMEs' inability to provide reliable forecasts are particularly

to the following factors:

Absence of an efficient information system in SMEs,

Too much management concentrated in the hands of a single leader;

The difficulties for a SME to anticipate the microeconomic consequences of

macroeconomic phenomena or interpret the macroeconomic impact of decisions
microeconomic

3.2.3. Lack of equity

Shareholders of companies that invest their capital in the business reap profits.
and guarantee the risk of SMEs. The banker assumes a credit risk when he grants a
ready for the company but is not intended to replace the partners of the company for
fill the lack of equity. The guarantees aim to reduce the risk, more
A small and medium-sized enterprise will be equipped with equity, minus the level of guarantees required by its banks.

it will be high.

3.2.4. Issues related to leaders

The banker seeks to identify the personality of the executives of the companies with which
he engages in a relationship. Any credit operation for SMEs depends on the leader, being
given that the centralization of strategic decision-making is linked to characteristics
personal such as family situation, experience and characteristics
professional aspects such as the level and nature of the training. The duration of the activity.

3.2.5. The difficulties related to human factors

The inability of the management team of the SME to establish forecast documents and
the non-existence of a skilled workforce that allows for the adoption of technologies
modern and productive and increases the company's ability to exploit new opportunities
Market opportunities are signals of poor quality of the firm for lenders.
of funds, which results in their mistrust towards the SME clientele and a real
obstacle to their funding.

3.2.6. The insufficiency of guarantees

Guarantees play an important role in credit granting decisions.

companies, they play a protective role and constitute for banks the mechanism
risk adjustment center. The financial guarantee assures the bank or
the leasing organization, to be financially reimbursed in case of non-repayment of the
SME.
I.2. EMPIRICAL REVIEW

This section presents the empirical results of certain studies conducted on

female entrepreneurship.

Mohammed (2011) conducted research on female entrepreneurship in Morocco by

based on its environment and its contribution to economic and social development.
This research attempted to describe and analyze the experience of women entrepreneurs in
Morocco that carry out their activity in a very socio-economic and cultural context.
difficult, even frankly hostile. The data was collected through the survey using methods
quotas. The research is based on the results of a survey conducted among a
representative sample of 300 women entrepreneurs and resulted in the findings according to
which women's businesses have access to only some of the information
supply, price variations, market needs, business opportunities,
taxation, legalization, subsidy or funding programs... these companies have to
struggling to face very strong competition and a hostile environment due to a lack of
training of human resources used in the latter, women entrepreneurs
still generally face significant difficulties in accessing funding sources
appropriate and finally few women business leaders have a good command of the chain.
supply – production/transformation – marketing.

Sedina and Orpha (2013) analyzed the roles that women entrepreneurs play in the
poverty reduction in Kenya. Based on a sample of 15% selected from
the target population size of 664 women entrepreneurs, the data collection of
Data was collected using interview techniques with 26 women entrepreneurs.
et un questionnaire d’enquête a été distribué. En utilisant une approche qualitative et
quantitative for data processing with SPSS software, this research has led to
the results according to which women entrepreneurs play a major role in the
poverty reduction in Kenya. This research indicated that there is an improvement
significant of the socio-economic status of women working in SMEs selling
shoes and clothes as well as porcelain and sculpture. Finally, this study also
showed that the poverty reduction indicators were met in the design
of the company that are such as the ability to meet basic needs, the ability to
support children's education, have a high standard of living and easy access to
healthcare.

Muhindo (2011) conducted research on the determinants of female entrepreneurship.

in the city of Bukavu. Combining qualitative approaches (interview with 30
women) and quantitative (questionnaire), the study aimed to identify the main factors that
lead the women of Bukavu to orient themselves in entrepreneurship. The data collected
on a sample of 213 women entrepreneurs after processing with SPSS version 16.0 and
factorial analysis, content analysis, and multiple regression with ANOVA test have
provides results such as the different independent variables which are age of
l’entrepreneure, état civil, nombre d’enfants, niveau d’étude, expérience, motivation,
objectifs, profession des parents, objectifs, associé aux activités commerciales dans la
youth significantly influence female entrepreneurship in the city of Bukavu and
The average age of women entrepreneurs is 39.6 years and 53.09% of these women are
Married women have an average of 4 children and the average age of the children is at least 13 years.
 CHAPTER TWO:
STATE OF AFFAIRS OF FINANCING
ENTREPRENEURSHIP IN THE CITY OF GOMA
In this chapter, it is a matter of taking stock of the state of financing.
female entrepreneurship. Before starting this point, we must first move on to the
presentation of the city of Goma

II.1.1. GEOGRAPHICAL ASPECT

The city of Goma is the capital of the North Kivu Province and is located in the East of the
Democratic Republic of the Congo, at the extreme north of Lake Kivu. It is built on
an exchange zone but exposed to volcanic risks.
She is stubborn.
To the North, by the Territory of Nyiragongo;
To the South, by Lake Kivu;
To the East, by the Republic of Rwanda;
To the west, through the territory of Masisi;
Its surface area is 66,452,180 km² distributed between two municipalities: Karisimbi, with
33,079,430 km² and Goma with 33,372,750 km². (Archive City Hall of Goma, 2016).

