Mjatta, G.T. and Akarro, R.R.J.
This paper identifies various characteristics or traits associated with the success or failure of the emerging SACCOS in Tanzania Mainland. Mtwara, Lindi, Tabora and Kigoma regions were used as a case study. Factors motivating SACCOS’ inception; their success or failure and their characteristics are presented. Multi-stage sampling technique was employed to come up with sample for the study. It was found that, lack of access to loans for individuals was the main factor that led to the SACCOS inception. On the other hand, political influence has a negative effect on establishing strong cooperative societies/ SACCOS in the country. Moreover, rural SACCOS have shown poor performance as compared to SACCOS operating in urban areas while education level of leaders and managers has shown a positive relationship with SACCOS’ performance. The findings also concluded that lack of commitment to members (18.34 percent of the responses), lack of patience (17.58 percent), shifting to other areas (16.64 percent) and loan default (16.07 percent) were the major reasons for members’ withdrawal from SACCOS. With regards to start up capital, the results show that although shares was the main source of start up capital to most (43.68 percent) of the emerging SACCOS, their amount of shares contribution at the initial stage was between Tshs 100,000 to 1 million which is an obstacle to enable establishing strong SACCOS.