SACCO SERVICES AND SOCIO-ECONOMIC DEVELOPMENT IN

ADJUMANI TOWN

BY
ISAAC DRICI TABAN
21/3/309/D/768

A RESEARCH PROPOSAL SUBMITTED TO THE FACULTY OF BUSINESS

ADMINISTRATION AND MANAGEMENT IN PARTIAL FULFILLMENT OF
THE REQUIREMENTS FOR THE AWARD OF BACHELORS
DEGREE IN ECONOMICS (B.ECON) OF
NDEJJE UNIVERSITY

NOVEMBER, 2022

1|Page
DECLARATION
I, ISAAC DRICI Taban hereby declare that this is my original work, and to the best of
my knowledge, it has never been submitted by any other person for any academic
award in any other institution of higher learning.

Signature:……………………….

ISAAC DRICI TABAN

Date:…………………………

APPROVAL
I hereby certify that this research proposal was compiled under my supervision, and
is herein submitted for examination with my approval to the Business administration
and management of Ndejje University.
..~—

Signature:

Mr.

2|Page
 DEDICATION
This research report is dedicated to my beloved mum Regina kaluma, brothers and
sisters, taban john, Sadie Sophia and Cunyus betty for the role they have played
towards my education. Thank you.

May the Almighty God bless you abundantly.

III

3|Page
ACKNOWLEDGEMENT

My gratitude goes to my beloved father TABAN IBRAHIM, brothers and sisters

NANCY and Christine, for the role they have played towards my education. Thank
you.
I sincerely extend my appreciation to my supervisors Mrs. ANNABELLE for guiding
and encouraging me throughout the completion of this research.
Lastly, I wish to extend my sincere gratitude to my friends Taban john for kind
support.

4|Page
 TABLE OF CONTENTS
DECLARATION……………………………………………………………i
APPROVAL………………………………………………………………...ii
DEDICATION……………………………………………………………...iii
ACKNOWLEDGEMENT………………………………………….............iv
TABLE OF CONTENTS…………………………………………………..v
LIST OF TABLES………………………………………………………….vi
LIST OF ACRONYMS…………………………………………………….vii
ABSTRACT………………………………………………………………..viii
SECTION ONE……………………………………………………………..1
INTRRODUCTION………………………………………………………...7
1.1 Background of the study………………………………………………..7
1.2 Statement of the problem……………………………………………….8.
1.3 General objective……………………………………………………….8
1.4 Specific objectives of the study………………………………………...8
1.5 Research questions……………………………………………………..8
1.6 Scope and area of the study…………………………………………….9
1.6.1 Geographical scope…………………………………………………9.
1.6.2 Content scope………………………………………………………..9
1.6.3 Time scope………………………………………………………….9.
1.7 The significance of the study…………………………………………10
1.8 Definition if the key terms……………………………………………10
1.9 Conceptual frame work………………………………………………..11
SECTION TWO.......................................................................................11
LITERATURE REVIEW
2.0 Introduction ………………………………………………………….11
2.1 Theoretical review……………………………………………………11.
2.2 Actual literature review………………………………………………12
2.3 Summary of the literature review…………………………………….17
SECTION THRE………………………………………………………18
5|Page
METHODOLOGY…………………………………………………….18.
3.0 introductions…………………………………………………………18
3.1 research design……………………………………………………….18
3.2.0 Study population……………………………………………………19
3.2.1 Sample population/ size…………………………………………….19
3.2.2 Population and sample size table……………………………………20
3.3 Data sources…………………………………………………………..21
3.3.1 Primary data source…………………………………………………21
3.3.2 Secondary data source………………………………………………22
3.4 Data collection methods………………………………………………22
3.5 Data collection instrument ……………………………………………23
3.5.1 Questionnaire………………………………………………………..23
3.5.2 Interview guide……………………………………………………..23
3.6 Sampling procedure………………………………………. ……….23
3.7 Research instrument …………………………………………………23
3.8 Data quality and management…………………………….. ………24
3.8.1 Reliability…………………………………………………………24
3.8.2 Validity…………………………………………………………….23
3.9 Measurement variables…………………………………………….24
3.10 Data processing……………………………………………… ……24
3.11 Data analysis and procedures………………………………………24
3.11.1 Before data collection……………………………. ………….34
3.11.2 During data collection………………………………….. ……23
3.11.3 After data collection………………………………………….24
3.12 Data analysis……………………………………………………. 24
3.13 Anticipated limitations of the study…………………………….24

