Success Characteristics of Savings and Credit Co-operative Societies (SACCOS) in Tanzania

Abstract

Tanzania. such existence results into having Successful SACCOS (SUS) and unsuccessful SACCOS (UNSUS). The establishment of the characteristics of SUS and remains inadequate and determination of the key success characteristics remains silent as well. That was a knowledge gap on which the research for this paper focused. The study was intended to assess success characteristics for SACCOS. The specific objectives were to establish characteristics behind SUS and UNSUS and determine key success characteristics of SACCOS. Primary data were collected using questionnaires which were administered to 120 SACCOS in Dar es Salaam, Dodoma, Kilimanjaro and Morogoro regions. Descriptive statistics were used to establish success characteristics of SACCOS. Binary logistic regression enabled the researcher to establish the key success characteristics of SACCOS. Fourteen success characteristics of SACCOS were established. The key success characteristics determined (Wald statistics in parentheses) were, ratio of number of staff to members being one to 154 (15.392), positive growth of total number of active members-the number to reach 1000 or more (10.344), positive changes in business of members (2.538), origin of SACCOS being members (2.097) and repayment rate of loans being 2 95% (1.983). Nagelkerke R2 was 0.734. The established success characteristics and the determined key success characteristics were as per motivation components of the cognitive theory. It is argued that success characteristics of SACCOS should be developed, availed, maintained and applied by the stakeholders of SACCOS in order to influence increase in number of successful SACCOS in Tanzania.