Individuals’ Determinants of Participation in Savings and Credit Co-operative Societies in Mwanza and Tabora Rural Areas, Tanzania

Abstract

Participation in Savings and Credits Co-operative Societies (SACCOs) is open to all. Yet, some individuals do not participate. The study assessed individuals’ determinants of participation in SACCOs. Data were collected cross-sectionally. Six SACCOs were purposively selected in four districts of Mwanza and Tabora regions, in which a total of 500 respondents (200 members and 300 non-members) were randomly selected. The study used a questionnaire and a key informant interview guide to collect quantitative and qualitative data respectively. Individuals’ determinants of participation in SACCOs were analyzed by using descriptive statistics and logit regression model. Age, marital status, education level, land size, microenterprise ownership, entrepreneurship experience and livestock ownership positively influenced participation in SACCOs while gender had a negative influence. Microenterprise ownership highly influenced the probability of an individual’s decision to participate in SACCOs relative to other socio-economic determinants. Moreover, lack of awareness on the operation of SACCOs was perceived as a factor hindering non-members’ participation in SACCOs. It is concluded that both socio-economic and institutional factors influence the individuals’ decisions participate. It is recommended that during the formation of SACCOs, SACCOs’ leaders should consider socio-economic factors that promote the likelihood of individuals’ decision to participate in SACCOs including age, marital status, education level, land size, microenterprise ownership, entrepreneurship experience and livestock ownership. Moreover, SACCOs’ leaders should put more efforts on awareness programs to attract new members through village meetings and other social gatherings. Keywords: Individuals’ Determinants,