INOSR ARTS AND HUMANITIES 11(1):23-33, 2025 ISSN: 2705-1676

©INOSR PUBLICATIONS INOSRAH 2333

International Network Organization for Scientific Research
https://doi.org/10.59298/INOSRAH/2025/2333

The Effects of Saccos of the Performance of Small-Scale

Business in Bushenyi-Ishaka Municipality
Kanyesigye Fortunate and Labson Turyamushanga

Faculty of Business and Management, Kampala International University

ABSTRACT
The study focused on assessing the role of SACCOs on the growth of small-scale enterprises, in Municipality. The
study sought to address all the three specific objectives of the study. The study used both qualitative and quantity
research design in descriptive manner. The researcher used 48 respondents who included; 30 owners of the Small-
Scale enterprises and SACCO members and 18 workers to SSEs through the use of the questionnaire and
interview guide about the research questions. From the study basing on the finding of the first research question
statistics reveal that 93.4% of the respondents revealed that SACCOs have significantly contributed to the increase
of SSEs in Ishaka Bushenyi. It was further revealed that both the owners and workers of SSEs save part of their
money as indicated in table 7 by 72.9% of the respondents. The finding on second research question revealed that
revealed that SACCOs have significantly enabled SSEs owners and their workers to acquire assets like land,
construct house and purchase home equipments. Lastly on the third research question, that there is
interdependence between the SACCOs and SSEs declared by 90.0°o of respondents
Keywords: SACCOs; Small Scale Enterprises (SSEs); Bushenyi-Ishaka Municipality; Growth; Financial Support

