Leadership competence and financial sustainability of saccos in Uganda :

Abstract

The researcher sought to assess the relationship between leadership competence and financial sustainability of SACCOs in Pallisa District. Leadership competence was viewed as a three dimensional construct with financial planning competence, ethical leadership competence, and decision-making competence. On the other hand, financial sustainability was viewed in terms of profitability, liquidity, risk management and working capital management. The study objectives were; to assess the impact of financial planning competence on financial sustainability, to examine the impact of ethical leadership competence on financial sustainability, and to find out the impact of decision-making competence on financial sustainability of SACCOs in Pallisa District. In order to achieve the study objectives, the study employed a cross sectional study design with a qualitative approach. Data was collected using a structured questionnaire and analyzed using SPSS. Descriptive statistics were derived from the data and regression and correlation analysis was conducted. The findings of the study revealed that all the three constructs have a positive and significant relationship with financial sustainability. The researcher therefore concluded that leadership competence influences financial sustainability of SACCOs in Pallisa district. He further recommends that management of SACCOs should equip employees with skills in financial planning, ethical leadership, and decision making. This can be achieved through training and development programs. Since this study used a quantitative approach, the researcher recommended that a qualitative study be conducted to get deeper insight into relationship between the variables of this study.