The influence of savings and credit cooperative societies on the growth of entreprises: a study of Ndege Chai Sacco
The study was set out to establish the influence of Savings and cooperative societies on growth of enterprises in Kenya; the study was guided by three objectives, to establish various loan products offered by SACCOs to the members, to establish the strategies used by SACCOs in mobilizing members' savings and establish SACCO's investment opportunities available to the members. The study design comprised of a descriptive research design. Stratified sampling used to determine the sample size. A sample size of 745 computed by Slovein's formula was considered, primary data was collected by the use of questionnaire instruments which focused on the research questions. Secondary data got from journal reports and surfing internet which are in relation to the study objectives. Reliability and validity of data was done using Cronbac's Alpha. Data was analysed using Statistical package for social sciences. The findings showed that SACCOs have played a significant strategic role in providing the bulk of capital used and this has led to the growth of enterprises. The loan products offered by Saccos are development loans, school loans, emergency loans and asset finance loans. Sacco use pricing as a strategy, debt collectors, collateral acceptance and education programmes as strategies aimed at mobilizing member savings. Sacco invests in education programme on financial management, increase in member deposits and high dividends on shares to spur the growth of enterprises. Recommendations are Sacco needs to introduce a special training program meant to empower and develop female entrepreneurs. To enable community development, the Sacco needs to introduce a special sponsorship program where bright needy students will benefit. For the young entrepreneurs, the Sacco needs to give and support young entrepreneurs who have potential and love to excel in entrepreneurship. The Sacco need to introduce credit facility so as to support those entrepreneurs who may not need the cash at hand to facilitate their 'business. The Sacco should review their interest rates on savings accounts, loans and fixed deposits to make them more competitive compared to the market rates. Sacco should consider up scaling their dividends to encourage members save more shares.