Economics (FSS)

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Browsing Economics (FSS) by Author "Ephraim, Charles"

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    Assessment of factors that affect financial sustainability of rural village community bank (VICOBA): A case of Nyamagana district
    (Mzumbe University, 2018) Ephraim, Charles
    The study was geared to assess the financial sustainability of rural village community banks in Nyamagana District. Specifically, the study intended in finding out the factors that affect the financial sustainability of rural village community bank and to find the relationship between these factors and the financial sustainability of VICOBA. In order to answer the mentioned objectives of the study, a researcher used cross-sectional study design as the data were collected at a single point in time. The study used 100 respondents who are members of VICOBA. Not less, the data were used were the primary data that were collected from the field. Moreover, the data were analysed using descriptive and inferential statistics. In descriptive statistics, frequency, percentage, mean and standard deviation were used, whereas in inferential statistics a binary logistic regression model that used the maximum likelihood methods was employed in estimating the variables. In case of descriptive statistics, the findings revealed that the compelling factors that affect the financial sustainability of VICOBA in the study area included leadership and accountability, entrepreneurship skills of the members, education level of the members, member’s income generating activities, amount of shares contributed by the members, amount of loan provided to members and security of the group fund. However other factors that were mentioned by the respondents included inadequate capital, income poverty, cost of borrowing, and poor commitment of the members. On the other hand, in the inferential statistics, the results showed that leadership and accountability, entrepreneurship skills of the members, education level, income generating activities, and security of group fund were found to be statistically significance in its coefficients as they are having positive sign. But, amount of shares by members and loan provided to members are found to be statistically insignificance in its coefficients as they are having negative sign. In addition, the study further found that leadership skills and accountability, entrepreneurship skills income generating activities, and amount of loan provided to members are statistically significance when judged by its probability. On the other hand, education level of the respondents, amount of shares by members and security of loan fund were found to be statistically insignificance when judged in its probability. The results also found that leadership and accountability, entrepreneurship skills of members, income generating activities and loan provided to members are statistically significance when tested using its standard errors. However, education level of members, amount of shares by members and security of group fund were found to be statistically insignificance when arbitrated by standard error.In this, the study conclude that village community bank are considered to be crucial for the members within the group as it provides loans to members that help them to invest in income generating activities, entrepreneurship skills, encourage savings through amount of shares contributed by members and training particularly in business development. Therefore, the study recommend that entrepreneurship skills to members should be provided frequently in order to equip the members with adequate skills of entrepreneurship to enable them in identifying the projects that generate income that could be used in repaying back the loan and contribute members share