Abstract:
The general objective of this study is to assess the determinants of Savings and Credit
Associations on financial performance for members of the associations in Ambo Town.
The study was conducted using quantitative research approach and cross- sectional
design. All members of CBE Ambo branch, Ambo General Hospital and Ambo University
employees’ saving and credit associations were considered as target population for the
study. These organizations were selected randomly for this study. Total 301 participants
of the study have been selected as subjects for the study as arbitrary /randomly.
Descriptive and inferential statistical analyses were used for data analysis. The findings
revealed that the members’ living standard has been improved doe to using the
association services provided. Income of the individuals, social services, saving habits
and owning assets increased after they used the program’s services. The findings explored
that the saving habits of members influenced by family size, saving experiences, in
adequate of income, high expenditure, high interest rate of loan and low interest rate for
saving, bureaucracy of the services and political. Additionally, the inferential analysis
used to identify determinants of Savings and Credit Associations on financial performance
for members. Predictors like management and leadership, education and awareness,
external impacts; internal impacts, loan size and collateral required correlated to
performance of employees’ saving and credits association. Furthermore, predictors were
significantly determining the performance of employees’ saving and credits association.
