PROBLEMS AND PROSPECTS OF COOPERATIVE SOCIETY IN NIGERIA
(a case study of Farmers Cooperative Society. Oyi L.G. Anambra State.)
A PROJECT WORK SUBMITTED TO THE SCHOOL OF BUSINESS STUDIES, DEPARTMENT OF BUSINESS ADMINISTRATION. IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD NATIONAL DIPLOMA IN BUSINESS ADMINISTRATION.
We certify this work was carried out by OZAH BLESSING N. the School of Business Studies, department of
Akwa Ibom State Polytechnic as meeting the
requirement for the award of ordinary diploma in Business Administration.
________________ Centre Co-ordinator
I dedicate this project to Almighty God for his divine guidance, grace and mercy throughout my academic pursuit. May all Glory, Honour, Majesty and power be ascribed unto His Holy Name in Jesus Name.
ACKOWLEDGEMENT To God be the glory for its not by my power nor my might but by His grace that is superfluous and more than sufficient. I thank Him for making this programme a reality. I am also grateful to my supervisor Mr Emmanuel Nelson Bassey for his painstaking and thoroughness in supervising this project. I acknowledged the immense support I received from my family especially my children, their encouragement during the period of the programme. The cooperation and the encouragement of my supporting staff who always stand in for me anytime I am away.
This acknowledgement will be incomplete without noting the contribution of the following people to the success of the programme, the school registrar, the assistance registrar and other friends who had contributed in one-way or the other to the successful completion of the programme.
A special word of thanks go to staff of C.A.C.T. Publishers in typing the various draft of the manuscript..
I wish to conclude this acknowledgement by expressing my sincere appreciation to all my colleagues for their friendly disposition towards me during the period of the programme. MAY GOD BLESS YOU ALL.
ABSTRACT In this research work, the researcher empirically unveil the problems and prospects of cooperative society in Oyi LG in
Anambra State. In the course the research, it was discovered that: Cooperative provides ready markets for members produce. Members are encouraged to engage in economic production and services that enhance gross domestic product and national income.
Retail goods are made available for the consumption of the cooperators as well as the public at affordable prices. Bonuses are given to members on patronage which enhance their personal income. Cooperative members readily benefited from government and nongovernment organizations of expert advisory services in various ways.
Cooperative enjoys soft loan benefits from the governments, banks and other similar institutions for the operation of their joint or individual businesses.
Functional cooperatives education and training imparted on the members enable them to do well in their businesses.
Standard of living of the cooperators has been raised thus guaranteeing quality of members' lives.
Cooperative is a major vehicle for a nation's industrial development.
TABLE Cover page Title page Certification Dedication -
OF CONTENTS i i ii iii iv vi ix
Acknowledgement Abstract -
Table of content CHAPTER ONE INTRODUCTION
1 1 3 4 5 6 7 9
1.0 THE BACKGROUND OF THE STUDY 1.1 STATEMENT OF RESEARCH PROBLEM 1.2 THE OBJECTIVE OF THE STUDY -
1.3 THE SIGNIFICANCE OF THE STUDY 1.4 HYPOTHESES -
1.5 LIMITATIONS OF THE STUDY 1.6 THE STRUCTURE OF THE WORK
CHAPTER TWO REVIEW OF THE RELATED LITERATURE 2.0 ORGANIZATION AND IDEOLOGICAL ROOTS 10 13 14 2.3 15 18
2.1 COOPERATIVE AS LEGAL ENTITIES 2.2 IDENTITY -
MEANING OF CO-OPERATIVE SOCIETY 2.4 TYPES OF CO-OPERATIVE SOCIETIES 2.5 TYPES OF COOPERATIVE GOVERNANCE -
2.6 CHARACTERISTICS OF CO-OPERATIVE SOCIETY 25
2.7 FORMATION OF A CO-OPERATIVE SOCEITY 28 29
2.8 ADVANTAGES OF CO-OPERATIVE SOCIETY 2.9 LIMITATION OF CO-OPERATIVE SOCIETY -
2.10 IMPACT OF COOPERATIVE IN NIGERIA 10
2.11 CO-OPERATIVES TODAY -
2.12 PROSPECTS OF THE COOPERATIVE SOCIETY 34 40
2.13 PROBLEMS OF COOPERATIVE 2.14 THE NEED FOR RE-ENGINEERING COOPERATIVES SOCIETIES CHAPTER THREE -
RESEARCH METHODS AND PROCEDURES 3.1 RESEARCH DESIGN 3.2 SAMPLING 3.3 POPULATION 44 46 47 48 51
3.4 DATA COLLECTION 3.5 FIELD WORK -
3.6 DESCRIPTION OF DATA PRESENTATION AND ANALYSIS CHAPTER FOUR DATA PRESENTATION AND ANALYSIS 4.1 INTRODUCTION 11
- 54 55
4.2 DATA PRESENTATION
4.3 CROSS-TABULATED ANALYSIS 4.4 HYPOTHESIS TESTING -
62 63 64 67
4.5 SOFTWARE USED FOR DATA ANALYSIS 4.6 SUMMARY OF RESULT CHAPTER FIVE FINDINGS, SUMMARY AND CONCLUSION 5.1 FINDINGS 5.2 SUMMARY -
5.3 RECOMMENDATION 5.4 REFERENCES -