INTRODUCTION
According to Bhalla [1] saving behavior is countries formed a continental association of
fundamental aspect of human survival particularly in SACCOs, Africa Confederation of Cooperative
rural areas where incomes are unsecured. He further Society Savings and Credit Association
noted that, agricultural production is seasonal (ACCOSSCA), in 1965. ACCOSSCA was formed
because the period of income flows and expenditure with the principal objective of promoting the
are different. In here, the intervals between income SACCO principles, offer SACCO insurance, and
and expenditure and funds available to carry over educate members on SACCO issues [6]. There are
from one period to the next, provides good potential 28 countries in Africa that have established SACCOs
for mobilizations of saving in rural areas[2]. [7–9].
According to World Bank report household country In Kenya, the first Co-operative Society was
studies in sub-Saharan Africa showed that, rural Lumbwa Co-operative Society formed in 1908 by the
households in Africa have higher average and European Farmers with the main objective of
marginal propensity to save[3]. Long term supporting agricultural activities and products to
financial security starts with a regular savings plan take advantage of economies of scale [10]. Notably,
for emergencies, un expected bills, replacement of after independence, the Government of Kenya
needed home items and the purchase of special goods recognized cooperatives as suitable vehicles with
and services such as a boat, a vacation home or appropriate framework to achieve their aspirations
college education. Once a saving component has and participate in the economic development of the
been established, additional money saved may be nation. Accordingly, steps were taken by the
used for investments that offer greater potential Government which saw the rapid growth and
returns. In the same endeavor, one scholar observes expansion of the SACCO Society movement in the
that, a certain amount of savings must be readily country [11]. In fact, the SACCO movement is
available to meet individual or family needs [4, 5] . considered by the government as one of the
The formation of SACCO in Africa grew economic pillars of the nation. By the year 2010,
tremendously to the extent that the African Kenya had over 5,000 registered SACCOs with a
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membership of about 7 million. These SACCO although some institutions have emphasized it.
societies had mobilized savings of over Apparently, of the nearly sixty thousand savings
Ksh.200billion [12, 13] accounts opened, only a quarter are operated as
According to National Micro and Small Enterprise typical savings accounts [19].
(MSE) Baseline Survey[14–16], Kenya has a Coupled with the above, Ugandas domestic savings
relatively well developed banking and formal rates are among the lowest in the world. It has
financial sector. This consists of the Central Bank, declined over time to the extent that, it was about
43 commercial banks, 16 non-bank financial 8% of disposable income in 1989 and has now
institutions, 2 mortgage finance companies, 4 declined further to lower than 4.5% which is below
building societies, 8 developed financial institutions the required sub-Saharan average. As result of this
about 3870 cooperative savings and credit societies, decline, growth in private investment is also low-
38 insurance companies, the Nairobi stock exchange which is only 13% of the GDP and this leaves a
and venture capital companies. The survey further compelling need to raise it to the sub-Saharan
indicates that nearly 89.6% of MSEs had never average of 20% Ministry of Finance, Planning
received credit and other financial services. &Economic Development Report, (2000-2005).
The unnerved credit needs portrayed by the According to Bhalla [1] saving behavior is
statistics in the table 1.2 in the background section fundamental aspect of human survival particularly in
above signifies a wealth of opportunities untapped rural areas where incomes are unsecured. He further
by all the financial institutions. The proof of the noted that, agricultural production is seasonal
existence of market implies that a lot needs to be because the period of income flows and expenditure
done to raise what it takes to serve a market. The are different. In here, the intervals between income
most basic need is the finance to lend in a discipline and expenditure and funds available to carry over
way. Voluntary savings from members is therefore from one period to the next, provides good potential
imperative. SACCOs abilities to improve their for mobilization of saving in rural areas.
members wealth is determined by a number of SACCO’s as micro credit institutions are
factors, among them is the funding levels due to significantly important because their role through
members marginal propensity to save, contributions; Savings mobilization, services for lifetime asset
remittance by the employers, legal and regulatory growth, mixed outreach, and full services array of
framework, internal management principles and loan products. Saving is a key component in any
practices (e.g. customer service, marketing, dividend development Endeavour as it is believed to be the
/ interest payment etc.) amongst other factors. surest way of increasing income and boosting
These factors' level of influence on SACCOs ability productivity in an attempt to break through the
to perform captured the attention of the researcher. vicious cycle of poverty. [1]. Currently, almost
It was the intention of the researcher to examine every sub county in Bushenyi Ishaka Municipality
them and possibly recommend on the best way to has at least one SACCO, with special concern in
mitigate the underlying challenges and take Ishaka the numbers of SACCOs are many compared
advantage of the available opportunities by to other areas of the Municipality. And the rate at
exploiting existing strengths[17, 18]. However, in which Small Scale Enterprises emerging up is higher
developing countries like Uganda, there are low compared to other areas. This gives a basis for the
levels of saving culture owing to poor researcher to find out the Role of SACCOs to the
underdeveloped stock markets, dominance of urban growth small Scale Enterprises in Bushenyi Ishaka
based commercial banks, Micro Deposit Taking Municipality. The study provides background
Institutions (MDIs) and non-regulated Micro information to research organizations and scholars
finance institutions in the financial markets as who would want to carry out further research in this
vehicles for savings. Hence Savings and Credit area. The study will also facilitate individual
Cooperatives (SACCOs) are intended to offer an researchers to identify gaps in the current research.
alternative to improve the above undesirable The study is especially significant because it adds
situation in low-income countries. Savings and onto more information about saving culture in the
Credit Co-operatives (SACCOs) are community country. The study is particularly significant at this
membership-based financial institutions that are time because there is a strong push by the
formed and owned by their members in promotion of government through Rural Financial Services
their economic interests. These institutions mobilize Programmed (RFSP) to deliver financial services
and intermediate savings exclusively with in their through community based and locally owned
membership under the co-operative statute 1991. organizations A key objective is to support
The culture of saving in Uganda in the recent past communities to establish a nationwide infrastructure
and currently has not gained any popularity of SACCOs to enable communities to access financial

24
services, like savings, credit, money transfers and so formation, restructuring, strengthening and
forth. The study provides a guide to policy makers development of SACCOs from an informed view
and the government in general to spearhead the point.

