The Effects Of Saccos On Business Growth. A Case Study Of Ishaka United People's Sacco Bushenyi -Ishaka Municipality, Bushenyi District.

ABSTRACT Due to the declining performance of loan clients and their performance which has been dilapidating over years despite the decentralization process by the government which has brought financial services nearer to people, there has been a drastic decline of people borrowers from banks. The process of client evaluation and capability to pay back through identification, measurement and other administrative concerns are emphasized. Whether this is the cause of poor performance of loans and their collections, is the subject of the investigation, and if the management does not look into it, it will continue affecting the performance of loans in the SACCO. The main purpose of the study was to examine the effects of SACCOs on business growth so that the livelihood of the common people can be uplifted in Bushenyi - lshaka municipality Bushenyi district. The survey was carried out among 66 clients and 14 administrators who were randomly selected. The researcher designed general questionnaires and interview guides which were distributed to respondents and then a descriptive design was applied to describe the variable. The data collected indicated that there was a strong relationship between past and present loans which helped lshaka united peoples SACCO to determine the client's capacity to pay back loans in the required schedule. Thus the results indicated that there is need to promote business activity through granting mortgage loans.

TABLE OF CONTENTS

DECLARATION ...................................................................................... i SUPERVISOR'S APPROVAL................................................................. ii DEDICATION .......................................................................................... iii ACKNOWLEDGEMENTS ..................................................................... iv TABLE OF CONTENTS ..................................................................... v LIST OF TABLES ............................................................................ viii LIST OF FIGURES .................................................................................. ix LIST OF APPENDICES ........................................................................... x ABSTRACT .............................................................................................. xi CHAPTER ONE ...................................................................................... 1 INTRODUCTION OF THE STUDY ..................................................... 1 1.0 Background ................................................................................ 1 1.1 Historical perspective of cooperatives in Uganda ............ 3 1.2 Statement of the problem .......................................................... 5 1.3 Purpose of t he study .................................................................... 6 1.4 Objectives of the study ................................................................ 6 1.5 Research questions ........................................................................ 6 1.6 Scope of the study ......................................................................... 7 1.7 Significance of the study ........................................................... 8 1.8 Conceptual frame work ............................................................... 9 CHAPTER TWO ............................................................................................................................... 11 REVIEW OF RELATED LITERATURE .................................................................................................... 11 2.0 Introduction ............................................................................................................................ 11 2.1 Meaning of a Savings and Credit Cooperative (SACCO) ......................................................... 11 2.2 Concept of loans ..................................................................................................................... 12 2.3 Types of loans ..................................................................................................................... 14 2.4 Granting of mortgage loans ................................................................................................... 18 2.5 Business Growth Analysis ....................................................................................................... 19 2.6 Relationship between past and present loans ....................................................................... 22