6|Page
3.14 Ethical considerations……………………………………………25

1.0. INTRODUCTION
The phase represents; the introduction, the background of the study, statement
of the problem or problem statement, purpose of study, research questions,
significance of the study and the conceptional framework.
1.1. Background to the study
The idea of SACCOs originated in Germany in 1849 by the poor people who
wanted to fight exploitation by money lenders (AUST, 2003). The SACCO
emerged out of the credit system of the old cooperatives. They began as
ROSCAs in 1920 and they were common in cash crop producing areas.
In 1967 a committee was formed to promote the development of savings and
credit cooperation in the country Germany, leading to the formation of
SACCOs.
The main objective behind setting up SACCOs was to combat poverty by
enabling the poor to train how to utilise limited resources. A SACCO is a self-
help, unique member-driven and democratic cooperative.
According to IOA statements concerning identity identifies that cooperative is
an independent association of members. Those member units and volunteers to
operate directly into their economic culture and have mutual goals that ensure
every member grow financially.
According to ICA in 1995, congress reformed 7 rules of cooperatives of which
voluntary and unfastened rank, membership management and others like
education planning and information,
In the history of Africa SACCOs begin in Ghana. The idea was brought in 1955
by Roman Catholic Church in Jirapa a town in Ghana. In the late 1950s father
John McNulty went to Ireland and learned ideas of saving for retirement funds
and cooperative social orders. In 1968 the saving and cooperative put up credit
partnership.

7|Page
As of now the biggest business sectors in Africa for Sacco is Kenya (4183220),
Senegal (2231117) and Ivory Coast (705712).
In Uganda, the Sacco was formed in Kampala in 2007, to be operated by the
members of the Uganda police forces. For the benefits of the members of the
then UPDF and the families. This concept was introduced in the police units
within the country. Sacco in Uganda are owned, governed and managed by the
members with the same bonds and legal bodies registered under the cooperative
society act. The Sacco is the institutions that involves in the business activities
for the purposes of making profits to grow, services and becoming sustainable.
As of 2012 report, the cooperatives Sacco of Uganda are growing outward, the
agricultural marketing, diary, transport, housing, fishing, multipurpose and
others respectively. However, Adjumani registered number of Sacco’s and
Adjumani is on top six districts with the largest members of Sacco. It has Sacco
namely; aulogo Sacco, Adjumani town council Sacco, pakelle Sacco, etc. for
onward lending to village saving groups. The government through MSC
extended credit facilities ugx 1.07 billion. The major Sacco extended credit
facilities worth 112.3 million to 21 village saving groups in 2016.
Therefore, it’s contrary to the history of the background, the researcher wants to
depth more on the influence of Sacco services on the economic development of
Adjumani district or the economic growth and poverty eradication.
1.2. Statement of the problem
Although it was seen recent years the provisions of services by the Sacco such
as loans extension, saving culture and education progress put by the credit and
cooperatives societies (Sacco’s) in Adjumani district, the economic
development is not compelling or convincing .vision fund organisation suggest
or advice Adjumani town council Sacco to rather encourage saving culture for
the growth in the district. This will enable the rural people (poor) to access the
loans services and the wealth growth; ideally the saving culture will bring in
more people to join the cooperative Sacco since the majority of this Sacco are
for the village people. if Adjumani Sacco do not exercise saving culture in the
cooperative societies , more poverty and low rate of economic growth will be
experienced .therefore, this proposal is to determine the influence of Sacco
services on the poverty reduction and socio-economic development in adropi
sub county Adjumani.
1.3. General objective or purpose of the study

8|Page
The purpose of the study is to determine or examine the influence of the
cooperative society’s services on the socio-economic development of adropi sub
county, lajopi parish, Adjumani district.
1.4. Specific objectives of the study.
The study will be guided by the following objectives;
To examine the relationships between the cooperative institutions services and
the industrial sector development.
To examine the distribution of crops by the Sacco to small scale formers in the
contribution to the development of agriculture.
To examine how good saving culture affects small business.
To determine the roles of Sacco groups on socio-economic transformation.
1.5. Research Questions
i) What are the relationships between industrial sector and the
cooperative Sacco and their services?
ii) What is the contribution of Sacco services to the small scale business /
village farmers?
iii) How the saving culture does affect development?

