The Effect of Village Savings and Loan Association Services on Socioeconomic Wellbeing of Members in Mitooma Town Council, Mitooma District

Abstract

The study focused on examining the effect of village savings and loan association services on the socioeconomic wellbeing of members in Mitooma town council, Mitooma district. Specifically, to explore the effect of financial training on socioeconomic wellbeing of members, to examine the impact of credit extension on socioeconomic wellbeing of members and to examine the effect of saving services on socioeconomic wellbeing of members in Mitooma town council, Mitooma district. A cross-sectional design was employed using both quantitative and qualitative approaches to allow triangulation. Both simple random sampling and purposive sampling techniques were applied to select the 241 respondents. Data collection methods such as questionnaire surveys and interview methods. Quantitative data was analysed with descriptive statistics, Pearson correlation coefficient and linear regression, while qualitative data was analysed using thematic analysis. The study found that financial training had a positive and significant contribution towards socioeconomic wellbeing since p-value was 0.004, which was less than 0.05 and r=.952. The study also shows that results show that credit extension had a positive significant contribution to socioeconomic wellbeing since the p-value of 0.647 is greater than 0.05; Pearson correlation coefficient (r=.647). Lastly, the study concluded that saving services had a positive significant contribution to socioeconomic wellbeing since the p-value of 0.0000 is less than 0.05 and the Pearson correlation coefficient (r=.546). The study concluded that financial training had a positive significant contribution to socioeconomic wellbeing. The Pearson correlation coefficient indicated that there is a strong positive significant contribution of financial training to social wellbeing. The study also concluded that credit extension had a positive significant contribution to socioeconomic wellbeing. Furthermore, the study concluded that saving services had a positive significant contribution to socioeconomic wellbeing. The study recommended that VSLAs should offer training on starting and managing small businesses, including business planning, marketing, and financial management. The study also recommends that VSLAs should establish clear and transparent credit terms, including interest rates, repayment schedules, and consequences of default. Ensure that terms are fair and manageable within members' financial capacities. Lastly, the study recommends that VSLA should educate members on the importance of saving regularly and setting financial goals.