CHAPTER ONE INTRODUCTION 1.0 THE BACKGROUND OF THE STUDY Although co-operation as a form of individual and societal behaviour is intrinsic to human organization, the history of modern co-operative forms of organizing dates back to the Agricultural and Industrial Revolutions of the 18th and 19th centuries. The status of which was the 'first co-operative' is under some dispute, but various milestones in the history may be identified. In 1761, the Fenwick Weavers' Society was formed in Fenwick, East Ayrshire, Scotland to sell discounted oatmeal to local workers. Its services expanded to include assistance with savings and loans, emigration and education. In 1810, Welsh social reformer Robert Owen, from Newtown in mid-Wales, and his partners purchased New Lanark mill from Owen's father-in-law and proceeded to introduce better labor standards including discounted retail shops where profits were passed on to his employees. Owen left New Lanark to pursue other forms of co-operative organization and develop co-op ideas through writing and lecture. Co-operative communities were set up in
Glasgow, Indiana and Hampshire, although ultimately unsuccessful. In 1828, William King set up a newspaper, The Cooperator, to promote Owen's thinking, having already set up a co-operative store in Brighton.
The Rochdale Society of Equitable Pioneers, founded in 1844, is usually considered the first successful co-operative enterprise, used as a model for modern co-ops, following the 'Rochdale Principles'. A group of 28 weavers and other artisans in Rochdale, England set up the society to open their own store selling food items they could not otherwise afford. Within ten years there were over 1,000 co-operative societies in the United Kingdom. Other events such as the founding of a friendly society by the Tolpuddle Martyrs in 1832 were key occasions in the creation of organized labor and consumer movements. From the report of the workshop held on 10th – 11th November 2008 during the 8 the ICA Africa regional assembly at the international conference centre, Abuja. Mr Tom Tar - The Executive Secretary of Cooperative Federation of Nigeria, In his introduction of the
movement in Nigeria, said the Cooperative Federation of Nigeria (CFN) was formed in 1945 and got registered in 1967. He traced the background of cooperatives in Nigeria to the traditional savings and loans system. He added that following agitation by the Agege Cocoa planters Union in 1907, the study for establishment of formal cooperation was commissioned in 1934. This was followed by the enactment of cooperative legislation in 1935. The early move was in agriculture and latter shifted to marketing following the shift in the Nigerian economy from agriculture to crude oil. He gave the scope of cooperative activities in Nigeria as covering: On population, he said there are about 5million family members covering 20 million house holds. Total number of registered cooperative societies is about 50,000. 1.1 STATEMENT OF RESEARCH PROBLEM In considering the statement of the research problem, these question readily come to mind: (i) Can any competent person become a member of a society, at anytime. (ii) Is the liability of the members is unlimited.
(iii) do the government encourages and supports the formation of cooperative societies by providing subsidies and exemptions. (iv) Can It exist for long due to a legal entity separate from its members. (v) Is the society managed by one person only.
THE OBJECTIVE OF THE STUDY It would have been a total waste of time, efforts, energy and of course fund, in conducting this research if it was not meant to achieve any meaningful objectives. The research would also have been seen as a fruitless exercise if there were no fundamental objectives to be achieved at the end of the study. The major objective of the study therefore was analysing the problems and prospects of cooperative society in Anambra State but the subsidiary objectives are: - Cooperatives put people at the centre of their business and not capital. - in cooperative movement, the welfare of members is emphasized - Cooperatives engage in business activities that touch members e.g. schools building, credit. - cooperative Create jobs and empowerment for members
- cooperative Render service rather than making profit - cooperative emphasis on Mutual help instead of competition - cooperative offers Self help instead of dependence
THE SIGNIFICANCE OF THE STUDY This study is significant because it will produce data on cooperative movement in Nigeria that will be useful to: 1. federal ministry of labour and productivity 2. national union of local government employees 3. state civil service commission 4. federal civil service commission . 5. managers and top executives in organized private sector 6. united nation commission on employment 7. federal ministry of finance 8. Central bank of Nigeria 9. students carrying out a research work in this same issue.
It is a conjectural statement of the relationships between two or more variables. It is testable, tentative problem explanation of the relationship between two or more variables that create a state of affairs or phenomenon. E.C. Osuola (1986 page 48) said hypothesis should always be in declarative sentence form, and they should relate to them generally or specially variable to variables.
HYPOTHESIS THUS: 1. 2. 3. Explain observed events in a systematic manner Predict the outcome of events and relationships Systematically summarized existing knowledge.
