Determinants of Financial Performance of Urban Primary Saving and Credit Cooperative Societies in Ethiopia

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The purpose of this study was to look into the factors that influence the financial performance of urban SACCOs in Ethiopia. The study's populations were SACCOs in Ethiopia, with the sample frame consisting of primary SACCOs in Addis Ababa. The study's sample size was 45 primary SACCOs, as determined by purposive sampling techniques. The research design was sequential-explanatory, and descriptive. The study used both primary and secondary data; secondary data was the main source of data for this research, which was collected from audit reports from 2015 to 2019 by using document review as a data collection instrument, and primary data was collected through semi-structured interviews. STATA Version 13.0 was used for secondary data analysis, and multiple regression analysis was used to establish the nature of the existing relationship between the research variable and content, and narrative analysis was used for qualitative data analysis. According to the findings, capital adequacy, liquidity management, GDP, and SACCO union membership and competition from banks positively affect SACCO financial performance, whereas asset quality, management efficiency, inflation rate, and computation from MFI negatively affect SACCO’s financial performance. The study recommended SACCO’s management and officials take good care of asset quality, balance their capital structure, improve product and service quality, reorganize the SACCO union in an appropriate manner, and merge (amalgamate) SACCOs under a well-organized umbrella to strengthen and enhance their capacity.



capital adequacy, liquidity management, management efficiency