1.6. Scope and area of the study (geographical, time and content scope)
The study includes the time scope, geographical scope and the content scope.
1.6.1 Geographical scope.
The study will be carried out from lajopi village, lajopi parish, adropi Sub
County, and Adjumani district, northwest part of Uganda bordered by districts
of moyo, obongi, amoro and south Sudan.
1.6.2 Conceptual scope;
The study will be conducted on the topic ‘’ the influence of the cooperative
society (Sacco) services on the socio-economic development ‘’ in lajopi sub
county Adjumani district due to the high levels of poverty in midst the existence
of the cooperatives societies which is believes to extent services and action
against poverty eradication.
1.6.3 Time scope.

9|Page
The study will be carried out from 2022 to 2024 to basically look at the
influence of these financial institutions (Sacco) on poverty reduction such that a
perfect project will be established for the cooperatives and socio-economic
development.
1.7. The significance of the study.
The study will be very important to different groups of people in the globe,
namely; the cooperative society groups, students, researchers and the
government.
i) To the cooperative societies; the Sacco will need the study to identify
their weaknesses and find out the areas on which they should improve
their services.
ii) To the students; students will come to understand the importance of
Sacco societies and how they influence economic growth and
development through their services.
iii) To the researchers; the study widens the research knowledge on the
activities hold out by the cooperatives societies Sacco in Uganda.

1.9. Conceptual frame work

This part indicates the independent variables ( come up with distinct element
/types that explains this variables below it helps to construct proper objectives
in the relation to the dependent variables ) the dependent variables /9cause /
affect the relationship.

Independent variable
Influence of SACCO services Dependent variable
Advisory services Socio- economic development
Educational services Standards of living
Loan disbursement Infrastructural development
Output Sizes
Revenue sizes

Intervening variable
10 | P a g e Government policies
Educational reforms
Security
SECTION TWO:
LITERATURE REVIEW
INTRODUCTION
In this chapter, the literature review mainly contains the theoretical framework
for the study and develops the topic, specific research programmes, questions
and design elements as below .A literature review of what has been published
on a topic by well-known researchers and students.
A SACCO (saving and credit cooperative) is a financial institution under the
cooperative form. It is a legal entity, in which individuals save their money and
can get loans to invest in various other income generating activities. The basic
structure of SACCOs and credit unions is what differentiates them from banks
for they are user-owned financial intermediaries. Members typically have a
“common bond” based on geographic area, employer, community, industry or
other affiliation (MINICOFIN, 2007). Again, Kimberly, Zeuli, and Robert
(1980) and United States Department of Agriculture (USDA) in 1987 add that,
“A Cooperative is a user-owned, user-controlled business that distributes
benefits in the basis of use.” SACCOs are user-owned financial institutions that
offer both savings and credit services to their members.
A SACCO (saving and credit cooperative) is a financial institution under the
cooperative form. It is a legal entity, in which individuals save their money and
can get loans to invest in various other income generating activities. The basic
structure of SACCOs and credit unions is what differentiates them from banks
for they are user-owned financial intermediaries. Members typically have a
“common bond” based on geographic area, employer, community, industry or
other affiliation (MINICOFIN, 2007). Again, Kimberly, Zeuli, and Robert
(1980) and United States Department of Agriculture (USDA) in 1987 add that,
“A Cooperative is a user-owned, user-controlled business that distributes
benefits in the basis of use.” SACCOs are user-owned financial institutions that
offer both savings and credit services to their members.