II.1.2 HISTORICAL OVERVIEW

According to Professor Joseph KATANGA KABALEVI, quoted by the OVG, the

"Goma" comes from a deformation of "Ngoma" which means in French "
"tam tam or drum". It was the name or nickname given to the first village built in this
space. It is related to the noise caused by the activity of the Nyiragongo volcano when it
erupted that this name was adopted by the first settled populations. One
tell that an eruption that occurred before 1900 had destroyed this village Ngoma. Its inhabitants
had dispersed to form three distinct villages:

Mungoma, the current Goma;

Matcha, the current sake;
Munti, the current Munigi.
Despite the volcanic disaster, the populations have not abandoned the environment.
Records indicate that in 1906, Goma was established as a military post by the colonizer.
Document to confront the German post established in Gisenyi. This is Goma's first role.
played and this is the first import that she represented at the national level. Located at
shore of Lake Kivu and at the border or in proximity to East African countries nearby
the Indian Ocean, Goma was very quickly and logically considered as a plate
rotating of trade and exchanges with the outside. It thus becomes a point of
very important transshipment for various products in exporting or importing from
Europe, from Asia...
As mentioned above, in 1906, Goma became a military post. In 1945, it
becomes a state position dependent on the territory of Rutshuru. Then it becomes a center
extra-custodial autonomous territory of Rutshuru in 1954 with an estimated population of
8600 inhabitants. North Kivu has become a test region for the province by ordinance law
No. 88-031 of July 20, 1988, and the division of the Kivu region into three provinces
autonomy having occurred, Goma becomes the capital of the North Kivu province according to
the spirit of the ordinance law n°88-171 of November 15, 1988. Currently, Goma is
a city and a decentralized administrative entity with legal personality and
of a management autonomy.

II.1.3. Climatic aspect

The city of Goma is completely located in the altitude zone. The climate is
generally mild due to the winds blowing from Lake Kivu, the Nyiragongo volcano and the
volcanic mountains located in the Virunga National Park. It is covered in some
places of volcanic soil formed from layers of lava due to different eruptions
volcanic.
II.1.4. Political and Administrative Aspect

Like the other provincial capitals, the city of Goma is an entity.

decentralized administration. It houses the provincial institutions (Government
provincial, Provincial Assembly) and has the status of a Municipality, which allows it to
to organize politically and administratively. The city of Goma is run by a Mayor
holder assisted by a deputy mayor.
At the end of Article 5 of the decree law no89 of May 27, 1989 setting the number,
the naming and delimitation of municipalities, neighborhoods, sections, avenues,
streets and households, the city of Goma consists of two municipalities, the municipality of Goma and

that of Karisimbi. Each municipality is subdivided into neighborhoods and is managed by a

mayor. It has a total of 18 neighborhoods, including 7 for the municipality of Goma and 11 for
the commune of Karisimbi.

II.1.5. Economic aspects

The economy of a nation is summarized in terms of production, distribution, and

consumption of products
Thus, economic activity is divided into three sectors: the primary sector,
secondary sector and the tertiary sector, the details for each will be provided in the
following lines (Provincial Division of Economy, 2015):
1. Primary sector
This corresponds to the set of activities that produce raw materials.
(Agriculture, mining); we list the related activities carried out in the city of Goma.
a) Agriculture, fishing and livestock
The city of Goma has volcanic soil that is favorable for growing crops.
gardens whose products are involved in the feeding of households.
However, despite the presence of small fields or vegetable gardens scattered throughout the city.
from Goma; the latter obtains food products from neighboring territories
notably: NYIRAGONGO, RUTSHURU, MASISI, ... and even the city of Gisenyi at
Rwanda.
The farming practiced in the city of Goma is poultry farming.
chickens) which received a promotion thanks to the intervention of certain NGOs.
The situation of the city of Goma in relation to Lake Kivu should in principle make it
fishing is a main activity and a source of income for its inhabitants. Unfortunately, it
fishing may not be practiced on Lake Kivu at the level of Goma due to the presence
methane gas, which creates a brake on this activity.
However, there are certain people who practice this activity; but in a way
artisanally to the point that production is insufficient and does not cover the
demand for fish in the markets of the City of Goma. This means that the population of
Goma meets its fish demand by sourcing from fisheries
VICHUMBI, from NYAKAKOMA and KYAVINYONGE or sometimes import the fish
from Rwanda and Uganda.

2. Secondary sector
While the primary sector corresponds to all productive activities of
raw materials, the secondary sector concerns industrial activities taken in the sense
large. It is noteworthy in the city of Goma; this sector is less developed, the industry
remains embryonic in the city of Goma. Some production units are noted
agricultural and artisanal products in the city of Goma.
We can mention:
Mbiza House, for mattress manufacturing;
Nyiragongo cement, for the manufacture of cement;
-Les boulangeries : cova dis, Mont carmel, Krishna, Pain royal, …
Small artisan units such as the production of braziers, the manufacturing of
carpentry, shoemaking, sewing... are in full expansion and
become a source of services in various households in the city of Goma.
3. Tertiary sector
This sector includes all activities that are not classified in the other two.
sectors. These are services whether they are commercial (trade, transport and
communication, tourism) and non-commercial (health).
a) Commerce and Tourism
Commerce is the main economic activity practiced in the city of Goma.
It takes place in both sectors: Formal and informal. This activity is encouraged by
the location of the international airport and the port of Goma which facilitate traffic between
Goma and other cities in the country. Its opening in relation to the Rwandan Republic is
Geographical location promotes the movement of tourists.
b) Transport and communication
 In Goma, the transport sectors are developing at three levels, namely:

Land transport: which is ensured by the various roads that connect the city of
Goma to the different territories of the province and even neighboring countries.

