The Determinants Of Saving And Credit Cooperative Societies Operational Performance In The Case Of Dano Wereda West Shoa Zone, Oromia Regional State, Ethiopia

Abstract

The main purpose of this study was to determinants of saving and credit cooperatives operational performance in case of Dano woreda . are playing its.significant contribution to poverty reduction strategy of developing countries including Ethiopia. The main objective of the study was to identify the determinant of SACCOs operationalperformance,To identify factors the determinants of SACCOs Danno woreda. The study area was selected purposively. Using simple random sampling method, eight(8) case SACCOs selected for this study by using Yamane formulae 1967, 146 members were selected based on Random sampling method and structured, semi structured questionnaire and interview was used primary data from sample respondents. Secondary data were collected from the secondary data of SACCOs. To analyze qualitative and quantitative data descriptive statistics. Result of the study indicates that narrow alternate options in collateral requirement inhibits members to get loan as they require and it becomes the causes for excess accumulation of liquid asset in banks. Less attention of SACCOs for training and promotion and unavailability of SACCOs were contributing for poor operational performance. Better formal education level of members and officials contributes to have successful operation of SACCOs for long years and minimize loan default risk. Favorable cooperative act of members trust, act of committed management and SACCO governance contribute for good operational performance of SACCOs. The study recommended the importance of transformation mechanism of SACCOs into modern service delivery practice, and improving collateral system and the need for formulation of SACCOs operational performance. Determinant determinants of SACCOs operational performed, development workers and policy makers to improve the current Situation. These measures will ultimately provide SACCOs, not only to the advantage of members but also for the development of operational market at community level