11 | P a g e
Getachew (2006) argued that, in SACCO Society once overhead and other
expenses are paid, reserve for cushion against any loss, and for expansion of
services set aside, the remaining income from loans is returned back to
members in the form of dividend on savings, share or both. The difference
between a SACCO and other forms of co-operatives is that the SACCO can
accept deposits from its members as savings and also issue out loans to
qualifying members of the SACCO. Furthermore, SACCOs in Africa are
intended to offer alternative development approaches directed towards saving
and credit cooperatives’ literature review
A great deal of attention and funding has been directed toward microfinance
over the past few decades. Scholar interests in microfinance lagged behind the
development of microfinance industry. The development of MFI is the pre-
conditions for them to complete their important goals. However, the factors
determining the development of microfinance sectors in are not clearly known
because development can be measured in different ways basing on saving and
credit cooperatives’ specific characteristics and their objectives.
According to Nguyen Kim Anh et al, (2014); Nghiem Hong Son (2006), Micro-
finance institutions are considered developed if they contribute to both
economic development and poverty reduction, that made the main difference
between MFIs and commercial banks. While commercial banks try to achieve
sustainability before expanding access even when they are still young, saving
and credit institutions focus on their first goals of depth and width access right
from its establishment and then their operation, financial and institutional
sustainability.
Again, studies conducted on saving and credit cooperatives have shown that
countries of the world with high membership include the United States (87
million), India (20 million), Canada (11 million), and South Korea (4.7 million)
and Japan (3.6 million). By the end of 2006, there were 46,377 credit unions in
97 countries around the world, which collectively served 172 million retail
members with over US$1.1 trillion in terms of assets. Today, a good number of
credit unions existing with a view to furthering not only sustainable community
development at local but also at international level as well. Saving and credit
cooperatives are known in different countries by different names, for example,
in a number of countries in Africa, they are referred as savings and credit
cooperative organizations (SACCOs) with an emphasis on savings before credit.

12 | P a g e
The nature of financial services that a credit cooperative improving the
desirable situations in low-income countries. They are community membership
based-financial institutions that are formed and owned by their members with a
view to promoting and enhancing their members’ economic interests, hence,
contributing favorably to the Human Integrated Development. The nature of
financial services that a credit cooperative provides depends on, to some extent,
its size. The Vancouver City Savings Credit Union in Canada, for example, by
the end of 2002 had more than 340,000 members and $10.5 billion assets, had
forty-two branches and provided to its member
The nature of financial services that a credit cooperative improving the
desirable situations in low-income countries. They are community membership
based-financial institutions that are formed and owned by their members with a
view to promoting and enhancing their members’ economic interests, hence,
contributing favorably to the Human Integrated Development. The nature of
financial services that a credit cooperative provides depends on, to some extent,
its size. The Vancouver City Savings Credit Union in Canada, for example, by
the end of 2002 had more than 340,000 members and $10.5 billion assets, had
forty-two branches and provided to its members with every kind of financial
service that was available. Credit unions have not only played a distinct and
significant role in providing financial services to Canadians but also in the small
business sector and are, the second largest lenders to small businesses in the
Canadian economy (World Bank, 2008).
Development Todaro, M (1985:85) defines development “as a
multidimensional process involving major changes in social structures, popular
attitudes, and national institutions, as well as the acceleration of economic
growth, the reduction of inequality, and the eradication of absolute poverty.
Thus, Todaro believes there are three core values of development and these core
values are life-sustenance, self-esteem and freedom to choose.
Therefore, development, in its essence, must represent the whole gamut of
change by which an entire social system, tuned to the diverse basic needs and
desires of individuals and social groups within that system, moves away from a
condition of life widely perceived as unsatisfactory and toward a situation or
condition of life regarded as materially and spiritually better.
Within that system, moves away from a condition of life widely perceived as
unsatisfactory and toward a situation or condition of life regarded as materially
and spiritually better.
13 | P a g e
Socio-economic development is a process that seeks to identify both the social
and the economic needs within a community, and seek to create strategies that
will address those needs in ways that are practical and in the best interests of the
community over the long run. The general idea is to find ways to improve the
standard of living within the area while also making sure the local economy is
healthy and capable of sustaining the population present in the area. Socio-
economic development occurs in neighborhoods in metropolitan areas, sections
of smaller cities and towns, and even in rural settings. (Sullivan et al., 2003)
Social development is a process that results in the transformation of social
structures to improve the capacity of a society in order to fulfill its objectives
(World Bank, 2009). UNRISD adopts a broad definition of social development
one that is concerned with Processes of change that lead to improvements in
human well-being, social relations and Social institutions and that are equitable,
sustainable, and compatible with principles of democratic governance and social
justice (UNRISD, 2011). In general social development analyzes how societies
progress, stagnate, or regress because of their local or regional economy, or the
global economy.
THE ROLE OF COOPERATIVE SOCIETIES IN ECONOMIC DEVELOPMENT

