Saving and Credit Associations, and Determinants of its Financial Performance, a survey of selected SACA in Ambo Town

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.