Research assistance
5.1.1 The role of SACCO credit on poverty reduction
The majority of the respondents indicted Provision of capital for start-up is done by Saccos, this therefore indicated the fact that saccos are important in providing capital for the poor in Nakawa, this sis also in line with Guilford (2007) credit facilities enable impoverished persons to start businesses, rebuild after natural disasters like floods and hurricanes, and to receive both short- and long-term loans to meet their financial needs and improve their overall quality of life. The impact of micro lending is changing the economic landscape of the areas where it is most prevalent.
The study results also further indicates that saacco Trains farmers on Identifying new opportunities, this is also in linewith Magyezi (2013) who indicates that micro finance contributed to productivity of farmers through credit, farmers obtains inputs and increase their production, micro credit promotes and increase agricultural output with greater equity of farmers to the small-enterprise.
According to researchers’ majority of the respondents indicated that Capital for business expansion is acquired by the local people this view was also in line with Gash, (2013) who states that Saacos clients who attend business education and other co-curricular activities provided by Savings and Credit Schemes save on sustainable basis compared to those who do not attend.
According to the findings of the study respondents strongly agreed that the Loans with little conditions is readily available for the poor in saccos, this was also in line with Bundervoet, & Armstrong,(2012) who recommends that participants in Microfinance institutions have been encouraged to save in every training session in order to improve their saving culture that leads to people in Nakawa to improve their house hold income and more to that Co-operatives have been an important part of development in East Africa. While they have seen many successes and failures, no other institution has brought so many people together for a common cause.
5.1.2 1 Effects of Financial Advise on poverty reduction
According to the study findings Sacco members save together, this is also in line with Komba et al. (2015) who states that SACCOS in Uganda gain support from Co-operative Society Acts and Policies. For the example, The Co-operative Societies Act, 2003 ensure that the government created conducive environment for Cooperative Societies and their members to perform their functions in a free democratic manner and Promoting economic and social interest of the members for economic growth by setting International Cooperative Alliance (ICA) principles.
According to the findings in the study Saacco members give one another financial advice as a groups, this is also in line with Ferguson, (2012) who indicates that members in the sacco view one another as brothers and sisters and this therefore enables them to work together.
According to the study findings Members have one goal in saving, since the members share a common goal in saving this leads to development of the sacco, therefore this indicates that saaccos enables the members to achieve a common goal.
The findings in the study therefore further indicates that Money saved in saacco is used for investment, this therefore shows members in the sacco are in the sacco to enable them be in position to fight poverty and in the same view it was also discovered that Members invest as a group.
It was also further discovered that Sacco members receive training on finance as a group, and more to that there is trust among members, this view further shows that Sacco’s have the potential for improving the livelihoods of the poor people in Nakawa Division.
5.1.3 Saving on poverty reduction
According to the findings in the study there is Saved funds are invested, this view of the study further indicates that Saacco support saving of funds something helps in ensuring that the members are able to fight poverty.
The study findings indicates that the Interest accrues on members’ savings, this therefore indicates that the members are able to improve on their income when they save their income and this improved on their capital and business.
The study results further shows that majority of the respondents that Members savings are loaned to other members the other and it is through this way that the members interest grows through loaning to other people who pay slightly higher interest rates and on the same note it was evident that the Sacco members get loans at very low interest rates.
5.3 Conclusion
The study made the following conclusions;
In the study it has been discovered that the Sacco has following importance to the Sacco members; Provision of capital for start-up is done by Saccos, Trains farmers on Identifying new opportunities, sacco markets produce for farmers, Capital for business expansion is acquired by the local people, Loans with little conditions is readily available, Creativity among farmers is enhanced and lastly Small scale business are readily linked with market by Sacco.
The study also has discovered that Sacco members save together, Saacco members give one another financial advice as a groups, Members have one goal in saving, Money saved in saacco is used for investment, there is Members invest as a group and also Saacco members receive training on finance as a group.
The findings in the study also made the following conclusions Saved funds by the sacco members are invested, Interest accrues on members’ savings, Members savings are loaned to other members and Members get loans at low interest rates.