For over 160 years now, cooperatives societies have been an effective way for
people to exert control over their economic livelihoods. Dogarawa (2005)
provided a unique tool for achieving one or more economic goals in an
increasingly competitive global economy. As governments around the world cut
services and withdraw from regulating markets, cooperatives are being
considered useful mechanisms to manage risk for members in Agricultural or
other similar cooperatives, to help salary earners save for the future through a
soft-felt monthly contribution that is deducted from source, own what might be
difficult for individuals to own by their efforts, strengthen the communities in
which they operate through job provision and payment of local taxes
(Dogarawa, 2005). He added that, today, in an era when many people feel
powerless to change their lives, cooperatives represent a strong, vibrant, and
viable economic alternative (Dogarawa, 2005). The author furthermore posited
that cooperatives are formed to meet peoples' mutual needs (Dogarawa, 2005).
They are based on the powerful idea that together, a group of people can
achieve goals that none of them could achieve alone. This is evidence which
indicated that cooperatives empowering people to achieve their targeted goals.

14 | P a g e
According to (RCA, 2018), the main strength of cooperatives is that they pool
the resources of their members and as a consequence they allow their members
to reduce costs, face the various challenges of the enterprise and increase their
individual visibility and their capacity to negotiate prices and market their
products: members, individually, would have greater difficulties running their
enterprise. Cooperatives are enterprises that produce goods and services like
any other enterprise. They differ from other enterprises in that their owners,
known as “members”, organize their activities to serve their needs first, before
seeking to maximize profits or increase their share in the market. Cooperatives
are interested above all in enhancing their members’ capacity to produce or to
consume.
(RCA, 2018) adds that, many cooperatives may produce goods or services for
sale in the market, and may make significant profits, while others may simply
provide a service to their members. Some cooperatives may distribute the
profits from the sale of products among the members but most allocate any
benefits to the development of the cooperative, limiting the compensation to
members in proportion to their transactions with the cooperative. That is why in
many countries, cooperatives are considered as non-profit organizations. As a
rule, a cooperative is owned by many members and each member has equal
voting rights, independently of the capital they invest. This is known as the “one
member one vote” principle.
Moreover, MacArthur and Stuard (1993), have pointed out the major
developmental role played by cooperatives in the modern world as mentioned
below3.
To close this section, the researcher asked himself, how do SACCOs work?
Several microfinance institutions and SACCOs require a minimum monthly
contribution from members. This helps them to instill a saving discipline. The
money saved by members is not accessible to the member unless they choose to
withdraw from the SACCO or take out a loan. This protects the savings and
prevents impulsive spending of cash saved.
Mobilization of Savings and Growth of Small Scale Enterprises
Gardiol defines savings as the action of putting aside a part of current income,
in order to
Consume or invest it later on. The money saved can be kept at home, deposited
in a savings Account or invested in different types of capital. Savings is a

15 | P a g e
critical service for entrepreneurs who want to secure and convenient deposit
services that allow for small transactions and offer Easy access to their funds
(Gardiol, 2014, p.3).
A study by Kurgat (2017) of the Kenya Women Finance Trust shows that
clients preferred credit and savings services in the SACCO with their reason for
saving being to expand their business (62%), education for their children (40%)
and for emergencies (26%) additionally 71% of the clients viewed compulsory
savings as an opportunity to save. In this study, it is concluded that savings
mobilization is important for the improved financial performance and outreach
especially in the rural areas where access to financial services is challenging.
Akasamire (2010) wrote that firm growth opportunities has a correlation with
liquidity levels, enterprises with more investment opportunities keep higher
liquidity levels in order not to limit or cancel their profitable investments
projects. It can be argued that these kind of firms would require a reliable
savings institution to enable them maximize on their growth opportunities,
SACCO should establish effective savings programs by transforming their
capabilities to support small scale saving services. However it should also be
noted according to Gray, Saunders and Goregaokar (2.Ol2,p.8) that too much
liquidity is harmful as small scale enterprises might not spend it wisely effective
training on cash flow management is also important.
A study in Uganda by Akisimire (2010) found that commercial bank savings
products to small scale enterprises have encountered stiff competition at the
market place with the entry of new SACCO and downscaling of old banks while
competition may be beneficial to the small scale enterprises because of higher
interest rates on savings, it could affect the SACCO by reducing the revenue
available in order to lend. Similarly Yeboah (2010) contends that little progress
has been made to establish SACCO as full-fledged financial intermediaries and
SACCO offer only credit, and saving mobilization remains the forgotten half of
SACCO. SACCO can gain outreach to small scale enterprises by providing
appropriate savings products. SACCO should conduct research that ensures that
the pricing of their savings products will ensure financial sustainability.
22
This example is a clear evidence of success of saving with SACCO, however
Bass and Henderson (2011) further argue that this success is solely not
dependent on the design of the savings product but also on pricing and
marketing. SACCO must also have a sound management structure and an
appropriate management information system that safeguards client deposits.

