Indicative Factors for SACCOs Failure in Tanzania

Authors

  • Cosmas Magashi Department of Information Technology, System Development, and Management (ITSDM), Nelson Mandela African Institution of Science and Technology (NM-AIST), Tanzania
  • Anael Sam Department of Information Technology, System Development, and Management (ITSDM), Nelson Mandela African Institution of Science and Technology (NM-AIST), Tanzania
  • John Agbinya School of Information Technology and Engineering, Melbourne Institute of Technology (MIT), Australia
  • Jimmy Mbelwa Department of Computer Science and Engineering, University of Dar es Salaam (UDSM), Tanzania
Volume: 13 | Issue: 4 | Pages: 11177-11181 | August 2023 | https://doi.org/10.48084/etasr.5989

Abstract

SACCOs are viewed as a feasible opportunity toward financial inclusion in an economy where most of the citizens are poor, as they are very essential for the socio-economic development of members, the community, and the world at large. However, SACCOs sometimes do not realize the expected socio-economic potential, especially when they fail. This study aimed to comprehensively assess financial and non-financial factors, at institutional and personal levels, that contribute to the failure of SACCOS in Tanzania. The data were collected using a questionnaire on 5,000 members of SACCOs, obtained using stratified random sampling. Data collected were analyzed using descriptive statistics and binary logistic regression. The findings showed that both financial and non-financial factors, at personal and institutional levels, had a statistically significant and positive relationship with the failure of SACCOs. Therefore, the performance of SACCOs and other Microfinance Financial Institutions (MFIs) should be addressed from a comprehensive view of both financial and non-financial factors, at personal or institutional levels. In other words, the failure of MFIs should be addressed from a holistic point of view.

Keywords:

SACCOs failure, financial factors, non-financial factors

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How to Cite

[1]
Magashi, C., Sam, A., Agbinya, J. and Mbelwa, J. 2023. Indicative Factors for SACCOs Failure in Tanzania. Engineering, Technology & Applied Science Research. 13, 4 (Aug. 2023), 11177–11181. DOI:https://doi.org/10.48084/etasr.5989.

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