Air transport: characterized by the proliferation of companies. This transport

facilitates exchanges between the city of Goma and the surrounding provinces, even
even the stranger.

c) Maritime transport
He made sure by the boats that sail on Lake Kivu by doing the
connection between the city of Goma and that of Bukavu via Idjwi, Kalehe, ...
At the Congolese Office of Posts and Telecommunications (O.C.P.T), communication is
develop in Goma with some houses or communication companies including:
Vodacom, Airtel, Orange who facilitate communication exchanges at the local level,
national and international.

II.1.6. Socio-cultural aspect

health
According to the W.H.O, "health is a fundamental right for every individual," thus the city
Goma has healthcare infrastructure to ensure primary healthcare.
population. It has a provincial hospital and urban health zones in this case
health zone of Goma and that of Karisimbi. Two reference hospitals namely CBCA
Virunga and maternal charity and various other medical centers, health centers,
as well as dispensaries.
b) Religion
The predominant confessions are Catholics, Protestants, Islam,
kimbanguists. The majority of these religious denominations are not hostile to the ideas of
development of the fact that they often intervene in different actions of
development.
c) Schools
For the training and education of youth, the city of Goma has a good
number of institutions at the preschool, primary, secondary, higher, and university levels
both official and private that prepare the youth for a better future. These schools or
institutions are distributed according to different networks: Catholic network, Protestant network,
official network, private network, Islamic network.
The city of Goma is experiencing a strong demographic explosion. Its population
comes from various corners, both from the province and from within the country, even from
world. This explains a heterogeneity of the population.

2.2. STATE OF PLAY OF WOMEN'S ENTREPRENEURSHIP

Literature shows that female entrepreneurship depends on both the situation of

women and the place of entrepreneurship in a society and how it is perceived by specialists
as a response to the economic and financial crisis that struck the Republic
Democratic Republic of Congo thus overturning the social and economic balances of the country. A
remedies against poverty involve encouraging the population towards creativity.
dire à s’orienter vers la promotion des activités génératrices des revenus (AGR) qui se
translated by the creation of a micro-enterprise or a small business. It is about
principalement du développement des micro-entreprises opérant le plus souvent dans le
informal sector of the economy. Thus, this sector carries significant weight in the
African economies have become the main provider of jobs and ensure the
satisfaction of a growing number of the population's needs. Micro-enterprises
notably feminine initiatives thus help to cushion the effects of the crisis and to fight against the
poverty.

Women have become economic operators taking over from their husbands.
unemployed. They have engaged in various activities related to small
commerce and who allowed them to meet the daily needs of the household, of the
schooling of children up to academic fees and health care coverage. It
It is worth recalling that in industrialized countries, it has been about ten years that
Female entrepreneurship is recognized as a significant source of growth.
economic. Despite this, this source remains underexploited, as women
Entrepreneurs still make up a minority among business leaders.

Access to external funding for businesses remains low and too selective.
external financing of companies poses a major problem for their emergence,
activity and their development. For women entrepreneurs, the difficulty of access to
financing is an obstacle to their development. However, this obstacle is felt more
by small and medium-sized enterprises (SMEs) rather than by large companies, which are mostly subsidiaries of

multinational firms. This correlation between the size of the company and access to
financing heavily penalizes very small enterprises (TPE) and small and medium-sized enterprises (PME) that need specialized organizations

of financing and support. In the face of this low level of credit granted to businesses
by the banks, informal financing is developing. This is particularly the case for
tontines; WITH which would finance nearly 18% of the financing needs of businesses
(according to a study conducted by USAID in 1994).

2.2.1. The difficulty of accessing bank credits for women entrepreneurs

According to Desrochers and Yu (1995), "One of the major difficulties that all may encounter
The companies in their growth face a lack of capital to finance their activities.
economic. The low level of equity and the inability to provide guarantees
sufficient are the main obstacles for businesses, especially SMEs, that wish to
borrow the necessary amount from the banks." It appears that the more the company is
small and more it has a significant need for external financing to ensure its
development or even its survival.

Firstly, the flow of information poses problems for companies in

general and SMEs in particular. Communication appears to be a major obstacle to
obtaining a loan. Women entrepreneurs do not always have the information
relevant in order to obtain a loan. They are generally very involved in daily life.
and do not realize that they need to establish general or strategic information. These
information sometimes does not even exist on any document or report in the
companies. However, providing all the required documents is a condition
essential for obtaining a bank loan. In cases where companies have
difficulties in providing all the documents requested by the banks, the latter
will grant the loan with difficulty.

Secondly, the guarantee system for banks is not yet fully

develops in the region. Banks are still 'shy in risk-taking' and '
always ready to make them pay" (Descochers and Yu, 1995). If the bank is not satisfied with
Company performance, it is reluctant to take risks. Currently, the
Women entrepreneurs lack the necessary collateral to obtain bank loans.
Moreover, the compensation and control system for these organizations is not yet
established

The other constraints regarding the financing of women's activities in the city of
Gums are explained by:

Their limited mastery of credit mechanisms.