In essence, there exist NULL HYPOTHESIS set up only to nullify the research hypothesis and the ALTERNATIVE
HYPOTHESIS for the purpose of the study. For the efficiency of the study, the hypothesis is as follows:
Null Hypothesis (HO) 1. The liability of the members is not unlimited.
2 The society is not managed by one person only.
Alternative Hypothesis(HI) 1. 2. The liability of the members is unlimited. The society is managed by one person only.
1.5 LIMITATIONS OF THE STUDY
A research work of this nature cannot come to an end without limitation. The researcher encountered numerous problems which affected the smooth running of the work. These problems includes, difficulty in procuring materials for the project, time factor and financial constraints. Material Procurement There was a lot constraints as to getting information and materials for the job. The researcher made series of consultations and visit to most renowned institutions to acquire the needed information. Most materials used were
very difficult to come by, as there is no library within the town. Time Constraints Combining academic work with job is no doubt a thought provoking issue, as it has to do with time. Actually, a lot of time was wasted as the researcher visited the organizations and individuals together with government agencies to obtain valuable information for the project. Financial Constraints The researcher would have obtained more information than what is obtainable here but due to lack of money to visit some of the firms and government agencies located a bit farther from the researcher place of resident.
1.6 THE STRUCTURE OF THE WORK
This research work is to be organized in five chapters as follows: 1 Introduction 2 Review of related literature 3 Research method 4 Data presentation and analysis 5 Findings, Summary, and conclusion
REVIEW OF THE RELATED LITERATURE
ORGANIZATIONAL AND IDEOLOGICAL ROOTS
The roots of the co-operative movement can be traced to multiple influences and extend worldwide. In the Anglosphere, post-feudal forms of co-operation between workers and owners, that are expressed today as "profit-sharing" and "surplus sharing" arrangements, existed as far back as 1795. The key ideological influence on the Anglosphere branch of the cooperative movement, however, was a rejection of the charity principles that underpinned welfare reforms when the British government radically revised its Poor Laws in 1834. As both state and church institutions began to routinely distinguish between the 'deserving' and 'undeserving' poor, a movement of Friendly Societies grew throughout the British Empire based on the principle of mutuality, committed to self-help in the welfare of working people. Friendly Societies established forums through which one member, one vote was practiced in organisation decision-making. The principles challenged the idea that a person should be an owner of property before being granted
a political voice. Throughout the second half of the nineteenth century (and then repeatedly every 20 years or so) there has been a surge in the number of cooperative organisations, both in commercial practice and civil society, operating to advance democracy and universal suffrage as a political principle. Friendly Societies and consumer cooperatives became the dominant form of organization amongst working people in Anglosphere industrial societies prior to the rise of trade unions and industrial factories. Weinbren reports that by the end of the 19th century, over 80% of British working age men and 90% of Australian working age men were members of one or more Friendly Society.
From the mid-nineteenth century, mutual organisations embraced these ideas in economic enterprises, firstly amongst trade people, and later in cooperative stores, educational institutes, financial institutions and industrial enterprises. The common thread (enacted in different ways, and subject to the constraints of various systems of national law) is the principle that an enterprise or association should be owned and controlled by the people it serves, and share any surpluses on the basis of each members' cooperative contribution (as a producer, labourer or consumer) rather than their capacity to invest financial capital.
The cooperative movement has been fuelled globally by ideas of economic democracy. Economic democracy is a socialist extension of the liberal idea of political democracy. Different forms of socialism have developed different approaches to thinking about and building economic democracy. Both Marxism and anarchism, for example, have been influenced by as well as contemporaneous with utopian socialism, which however was based on voluntaristic cooperation, without recognition of class conflict (such as for example is posed by a belligerent capitalist class, dependent on labour and mobilizing by of and for itself). Anarchists are committed to libertarian socialism and they have focused on local organization, including locally-managed cooperatives, linked through confederations of unions, cooperatives and communities. Marxists, who as socialists have likewise held and worked for the goal of democratizing productive and reproductive relationships, often placed a greater strategic emphasis on confronting the larger scales of human organization. As they viewed the capitalist class to be prohibitively politically, militarily and culturally mobilized in order to maintain an exploitable working class, they fought in the early twentieth century to appropriate from the capitalist class the society's collective political capacity in the form of the state, either through democratic
socialism, or through what came to be known as Leninism. Though they regard the state as an unnecessarily oppressive institution, Marxists considered appropriating national and international-scale capitalist
institutions and resources (such as the state) to be an important first pillar in creating conditions favorable to solidaristic economies. With the declining influence of the USSR after the 1960s, socialist strategies pluralized, though economic democratizers have not as yet established a fundamental challenge to hegemonic and belligerent global neoliberal capitalism.
