Accounting drivers for credit and community development: a study of Gbeogo Credit Union

Abstract

Every government aims to improve the standard of living of its citizenry. Sectors such as the private and Small and Medium Enterprise (SMEs) are major players in the attainment of better economic, social and political conditions in developing countries. However, these groups have needs which are not being satisfied by the traditional banks resulting in large circulating funds in the economy. It is believed that the credit unions have serviced these groups of the market which remained outside the traditional banking scope and this has contributed immensely to the development of their communities. Data for the study was obtained from both primary and secondary sources. Stratified sampling was used in selecting the customers to be interviewed and purposive sampling was also used for selecting the staffs who were interviewed. The data was collected from one hundred and fifty-three customers (253) and six (6) staffs. The study revealed that Gbeogo Credit Union provides clients with products for savings mobilization, credit accessibility and Business 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 their standard of living since they are able to fend for the family as well as giving back to the community that they live in. The major challenge of credit unions of which Gbeogo Credit Union is no exception is the credit union law which has not yet gotten approval from the government. This has stifled their growth rate. 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.