Abstract:
Savings and credit cooperative societies have been present in Ethiopia but this sector has not been able to impact positively on the lives of people. Savings and credit cooperative societies have lagged behind other financial institutions by performing below the members’ expectations therefore causing dissatisfaction among the members. The purpose of this study was to establish the factors influencing financial performance of savings and credit cooperative societies. The study was guided by the following objectives, to establish how loan management of SACCOs, interest rates of SACCOS, to assess how accesses loan influence of SACCOs, market factor influence , the total variables that are included in the study by reviewing multi literature to how the variables are influencing the financial performance. the variables used in the study are analysis by collected the data through questioner ,focus group discussion interview and different manual data the variables are Duration of loan ,collection policy management of defaulting , market inflation ,market information, market forecasting, Access to loan ,credit service, funds misappropriation ,equity capital ,percentage of lending ,mode of calculating interest rate and stability of interest rate charged. Descriptive and inferential statics research design was used in this study where information was collected without changing the environment. The population was drawn from capital SACCOs Dagem woreda, staff, management committee and members. A sample of 129 respondents was selected by the Kothari method of selecting sample size from 2000 members selected randomly from total of 6,452. Questionnaires were administered and collected later for data analysis and presentation through tables and summarized percentages and proportions. The binary logistic model is applied to see the numerical effect of those variables effect on the financial performance of SACCOs in Dagem woreda