METHODOLOGY
Research Design (population) carry out a variety of economic
The researcher used descriptive research to collect activities. All these gives a better basis for Small
data using interviews and questionnaires to enable Scale enterprises and a number of SACCOs
the researcher describe the phenomenon under study. emerging up because of the existing business people
This was fits researcher’s intention to find out the who gain from SACCOs services.
contribution of SACCOs to SSBs. Both quantitative Population of the study
and qualitative approaches were adopted in the study. The research was conducted in Nyabubare sub-
This is because the quantitative approach enabled county SACCO and Small-Scale Business from
the researcher to solicit information that can be Bushenyi Ishaka with population of 70 that was
quantified while the qualitative approach enabled the comprised both male and female respondents.
researcher to solicit information that cannot be The target population of 55 will consist of; workers
quantified [20, 21]. The qualitative research design of SSEs and members of the SACCO. The key
was descriptive in nature and this enabled the informants were workers Nyabubare sub-county
researcher to meet the objectives of the study. The SACCO.
quantitative research design was used in form of Sample size
mathematical numbers and statistics assigned to Participants for the study comprised a representative
variables that may not be easily be measured using sample of 48 respondents. These representative
statements or theme. samples were included: workers of SSEs, members of
Qualitative research was used and data collection the SACCO and the key informants under the area of
methods such as interviews and, closed and open- the study. The following formula of Njeri et al [22]
ended questioners, and finally the findings were was used to calculate the sample size:
conveyed subjectively through descriptions using n = N/1 +N(e)2
words rather than numbers. Qualitative research Where n = sample size
approach provided more realistic interpretation that N = population. (55)
was experienced in the numerical data and statistical e= marginal error (0.05)
analysis. Calculation of the sample size
Locale of the study n = 55/1 +55(0.05)2
The research study was carried out in Bushenyi =55/1.1575
Ishaka Municipality. Majority of inhabitants = 48
Table 1a: Sample size and determination table
Category of respondent Target pop. Sample size Sampling techniques
Workers to SSEs 20 18 Random sampling
Key informants 6 5 Purposive sampling
SACCO members 29 25 Random sampling
TOTAL 55 48
Source: primary data, 2013.
Sampling procedures respondents were contacted in person or the
The study used both random and purposive questionnaire was left behind for filling, as the
sampling methods. Random sampling method that researcher to get firsthand information from them.
involved selecting respondents from the study This was in accordance to Njeri et al [22], sampling
population by chance. In this way every respondent enables the researcher to study a relatively small
had an equal chance of being included in the sample. part of the target population and yet obtain data that
This method was used to select SACCO members are representative of the whole. Therefore
and owners of SSEs from the area under study. researcher was used simple random sampling
Purposive sampling was involved selecting a certain technique to select the SACCO members and the
number of respondents based on the nature of the owners to SSEs.
office/work (key informants). This method was Research instrument
appropriate because it enabled the selection of In this study, the instruments of data collection that
informed persons who possess vital data that was: was employed in collecting data include;
comprehensive enough to allow gaining a better Questionnaires and Interview guide.
insight into problem/challenge. In the study,
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 Questionnaire with the questionnaire model should be similar to
This instrument was significant to the study because those that would be made by physically
it enabled t-he researcher with a lot of information experimenting with the system. A questionnaire
which was collected within a short period of time model is said to be credible when its results are
and it was believed to offer less opportunity for bias accepted by respondents as being valid, and used as
or errors caused by the presence or attitude of the an aid (tool) in collecting data. Validity of the
interviewer. It was also considered an objective view questionnaire was obtained by presenting it to at
for the issue under study since some respondents least six (6) independent professionals including the
(SACCO members and owners) was consulted and researcher’s supervisors which were 11, 10, 9, 12, 12
their files and this was an appropriate method of and 13 respectively that totaled to 67 and on average
collecting information from busy officers, who had 11.2 questions rated valid. According to Amin
no time to be interviewed. The researcher was used (2005), content and construct validity is determined
both close ended and open ended questionnaires that by expert judgment. The validity of the
ware enabled the respondents to express their views questionnaire was calculated by using the Content
and opinions about the research study. They were Validity Index. Leung [23], states that building
used because of being the best instrument and valid and credible questionnaire is an important
easiest way of obtaining data from respondents who aspect of a researcher's representation of the actual
knows how to read and write. Open ended questions system being studied.
are to yield in-depth responses about respondents Content Validity Index (CVI) was computed using
experiences, opinions, feelings, and knowledge about the following formula:
the topic under study. This enabled the respondents CVI= No of items rated valid/n
to express their views and opinions on the problem All items in the questionnaires
under consideration. 67/6
Interview guide 13
It was defined as a person-to-person verbal
communication, in which one person asks =0.86
predesigned questions from the interview schedule Reliability of the instrument
(interviewer) and another person answers questions According to Leung [23], test-retest or stability
(interviewee) giving information to interviewer. The test provides evidence that scores obtained on a rest
interview schedule/guide enabled extracting elicits at one time (test) are the same or close to the same
information. The interview was conducted in places when the test was re-administered some other time
where the respondents do not have the ability to (re-test). The researcher was using Cronbach
read and write. The researcher was moving with an Coefficient alpha method to determine reliability of
interview schedule and asked questions as well as the instruments. A pilot study was conducted on 10
compiling the data on the sheet of paper. The members of Nyabubare sub-county SACCO
researcher was to clarify on any question that proves Bushenyi Ishaka Municipality that was not part of
to be unclear. the sample. The collected data was coded and
Validity entered into the computer using SPSS program.
Law & Kelton (1991:23 suggests that if a Reliability was thereafter be computed. It was
questionnaire model is valid, then the decisions made considered reliable since it measured 0.75 (75%).
Table 1b: Reliability statistics
Cronabach’s coefficient alpha No. of items
751 14