COOPERATIVES AS LEGAL ENTITIES
Although the term may be used loosely to describe a way of working, a cooperative properly so-called is a legal entity owned and democratically controlled equally by its members. A defining point of a cooperative is that the members have a close association with the enterprise as producers or consumers of its products or services, or as its employees. In some countries, e.g. Finland and Sweden, there are specific forms of incorporation for co-operatives. Cooperatives may take the form of companies limited by shares or by guarantee, partnerships or
unincorporated associations. In the USA, cooperatives are often organized as non-capital stock corporations under state-specific cooperative laws.
However, they may also be unincorporated associations or business corporations such as limited liability companies or partnerships; such forms are useful when the members want to allow: some members to have a greater share of the control, or some investors to have a return on their capital that exceeds fixed interest, neither of which may be allowed under local laws for cooperatives. Cooperatives often share their earnings with the membership as dividends, which are divided among the members according to their participation in the enterprise, such as patronage, instead of according to the value of their capital shareholdings (as is done by a joint stock company).
Cooperatives are based on the co-operative values of "self-help, selfresponsibility, democracy and equality, equity and solidarity" and the cooperative principles of “voluntary and open membership; democratic member control; member economic participation; autonomy and
independence; education and training; co-operation among co-operatives; and concern for community”. Also, in the tradition of their founders, cooperative members believe in the ethical values of honesty, openness, social responsibility and caring for others. Such legal entities have a range
of unique social characteristics. Membership is open, meaning that anyone who satisfies certain non-discriminatory conditions may join. Economic benefits are distributed proportionally according to each member's level of participation in the cooperative, for instance by a dividend on sales or purchases, rather than divided according to capital invested. Cooperatives may be generally classified as either consumer cooperatives or producer cooperatives. Cooperatives are closely related to collectives, which differ only in that profit-making or economic stability is placed secondary to adherence to social-justice principles.
MEANING OF CO-OPERATIVE SOCIETY
Let us take one example. Suppose a poor villager has two cows and gets ten litres of milk. After consumption by his family everyday he finds a surplus of five liters of milk. What can he do with the surplus? He may want to sell the milk but may not find a customer in the village. Somebody may tell him to sell the milk in the nearby town or city. Again he finds it difficult, as he does not have money to go to the town to sell milk. What should he do? He is faced with a problem. Do you have any solution for him? One day that poor villager met a learner of NIOS who had earlier read this lesson. The learner told him, you see, you are not the only person facing
this problem. There are many others in your village and also in the nearby village who face a similar problem. Why don’t you all sit together and find a solution to your common problem? In the morning you can collect the surplus milk at a common place and send somebody to the nearby town to sell it. Again in the evening, you can sit together and distribute the money according to your contribution of milk. Of course first you have to deduct all the expenses from the sale proceeds. That villager agreed to what the learner said. He told everybody about this new idea and formed a group of milk producers in his village. By selling the milk in the nearby town they were all able to earn money. After that they did not face any problem of finding a market for the surplus milk. This process continued for a long time. One day some body suggested that instead of selling only milk why not produce other milk products like ghee, butter, cheese, milk powder etc. and sell them in the market at a better price? All of them agreed and did the same. They produced quality milk products and found a very good market for their products not only in the nearby town but in the entire country. Just think it over. A poor villager, who was not able to sell five litres of milk in his village, is now selling milk and milk products throughout the nation. He is now enjoying a good life.
How did it happen? Who made it possible? This is the reward of a joint effort or co–operation. The term co-operation is derived from the Latin word co-operari, where the word co means ‘with’ and operari means ‘to work’. Thus, co-operation means working together. So those who want to work together with some common economic objective can form a society which is termed as “cooperative society”. It is a voluntary association of persons who work together to promote their economic interest. It works on the principle of selfhelp as well as mutual help. The main objective is to provide support to the members. Nobody joins a cooperative society to earn profit. People come forward as a group, pool their individual resources, utilise them in the best possible manner, and derive some common benefit out of it. In the above example, all producers of milk of a village joined hands, collected the surplus milk at a common place and sold milk and milk products in the market. This was possible because of their joint effort. Individually it would not have been possible either to sell or produce any milk product in that village. They had formed a co-operative society for this purpose.
In a similar way, the consumers of a particular locality can join hands to provide goods of their daily need and thus, form a co-operative society. Now they can buy goods directly from the producers and sell those to members at a cheaper price. Why is the price cheaper? Because they buy goods directly from the producer and thereby the middlemen’s profit is eliminated. Do you think it would have been possible on the part of a single consumer to rather buy goods directly from the producers? Of course, not. In the same way people can form other types of co-operative societies as well. Let us know about them.
TYPES OF CO-OPERATIVE SOCIETIES
Although all types of cooperative societies work on the same principle, they differ with regard to the nature of activities they perform. Followings are different types of co-operative societies that exist in our country. 1. Consumers’ Co-operative Society: These societies are formed to protect the interest of general consumers by making consumer goods available at a reasonable price. They buy goods directly from the producers or manufacturers and thereby eliminate the middlemen in the process of distribution.
