Abstract:
In modern years, the growth and expansion of saving and credit cooperative is playing its
significant contribution to poverty reduction strategy of developing countries including
Ethiopia in solving the finical problem of urban and rural people. General objective of
the study was identify the factors influencing financial growth of savings and credit
cooperative in the study area, to assess whether member with drawl affects savings and
credit cooperative in the study area, to establish how Lon defaulting influencing savings
and credit cooperative in the study area and to determine how dividend policy affects the
growth of savings and credit cooperative. Both qualitative and quantitative research was
working to undertake the study. To select the sample of respondents, simple random
sampling technique was employed. The sample size of the study was 154 members from
this 146 returned and 08 not returned. Determined by using Yamane formula sampling
design Qualitative and Quantitative research was working to undertake the study. Both
primary and secondary data were used to collect the required information.
Questionnaire, Key informant interview, Focus group discussion, field observation and
likert’s scale were the main tools for data collection. Data were analyzed by using
descriptive statistics such as, percentages, frequencies, mean and standard deviation and
inferential statistical methods. Before analysis data were sorted, summarized, coded and
entered in to Excel for statistical analysis by using SPSS version 21. The results of the
study were presented by tables, graphs, and charts. The study found out that socio
economic and institutional factors have an active and direct role in factor influencing
financial growth of saving and credit cooperatives. Socio Finally, it was suggested that
the SACCO should undertake an internal review of the administrative functions that
impacts the operations and identify key areas affecting financial growth. The Toke
Kutaye Woreda Cooperative Promotion office should give continuous support services to
this SACCO through member education, training to committee members, employees and
regular inspection and audit services.