The difficulty of mobilizing guarantees
The offer of banking products unsuitable for their needs
Very high interest rates
Illiteracy and the low level of education of women

2.2.2. The Reasons for Rejecting Funding Applications

According to a study conducted in the Democratic Republic of Congo by Simone Schwarz, the
main reasons justifying the rejection of credit applications are:

Financial institutions perceive the lack of management ability as the most

major obstacle for MSMEs (Micro, Small and Medium Enterprises) in accessing
credits and growth. At the same time, entrepreneurs are often told that
their request is denied due to lack of guarantees. This is, in a certain
measure, incompatible with the main difficulties mentioned by the IF (Institutions
financial) and which MSMEs face when they seek credit.

Whether a company has or has not regularized its status does not affect the decision of the IF concerning it.

grant a loan. The main concern of the IF lies in the ability to

the borrower to repay the loan, it has acquisition mechanisms
information from companies, as long as they cooperate by providing
the appropriate financial information.

Most IFs do not have a classification instrument or tool used for

distinguish between companies based on their management capabilities and their
potential for loan repayment.
 The IFs feel a great mistrust from borrowers because of banks
have appeared very recently. They also estimate that MSMEs are lacking
financial education

2.2.3. The personal characteristics of the entrepreneur

It is the set of personal aspects that define the entrepreneur, it is also

criteria that are specific to each entrepreneur. We primarily rely on; the age of
the entrepreneur, her civil status, the influence of the family environment, education, and experiences
of work.

The age

It is the moment in life when the entrepreneur takes action to create their own
business, The age of business creation by women differs from one country to another; Here in
In the DRC, the average age to start is 18 and older.

The civil status

The body of studies conducted on the civil status of women entrepreneurs converges towards
the conclusion that between 50% and 70% of them are married (Brown, 1988, Lorrain and
Raymond, 1988, Stevenson, 1983, Lavoie, 1988…). In the city of Goma, the majority of
entrepreneurs are married

The influence of the family environment

All studies agree that the majority of women who venture into
affaires sont issues de familles d’entrepreneures, Les entrepreneures s'habituent dès le plus
youth has an independent nature and the flexibility of a status embodied by the father
the example.

Education

The education received by women entrepreneurs plays a role in determining the type
of the company that will be created. Thus, Hisrich and O’Brien (1982) noted that the more the woman
the more educated the entrepreneur is, the more likely she is to turn to so-called "non
traditional" example: finance, education. In contrast, women entrepreneurs
less educated tend to turn to entrepreneurship
traditional.

Work experiences.

Most authors show that for a large majority of entrepreneurs, both

men more than women, they had work experience before their creation project
of their own business. The difference would rather lie in the type of experience.
Women have significant administrative experience at a mid-level hierarchy.
and often focused on areas related to services, for example, training, secretarial work
or retail sales rather than technical, industrial, and financial fields.

2.2.4. The financing means for women entrepreneurs in the city of Goma

[Link]. Internal financing (or self-financing)

It is about their own funds that they have saved or the financing from their husbands.

[Link]. External financing

A. The intervention of an intermediary: the AVEC

The intermediary's role is to interpose between surplus and deficit agents.

to meet their mutual needs. They collect contributions from members by
regular frequencies (monthly, bi-weekly or weekly) and assign them to the same members
according to needs at very low interest rates. These associations are organized the most
often in the context of the workplace by employees or officials of the same
administration or business, but also at the level of professions (case of craftsmanship) or
even at the neighborhood level (case of microcredit with small amounts, practiced by women
vendors at the local market

B. Financing through a Tontine (Ristourne-likelemba)

Features

They are well specified in space in the sense that the group is each time well
identify. Regardless of the nature of the link that unites its members, they
know and stay together as long as the money flows between them.
They are well specified in time because the duration of the tontine is always limited.
It is known at the outset, and depends both on the time that separates two turns and on the
number of tours, which corresponds to the number of participants. These two
 characteristics are therefore closely linked. It is they that make the originality of
tontines, precisely defined as rotating savings and
credit within which the money of some and others passes alternately between
hands of each.

C. The IMF

The conditions for granting microcredit required by different Microfinance Institutions

Finance (IMF) can be ranked in decreasing order of importance as follows
next: being a member of the cooperative, having a deposit (savings in the MFI), being
landowner, be part of a solidarity group, be a good producer and have a
at least six months of seniority in a revenue-generating activity. And finally, it is the
Bank

D. The Bank

The bank is a business unlike any other that routinely engages in receiving
public funds in the form of a deposit or otherwise that it uses for its own
account in credit operations or in financial operations

D.1. The bank's services

The bank for its private depositor or entrepreneur is essentially a service provider of
services, each depositor expects a certain number of services from their bank organization
a bank includes five services:

The credit service

He is responsible for engaging on behalf of the various beneficiaries of the public and private sector.
resources collected by the bank

The cash service

This service is primarily responsible for carrying out the operations ordered by itself.
clients as well as those requested by other bank branches. The operations are
distributed among the different sections of the service according to their nature: opening of
accounts, deposits and payments...

The wallet service

He is responsible for processing effects and checks at the time of their submission by the client.
to discount them or to cash them and to present them to the debtor for
collection as well as the mobilization of funds.
The control service

To ensure clarity in the operations carried out, and the smooth running of
banking operation. It must have a control structure. The latter aims to
task the control and coordination of all operations.