2. Producers’ Co-operative Society: These societies are formed to protect the interest of small producers by making available items of their need for production like raw materials, tools and equipments, machinery, etc. 3. Co-operative Marketing Society: These societies are formed by small producers and manufacturers who find it difficult to sell their products individually. The society collects the products from the individual members and takes the responsibility of selling those products in the market. 4. Co-operative Credit Society: These societies are formed to provide financial support to the members. The society accepts deposits from members and grants them loans at reasonable rates of interest in times of need. Village Service Co-operative Society and Urban Cooperative Banks are examples of co-operative credit society. 5. Co-operative Farming Society: These societies are formed by small farmers to work jointly and thereby enjoy the benefits of large-scale farming. Example is farmers cooperative society Oyi Local Govt. in Anambra State. 6. Housing Co-operative Society: These societies are formed to provide residential houses to members. They purchase land, develop it and construct houses or flats and allot the same to members. Some societies
also provide loans at low rate of interest to members to construct their own houses. The Employees’ Housing Societies and Metropolitan Housing Cooperative Society are examples of housing co-operative society.
TYPES OF COOPERATIVE GOVERNANCE
Retailers' cooperative A retailers' cooperative (known as a secondary or marketing co-operative in some countries) is an organization which employs economies of scale on behalf of its members to get discounts from manufacturers and to pool marketing. It is common for locally-owned grocery stores, hardware stores and pharmacies. In this case the members of the cooperative are businesses rather than individuals. The Best Western international hotel chain is actually a retailers' cooperative, whose members are hotel operators, although it now prefers to call itself a "nonprofit membership association." It gave up on the "cooperative" label after some courts insisted on enforcing regulatory requirements for franchisors despite its member-controlled status. Workers cooperative A worker cooperative or producer cooperative is a cooperative, that is owned and democratically controlled by its "worker-owners". There are no
outside owners in a "pure" workers' cooperative, only the workers own shares of the business, though hybrid forms in which consumers, community members or capitalist investors also own some shares are not uncommon. In practice, control by worker-owners may be exercised through individual, collective or majority ownership by the workforce, or the retention of individual, collective or majority voting rights (exercised on a one-member one-vote basis). A worker cooperative, therefore, has the characteristic that the majority of its workforce own shares, and the majority of shares are owned by the workforce. Membership is not always compulsory for employees, but generally only employees can become members either directly (as shareholders) or indirectly through membership of a trust that owns the company. The impact of political ideology on practice constrains the development of co-operatives in different countries. Social cooperative A particularly successful form of multi-stakeholder cooperative is the Italian "social cooperative", of which some 7,000 exist. "Type A" social cooperatives bring together providers and beneficiaries of a social service as members. "Type B" social cooperatives bring together permanent
workers and previously unemployed people who wish to integrate into the labour market. Social cooperatives are legally defined as follows: no more than 80% of profits may be distributed, interest is limited to the bond rate and dissolution is altruistic (assets may not be distributed) the cooperative has legal personality and limited liability the objective is the general benefit of the community and the social integration of citizens those of type B integrate disadvantaged people into the labour market. The categories of disadvantage they target may include physical and mental disability, drug and alcohol addiction, developmental disorders and problems with the law. They do not include other factors of disadvantage such as race, sexual orientation or abuse. Type A cooperatives provide health, social or educational services various categories of stakeholder may become members, including paid employees, beneficiaries, volunteers (up to 50% of members), financial investors and public institutions. In type B co-operatives at least 30% of the members must be from the disadvantaged target groups voting is one person one vote
Consumers' cooperative A consumers' cooperative is a business owned by its customers. Employees can also generally become members. Members vote on major decisions, and elect the board of directors from amongst their own number. A well known example in the United States is the REI (Recreational Equipment Incorporated) co-op, and in Canada: Mountain Equipment Coop.
The world's largest consumers' cooperative is the Co-operative Group in the United Kingdom, which offers a variety of retail and financial services. The UK also has a number of autonomous consumers' cooperative societies, such as the East of England Co-operative Society and Midcounties Co-operative. In fact the Co-operative Group is something of a hybrid, having both corporate members (mostly other consumers' cooperatives, as a result of its origins as a wholesale society), and individual retail consumer members.
Business and employment co-operative Business and employment co-operatives (BECs) are a subset of worker cooperatives that represent a new approach to providing support to the creation of new businesses.
Like other business creation support schemes, BECs enable budding entrepreneurs to experiment with their business idea while benefiting from a secure income. The innovation BECs introduce is that once the business is established the entrepreneur is not forced to leave and set up independently, but can stay and become a full member of the co-operative. The micro-enterprises then combine to form one multi-activity enterprise whose members provide a mutually supportive environment for each other. BECs thus provide budding business people with an easy transition from inactivity to self-employment, but in a collective framework. They open up new horizons for people who have ambition but who lack the skills or confidence needed to set off entirely on their own – or who simply want to carry on an independent economic activity but within a supportive group context.