16 | P a g e
This argument may be important for the SACCO to consider but the growth of
small scale enterprises needs to be taken into consideration also to ensure
benefits to small scale enterprises clients, constant growth of small scale
enterprises can improve availability of micro financial funds and lower their
costs.
Empirical Review
Kushoka (2013) adapted a research to examine the contribution of SACCO on
enterprise development in Tanzania. The article is aimed at moving poor small
scale entrepreneurs and or would be entrepreneurs from low growth enterprises
to high growth enterprises using SACCO.
The study employed both descriptive and explanatory approached to seek
answers to the research questions. The study reveals that there is an increase in
the number of employees and amount of working capital of entrepreneurs often
using the services of SACCO are key players in entrepreneurship development.
It is recommended that SACCO should package their services together
(financial and non-financial) in order to positively boost growth of small scale
enterprises.
Sakthi (2011) conducted a research study about the role of SACCO in the
development of entrepreneurs in Africa. The study is focused on entrepreneurs
who want to run a business and yet cannot afford a piece of equipment and
merchandise. The research whereby providing equipment or merchandise to
enable the project to run a self-funding profitable project

17 | P a g e
SECTIONTHR
METHODOLOGY
3.0 Introduction
This chapter focus on the methodology of this study and underline deeply eight
section of the study methodology as presented; - Research Design, second
talked about research Population, third section focus on sample size, fourth
section concentrate on sample procedure, fifth section talks about data research
instrument, the sixth section focus on reliability and validity others looks at
ethical consideration and limitations.

3.1. Research Design

The study shall employ case study design. This is because the data shall be
collect from Adropi Sub County. Both Qualitative and quantitative methods of
data collection shall be used. Qualitative method involves collection of data
from sample of people and staff of Adjumani town council cooperative society
Sacco in adropi Sub County in Adjumani district. This design shall be cheap,
less time consuming and easy data collection and analysis. Both qualitative and
quantitative data collected shall be used during the data collection.

3.2.0. Study population

A research population is also known as a well-defined collection of individuals

or objects known to have similar characteristics Yin, R. K. (2009). All
individuals or objects within a certain population usually have a common,
binding characteristic or trait. In this research it will include members from
aulogo cooperative Sacco group, house hold, chairperson central division as
well as government officials such as the district commercial officer, central
division, Adjumani district. It is from this population that this research got its
sample and primary data which will make the target population of respondents
which covers both men and women.

18 | P a g e
The target population of this study will consist of 80 respondents having small

scale enterprises, cooperative Sacco members and those working in cooperative

society institutions. 50 respondents shall be from the small enterprises and

Sacco active members of aulogo and Adjumani town council Sacco while the 30

respondents shall be from the cooperative society institutions

3.2.2 Sample size/ population

Slovene’s formula will be used to compute the sample size. This formula will

be employed so as to sample fairly a large size as representation of the total

population such that the research findings obtained can be considered valid. The

details on the determination of sample size using

Slovene’s formula is shown below;

By using Slovene’s formula (=N

1+ (e) 2

n= sample size

N= population size

e =level of significance

n=80

1+0.2

n=80/1. 2=66.66=67

Sample size for small enterprises respondents

19 | P a g e
n=50 X 80=2= 42

80

Sample size for cooperative Sacco institutions

n=30x67=25
80

3.2.3. Population and sample size table.

Categories Population Sample size
Small scale enterprises 50 42
cooperative institutions 30 25
Total 80 67