The foreign service

It is responsible for carrying out operations abroad in accordance with the regulations of
changes and foreign trade. This service is responsible for opening foreign currency accounts.

D.2. The role of the bank

The bank is primarily a financial institution; it acts as an intermediary between the

holders and capital seekers. It receives the funds entrusted to it by those who
It disposes of; and it lends part of this money to those who need it. It also has a role
dynamic in that it creates capital. It therefore plays a service role.
She plays a key role in the development of the company.

In addition to the fundamental mission of the bank, which is to provide capital, this
Last presents itself as the partner and advisor of the company:

The bank is a partner of the company and shares its successes and failures.
The bank is an advisor to the company, this role extends to several areas.

D.3. The activities of the bank

The activities of the bank are diverse, among which are:

The collection of deposits

The receipt of deposits corresponds to the deposit of money by a third party (individual or
legal entity) with an authorized person. This resource collection activity
it is primarily reserved for credit institutions that can compensate them and also
to place them for their own accounts. They are obliged to return the deposited amounts.
as soon as the request is made to them

The management of payment methods

The bank provides its clients with various payment methods, namely, all
the instruments that will allow them to transfer funds regardless of the medium or the
technical process used.

The distribution of credits

The term credit should be understood in the broad sense of disbursement commitment by signature, but
also leasing and rental agreements with purchase options.

Service Provision

These are operations carried out on behalf of the clients, the bank not being a counterparty.
of a financial operation. Services do not give rise to a
creation, nor to a debt and nor to an off-balance sheet commitment. The banker's goal is to
to receive commissions. The services provided by the bank are very
diversified and they particularly cover:

. The management of payment methods;

. Asset management on behalf of third parties;
. Collective management in the form of a collective investment organization
furniture;
. Consulting and financial engineering activities (initial public offering, offer
public procurement, financial restructuring of companies.

The most commonly used financing methods by women in the city of Goma WITH and
Tontines
 CHAPTER III:
DIFFICULTIES IN ACCESSING FINANCING BY THE
WOMEN ENTREPRENEURS OF THE CITY OF GOMA :
Empirical evidence

Women entrepreneurship has become an extraordinary economic and social phenomenon. However,
despite this merit, it must be noted that the emergence of entrepreneurial initiative
feminine is confronted with the issue of not having rightful access to funding sources
adequate. In the case of species, this chapter is dedicated to exploring the underlying causes
difficulties in accessing financing for women entrepreneurs in the city of Goma.

Thus, in its structure, this chapter has three sections. Initially, it

present the methodological approach used to verify the hypotheses put forward
upstream. Then, the next section is dedicated to the presentation and analysis of the data.
The last section focuses on the interpretation of the results, concluded by a discussion of
results.

3.1. Description of the methodological approach

In this section, we present the process of conducting the survey on

survey that we conducted among women entrepreneurs in the city of Goma. Thus,
It becomes necessary to explain in this section the methodological choices made. Indeed,
through this survey, the aim was primarily to describe, analyze and
understand the phenomenon of female entrepreneurship in Goma as well as the constraints that
meet these women throughout their journey, especially regarding
access to financing.

3.1.1. Data Analysis Methods

In order to analyze the data related to the present study, the statistical methods and
analytics were utilized in the interpretation of the analysis results
carried out and to highlight the main constraints of access to financing by the
women entrepreneurs. Following the analyses, a comparison was made of the
independent variables namely the funding, the borrowing, the workforce on one hand our
dependent variable which is access, level of education, sector of activity, marital status

3.1.2. Data Collection Technique

[Link]. Study population

According to MUCHIELLI, the study population is defined as a concerned human group.

by the objectives of the study. As for D'HAINAUT, the study population is defined as a
the set of elements from which the sample could have been chosen, that is to say
the set of elements that possess the characteristics we want to observe. On this,
Our reference population consists of women entrepreneurs from the city of Goma.

[Link] Choice and sampling technique

The entire population cannot be examined or studied because it is

numerous, and especially because of the limited material resources available to the researcher. This

the latter will consist of a representative subset of the population to which will be made
the generalizations we call sample.

Given that this work was developed within a very limited timeframe, we have made, based on
based on the availability criterion, an occasional sample of 100 women entrepreneurs from the
city of Goma. As for the choice of sampling, the literature states that there are two
approaches in the development of a sample, there are: the probabilistic approach and
the non-probabilistic approach

a) The probabilistic (random) approach

Probabilistic sampling relies on a random selection of units from the population.

It is not the investigator who chooses the units. One of the characteristics of this method is
that each unit of the population has a measurable probability of being chosen.
b) The non-probabilistic approach (reasoned or empirical)

Non-probabilistic sampling is based on an arbitrary choice of units. Here, it is

the investigator who chooses the units and not by chance.

In the context of this work, we have resorted to a non-probabilistic or empirical approach.

because in this one, the selection of a population element, for it to be part of
the sample is based on a large part of the researcher's criteria. There is no
real opportunity for a particular element of the population to be chosen.

