Saving and Credit Co-Operative Organizations (Saccos) Services and Income Poverty Reduction Among Members

Abstract

With almost half of the world’s six billion people living on less than two dollars a day, reduction of income poverty has become the biggest challenge to the human society. In response, the global campaign against income poverty has gained momentum, with various development actors suggesting the use of different instruments to reduce income poverty. However, there is an emerging consensus among many actors that the cooperative enterprise is one of the few forms of organization that meet all dimensions of poverty. This study therefore examined the role of SACCOs services to income poverty reduction among members. The specific objectives of the study were to; determine how regular small saving deposits accepted by SACCOs contribute to income poverty reduction, examine how credit services provided by SACCOs contribute to income poverty reduction, determine if advisory services provided by SACCOs contribute to income poverty reduction in Gulu District, and examine how training services provided by SACCOs contribute to reduced income poverty in Gulu District. The study used the neoclassical growth theory such as Harrod-Dommar and Robert Solow and Resource-based theory of entrepreneurship. The study employed a cross-section research design using both qualitative and quantitative methods (questionnaire, KIIs, document reviews) of data collection. Cluster and simple random sampling were used to select a sample of 150 SACCOs members from Acak ki Kuc and Ada pi Anyim SACCOs in Gulu District. The study used descriptive analysis, one sample t-test and multiple linear regression model. Results from the one sample T-test showed that members agreed that Savings and credit services contribute to income poverty reduction among members. However, they disagreed on training and advisory services having a contribution to income poverty reduction among members. The findings also indicated a positive relationship between savings accepted by SACCOs and income poverty reduction among members. There was also a positive relationship between credit provided by SACCOs and income poverty reduction. The study shows there was no contribution of advisory and training services offered by the SACCOs on income poverty reduction among members. The study recommends SACCOs to initiate other credit like school fees, insurance, house, land among others. Government should offer financial education to the SACCOs groups and their members. Members should be champions in the community to motivate those who have not joined the SACCOs to join.