The role of SACCO on entrepreneurship growth

Abstract

The purpose of this study was to examine the role of SACCOs on entrepreneurship growth; a case study of Wekembe SACCO, study area of Bamunanika Sub County-Luwero District. The research was based on three objectives; to determine the role of micro-savings on entrepreneurship growth, to establish the role of micro-loans on entrepreneurship growth, to investigate the role of advisory services on entrepreneurship growth. The study population of 60 people and a sample size of 52. The researcher used Case study design was used since the topic of research demanded choosing a group to from the area where data was gathered. Findings of the study revealed that SACCOs have great influence on entrepreneurship growth in the area of Bamunanika whereby micro-loans have enhanced entrepreneurship growth and this was indicated by a strong positive correlation of .155. Findings also indicated that people have access to advisory services and the service has continued to benefit the rural people whereby they attained financial management skills. In addition, findings from micro-savings indicate that, people have been able to utilise the service by saving their little monies on group accounts. However the study found some loopholes were by majority of the clients save because of other reasons like social protection, vulnerability to risks, which does not contribute to entrepreneurship growth. In addition Wekembe SACCO has underminded a particular age group which is the youth because of the risks attached. The young youth are less involved in Wekembe groups and there is no way forward being organised to help them get out of the situation. Finally the study recommended that in order to achieve entrepreneurship growth, in Bamunanika Sub- county, there is need for government to strengthen sensitization among the young generation on the role of SACCOs and how to form competent groups, this can be achieved through selecting successful rural entrepreneurs, Wekembe SACCO to initiate a security on loans other than the group security like introduction of individual collaterals, reconsider the realistic loan bracket which can enhance entrepreneurial growth. Lastly to help clients understand the relationship between micro-savings entrepreneurship that is to say clarifying its multiplier effect when invested in business