The role of savings and credits (SACCOS) on the growth of small scale agribusiness Enterprises in Namisindwa District

Abstract

This study aimed at examining the role of savings and credits on the growth of small-scale agribusiness enterprises in Magale Town Council, Namisindwa District. The study was guided by the research objectives as follows the characteristics of the small scale agribusiness farmers and traders in Magale town council, the Role played by SACOOS to its small scale agribusiness enterprises members and the challenges or constraints faced by small scale entrepreneurs who access SACCO services. The study adopted a descriptive survey design and used both qualitative and quantitative approach. The researcher selected a sample of 152 members out of 254 respondents from four SACCOS, that was to say Magale Town Council Savings and Credit Emyooga Association, Bubulo East constituency market vendors Magale Emyooga Association, Namisindwa Sacco and Busisu Namisindwa Sacco. The study employed a simple random sampling technique to select respondents of the study. The data was collected using the questionnaires. Data was analyzed using tables, charts and graphs. The findings revealed small scale agribusiness farmers (SACCOs) and traders in Magale town council which include Magale town council savings and credit Emyooga association, Busisu Namisindwa SACCO, Bubulo East constituency market vendors Emyooga association and Namisindwa SACCO. As regard to the roles of SACCOs, they contribute tremendously to agribusiness enterprises of its members as follows; To fit in the market vendor’s fraternity of Magale, to access loans, to practice techniques of business marketing, to save money, to get advisory services, to get knowledge on how to save, to socialize with people of different occupations and to acquire business knowledge. The challenges or constraints faced by small scale entrepreneurs who access SACCO services are as follows; the requirements needed to join SACCOs hinder members from joining as they come with a lot of requirements, the poor financial management among members, low capital, and Low level of education, harsh terms and conditions and loan default. It was further recommended that SACCO members should be equipped with knowledge on how to handle members through; Providing services to members such as financial counseling so that the members can solve most of their financial problems, and the risk of management service to ensure the safety of members’ savings and loans, Free sensitization, education and training on saving and Exchange of visits with SACCOs which are more developed because Such visits are used as case studies through which members are educated on the importance and benefits of saving organizations.