Saving and credit cooperatives meet only less than 9% of the demand for financial services of the active poor in Ethiopia.Specifically in Gozamin district out of 160,742 populations there were 28 saving and credit cooperatives with 3313 members;it covers 2.1% from the total population.Low membership was influenced by socio-economic,demographic and institutional factors.So the aim of this study was to examine socio-economic determinants of saving and credit cooperative membership and challenges of members participation in the study area.To select the sampled kebeles purposive sampling,and simple random sampling method were employed. Besides, stratified random sampling and simple random sampling methods were employed to select 195 household heads.Data were collected from primary and secondary sources through interview schedule, focus group discussion, and key informant interview methods.The data were analyzed through probit model.The result revealed that age, participation in marketing activities, occupation, family labor force, awareness ,information and education status were significantly influence saving and credit cooperative membership. Towards saving and credit cooperative members’participation;absence of office, in adequate service provision and leadership related problems,were identified challenges.In conclusion socio-economic factors were significantly influenced households to join in saving and credit cooperatives.And members participation were affected by internal and external challenges.Therefore providing training, prepare awareness creation campaigns, use volunteers, and collaborative negociation with key partners to facilitate office site owner ship and to solve other problems were recommended points. Keywords: Challenges, Membership,Opportunities, Probit, Saving and Credit Cooperatives, Socio-economic factors