Factors affecting youth participation in Savings and Credit Cooperative Societies (SACCOS) activities among Selected SACCOS in Kiruhura district, Western Uganda.

Abstract

To examine the factors that affect youth participation in Savings and Credit Cooperative Organizations (SACCOS) activities with focus on selected SACCOS in Kiruhura District, western Uganda. The objectives of the study were: to examine institutional factors that affect youth participation in SACCO activities in Kiruhura District; to assess environmental factors that affect youth participation in SACCO activities in Kiruhura District; to examine individual factors that affect youth participation in SACCO activities in Kiruhura District. A cross-sectional descriptive research design study design was exploited. Both quantitative and qualitative approaches were used. A sample of 214 respondents was considered. Simple random sampling and convenience sampling were used in selecting the respondents. Data was collected by use of a questionnaire, interview guide and document review checklist. Qualitative data was analyzed by thematic and content techniques while quantitative data was analyzed using descriptive and inferential statistics. A response rate of 77.5% was achieved.

The study found out that institutional, environmental and individual factors affect youth participation in SACCOs. The study concluded that SACCOs that demand collateral security and guarantors while securing loans limit participation of youth in SACCO activities; the youth can only access loans from their SACCOs if they boost their share capital; The location of a SACCO will determine how many youth will participate in its activities; use of technology especially mobile money service ease and strengthen youth participation in SACCO activities; Gender mainstreaming is an important factor that promote youth participation in SACCO activities; education and training is among the factors that influence youth participation in SACCO activities; income is a major factor that facilitate the youth to join SACCOs and actively participate in all the activities. The study recommends that youth themselves need to attend financial literacy trainings that would help them acquire knowledge, skills and change their attitude towards the SACCOs; they should start income generating projects that would help them earn income to inject in SACCOs as shares and savings.