DETERMINANTS OF GROWTH AND SUSTAINABILITY OF SAVING AND CREDIT COOPERATIVE ORGANIZATIONS; EVIDENCE FROM BUTAJIRA TOW

Abstract

Savings and Credit Co-operative Societies (SACCOs) play an increasingly important role in the process of financial intermediation in the highly competitive financial market in Ethiopia.Growth of SACCOs is affected by several factors both internally and externally. The objective of this study was to identify the determinant of growth and sustainability of saving and credit cooperative organizations in Butajira Town. In this study both primary and secondary data has been used. The primary data were collected from a sample of 190 members of 18 saving and credit cooperative organizations found in Butajira town from the distributed 190 questioner 182 were the response rate and the analysis were carried out from these numbers. The study used both Descriptive and inferential statistics to do analysis, among the descriptive mean, standard deviation, and frequencies are the adopted whereas the inferential were correlation and multiple linear regressions, which were used the listed determinants of growth and sustainability of saving and credit cooperative organizations in butajira town. The study found that low level of Income, member participation and management skill while, technology ,political interference and growth and sustainability value was at medium levels, From the result the researcher sees that the major determinant of growth and sustainability was effect of technology, followed by management skill and political interference from internal and external parts. Therefore, SACCOS has needs to give high attention in attracting members who have great courage to adopt technology and having of enough capacity so as to facilitate the issue beside, The study recommends SACCOS better to hire train and educate their members and employees so as to make competent in managing