Contribution of Saccos in the Growth of Small Enterprises: Evidence from Tujikomboe Saccos in Moshi District, Kilimanjaro Tanzania

Abstract

SACCOs (Savings and Credit Cooperatives Societies) have become well-known and increasingly popular in both developed and developing countries due to their significant contribution to small businesses by providing loans at below-market rates, thereby contributing to the growth of income poverty among members and the nation at large. The researchers investigated the extent to which SACCOs have contributed to the growth of small businesses in Tanzania, particularly in Mbokomu Ward, a case paper of Tujikomboe SACCOs in Moshi district. Specifically, the paper will identify the nature of small enterprises within the SACCOs and examine the significant role of loans given to small enterprises within SACCOS. Respondents from small businesses were purposefully chosen. The research adopted a cross-section research design because it helped examine the phenomena using different methods. Both quantitative and qualitative data were collected using questionnaires, interviews, document review and focus group discussion. Paired-t-test analysis revealed a significant effect of loans (p=.000). The paper findings further revealed an adequate number of loans from Tujikomboe SACCOS. The paper, therefore, conclude that SACCOS had made significant contributions to the growth of small enterprises through the provision of small loans. The paper recommends that the government, through its cooperative officers, expertise, and stakeholders should provide sensitization, education, and training on leadership and governance of cooperatives, strengthening the performance of SACCOs to save more small enterprises