The influence of savings and credit cooperative societies on the growth of entreprises: a study of Ndege Chai Sacco
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Date
2014-07-14
Authors
Langat, Paul K.
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Abstract
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.
Description
Department of Business Administration, 38p. 2013, HD 3400.5 .L3