CHARACTERISTICS OF CO-OPERATIVE SOCIETY
A co-operative society is a special type of business organisation different from other forms of organsation you have learnt earlier. Let us discuss its characteristics. i. Open membership: The membership of a Co-operative Society is open to all those who have a common interest. A minimum of ten members are required to form a cooperative society. The Co–operative societies Act does not specify the maximum number of members for any co-operative society. However, after the formation of the society, the member may specify the maximum number of members.
ii. Voluntary Association: Members join the co-operative society voluntarily, that is, by choice. A member can join the society as and when he likes, continue for as long as he likes, and leave the society at will.
iii. State control: To protect the interest of members, co-operative societies are placed under state control through registration. While getting registered, a society has to submit details about the members and the business it is to undertake. It has to maintain books of accounts, which are to be audited by government auditors.
iv. Sources of Finance: In a co-operative society capital is contributed by all the members. However, it can easily raise loans and secure grants from government after its registration.
v. Democratic Management: Co-operative societies are managed on democratic lines. The society is managed by a group known as “Board of Directors”. The members of the board of directors are the elected representatives of the society. Each member has a single vote, irrespective of the number of shares held. For example, in a village credit society the small farmer having one share has equal voting right as that of a landlord having 20 shares.
iv. Service motive: Co-operatives are not formed to maximise profit like other forms of business organisation. The main purpose of a Co-operative Society is to provide service to its members. For example, in a Consumer Co-operative Store, goods are sold to its members at a reasonable price by retaining a small margin of profit. It also provides better quality goods to its members and the general public.
v. Separate Legal Entity: A Co-operative Society is registered under the Co-operative Societies Act. After registration a society becomes a separate legal entity, with limited liability of its members. Death, insolvency or lunacy of a member does not affect the existence of a society. It can enter into agreements with others and can purchase or sell properties in its own name.
vi. Distribution of Surplus: Every co-operative society in addition to providing services to its members, also generates some profit while conducting business. Profits are not earned at the cost of its members. Profit generated is distributed to its members not on the basis of the shares held by the members (like the company form of business), but on the basis of members’ participation in the business of the society. For example, in a consumer co-operative store only a small part of the profit is distributed to members as dividend on their shares; a major part of the profit is paid as purchase bonus to members on the basis of goods purchased by each member from the society.
vii. Self-help through mutual cooperation: Co-operative Societies thrive on the principle of mutual help. They are the organisations of financially weaker sections of society. Co-operative Societies convert the weakness of members into strength by adopting the principle of self-help through mutual co-operation. It is only by working jointly on the principle of “Each for all and all for each”, the members can fight exploitation and secure a place in society.
2.7 FORMATION OF A CO-OPERATIVE SOCIETY A Co-operative Society can be formed as per the provisions of the Cooperative Societies Act, of any country. At least ten persons having the capacity to enter into a contract with common economic objectives, like farming, weaving, consuming, etc. can form a Co-operative Society. A joint application along with the bye-laws of the society containing the details about the society and its members, has to be submitted to the Registrar of Co-operative Societies of the concerned state. After scrutiny of the appliation and the bye–laws, the registrar issues a Certificate of Registration. Requirements for Registration: 1. Application with the signature of all members
2. Bye-laws of the society containing: (a) Name, address and aims and objectives of the society; (b) Names, addresses and occupations of members; (c) Mode of admitting new members; (d) Share capital and its division.
2.8 ADVANTAGES OF CO-OPERATIVE SOCIETY A Co-operative form of business organisation has the following advantages: i. Easy Formation: Formation of a co-operative society is very easy compared to a joint stock company. Any ten adults can voluntarily form an association and get it registered with the Registrar of Co-operative Societies. ii. Open Membership: Persons having common interest can form a cooperative society. Any competent person can become a member at any time he/she likes and can leave the society at will. iii. Democratic Control: A co-operative society is controlled in a democratic manner. The members cast their vote to elect their representatives to form a committee that looks after the day-to-day
administration. This committee is accountable to all the members of the society. iv. Limited Liability: The liability of members of a co-operative society is limited to the extent of capital contributed by them. Unlike sole proprietors and partners the personal properties of members of the co-operative societies are free from any kind of risk because of business liabilities. v. Elimination of Middlemen’s Profit: Through co-operatives the members or consumers control their own supplies and thus, middlemen’s profit is eliminated. vi. State Assistance: Both Central and State governments provide all kinds of help to the societies. Such help may be provided in the form of capital contribution, loans at low rates of interest, exemption in tax, subsidies in repayment of loans, etc. vii. Stable Life: A co-operative society has a fairly stable life and it continues to exist for a long period of time. Its existence is not affected by the death, insolvency, lunacy or resignation of any of its members.