Data analysis interpretation The researcher analyzed data using

After data collection, editing for errors and both qualitative and quantitative methods which
omissions was done. Manual coding was also done to made the findings easily comprehended and
ensure that the right codes were used. This helped conclusions were made.
to normalize the work to make meaningful Qualitative analysis
relationships. Data analysis was carried out by Here the data that was collected by interviewing and
descriptive analysis. Descriptive analysis was was analyzed in relation to the related literature
involved the use of frequency tables and graphs (Bar reviews to gather relevant findings. Notes were
graphs and pie charts). Data was entered into a written. Data was presented in accordance to the
computer and analyzed with the use of tables using objective of the study by use of simple frequency
statistical package like SPSS, which helped to distribution tables and percentage tables.
summarize the coded data and this facilitated quick
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 Quantitative analysis data were used to ensure the validity of the findings.
This involved figures, and the data that was Quantitatively the researcher was to analyze all the
collected to ensure uniformity, consistence, legibility data concerning contributions of SACCOs to small
and completeness; correlation methods of complied scale enterprises.
RESULTS
The overall objective of the study was to assess the increasing number of SSEs in Bushenyi
impact of SACCOs on small scale Enterprises in Ishaka Municipality?
Bushenyi Ishaka Municipality. And the research From table 2, statistics indicate that out of sample
questions of the study were as follows; size of 48 that were interviewed; 26.0% of the
1. What SACCO contributions are extended respondents in the range of 18-29 years, followed by
to Small Scale Enterprises in Bushenyi 64.4% of the respondents were in age range | of 30-
Ishaka Municipality? 41 years and lastly 14.6% of the respondents in the
2. Do SACCOs increase capital accumulation age range of 42 and above. Thus, statistics in table 2
of people in Bushenyi Ishaka Municipality? indicate that the majority of the respondents who
3. What is the relationship between the participated in the research study were the age range
contributions of SACCOs and the of 18 to 41 years Table 3, showing the sex of the
respondent
Bio data
Table 2: Shows the age of the respondents
Age (in years0 Frequency Percent
18-29 10 20.8%
30-41 31 64.6%
42 and above 7 14.6%
Total 48 100%
Source: Primary data
From table 2, statistics indicate that out of sample range of 42 and above. Thus statistics in table 2
size of 48 that were interviewed; 20.8.o% of the indicate that the majority of the respondents who
respondents in the range of 18-29 years, followed by participated in the research study were the age range
64.6% of the respondents were in age range of 30-41 of 18 to 41 years.
years and lastly 14.6% of the respondents in the age
Table 3: Showing the sex of the respondents
Sex Frequency Percent
Male 18 37.5%
Female 30 62.5%
Total 48 100%
Source: Primary data
From table 3, out of sample size of 48 that were respondents was female. Therefore, statistics
interviewed; 37.5% of the respondents were males indicate that the majority of the respondents that
and the remaining percentage 62.5% of the participated in the study were female.

Table 4: Showing the education level of the respondents

Level of education Frequency Percent
Primary 8 16.7%
Secondary 27 56.3%
Advanced level 7 14.6%
Tertiary 2 4.2%
None 4 8.3%
Total 48 100%
Source: Primary data
Table 4 illustrates level of education of 48 was 14.6%, 4.2% and 8.3% of the respondent’s
respondents who represented the population; 16.7% tertiary and no any level of education. Therefore, it
of the respondents had attained up to primary level is clearly revealed that the majority of the
of education, followed by 56.3% of the respondents respondent who participated in the research study
had attained up to secondary level, advanced level had attained secondary level of education.

