Role of credit unions to low income communitiess: The case Ubungo district council in Dar Es Salaam region
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Mzumbe University
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Dissertation Submitted in Partial Fulfillment of the Requirements for Award of
Masters of Business Administration in Corporate Management (MBA –CM of
Mzumbe University
The study aimed at examining the role of credit unions to low income communities. The study was set specifically to accomplish the following objectives; determine the strategies of credit unions in poverty alleviation within low income communities, identify methodologies used by credit unions to facilitate financial inclusion and conduct SWOT analysis of credit unions. Causal research design and descriptive research design were used. Quantitative data were collected by using questionnaire and then analyzed by using statistical package for social science (SPSS). The study was conducted at Ubungo district council in Dar es Salaam. The stratified sampling technique, simple random techniques and purposive sampling techniques were used to select 150 members of credit unions. The study revealed that Credit Union provides clients with products for savings mobilization, credit accessibility and financial advice. The study further revealed that reasons why people save with the union were because of the ease with which they access loans and also the lower interest rate that is charged on the loans. This has contributed immeasurably to improve their standard of living. The study recommends that the government should speed up the process of promulgation credit union laws. Credit unions are very important vehicle in the development of the economy and therefore should be giving the necessary support and make them operate efficiently. The impact of credit unions could increase immensely if they bridge the gap between the services they provide in relation to that of the banks and this will help to erase the negative perceptions about credit unions and position them well in the competitive environment.
The study aimed at examining the role of credit unions to low income communities. The study was set specifically to accomplish the following objectives; determine the strategies of credit unions in poverty alleviation within low income communities, identify methodologies used by credit unions to facilitate financial inclusion and conduct SWOT analysis of credit unions. Causal research design and descriptive research design were used. Quantitative data were collected by using questionnaire and then analyzed by using statistical package for social science (SPSS). The study was conducted at Ubungo district council in Dar es Salaam. The stratified sampling technique, simple random techniques and purposive sampling techniques were used to select 150 members of credit unions. The study revealed that Credit Union provides clients with products for savings mobilization, credit accessibility and financial advice. The study further revealed that reasons why people save with the union were because of the ease with which they access loans and also the lower interest rate that is charged on the loans. This has contributed immeasurably to improve their standard of living. The study recommends that the government should speed up the process of promulgation credit union laws. Credit unions are very important vehicle in the development of the economy and therefore should be giving the necessary support and make them operate efficiently. The impact of credit unions could increase immensely if they bridge the gap between the services they provide in relation to that of the banks and this will help to erase the negative perceptions about credit unions and position them well in the competitive environment.
Keywords
Role of credit unions, Low income communities, Poverty alleviation