[Link]. Organization of the questionnaire and processing of protocols

To collect the data, the survey questionnaire was the preferred tool. It facilitated
contacting women entrepreneurs in order to successively obtain the
information related to their sociodemographic characteristics, the characteristics of
their activities but also to identify the constraints regarding their access to
financing. By their nature, the questions asked were open. Specifically, the
the respondent only had the option to answer by choosing, for certain questions, a
only answer and, for others, one or more answers at a time. Taking into account its
education level, the respondents also had the option to answer in writing.

The counting of the protocols was done by considering the types of questions and the nature
answers. From the SPSS 23 software. It was about proceeding with the encoding of
different variables. After which, the information contained on each of the questionnaires
were generally taken into account. Finally, the crucial stage of analysis thus arrived
data.

a) Proceedings of the investigation

Our field survey took place between December 2023 and January 2024.
in the city of Goma, North Kivu province in the Democratic Republic of the Congo.
During the days of the investigation, we went to two municipalities of Goma.
to meet our respondents. To do this, the choice of women to interview was
conditioned by the exercise of an entrepreneurial activity.

b) Difficulties encountered
Resistance from some respondents who expected material benefits afterwards
administration of the questionnaire, qualifying us as agents working in NGOs. For
to overcome this difficulty, we had to make them understand the objectives of this
research;

Finally, the refusal of several women to answer our questions on the grounds that they
do not have time. This last one constitutes the main difficulty encountered during
the completion of this work.

[Link] analysis and interpretation of the survey results

This section is dedicated to the analysis of data and the interpretation of results derived from
information collected from a sample of women entrepreneurs from the city of
Goma. Initially, the aim is to present information related to
identity characteristics of subjects (3.2.1) before proceeding to the actual analysis
(3.2.2).

3.2.1. Identity characteristics of respondents

At this level, the information related to education level, marital status, age group, and thus
that the sectors of activity are presented.

Tableau N°1: Distribution of respondents by level of education

Niveau d’éducation Frequency Percentage

Vocational training 5 5.00
Primary 7 7.00
Without study 14 2:00 PM
Secondary 34 34.00
University 40 40.00
Total 100 100.00
our investigations

For the education level, it is noted that 40% of the surveyed women have a level of education.
university graduates against 34% with a secondary school level. The proportion of women
entrepreneurs with a primary education level is 7%. However, it is noted that
14 subjects are without education compared to 5% of women who have had vocational training.
Table 2: Distribution of respondents by marital status

Civil status Frequency Percentage

Single 30 30.00
Divorced woman 1 1.00
Married 64 64.00
Widow 5 5.00
Total 100 100.00
our investigations

As for their family situation, we can observe that across all of the
100 surveyed women entrepreneurs, the majority of them are married (64%), 30%
are single. The rest consists of widowed women (5%) and one woman is divorced.

Table 3: Distribution of respondents by age group

Age group Frequency Percentage

18 to 29 years old 37 37.00
30 to 39 years old 33 33.00
40 to 49 years old 16 16.00
50 or more 14 14.00
Total 100 100.00
our investigations

In light of the table opposite, it is clear that the largest proportion

covering women entrepreneurs is in the age range of 18 to 29 years old, that is
37%, immediately followed by those in the age group of 30 to 39 years.
Nevertheless, half of the sample consists of women aged between 40 and
49 years and over 50 years.

Table N°4: Distribution of respondents by sector of activity

Sectors of activity Frequency Percentage

Agriculture and livestock farming 4 4.0
Food 12 12.0
Laundry 1 1.0
Bakery and pastry shop 3 3.0
Commerce of various items 17 17.0
Stationery and printing 3 3.0
 Restoration 4 4.0
Public secretariat, office automation and computer science 3 3.0
Sale of construction materials 7 7.0
sale of construction materials 1 1.0
other (to specify) 45 45.0
Total 100 100.0
Our investigations

The information contained in the table above shows that the trade of
diverse articles remain the main activity in which women prefer to invest,
monitoring of the Food sector, namely 17% and 12% respectively. Also, 8% of
the sample operate their activities in the sale of construction material for 4%
in the restaurant industry. According to its results, we can see that women are present
in all areas of activity.

3.2.2. Proper Analysis

This subsection focuses on the analysis of the issue addressed in

this study. It primarily aims to thoroughly describe the characteristics of the activities of
women entrepreneurs and to highlight the main constraints to access
financing for the emergence of their income-generating activities.

Table No. 5: Distribution of respondents according to the reason for starting the business

Reasons for creation Frequency Percentage

Help my husband / my parents 16 16.00
Help my husband and be independent 10 10.00
financially
Being financially independent 25 25.00
Being useful to society 8 8.00
Being able to meet the needs of my 33 33.00
household
Being able to meet the needs of my 4 4.00
household and being useful to society
Other (to specify) 4 4.00
from our investigations

The table above shows that among the sources of motivation for creating a
business, the desire to be financially independent and to be able to provide for
household needs seem to be the factors most frequently mentioned by women
respectively 33% and 25%. These two factors are followed by the concern to provide assistance
to the husband and parents, that is 16%.
Table 6: Distribution of respondents by source of start-up capital

Source of startup capital Frequency Percentage

Help from friends and family 7 7.0

Loan 30 30.0
Loan and help from friends and family 2 2.0

Borrowing and equity 21 21.0

Equity 38 38.0
own funds, help from friends and family 1 1.0

subsidies and donations, loan 1 1.0

Our investigations

According to the results of our survey, 38% of the women interviewed have formed their
starting funds through equity, while 30% of women their funds of
the departure consists of borrowing; followed by the combination of equity and loans
with 21%. The other women relied on family resources (parents, siblings).

