Effects of Managerial Competences on Financial Performance of Savings and Credit Cooperatives in South -Western Uganda: A Case of Selected Saccos in Bushenyi-Ishaka Municipality
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Date
2023-05
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Kampala International University; Faculty of Business and Management
Abstract
This study sought to establish the effects of managerial competences on the financial performance of SACCOs in Bushenyi-Ishaka Municipality. The study was induced by the managerial incompetence’s experienced in the Sacco leading to low performance. This study thus aimed at enhancing the understanding of the impact of managerial competences on financial performance of Sacco’s. Due to the significant adaptability of the locals, the savings and credit cooperatives (SACCO) industry is currently growing swiftly throughout east Africa. Micro Finance Support Centre (MSC) claims that SACCO performance in Uganda has been below average. The research was guided by the following objectives: To establish the correlation between technical skills on financial performance of SACCO’s in Bushenyi-Ishaka Municipality, to determine the relationship between conceptual skills on financial performance of SACCO’s in Bushenyi-Ishaka Municipality and to investigate the relationship between Interpersonal skills on financial performance of SACCO’s in Bushenyi-Ishaka Municipality. Data was collected using Self-administered questionnaires. The Population of the study was 100 respondents and the Sample size was 80. The correlation research design was used in this study. Findings indicated a positive significant correlation between technical skills on financial performance of SACCOs in Bushenyi- Ishaka Municipality (P=0.000, P< 0.05), the study also revealed a positive significant relationship between conceptual skills on financial performance of SACCOs in Bushenyi-Ishaka municipality (P=0.000, P<0.05), the study further revealed that there was no significant relationship between interpersonal skills on financial performance of SACCOs in Bushenyi Ishaka-municipality ( P=0.000, P=0.121 or P>.051). According to an adjusted R2 value of (.625), managerial abilities explained 62.5% of variances in financial performance. According to this study, the conclusion was the performance of the financial sector is significantly influenced by technical and conceptual managerial skills. Therefore, the study recommended that the financial performance of the SACCOs in the Bushenyi-Ishaka municipality may be improved by holding seminars and workshops focused at enhancing technical, conceptual and interpersonal skills in order to achieve maximum Sacco’s financial performance.