Savings and Credit Co-Operative Organisations and Performance of Small Scale Businesses in Uganda Case Study: Adjumani Town Council Savings and Credit Cooperatives in Adjumani District

Abstract

The study examines SACCOs and the performance of small scale businesses in Uganda a case study of ATC SACCO in Adjumani district. The dimensions of the independent variable of the study included loan size, interest rates and savings while the dimensions of the dependent variable of the study included sales, liquidity and asset base. The specific objectives of the study were to establish the relationship between loan size and performance of small scale businesses, to establish the relationship between interest rates and performance of small scale businesses and to establish the relationship between savings and performance of small scale businesses.

The study used a case study design. Quantitative approach was adopted for the study. A scientific model for determining sample size developed by Morgan and Krejcie (1970) was used to determine the sample size which was 172. Stratified and purposive sampling techniques were used in this study. Questionnaires were used for data collection.

The study findings revealed that loan size advanced to small scale businesses is sufficient enough, interest rates charge by SACCOs are appropriate and does not influence the operations of small scale businesses and savings by the clients enable them to access funds in form of credit from the SACCO and increases capital accumulation of the small scale business practitioners as the mean responses on the questionnaires were above average.

The study concludes that there is a relationship between SACCOs and performance of small scale businesses since the services provided by the SACCO inform of loans, interest on loans and savings directly influences the operation of small scale businesses in the area. It can be suggested that savings and credit cooperatives should conduct training and sensitization for its clients especially those operating small scale businesses for purposes of client’s satisfaction.

Login to download()