3.3 Data source

This includes primary and secondary data. Show the description of the two, how
researcher plans to use them. The study shall be conducted using the raw data
that will be collected from the field. The data will be collected using instrument
of questionnaire. This enables the collection of data appropriate for the study to
depict the situation prevailing at a time in the study.
3.3.1 Primary data sources
Primary data refers to data collected by a researcher to address the specific
needs of his/her study. It involves using either quantitative and qualitative
methods or a combination of both to gather first-hand information on a subject
of study (Dawson, 2002, Ahiadeke, 2008). In this study, primary data is
collected from aulogo cooperative Sacco in Adjumani district. Here, data is
gathered using a semi-structured questionnaire consisting of both open-ended
and closed ended questions. An interview guide is to be used to collect data
from the key Informants.
3.3.2Secondary data sources
Although the research shall be gathered using primary data source, secondary
data is needed for deeper understanding topic. Secondary data, according to
Ahiadeke (2008), refers to data which has been collected by other people for a
different purpose but which have significance for the present study. It involved
using information from studies others have conducted on the subject of study
(Dawson, 2002). Secondary data shall be collected from the following sources;

20 | P a g e
governmental statistical sources (census data, and other national data), book,
previous research studies Private sector, journals, internet search, records of
staff and customers of aulogo Sacco in adropi sub county Adjumani district
3.4 Data collection methods
This includes the specific techniques to be used in the collection of
data.methods could include face to face interviewing , key information
interview , focus group discussion, questionnaire, document review, etc.
3.5 Data collection instruments
3.5.1 Questionnaires
Questionnaires will be used to determine: the influence of cooperative society
(Sacco) services on socio-economic development in lajopi sub county Adjumani
District. The questionnaires will be self- administered and closed ended so as to
save time and enable respondents to give relevant choice since different options
will be given. This method of data collection is preferred for this study because
it gives freedom to respondents to give their truthful opinions since there will be
no one to challenge their answers as it is in the case of interviews. This will give
a complete confidence to respondents to effectively answer questions asked
without feeling shy or being scared. The scoring system of this instrument will
be based on the five scales or Likert type scale of rating involving: 1=very low,
2= low, 3= moderate, 4= high, 5= very high.
3.5.2 Interview guide
With interview guides the researcher gathers information through verbal
interaction with the Key informants. Carrying out verbal interaction with the
respondents enhance and create conversation between the researcher and the
respondent. This method further creates an explanatory atmosphere to obtain
information

3.6 Sampling procedures

This study will use a technical of stratified random sampling .The respondents
of this study are divided into two categories 5o work in small scale enterprises,
30 works in cooperative society Sacco institutions in central division, adropi sub
county Adjumani district.
3.7 Research Instruments

21 | P a g e
 This study will use questionnaires, guided interviews, guided observation, and
record sheets .This is because of the nature of data to be collected, the time
available, as well as by the objectives of the study. The overall aim of this study
is to evaluate the relationship between cooperative services and growth of
socio-economic development in Adjumani district. The researcher will be
concerned with views, option, perception and feelings from the environment.
Such information will be corrected through the questionnaires, and interviews,
and because the study will be conversed with variable that cannot be directly
observed.

The sample size is also quite large, and given the time constraints and target
population is literate and unlikely to have difficulties in responding to
questionnaire items, questionnaire is ideal tool for collecting data.
3.8 Data quality control and management
Here the researcher talks the validity and reliability of the data for suitability
and adequacy.
3.8.1 Reliability To ensure the content reliability, the research will use either
the test -retest method or corn batch alpha, method for the two tests, results will
be analyzed using person’s correlation coefficient (PLCC) and the T-test for
PLCC if the significance will be equal or inferior to 0.05 then instrument will be
reliable for T test, if significance will be equal or greater than 0.05, the
instrument will be reliable.
3.8.2 Validity. To insure the validity of the questionnaire and interview guide;
some two experts in research will be involved. In this regard, after constructing
the questionnaires and interview guide, they will be submitted to two experts to
ensure their validity through their duties ‘basis. This will be based on alpha
coefficient value of 0.7 and more. Thus, after the expert judgments, the
compilation of the responses from raters will be computed to determine the
content validity index (CVI). If the coefficient computed is from 0.7 and above,
the instruments shall be considered to be valid but if it is less, the instruments
shall be considered to be invalid so new ones shall be made.
3.9 Measurement of Variable
For the researcher to measure the independent and dependent variables, a 5
scale Likert Scale shall be used as demonstrated in the table below;

22 | P a g e
 No Mean Range Interpretation
1 1.0- 1.5 Strongly agree
2 1.5- 2.9 Agree
3 2.9- 3.5 Neural
4 3.5- 4.9 Disagree
5 4.5- 5.0 Strongly disagree

