Factors Influencing saving and Credit Cooperatives improving members livelihood: case study of vision fund Micro Finance Institutions in Jimma town

Abstract

Purpose of this study is to investigate the Factors Influencing saving and Credit Cooperatives of improving members of livelihood. The researcher applied both descriptive and explanatory research design. The research was conducted by using both qualitative and quantitative research approach. A study was administered a sample of 263 respondents and the target population of the study was SACCO’s members in vision fund microfinance Jimma town. The researcher was utilized simple random sampling techniques and Data collection method by using questionnaires. Method of data analysis was used descriptive and econometrics analysis with the help of STATA version 14. The study employed a binary logistic regression model trough marginal effect analysis to identify factors that affecting the livelihood improving of members of SACCO. The binary logistic regression model is used to examine the effect of predictors on livelihood improvement status of SACCO’s members. The finding of study trough marginal effect analysis, reporting coefficient results show that marital status, household family size, saving, loan, welfare fund and training statistically significant and posit ively contribute livelihood improving of members. The conclusion of the study the livelihood of SACCO members about 64.63 percent were did not improved, but only livelihood of SACCO members about 35.37 percent were did improved and based on the result recommendation forwarded it is better for SACCO providing access to affordable credit is essential for SACCO members to invest in their businesses and improve their livelihoods. This can be achieved by offering flexible loan terms, lower interest rates, and tailored credit products that meet the unique needs of each member. Additionally, collaborating with other financial institutions to expand credit access can also be beneficial.