Abstract
Savings and credit cooperatives are user-owned financial intermediaries. They have many names around the world, including credit unions, SACCOs, etc. Members typically share a common bond based on a geographic area, employer, community, or other affiliation. Members have equal voting rights, regardless of how many shares they own. Savings and credit are their principal services, although many offer money transfers, payment services, and insurance as well. Sometimes savings and credit cooperatives join together to form second -tier associations for the purposes of building capacity, liquidity management, and refinancing. The study was undertaken to identify factors influencing of profitability of saving and credit cooperative in Boloso Sore Woreda Wolaita zone, Southern Ethiopia .The general objective of the study was to identify factors that influencing the profitability of saving and credit cooperatives. A multistage sampling technique was employed to select 305 households from the in order to respond questionnaire. Both quantitative and qualitative data were collected from sampled households. Both descriptive and econometric data analyses techniques were applied. The findings of this study showed that, from the eleven independent variables seven of them significantly affect the profitability of saving and credit cooperative were age, education status, training access, family size, loan repayment, saving habit and service delivery. From this variables training access and service delivery system highly affects the profitability of saving and credit cooperatives. Cooperative development office should train SACCO’s members regarding the merit of profitability of saving and credit utilization methods and service delivery showed significant influence on SACCO’s member’s profitability positively that results increments in profitability. So this requires SACCO’s should have to be improved in quality of rendering service relating to service delivery as per established standards on behalf of rules and regulations of SACCO’s. Keywords: Saving, credit, cooperatives profitability DOI : 10.7176/EJBM/11-19-04 Publication date :July 31 st 2019
Highlights
Profit is total earnings for doing business net of operating expenses, depreciation of assets, interest and tax
5.1 Conclusion Saving and credit cooperatives help to prevent or overcome poverty, facilitate members' education and they develop a spirit of mutual aid and self-reliance encourages productivity of its members by providing credit and leads to adopt democratization process at a significant level in SACCO’s members
SACCOs have played a significant role towards achieving the growth and poverty reduction strategy by promoting income generating activities and improving access to near banking services to rural and urban households
Summary
Profit is total earnings for doing business net of operating expenses, depreciation of assets, interest and tax. It profit as the reward for risk-bearing in undertaking a business activity. As defined by in the general sense refers to the ability of a given activity to continue into the future within the likely resources of an organization. Sustainability refers to an organization’s ability to service all of its expenses through its generated income (GAAP, 2017). The ultimate goal of saving and credit cooperatives societies are to create savings and mutual assistance among its members by pooling their resources, knowledge and property, to enable them to actively participate in the free market economic system (Proclamation No.147/1998 o Ethiopia). Nowadays, saving and credit cooperatives in Ethiopia playing multi-functional roles in rural and urban areas (Kifle Tesfamariam, 2015)
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