27
 Table 5: Showing the marital status of the respondents
Responses Frequency Percent
Single 9 18.8%

Married 35 72.9%
Separated 4 8.3%

Total 48 100%

Source: primary data

From table 5, out of the sample size of 48 who respondents who participated in the research study
represented the population of Bushenyi Ishaka were married.
Municipality. District local government, 18.8% and Results for the first research question.
72.9% of the respondent were single and married What SACCO contributions are extended to Small
respectively and 8.3% of the respondents had Scale Enterprises in Bushenyi Ishaka Municipality?
separated. Statistics indicate that the majority of the
Table 6: Responses on whether SACCOs increase SSEs
Responses Frequency Percent
Strongly agree 15 31.3%
Agree 25 52.1%
Disagree 4 8.3%
Strongly disagree 4 8.3
Total 48 100%
Source: Primary data
From table 6, 83.4% of the respondents (of whom respectively) rejected the statement, since the
31.3% and 52.1% of the respondents strongly agree majority of the respondents agreed, the researcher
and agree respectively) agreed that SACCOs leads to concludes that SACCOs have significantly
SSEs to increase and the remaining percentage of contributed to the increase of SSEs in Bushenyi
16.6% of the respondents (of whom 8.3% and 8.3% of IshakaMunicipality.
the respondents strongly disagree and disagree
Table 7: Showing responses on saving
Responses Frequency Percent
Yes 35 72.9%
No 13 27.1%
Total 48 100%
Source: primary data

From the table 7, out of the sample size of 48, 72.9% Since the majority accepted the researcher concludes
of the respondents declared that they save part of that both the owners and workers to SSEs save in
the income they earn and remaining percentage of different SACCOs that exist in Bushenyi Ishaka
27.1% of the respondents rejected the statement. Municipality.
Table 8: Showing responses on benefits of saving
Responses Frequency Percent
Enables in paying school fees 6 17.1%
Boosting up business 6 17.1%
Invested in other economic activities 3 8.6%
Interest on the saving 12 34.3%
Enables one to secure a loan 5 14.3%
Acquisition of capital 3 8.6%
Total 35 100%
Source: primary data

From table 8, out of the 35 respondents who were savings that is to say; enabling them to pay school
part of the sample size of 48 that accepted saving in fees and boosting up their business respectively,
different SACCOs, 17.1% and 17.1% of the 34.3% and 14.3% of the respondents revealed that
respondents that they have benefited out of their the benefits of their savings is realized through
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interests on their savings and enabling them to training they offer to the members among which
secure loans from the SACCO and lastly 8.6% of the includes: on model of saving and the benefits, record
respondents said savings enable them to acquire keeping and accountability, developing on hand
assets. skills like craft and other entrepreneurship training.
From the finding it was revealed that there are Results for the second research question.
increased economic activities that a being supporting Do SACCOs increase capital accumulation of people
by mostly Nyabubare sub-county SACCO and other in Bushenyi Ishaka Municipality?
SACCOs exist in Bushenyi Ishaka Municipality.
SACCOs have significantly important due to the

Table 9: Responses on whether SSEs are being supported by SACCOs

Responses Frequency Percent
Strongly agree 10 20.8%
Agree 20 41.7%
Disagree 8 16.7%
Strongly disagree 10 20.8%
Total 48 100%
Source: Primary data

From table 9, 62.5% of the respondents (of whom respondents strongly disagree and disagree
20.8% and 41.7% of the respondents strongly agree respectively) rejected the statement. Since the
and agree respectively) agreed that SSEs are majority accepted, the researcher concludes that
supported by SACCOs and the remaining 37.5% of SSEs are being supported by SACCOs in Bushenyi
the respondents (of whom 20.8% and 16.7% of the Ishaka Municipality.

Table 10: Responses on assets owned as result of savings and the credit from SACCOs
Responses Frequency Percent
Strongly agree 14 29.2%
Agree 17 35.4%
Disagree 8 16.7%
Strongly disagree 6 12.5%
Not sure 3 6.2%
Total 48 100%
Source: primary data

From table 9, 64.6% of the respondents (of whom researcher concludes that assets owned by people
29.2% and 35.4% of the respondents strongly agree mostly the owners and workers of SSEs is a result of
and agree respectively) agreed that assets owned by their savings and the loan given out by SACCOs in
members is a result of their savings and the loan Bushenyi Ishaka Municipality.
given out by SACCOs, 35.4% of the respondents (of Results for the third research question.
whom 12.5%% and 16.7% of the respondents What is the relationship between the contributions
strongly disagree and disagree respectively) rejected of SACCOs and the increasing number of SSEs in
the statement and lastly 6.2% of the respondents Bushenyi Ishaka Municipality?
were not sure. Since the majority accepted, the

