The Role of Vicoba in Improving Livelihood Among Low Income Earners: a Case of Selected Wards in Arusha District Joseph J. Massa
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THE ROLE OF VICOBA IN IMPROVING LIVELIHOOD AMONG LOW INCOME EARNERS: A CASE OF SELECTED WARDS IN ARUSHA DISTRICT JOSEPH J. MASSAWE MBA Dissertation Institute of Accountancy Arusha November 2020 THE ROLE OF VICOBA IN IMPROVING LIVELIHOOD AMONG LOW INCOME EARNERS: A CASE OF SELECTED WARDS IN ARUSHA DISTRICT BY JOSEPH J. MASSAWE NOVEMBER, 2020 The work contained within this document has been submitted by the student in partial fulfillment of the requirement for the award of the Master of Business Administration CERTIFICATION I, the undersigned certify that I have read and hereby recommend for acceptance by Institute of Accountancy the research proposal entitled: Application VICOBA in Improving Livelihood Among Low Income Earners: A Case of Selected Wards in Arusha District in fulfillment of the requirements for the degree of Masters of Business Administration offered at the Institute of Accountancy Arusha. ………………………………………………. (Supervisor Signature) …………………………………………………… (Supervisor Name) Date ……………………………… i DECLARATION I, Joseph Massawe, declare that this research proposal is my own original work and that it has not been presented and will not be presented to any university for similar or any other degree award. Signature………………………………………… Date………………………………….. ii COPYRIGHT This paper should not be reproduced by any means, in full or in part, except for short extract in a fair dealing, for research or private study, critical scholarly review or discourse with an acknowledgement. No part of this dissertation may be reproduced, stored in any retrieval system, or transmitted in any form or by any means without prior written permission of the author or The Institute of Accountancy Arusha. iii DEDICATION To my Parents Mr. & Mrs. Massawe for their continuous encouragement and sacrifices made during the entire of my studies, My friend, Mercyline Lema and all brothers and sisters who were inspiration to me through their prayers also deserve credit for their contribution to the success of this study. iv ACKNOWLEDGEMENTS Let me close my eyes and genuflect down to thank my Almighty God for His un-measurement and unquantifiable blessing awarded to me so that to accomplish this work. I am allocating special sincere thanks to my parents Mr. & Mrs Massawe who assists me on financial and encouragement support on making sure that I prepare this research proposal on efficient and correct way. Without his assistance and encouragement, I do not think that I would have come this far. I would like to thank Mr. Edson, N. for the support, guidance and encouragement that he gave me throughout the project. The researcher also wishes to extend his profound gratitude to all the individuals who participated in the research process in one way or another but have not been mentioned by names or designations v ABSTRACT This study sought to examine the results of VICOBA in improving livelihood among low income earners in Arusha District. This study deployed survey research design and a quantitative research approach in data collection. Simple random sampling technique was used to reach 70 participants from whom relevant data were obtained through questionnaires. SPSS version 25 was used to process the data. The findings of this study unveiled that VICOBA provide entrepreneur skills financial literacy, Insurance, raw materials and provide business capitals to them. Findings show that VICOBA services provide better housing, food security, raise of business profiles, income, as well as improvement in education to children of the members. The study recommends that Government should ensure better education to the VICOBA members so that they can effectively and efficiently perform their activities. Also, since only a single data collection instrument was employed, future research through interviews could be undertaken to triangulate. vi LIST OF ABBREVIATIONS AND ACRONYMS CARE Cooperative for Assistance and Relief Everywhere IAA Institute of Accountancy Arusha IGAs Income Generation Activities SEDIT Social and Economic Development Initiative of Tanzania SHG Self Help Groups SPSS Statistical Package for Social Science URT United Republic of Tanzania vii TABLE OF CONTENTS CERTIFICATION ............................................................................................................................. i DECLARATION.............................................................................................................................. ii COPYRIGHT ................................................................................................................................. iii DEDICATION ................................................................................................................................ iv ACKNOWLEDGEMENTS.............................................................................................................. v ABSTRACT ................................................................................................................................... vi LIST OF ABBREVIATIONS AND ACRONYMS ......................................................................... vii TABLE OF CONTENTS ............................................................................................................. viii LIST OF FIGURES ........................................................................................................................ xi LIST OF TABLES ........................................................................................................................ xii CHAPTER ONE............................................................................................................................ 12 INTRODUCTION ............................................................................................................................ 2 1.1 Introduction ............................................................................................................................... 2 1.2 Background to the Study .......................................................................................................... 2 1.3 Statement of the Problem ........................................................................................................ 5 1.4 Research Objectives ................................................................................................................ 6 1.4.1 General objective .................................................................................................................. 6 1.4.2 Specific Objectives ................................................................................................................ 6 1.5 Research Question................................................................................................................... 7 1.6 Scope of the Study ................................................................................................................... 7 1.7 Limitation of the Study.............................................................................................................. 7 1.8 Significance of the Study ......................................................................................................... 8 1.9 Organization of the Study ........................................................................................................ 8 CHAPTER TWO ............................................................................................................................. 9 LITERATURE REVIEW ................................................................................................................. 9 viii 2.1 Introduction ............................................................................................................................... 9 2.2 Definition of the Concepts ........................................................................................................ 9 2.2.1 VICOBA ................................................................................................................................. 9 2.2.2 Livelihood............................................................................................................................... 9 2.2.3 Village .................................................................................................................................... 9 2.2.4 Community .......................................................................................................................... 10 2.2.5 Bank ..................................................................................................................................... 11 2.2.6 Community Banks ............................................................................................................... 11 2.3 Theoretical Literature Review ................................................................................................ 11 2.3.1 The Bucket Theory of Financial Management ................................................................... 11 2.2.2 Effective Market Theory ...................................................................................................... 13 2.3.3 Village Banking Model ........................................................................................................ 13 2.4 Empirical Literature Review ................................................................................................... 14 2.4.1 Services provided by VICOBA ...........................................................................................