LIMITATIONS OF CO–OPERATIVE SOCIETY
Besides the above advantages, the co-operative form of business organisation also suffers from various limitations. Let us learn these limitations. i. Limited Capital: The amount of capital that a cooperative society can raise from its member is very limited because the membership is generally confined to a particular section of the society. Again due to low rate of return the members do not invest more capital. Government’s assistance is often inadequate for most of the co-operative societies.
ii. Problems in Management: Generally it is seen that co-operative societies do not function efficiently due to lack of managerial talent. The members or their elected representatives are not experienced enough to manage the society. Again, because of limited capital they are not able to get the benefits of professional management.
iii. Lack of Motivation: Every co-operative society is formed to render service to its members rather than to earn profit. This does not provide
enough motivation to the members to put in their best effort and manage the society efficiently.
iv. Lack of Co-operation: The co-operative societies are formed with the idea of mutual co-operation. But it is often seen that there is a lot of friction between the members because of personality differences, ego clash, etc. The selfish attitude of members may sometimes bring an end to the society.
v. Dependence on Government: The inadequacy of capital and various other limitations make cooperative societies dependant on the government for support and patronage in terms of grants, loans subsidies, etc. Due to this, the government sometimes directly interferes in the management of the society and also audit their annual accounts.
2.10 IMPACTS OF COOPERATIVES IN NIGERIA The social and economic impacts of cooperatives in Nigeria are:- Employment creation - Credit to empower members to own their own business
- Contribution to GDP though statistics not available but impact is known - Advocacy and lobbying for better legislation The development of cooperatives in Nigeria are: - Committed integration of women - Strengthening cooperatives from within and reduced dependence on government because “assistance seekers are always vulnerable” - Better services to members to enable them increase their income - Improved business entrepreneurial skills - Stronger cooperative identity by members, committee and managers.
2.11 CO-OPERATIVES TODAY Co-operative communities are now widespread, with one of the largest and most successful examples being the Mondragón Cooperative Corporation in the Basque country of Spain. Cooperatives were also successful in Yugoslavia under Tito where Workers' Councils gained a significant role in management. In many European countries, cooperative institutions have a predominant market share in the retail banking and insurance businesses.
In the UK, co-operatives formed the Co-operative Party in the early 20th century to represent members of co-ops in Parliament. The Cooperative Party now has a permanent electoral pact with the Labour Party, and some Labour MPs are Co-operative Party members. UK co-operatives retain a significant market share in food retail, insurance, banking, funeral services, and the travel industry in many parts of the country.
In Nigeria today, cooperative movement can be traced to the traditional savings and loans system. In 1907, the study for establishment of formal cooperation was commissioned in 1934. This was followed by the enactment of cooperative legislation in 1935. The association of people is called cooperative federation of Nigeria.
1.12 PROSPECTS OF THE COOPERATIVE SOCIETY Roy (1964:1) says that there is hardly a country in the world in which the cooperative organizations do not exist to perform both social and economic roles. The important roles a cooperative play in an economy cannot be over emphasized. According to Akinwunmi (2006:1-2) those who introduced formal cooperatives realized that
individual farmers were two small in terms of farm holdings, total production and volume supplied. Thus they encouraged cooperative which facilitated quick transfer of technical knowledge about the major commodities to groups of farmers. They demonstrated the efficacy of the cooperative approach to problem solution. They helped to nurture small groups with little financial means into larger groups by encouraging the creation of unions out of the societies. Olesin (2007:7) opined a well-run cooperative society provides a pool of funds from which individuals members take loans to meet respective needs. Many cooperative societies make investments in business ventures, stocks or real property which generate returns that could be shared as dividends to members periodically, depending on any surplus that accrues to the fund. Cooperative societies allow what an individual cannot do on his own, to be done as a group. Cooperative methods are the most practical to adopt to meet the needs of the mass of the people in all spheres of development. Asaolu (2004:46) argued that cooperative societies are potentially an important instrument of social transformation, especially in the rural areas. Cooperative methods have proved to be useful in achieving
increased domestic production of food, industrial raw materials, manufactured products and equitable distribution of farm inputs, farm products and other commodities. Lawal (2006:151-155) believed that cooperative society is a household name and need not much propaganda as to its economic importance as to its economic importance. The following benefits of cooperatives were highlighted: ? Opportunities for cooperators to buildup capital to finance their business through gradual but regular savings of money. ? Employment opportunities. The cooperatives are the second largest employer of labour after government. ? Substantial contribution to the commercial growth and development of the country by undertaking business ventures economic
productions and small scale enterprises financing. ? Promotion of physical and social development of the country through transportation business, low-cost housing units and
community development efforts. ? Significant contribution to the national output by way of massive production of goods and services.