Table 11: Responses on whether SACCOs enable the increasing number of SSEs
Responses Frequency Percent
Strongly agree 13 43.3%
Agree 15 50.0%
Disagree 1 3.3%
Strongly disagree 1 3.3.%
Total 30 100%
Source: primary data

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From table 11, out of 30 respondents (the owners of respondents (of whom 3.3% and 3.3% of the
SSEs and SACCO members) part of sample size of respondents strongly disagree and disagree
48, statistics indicate that 93.3% of the respondents respectively) disagreed with the statement. Since the
(of whom 43.3% and 50.0% of the respondents majority agreed, the researcher therefore concludes
strongly agree and agree respectively) agreed that that SACCOs due to the services they offer to SSEs
SACCOs have enabled the increasing number of which has enabled them to increase in Bushenyi
SSEs and the remaining percentage 6.6% of the Ishaka Municipality.
Table 12: Responses on entrepreneurship training offered by SACCOs
Responses Frequency Percent
Strongly agree 8 26.7%
Agree 20 66.7%
Disagree 2 6.7%
Total 30 100%
Source: primary source

From table 12, out of 30 respondents (the owners of respondents disagreed with the statement. Thus
SSEs and SACCO members) part of sample size of statistics in table 13 indicate that the majority of the
48, statistics indicate that 93.4% of the respondents respondents accepted, the researcher therefore
(of whom 26.7% and 66.7% of the respondents concludes that entrepreneurship training is one of
strongly agree and agree respectively) agreed that the major ways that has enabled more SSEs to
entrepreneurship training by SACCOs enable the emerge in Bushenyi Ishaka Municipality.
number of SSEs to increase and 6.7% of the

Table 13: Responses on loans given out to the clients

Responses Frequency Percent
Strongly agree 9 30.0%
Agree 17 56.7%
Disagree 2 6.7%
Not sure 2 6.7%
Total 30 100%
Source: Primary data

From table 13, out of 30 respondents (the owners of remaining percentage 13.4% of the respondents of
SSEs and SACCO members) part of sample age of 48, whom 6.7% and 6.7% of the respondents disagree
it revealed by 86.7% of the respondents (of whom and not sure of the impact of loan respectively. Since
30.0% and 56.7% of the respondents strongly agree the agreed, the researcher concludes that the loans
and agree respectively) agreed that loan given out given out to SSEs owners have enabled their
by SACCOs enable the growth of SSEs and expansion in Bushenyi Ishaka Municipality.
Table 14: Responses on whether there is interdependence between SACCOs and SSEs
Responses Frequency Percent
Strongly agree 10 33.3%
Agree 17 56.7%
Disagree 2 6.7%
Strongly disagree 1 3.3%
Total 30 100%
Source: Primary data

From table 14, out of 30 respondents (the owners of respondents (of whom 3.3% and 6.7% of the
SSEs and SACCO members) part of sample size of respondents strongly disagree and disagree
48, 90% of the respondents (of whom 33.3% and respectively) rejected the statement. Since the
56.7% of the respondents strongly agree and agree majority agreed the researcher concludes that there
respectively) agreed that there is interdependence is interdependence between the SACCOs and SSEs
between SACCOs and SSEs in Bushenyi Ishaka in Bushenyi Ishaka Municipality.
Municipality and remaining percentage 10% of the

