Savings and credit co-operative organisations and performance of small scale businesses in Uganda: Case study Adjumani town council savings and credit co-operatives 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.The purpose of this study was to examine the effects of micro finance services and the performance of small and medium enterprises in Finca Micro Finance Bank Limited in Kamuli District. Micro finance services were conceptualized into micro loans, micro savings and micro insurance. Performance of small and medium enterprises was conceptualized into sales turnover, liquidity and market share. The research objectives of the study were; to assess the effects of micro loans, micro savings and micro insurance on the performance of small and medium enterprises. A structured questionnaire was designed and distributed to 90 respondents that were selected from a targeted population of 105 using stratified random sampling. Quantitative data were analyzed by enerating descriptive statistics using the Statistical Package For Social Scientists (SPSS) to determine the frequency and the percentage. Content analysis technique was used to analyze qualitative data. Research findings indicated that there was a significant positive relationship between micro finance services and the performance of small and medium enterprises. The overall independent dimensions of micro finance services which were; micro loans, micro savings and micro insurance accounted for the highest percentages of the respondents that strongly agreed on their positive influence on the performance of small and medium enterprises. The findings also indicated that micro loans were the strongest predictors on the performance of small and medium enterprises and they positively influenced the performance of small and medium enterprises. The researcher recommends that Micro Finance Institutions in general and Finca Micro Finance Bank Limited in particular should devise ways and trategies of improving on the performance of small and medium enterprises very effectively and efficiently to circumvent its adverse effects.