Factors Influencing Financial Growth Of Saving And Creditcooperative Societies; Thecase Of Homicho Ammunition Engineering Industry, West Shoa Zone, Oromia Regional State, Ethiopia.

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.