30
 DISCUSSION
The research study established that the majority of people mostly the owners and workers of SSEs is a
respondents who were involved in the exercise; were result of their savings and the loan given out by
in the range of 18 to 42 years of age; were female SACCOs in Bushenyi Ishaka Municipality.
compared to their male counter parts; and had This is in conformity with Karoki et al [24] who
attained from primary to advanced level of education asserts that SACCO play an important role in lower
and most of the respondents were married. The first income groups through increasing their assets via
research question stated that, what SACCO establishing a credit relationship, establishing an
contributions are extended to Small Scale enterprise, accessing working capital, increasing
Enterprises in Bushenyi Ishaka Municipality? income through business expansion, meeting
From the research study, Statistics in table 6 housing credit needs and increasing wealth through
indicates that 93.4% of the respondents revealed that savings. The third research question stated that,
SACCOs have significantly contributed to the what is the relationship between the contributions of
increase of SSEs in Ishaka division. It was revealed SACCOs and the increasing number of SSEs in
by 72.9% of the respondents that both the owners Bushenyi Ishaka Municipality?
and workers to SSEs save in different SACCOs that From the finding, it was revealed by 93.3% of the
exist in Bushenyi Ishaka Municipality as indicated respondents who were the SSEs owners and SACCO
by table 7 and these savings have enable them to pay members that SACCOs due to the services they offer
school fees and boosting up their business to SSEs and the same time the willingness of people
respectively and they have benefited by getting to save part of the income earned, that can be
interests on their savings and the savings enable the invested in the future and members acquire loans
clients to secure loans from the SACCOs. from this SACCOs basically explain why the number
This is in conformity with Branch & Cora (1999), of SSEs and the SACCOs keep increasing because of
who asserts that SACCO’s as micro credit linkage between each other. It was further revealed
institutions helps members through savings that in table 15 by 90.0% of the respondents that
mobilization, services for lifetime asset growth, there is interdependence between the SACCOs and
mixed outreach, and full services array of loan SSEs.
products. What distinguishes cooperatives from her This was in conformity with McCormick and
non-bank financial entities involved in SACCO’s is Kimuyu 2004 who asserts that, Small Scale
the ability of mass number mobilization of small, Enterprises find it advantageous to join together
voluntary, savings account. These deposits can then into associations like SACCOs and among others
be invested in rural production, housing, small scale which are formed for the joint benefit of the
enterprises and small business. The second research members. Associations’ help members benefit
question stated that, do SACCOs increase capital through collective influence and accessing specific
accumulation of people in Bushenyi Ishaka services. Through collective influence, associations
Municipality? From the research that was conducted lobby for policies that benefit its members, while
in Bushenyi Ishaka Municipality statistics indicate they also respond to members individual needs for
that 62.5% of the respondents that SSEs are being services. Since all businesses need capital either for
supported by SACCOs and 64.6% of the respondents startup of operating capital, financial institutions
indicated in table 10 revealed that assets owned by asymmetry.
CONCLUSION
The study was set to assess the impact of SACCOs that it was revealed that there is interdependence
on small scale Enterprises in Bushenyi Ishaka between the SACCOs and SSEs
Municipality. Basing on the findings from the Recommendations
research study, since the sample size that From the research study that was conducted on
participated in the exercise were a representation of Small Scale Enterprises in the Bushenyi Ishaka
the whole population in Bushenyi Ishaka Municipality on their contribution on SSEs.
Municipality, the researcher concludes that SACCOs According to the study it revealed that SACCOs
have significantly contributed to the increase of contribute economically to both the owners of SSEs
SSEs in Bushenyi Ishaka Municipality. From the and workers, to individuals in Bushenyi Ishaka
findings it was clearly revealed that SACCOs have Municipality. There is a need by the government to
significantly enabled SSEs owners and their workers gain a better understanding of SACCOs
to acquire assets like land, construct house and requirements is fundamental in the development of
purchase home equipments. Basing on the findings strategies that can promote the sector growth.
Therefore, the Government should review the policy

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of micro credit institution on lending that is to say on SACCOs which leads to the increase in interest
government should support SACCOs so as to enable rate charge on clients and when the interest is
them have enough loanable funds and this will higher, few clients for them and reduces the amount
enlarge their capacity to give out loans. It was of money that will enable one to acquire assets. It
revealed from the findings that to SACCOs have was further revealed that SACCOs and Small-Scale
enabled individual in Bushenyi Ishaka Municipality Enterprises inter-depend on each other, the
to acquisition of assets, however given the amount researcher recommends that sanitize SSEs owners
paid to them it is not worth to enable them acquire a on the benefits SACCOs and at the same time the
variety of assets. The researcher recommends that government should allocated more funds to SACCOs
the government should to reduce the taxes imposed to enable the smooth running of both businesses.

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CITE AS: Kanyesigye Fortunate and Labson Turyamushanga (2025). The Effects of Saccos of the
Performance of Small-Scale Business in Bushenyi-Ishaka Municipality. INOSR ARTS AND HUMANITIES
11(1):23-33. https://doi.org/10.59298/INOSRAH/2025/2333

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