MANAGERIAL COMPETENC1ES AND FINANCIAL PERFORMANCE OF THE SACCOS. A CASE OF SACCOS IN KOBOKO UGANDA

Abstract

This study explored how the skills and abilities of managers affect the financial success of Savings and Credit Cooperative Organizations (SACCOs). Managerial competencies include a range of essential skills, such as effective leadership, making strategic decisions, effective communication, and financial management skills. These competencies are vital for ensuring that SACCOs not only survive but also thrive in a competitive environment. Both qualitative and quantitative data was used to come up with the conclusions in this research report. The qualitative data looked at mostly how the managers apply their different skills such as effective communication skills, leadership skills, problem solving skills in the day-to-day operations of the SACCOs while the quantitative data tackled the financial performance indicators such as profitability, liquidity, return on investment and asset quality. In order to get a broad understanding on how the different managerial competencies impact the financial performance of SACCOs, data was collected from a representative sample of SACCOs such as Trinity, Midia farmers, Koboko Municipal, FAME, AMAAD and the Tax drivers Emyogga SACCO. A strong and positive relationship between the managerial competencies and financial performance was detected which means that SACCOs led by highly competent managers tend to financially perform better. By improving managerial competencies, SACCOs can enhance their financial performance and sustainability, benefiting their members and contributing to the overall stability of the financial sector