Tableau N°7: Distribution of respondents according to the source of borrowing

Frequency Percentage
Bank 12 40
Tontines 6 20
IMF 2 6.7
WITH 10 33.3
Total 30 100.0
our surveys

As can be seen, out of 30 women entrepreneurs who resorted to borrowing

as a starting point for their activities, the majority made use of a
banking institution and village savings and credit associations (AVEC); or
respectively 40% and 33.3%. Another significant proportion representing 1/5 of
The sample size required borrowing from the tontines.
 Table No. 8: Distribution of respondents according to the guarantee given

Warranty given Frequency Percentage

Valuable goods (jewelry, etc.) 16 53.3

Group solidarity guarantee 2 6.7

mortgage (parcel titles) 12 40.0

Total 30 100.0
our investigations

The table opposite indicates that the majority of women entrepreneurs have done
resort to two types of guarantees respectively the value assets and the guarantee
solidarity. It is mainly about women who have taken out loans from the
village savings and credit associations and tontines. This proportion represents
53.3% of the sample size.

Furthermore, the mortgage as a guarantee associated with the loan represents 40% of the topics.
concerned by this study. It mainly involves women entrepreneurs who have done
resort to formal financial institutions, such as banks and institutions of
microfinance.

Table No. 9: Main obstacles faced by women entrepreneurs

Obstacles encountered

Frequency Percentage
Family responsibility 6 6.0

Lack of experience 3 3.0

Administrative formalities 8 8.0

Lack of support 8 8.0

Clientele 18 18.0

Multiplicity of taxes 15 15.0

Insufficient financial resources 22 22.0

Other difficulties 6 6.0

No difficulties 14 14.0

Total 100 100.0

Our investigations

Starting from the figure above, we note that 22% of women entrepreneurs have the means.
financiers were insufficient; followed by 18% lack of customers; 15% multiplicity of
taxes ; 8% de formalités administratives ; 8 % de manque de soutien ; 6% de Responsabilité
family; 3% lack of experience and other difficulties 6%. Finally, it is 14% that
had no difficulties

since you have been engaged in this activity, have you ever carried out, on behalf of
your activity, a funding request (loan) from a
bank or a microfinance institution

Frequency Percentage
No 49 49.0

Yes 51 51.0

Total 100 100.0

We note that 49% of women entrepreneurs did not apply for credit, they
use their own funds and 51% of women entrepreneurs have applied

Did you get the credit?

Frequency Percentage
49 49.0

No 12 12.0

Yes 39 39.0
Total 100 100.0

Out of 51 surveyed who applied for funding; 39 received it and 12 did not.
obtained

why your credit was denied

Frequency Percentage
88 88.0

lack of relationship with the managers of 1 1.0

the bank
other (to specify) 3 3.0
low level of my activity 4 4.0

requested amount high 2 2.0

no warranty 1 1.0

no guarantee of absence of relationship with the 1 1.0

responsible for the bank low level of
my activity
Total 100 100.0

Among the 12 women entrepreneurs who did not obtain the credit, the credit was denied.
due to the low level of my activity at 4%, the requested amount is high at 2%, no
1% guarantee, absence of relationship with the bank's officials with 1%

Have you been informed about the funding program by the

subsidies coming from the World Bank?

Frequency Percentage
No 55 55.0

Yes 45 45.0

Total 100 100.0

It is noted that the majority of women are not aware of the program of the
subsidy from the World Bank with 55% and those that are aware with 45%.

Did you apply for the grants from this?

program?
Frequency Percentage
55 55.0
No 33 33.0
Yes 12 12.0
Total 100 100.0

It is noted that women entrepreneurs who are aware of this program; 33% of
women did not apply for the grant and 12% did
Table number: Difficulties faced by women in accessing financing

Fréquence Pourcentage
Asymmetry of information 10 10.0
Short refund delays 13 13.0
High interest rate 16 16.0
Low level of my activity 5 5.0
The amount granted does not correspond to the 10 10.0
requested amount
Fear of rejection 8 8.0
Lack of guarantee 11 11.0
Fear of going bankrupt 10 10.0
Level of education and lack of confidence 6 6.0
financial institutions
Others 5 5.0
No difficulties 7 7.0
Total 100 100.0
Source : nos enquêtes

It is noted that the supply of financial products and services is not adapted to needs.
remains the main constraint that explains the lack of access for women entrepreneurs in
the city of Goma. This mainly concerns the high level of interest rates, the deadlines of
reimbursements not suited to the production cycles of the revenue activities
women, the near absence of material guarantees as well as the issue of rationing of
credit in terms of the amount requested.

Indeed, the rigidity of the access conditions to financing explains this exclusion of
women entrepreneurs since financial providers want to protect themselves against
consequences arising from the problem of information asymmetry.

