FINANCING OF CO-OPERATIVE.
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
FINANCING OF CO-OPERATIVE.
ABSTRACT
This study was conducted to investigate and expose the issue of financing cooperative societies in Enugu State, specifically in the Igbo Etiti Local Government Area. The work aims to advance the following.
Determine the obstacles impeding the financing of cooperative societies in Enugu State. To demonstrate the various ways in which cooperative organisations raise funding for their organisational tasks.
According to the findings, cooperative societies in Igbo Etiti Local Government Area have served to promote members’ economic interests and encouraged them to conserve money.
The recommendation is that the government give cash and information on cooperative education to both members and non-members.
After analysing the data, this conclusion was reached. The financing of co-operative societies should not simply come from the members’ own resources; the government should also support them.
Chapter one
3.0INTRODUCTION
1.1 Background of the Study
Cooperation is a behavioural tendency that lubricates the interaction between men and ensures the success of any cooperative human initiative or product. Its attributes include trust, confidence, and good emotion.
Cooperation society is a corporate organisation that operates on the premise of cooperation. These cooperative tendencies are known as cooperative principles.
Cooperative societies, as a type of commercial organisation, arise when people with similar interests band together to form a group that is financed and managed by them in order to achieve their objectives.
Cooperatives have been around in Nigeria for quite some time. This is unsurprising given that most communities in Nigeria, and Africa in general, had a network of associations.
These organisations have the following objectives.
– Construction of rural roads and bridges.
– Communal farming and housing construction using community power
– Local donation of funds to assist members (ISUSU).
The International Cooperative Alliance (I.C.A.) defines a cooperative as an autonomous group of people who have voluntarily come together to achieve their common economic, social, and cultural needs and ambitions through a jointly owned, democratically controlled enterprise.
Cooperatives have played an important role in the growth of Nigeria’s economy. Its efforts have been felt in areas such as establishing work opportunities for unemployed youths, providing manpower training, and improving beneficiaries’ standard of living.
Mismanagement and a lack of capital pose serious threats to the majority of cooperative societies. Due to the aforementioned problems, many cooperative organisations found it difficult to finance their enterprises.
Mismanagement of the little capital controlled by cooperative business firms. Difficulty receiving loans from banks due to a lack of collateral and inadequate capital.
Many co-operatives in Nigeria conduct business transactions in which they sell consumer items in retail amounts, while others sell durable household items and other consumer goods. The capital foundation of these cooperative firms is generally small.
In light of this, the researcher has opted to investigate potential funding and improvement techniques for co-operative business businesses in Enugu state through a case study of a few registered co-operative societies in Enugu state’s Igbo Etiti local government area.
1.2 Statement of the Problem
At this point, it is critical to identify and outline the issues that this project attempts to address with the funding of cooperative societies in Enugu state, specifically in the Igbo Etiti Local Government area.
It has been observed that co-operative businesses in the Igbo Etiti Local Government region make profits from sales. It’s still not enough. Cooperative societies confront a variety of restrictions that work against the capital base and the rate of economic expansion. These factors include.
i. Small share capital: Cooperatives are primarily found in the middle and lower segments of society. They are particularly fond of the poor sector of society.
ii. Lack of cooperative research: Cooperative enterprises lack fresh ideas and methods of scientific management. Most of them do not undertake research on the product they intend to produce before entering into production, which results in poor performance and future prospects.
iii. Obtaining loans from financial organisations is difficult: banks and credit organisations are always hesitant to lend to co-operatives. The main reason for this is a lack of valuable collateral to back up their loan request.
Due to incompetent managers and committee members, most co-operative members mismanage and embezzle the little and accessible funds for their own private gain.
1.3 The Objectives Of The Study
With the recent drive for greater efficiency by co-operative societies, and as a result, the Enugu state government is putting up effort to develop existing cooperative business companies.
The objectives can be seen from this perspective.
1. Investigate additional methods in which cooperative businesses can be encouraged or supported outside their own funds.
2. To identify the issues that co-operative societies frequently face that hinder them from completing their financial obligations.
3. To investigate ways to improve the capital basis of cooperative businesses and the cooperative’s efficiency in addressing their demands, such as raw materials, capital, and managerial skills in the business establishments in which they operate.
4. Determine the level of cooperative involvement as a corporate entity, as well as the overall administration of their own co-operative enterprises.
5. To educate and raise awareness about the importance of co-operative programmes.
Need help with a related project topic or New topic? Send Us Your Topic