The Role Of Saccos In Economic Improvement Of Its Members: In Gindeberet District, West Shoa Zone, Oromia Regional State, Ethiopia

Abstract

The purpose of this study was to evaluate the role of SACCOs in economic improvement of its members in Gindeberet district, West Shoa Zone, Oromia Regional state, Ethiopia. The general objective of the study was to assess role of savings and credit cooperatives in economic improvement of its members in the study are; and it’s answered three research questions .The researcher employed cross sectional research design; and the studies approach was mixed research approach. The sample sizes of this study were 169 respondents. The study area was selected purposively, and sample respondents were selected using random sampling method. The data was collected through semi structured interview, key informant interview and FGD. Questionnaire and document review guide were employed as tools of data collection. Qualitative data was analyzed, coded, narrated and interpreted. Quantitative data were analyzed through descriptive statistics (percentage, frequencies, table and graphs) by using scientific Package for social science (SPSS) version 25; and multiple linear regression models was used to identify the factors that affecting the role of SACCOs. As the descriptive result indicated that, the current income status of respondents was improved after membership to SACCO. So that, SACCOs can increases the economic condition of its members through providing loans, trainings and advisory service. However, the training and advisory service provided through SACCOs were inadequate. The factors that affects role of savings and credit cooperatives in improving economic condition of its members were lack of cooperative promotion office supporting, taking awareness, lack of knowledge committee members perform their duties and responsibilities, lack of capital of SACCOs to providing loan and political instability in the study area. To determine factor that affecting role of SACCOs in improving economic condition of its members, fifteen independent variables were hypothesized. Based on multiple linear regression model result indicated that, five variables were positive significantly affected. All explanatory variables have no serious multi collinear problem. A dependent and independent variables has correlation. The variation in the dependent variable can be explained by the independent variables. The correlation of dependent and independent variables indicates that positive associated. The regression model has indicated that, a significance level of 0.000, which was an independent variables were significantly influence economic condition of the members. The study was examined contribution of SACCOs; the current economic status of members before and after membership and the factors affects the role of SACCOs in improving economic condition of members in the study area. Primary data were analyzed and literatures of related topics are reviewed. Suggestions to the concerned body from the finding was that has to be the district Cooperatives promotion office should support SACCO members by taking awareness, training, education and advisory service, and determining and centralize the interest rate of recharging, and also monitor their services. SACCO institutions should attend their members; encouraging them, increase the amount of providing loan, reduce the interest rate of loans. Members should increase their saving habits, pay loan at the time.