Impact of Rural Saving and Credit Cooperatives on Socio-Economic Status of Members in Case of Toke Kutaye District Rural Saving and Credit Cooperatives West Showa, Oromia Regional State, Ethiopia

Abstract

In worldwide rural saving and Credit Cooperatives is a fundamental aspect of an organization’s development system and methods to irradiate poverty. The main objective of this research was to investigate the impacts of Rural Saving and Credit Cooperatives in the case of Toke Kutaye Woreda. In all purpose, the paper used a mixed research design. Data were collected by using a self-administered survey, which has both open ended and closed ended question. Addition to this the data was analyzed using descriptive statistics like mean and standard deviation. The questionnaire was given to rural saving and credit cooperatives members who are found at different level. After feeding (inserting) the collected data in to SPSS for analyzing purpose, the researcher found that the Woreda’s rural saving and credit cooperatives under study has a clear availability of saving service; Access credit service, provision of non financial service and creation employee opportunity under study have clear objectives, and this are communicated to all board committee and woreda cooperatives agency. The data gathered from the respondent was analyzed and interpreted by the help of SPSS software program with the help of bar frequency table, minimum & maximum value, mean and standard deviation. The result indicated that impacts of Rural Saving and Credit Cooperatives inadequate in the institution availability of saving service; Access credit service, provision of non-financial service and creation employee opportunity. From major findings the majority 98 (62.8%) of the participants’ female compared to the males in terms of activities and participation and 98.7% and 97.4% of the total respondents highly agreed that saving and credit cooperatives provide the financial services to its members, like open deposits, fixed deposits, internal transfer facilities. To generate economic activity more than 91.7% financing loan is main difficulty of saving and credit cooperative as well as the main source of income of cooperatives problems. Household consumer expenses significantly increased at P0.05 were for food, health and education, clothing and appliances and t-test analysis conducted was statistically high significant difference [t(155) = 9.73, P = 0.00] between mean annual saving before and after. Finally the researcher recommended that, it needs commitment from both the saving and credit cooperatives, management board and woreda cooperatives agency were responsible power to improve those specific areas of impacts of Rural Saving and credit Cooperatives l elements indicated in the final chapter of the study.