Practices And Challenges Of Financial Mobilization; The Case Of Urban Saccos, Jeldu Woreda, West Shoa Zone, Oromia Regionalstate, Ethiopia

Abstract

The purpose of the study is the base for improvements of cooperative financial resource mobilization practices and capital formation efforts. Also the objectives of the study is to investigate practices and challenges of financial resource mobilization the case of USACCOs; Jeldu woreda, West Shoa zone, Oromia Regional State, Ethiopia. The researcher employed Probability (simple random sampling) and non-probability (purposive sampling) techniques to collect relevant data from the classifying population of the study. This random sampling technique used active saving members. The target population for the study included members, management committee and staff those having experience & potential saving members involved in deposit mobilization. The sampling size was 144 members from all selected USACCOs on proportional basis. Data collected through primary data such as questionnaire and secondary data from the annual reports of JWCPA. The researcher used structured questionnaire for management bodies and members of USACCOs and semistructured interviews. The researcher employed mixing qualitative and quantitative approaches gives the potential to cover each method’s weaknesses with strengths from the other method Descriptive method and explanatory methods ware adopted for the study to analyze the data. The findings have shown that, USACCOs have not conducted regular training, lack of members awareness, provided poor training and incentive system to staff and Challenges that face USACCOs are Poor saving habits or cultures in the society, inflation & political instability & unstable economic conditions, unavailability of security and peace of working area, competition, Lack of management information system and loan default. The study, therefore, the researcher recommend that the management of the USACCOs concerned government bodies and stakeholders have to consider aware members, conducting of regular training program, to apply management information system, capacity building for committee and staff, and develop incentive system to staff & potential members to make more financial resource mobilizatio