3.11 Data analysis and procedures

3.11.1Before Data Collection

In this stage the researcher obtained a reference letter from the College of
Economics and Management, NdejjeUniversity, which he shall present to the
authorities in the Field. He makes preparations based on the condition in the
field of study. The researcher makes an assessment of the weather conditions,
physical locations and linguistic characteristics in the study area so as to
determine the best methods to use as well as preparing questionnaires and
interview guide.
3.11.2 during Data Collection
At this stage the researcher makes appointment schedules with all respondents
so as to enable him to meet all respondents at the scheduled time. This helped
the researcher to keep time and ensure the convenience of respondents.
3.11.3 after Data Collection
At this stage, the researcher organizes the data obtained from the field
systematically in preparation, analysis and interpretation

3.12 Data Analysis

Regression analysis was used to analyse data on the three variables. This aimed
at determining the effect between the variables. The frequency and percentage
distribution were used to determine the demographic characteristics of the
respondents. The mean and standard deviations were applied for the extent of
commercial bank services and growth of small scale
Enterprises and the interpretation are indicated in the table below.
Mean ranges Response mode Interpretation
4.2 1-5.00 Strongly Agree Very High

23 | P a g e
3.4 1-4.20 Agree High
2.61-3.40 Not Sure Moderate
1.81-2.60 Disagree Low
1.00-1.80 Strongly Disagree Very low
Simple regression analysis shall be used to establish the effect of each
cooperative Sacco services on the growth of socio-economic development.
Multiple regression analysis shall be used to test the highest predictor variable
Sacco services where quantified from 1-5 Likert scale
Questions
The hypothesis testing was done by the linear regression model to determine
where to accept or reject the hypothesis. The decision rule is as follows:
Accept Ho If (Sig.F)> 5%
Accept Hi If (Sig.F) <5%
During this process of data analysis, the researcher will use content analysis to
data on profile of respondent .Mean and standard deviation will be used to
determine the level of performance of economic development in Adjumani
district. Items/respondents answer analysis will help to demonstrate strength and
weakness of respondents on the cooperative society services and growth of
socio- economic development in Adjumani district.
Numerical values and the interpretation will be used to interpret the response
based on the mean score, for each item question both cooperative Sacco and
infrastructural development.
3.13 Anticipated limitation of the study
The researcher shall experience the following problems or challenges during
the study.

It will be hard to find the right respondents willing to provide accurate required
information concerning their savings and progress since the study involves the
need for some vital information concerning the cooperative societies
performance.

The research will be tiresome because it will be hard to fix the researchers plans
in to the plans of respondents who shall always be busy doing their work.

24 | P a g e
3.14 Ethical considerations
The researcher will seek for authorization from potential respondents. The
researcher will ensure free will consent from participants. The names or
identifications of the respondents will be anonymous and information collected
from them treated with utmost confidentiality.
It also involved explanation to the respondents the purpose of the study.
Respondents shall be assured that the information obtained from them will be
used for academic purposes only.
The researcher makes sure that she used only those techniques for which she
was qualified by education, training and experience. Whenever in doubt, the
researcher sought clarification from the research community especially the
immediate supervisor and research colleagues.
The researcher ensures that the data shall be interpreted according to general
methodology standard and makes sure that the elements that are irrelevant to
data interpretation will be excluded from the report.
The researcher keeps all the information given to him very confidential and uses
it only for purposes indicated as the justification of the study.
The researcher tries to respect participants’ right and privacy. The findings of
the research will presented without any deviation from the outcome of the
research.
References
 Bahiigwa, G., Rigby, D., & Woodhouse, P. (2005). Right Target, Wrong
Mechanism? Agricultural Modernization and Poverty Reduction in Uganda,
World Development, 33(3), 481-496. doi:http://dx.doi.org/1 0.101
6/j.worlddev.2004.09.008
 Creswell, J. W. (2014). Research design: qualitative, quantitative, and mixed
methods approaches (4th ed. ed.). Los Angeles, Calif: SAGE. 125
 Hjern, B., & Hull, C. (1982). Implementation Research as Empirical
Constitutionalism. European Journal of Political Research, 10(2), 105-115.
doi:l0.1 11 1/j.l475-6765.1982.tb000l 1.x
 Khandker, S. R., & Koolwal, G. B. (2014). Does Institutional Finance Matter
for Agriculture: Evidence Using Panel Data from Uganda. Washington D.C:
The World Bank.

25 | P a g e