Abstract:
There were problems with the inconsistent findings in the research title, Impact of
Savings and Credit Cooperatives on Members’ Livelihood; the variables used by
different authors and the theses available in this area were scarcely available. The
purpose of this study was to examine the impacts of saving and credit cooperative
societies on members' livelihoods in the case of West Shoa Zone, Oromia, Ethiopia.
Primary and secondary data sources were used. The primary data source was
collected through direct interviews based on semi-structured questionnaires from 90
SACCO members or treated and 107 non-members or controlled groups, plus
discussions with two informant groups held in two districts of the study area. The
study used a cross-sectional survey research design, and multistage sampling
techniques were employed. The survey data were analyzed through the quantitative
method and used descriptive statistics and inferential statistics such as logit and
propensity score matching econometrics models. The study findings show that sex,
age, family size, education level, interest in borrowing, access to training, number of
loans received, saving, and distance to the market place are the main factors affecting
saving and credit cooperative membership. The impact evaluation finding based on
household income measurements shows that saving and credit participants gained
more income than non-participants, and consumption expenditure measurements
show saving and credit cooperative participants spent more on consumption than
non-participants. And also, there is a significant difference in asset accumulation
between households of SACCO participants and non-participants. SACCO
participants own more assets than non-participants in SACCO. Finally, researchers
recommend SACCOs should seriously work to increase membership by using different
promotion mechanisms in order to benefit wide communities, expand impacts to all,
improve household livelihoods, and take part in the country's development plan.