Table No: Civil Status and Funding Request

Funding request

Total
No Yes
civil status single 17 13 30

divorcee 0 1 1
 married 31 33 64
widow 1 4 5

Total 49 51 100

our surveys

51 out of 100 surveyed have already made a financing request to a bank or

an IMF where 33 married out of 64 which is 51%, 13 singles out of 30 which is 43%, 4 widowers out of 5
It is 80% and 1 divorced out of 1, so it's 100%. We notice that the majority are married women.
who have already made the funding request followed by singles

Level of study *Request for funding (credit) from a bank or an MFI

since you have been practicing this

activity, have you ever done
in the name of your activity, a
funding request
credit) from a bank or
an IMF?
no yes Total
Professional training study 0 5 5
Primary 4 3 7
without study 5 9 14
Secondary 22 12 34
University 18 22 40
Total 49 51 100
our surveys

51 out of 100 surveyed have already made a funding request to a bank or

an IMF with 100% being professional deformation, 3 out of 7 or 42%
primary education level, 9 without studies out of 14, or 64%, 12 secondary education level out of 34
So it is 35% and 22 academics out of 40, which is 55%. We notice that it is the women who have a.
higher and intermediate education levels that apply for credit from financial institutions

Table number: Level of study and knowledge of the funding program

World Bank
Effective
Knowledge of the program of Total
World Bank financing
No Yes
Level vocational training 1 4 5
study Primary 7 0 7
without study 8 6 14
secondary 24 10 34
 university 15 25 40
Total 55 45 100
our investigations

In light of the information contained in the table above, out of 100 respondents, only 45
are aware of the funding program through grants from the bank
worldwide among which 25 have a university education level. It is appropriate to conclude
that the level of education influences the awareness of opportunities in terms of programs
funding through grants offered by development support organizations
entrepreneurship.
 sources of funding
Effective
help of loan assistance equity
friends and of friends and of loan funds funds help from friends and grants and
the borrowing family the family clean clean from the family loan dons
Sector agriculture and livestock farming 0 0 0 1 3 0 0 4
of activities Nutrition 1 2 0 3 6 0 0 12
Laundry 0 1 0 0 0 0 0 1
bakery and pastry shop 0 1 1 1 0 0 0 3
trade in miscellaneous items 1 4 0 3 9 0 0 17
stationery and printing 0 0 0 1 2 0 0 3
Restoration 0 2 0 2 0 0 0 4
public secretariat, office automation and 0 2 0 0 1 0 0 3
computer science
sale of construction materials 0 3 0 1 3 0 0 7
sale of other construction materials (to 0 0 0 1 0 0 0 1
specify
other (to specify) 5 15 1 8 14 1 1 45
Total 7 30 2 21 38 1 1 100
Our investigations
The table above indicates that the majority of our respondents, 38%, started their
activities with their own funds, monitoring those that had resorted to borrowing (30%).
However, a considerable proportion had appealed to establish the capital of
startup, both in equity and in borrowing (21%).
Analytically, considering equity as the initial source of financing,
it can be observed that out of 4 entrepreneurs surveyed in the agricultural sector
farming, 3 started with their own funds. Similarly, out of 12 in the food sector, the
Half relied on equity. This same observation is seen in other sectors.
activities such as the trade of goods, stationery, and printing.
Furthermore, considering borrowing as the main source of financing for
start-up, many have proceeded to mixing with equity. This allows for
confirm the third hypothesis of this research.
 GENERAL CONCLUSION
This study focused on the difficulties faced by women entrepreneurs in accessing financing.
from the city of Goma. The discussion has sequentially been about understanding the explanatory factors of
difficulties in accessing financing and highlighting the characteristics of companies
held by women as well as their sources of funding. To achieve this, the questions
the following were asked:

What are the explanatory factors for the difficulties in accessing funding?
female entrepreneurship in the city of Goma?

Which of these factors most explains this issue of lack of access to financing?

3) What are the characteristics of women-owned businesses and the sources of

their funding?

In light of these questions, the following hypotheses have been put forward:

1) The explanatory factors for women's difficulties in accessing financing would be their
poor understanding of credit mechanisms, the almost complete absence of guarantees as well as the supply of

products unsuitable for their needs;

The factor that would most explain this problem of access to financing by women
would be due to the offer of products unsuitable for their needs characterized by interest rates
higher, shorter refund times as well as the rationing of the amount of
requested credit.

3) Companies created by women have a modest scale and pace of

slow growth and most often resort to equity.

Based on a sample of 100 female entrepreneurs from the city of Goma and
thanks to the contribution of analytical and statistical methods, this study has led to
main following results:

Secondly, it is noted that the supply of financial products and services that are not suitable for
Needs remain the main constraint that explains the lack of access for women.
entrepreneurs in the city of Goma. It mainly concerns the level of interest rates
high, reimbursement deadlines not suited to the income production cycles of
women's activities, the near absence of material guarantees as well as the problem of
credit rationing in terms of the amount requested.

Indeed, the rigidity of the access conditions to financing explains this exclusion of
women entrepreneurs since financial providers want to protect themselves against
consequences resulting from the problem of information asymmetry. Due to the above,
The majority of women entrepreneurs (38%) are forced to resort to funds.
as a preferred source of funding, it is observed that their activities are experiencing
a slow growth rate given the modesty of the starting capital.

In short, the fact that the majority of women entrepreneurs (38%) rely on funds
as a preferred source of financing, it is observed that their activities are experiencing
a slow growth rate given the modesty of the starting capital. However, a
a fairly significant proportion had resorted to it to establish the starting capital, too
well to equity as to borrowing (21%). This allowed to confirm the third
hypothesis.
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