Factors influencing the performance of SACCOs in Uganda: a case study of the Entebbe Teachers SACCO

Abstract

This study was focused on finding the factors that influence the performance of SACCOs in Uganda with Entebbe Teachers’ SACCO as a case study. The independent variables were loan repayment, savings culture and membership withdrawal. The study adopted a descriptive research design in which the perceptions of SACCO members were asked for. The study population was the members of Entebbe Teachers’ SACCO. The sampling design used was convenience sampling whereby those members of the SACCO that could easily be accessed were identified. The sample size was 67 respondents. Primary data was used and collected through questionnaires. The analysis was done using frequency tables, means, standard deviation, correlation analysis and this was done using STATA. The study established that the SACCO had a well established credit committee which regulated access to loans and handled loan defaulters. The study established that the members of the SACCO had a good saving culture which was important in ensuring cash flow to the SACCO. Te study also established that the trend of membership enrolment was increasing but could only be improved through incentives to attract people to join the SACCO. The study concluded that SACCOs should market their products, introduce new ones in order to compete with other financial institutions. The SACCOs should put in place new incentives to attract new members to join the SACCOs. The SACCOs should also penalise loan defaulters.