Inclusive Entrepreneurship and Diversity in Cross-Border Trade

Abstract

Cross-border trade serves as a vital source of employment and promotes inclusive entrepreneurship, particularly in remote regions with limited job opportunities, helping lift traders out of poverty. Despite its benefits, traders often face challenges due to lack of documentation and policy distortions. This study examined the socioeconomic dynamics of cross-border traders in Rwanda and its implications for sustainable development within the East African Community (EAC). Specifically, the study investigated the impact of cross-border trade on traders' livelihoods, evaluated existing regional cooperation mechanisms and policy interventions and assessed the challenges faced by traders. Using a cross-sectional research design, the study targeted 95 traders, collecting data through interviews, surveys and documentary reviews. Descriptive statistics and content analysis were used for data analysis, with rigorous adherence to ethical standards. Findings revealed that cross-border trade significantly improves traders' livelihoods and reduces poverty, leading to increased income levels, better access to healthcare, education and improved living standards. Current regional cooperation mechanisms within the EAC, such as the Customs Union and the East Africa Regional Development and Cooperation Strategy, have facilitated enhanced trade. However, traders still face challenges like inefficiencies in service delivery and operating risks. The study concludes that cross-border trade is crucial for enhancing traders' livelihoods and underscores the importance of regional cooperation mechanisms and policy interventions in fostering and facilitating trade. It recommends that EAC member states foster closer collaboration between national governments, regional bodies and local authorities to modernize trade processes, enhance cross border infrastructure, harmonize trade policies and invest in border facilities.