Access to non-financial business development services and its effect on performance of savings and credit cooperative societies in Dar es Salaam region

Abstract

Despite the fact that access to non-financial Business Development Services (BDS) is essential, there is petite knowledge of how these services improve performance of Savings and Credit Cooperative Societies (SACCOS). This study sought to fill this gap by examining the extent to which access to non-financial BDS affect SACCOS performance in Dares Salaam region. The objectives of the study were:(i) to assess how auditing of SACCOS financial statements influences performance of SACCOS in Dar es Salaam; (ii)to examine how training of SACCOS leaders and members influences the performance of SACCOS in Dar es Salaam and, (iii) to assess the influence of technology on performance of SACCOS in Dar es Salaam. This study used the Resource-Based View (RBV) as theoretical perspective. The research involved 42 SACCOS from Dar es Salaam region. The study found that access to training of SACCOS members was positively associated with amount of savings and loan portfolio management. It was also found that audit of financial statements positively influenced loan portfolio and amount of savings. Further, the findings show that use of technology positively influenced the number of members, amount of savings and loan portfolio. In its totality, the findings show that the resources SACCOS get by accessing non-financial BDS are crucial for its performance. Therefore, any intervention targeting SACCOS should focus on access to non-financial BDS if such interventions are to lead to performance improvement.