Operational Capital, Risk Management and Project Sustainability of Village Savings and Loaning Association (VSLA) in Kotido District
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Date
2023
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Makerere University Business School
Abstract
The study examined the relationship between operational capital, risk management and project sustainability of VSLA in Kotido District, to achieve this purpose, three objectives were set ( i.toestablish the relationship between operational capital and sustainability of VSLAs in Kotido District; ii.to establish the relationship between risk management and sustainability of VSLAs in Kotido district; and iii.to establish the combined effect of operational capital and risk
management on the sustainability of VSLAs in Kotido District.)
The study was a cross-sectional research design along with a quantitative research approach. A sample of 76 VSLAs participated in the study and 152 respondents who included the
Chairperson, treasurer and non-committee member. Primary data was obtained from a VSLA chairperson or treasurer and VSLA non-committee member from every selected VSLA using a structured questionnaire. The study used SPSS v. 25 to analyze data. Results were presented using frequency tables, correlation and regression analyses. The results indicate a significant and positive relationship between operational capital and project sustainability. Further the study found a significant and positive relationship between risk management and project sustainability. Also, the study found that jointly, operational capital and risk management accounted for 55% in sustainability of VSLAs projects. Of these variables, it is revealed that risk management is a better predictor of project sustainability.
This study recommends that VSLAs should invest in building the financial management capacity of their members. This would include training members on budgeting, financial planning, recordkeeping and decision making which would help optimize the use of operational capital and ensure project sustainability. Further, VSLAs, should develop a comprehensive risk management plan. They should create detailed risk management plan that identifies potential risks associated with their projects. This plan should include strategies for risk mitigation, contingency plans and regular assessments to ensure timely response to emerging risks. The plan should not be static but be periodically reviewed and updated to capture the emerging risks that could impact on the project sustainability.
Description
Research Dissertation Submitted to Makerere University Business School (Faculty of Graduate Studies and Research) in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Business Administration of Makerere University. (Plan A).
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Citation
Sarah, N. (2023) Operational Capital, Risk Management and Project Sustainability of Village Savings and Loaning Association (VSLA) in Kotido District. Unpublished Masters Dissertation Makerere University Business School. Kampala, Uganda.