Assessment Of Operational Performance Of Cooperatives In Case Of Burayu Saving And Crdit Cooperatives Societies

Abstract

The main purpose of this study was to examine the assessment of the operational performance of cooperatives in Burayu town, Shagar City, Oromia, Ethiopia. A cooperative is an enterprise or organization owned by operated for one benefit of those using its service. Burayu saving and credit cooperative societies is operationally insufficient low image on the advantage SACCOs. The purpose of this study is to offer the valuable suggestion based on findings. The study followed a quantitative research approach and an explanatory research design. Using purposive sampling, 192 respondents were selected from 368 affiliated members. The data used in the analysis comprises secondary data, and a panel data regression model is also used for the analysis. The major determinant factors that affect the outreach of SACCOs by taking loan size as a measurement are the amount of savings, level of interest rate on savings, and amount of dividend paid to members, which have a positive relationship and are statistically significant, and the other determinants that have a positive relationship but are statistically insignificant are the age of SACCOs, income per capital, and maturity date. On the other hand, when the number of SACCO's members is taken into account, the amount of saving and income per capita have a positive relationship and significantly affect SACCO's outreach. Similarly, the age of SACCOs, dividends paid to members, and maturity date affect the number of SACCOs members positively, but they are insignificant. In addition, the major determinant factor that negatively affects loan size and is statistically significant is the level of interest on borrowing. In the same way, MEMB is negatively affected by LIB and LIS, but its significance level is weak. Therefore, the researcher recommends SACCOs pay high attention to attracting members to increase their source of funds by providing awareness about the benefits of joining SACCOs, using social media, providing training to clients, and distributing brochures to clients. If funds are available, SACCOs should encourage members to take loans to increase dividends for idle funds, charge a compatible interest rate on loans to attract members, increase the duration of loan repayment, and finally, the Federal Cooperatives Agency should pay attention to the continuous supervision of SACCOs.