? Promotion of workers empowerments. Many civil servants and other workers own houses, cars and other properties by virtue of being members of one cooperative society or the other. ? Apart from assisting members to participate in international trade, cooperatives make it possible for Nigeria, through members representing the cooperatives at international apex, to sit among the community of nations. ? Cooperative leaders are being trained as good community leaders through the training and skill acquired from the democratic principles and cooperative practices. ? Cooperative provides ready markets for members produce. Members are encouraged to engage in economic production and services that enhance gross domestic product and national income. ? Retail goods are made available for the consumption of the cooperators as well as the public at affordable prices. ? Bonuses are given to members on patronage which enhance their personal income. ? Cooperative members readily benefited from government and nongovernment organizations of expert advisory services in various ways.
? Cooperative enjoys soft loan benefits from the governments, banks and other similar institutions for the operation of their joint or individual businesses. ? Functional cooperatives education and training imparted on the members enable them to do well in their businesses. ? Standard of living of the cooperators has been raised thus guaranteeing quality of members' lives. ? Cooperative is a major vehicle for a nation's industrial development. Onuoha (1986:18) viewed that cooperative method provides the technique for the elevation of the social and economic condition of the masses and their direct participation in those functions of the economy that impinge on their lives. Cooperative societies liberate people from the states of inferiority, economic dependence and insecurity. A major advantage cooperative society according to (Olesin 2007:7) is that it foists a saving habit on members, since its funds are pooled from deductions from salaries or regular contributions in case of self employed. Cooperative society allows what an individual cannot do on his own, to be done as a group. Cooperative societies have contributed to the wealth creation and reduction in poverty.
Cooperative societies in Nigeria have for decades, resolved some of the financial challenges faced by workers or low income business owners by using the power of numbers to provide individual needs from resources pooled by the collective efforts. In the word of Ayoola (2006:3) the impressive performance of the savings and credit cooperatives can be seen in the establishment of cooperative banks in the western, eastern and northern Nigeria respectively. Even though these cooperative banks have overtime, lost their cooperate identities with the Cooperative Bank Plc which survived until the re-capitalization in the banking sector in December 2005, it is obvious that credit cooperatives have made and will continue to make a positive impact as truly "people" bank. Even cooperative had existed as a rural bank in their various local areas before the government introduced the concept of rural banking in 1987 and the defined Peoples Bank of Nigeria (PBN) in 1988. Cooperative society provide opportunities for millions of people in all economic sectors, particularly in the rural and urban low income groups, to escape poverty in a sustainable ways. Statistics are not available, but is a general fact that cooperative is second only to government in employment, particularly in the southwest of the
country. And certainly there can be no bigger provider of employment in the formal sector than the cooperative societies in their various types and forms. Cooperative society is meant to provide its members with some benefits and opportunities which ordinarily will cost more if it is to be derived outside the cooperatives.
1.13 PROBLEMS OF COOPERATIVE Much as desirable as cooperative societies are in the development of a nation, there are problems and constraints that have militated against its effective performance of its roles in nation building. This has made for poor performance, declining and death of some cooperatives. The other critical element according to Akinwunmi (2006:3) was leadership. If there is purposeful leadership, if leaders are transparent, dedicated and truly serving, the cooperative society will succeed. A true leader does not cut corners, does not inflate contracts so as to receive kick backs, does not have favourites among members and does not mismanage the resources. Another problem is insufficient fund to executive cooperative programmes. For many years the movement was unable to pay its mandatory dues to international bodies like ICA. Thus the Nigerian
cooperative movement was derived entry, participation and gain that would have accrued. Asaolu (2004:54-56) quoted the mass mobilization for social and Economic Recovery (MAMSER) in its studies of 1988 as identifying the problems facing cooperative movement in Nigeria to be generally due to political and socio-economic factors. The major of these problems are highlighted below; (i) Lack of adequate working capital (ii) Bad leadership and succession problems characterized by mismanagement (iii) Lack of modern business techniques and liability to complete (iv) Bad record keeping and shortage of supervisory staff (v) Inadequate capital base to cope with the need of SMEs (vi) Proliferation of weak cooperative societies which results from lack of coordination of activities. (vii) Inconsistency on the past of government in supervision and challenging fund through the cooperative societies (viii) Widespread illiteracy and mass ignorance of the societies (ix) Out dated cooperative laws
(x) Government interference and manipulation of cooperative programmes in of government policies (xi) Corrupt and embezzlement of cooperative fund by leaders and paid workers Onuohia (1986:13) identified the leadership problems as a major setback to the performance of cooperative societies saying that group action is more difficult to coordinate than individual actions. Akinwumi (2006:16) affirmed that bad leadership is a critical element that affects efficiency of cooperative movements in Nigeria. Ayoola (2006:5) identified the ambiguous role of government on cooperative societies as another major factors.
1.14 THE NEED FOR RE-ENGINEERING COOPERATIVES SOCIETIES Good management requires a constant scanning of the environment. This is done with a view to identifying changes in the operating environment, in order to determine appropriate operational strategies to be adopted towards achieving desired objectives. (Ayoola 2006:2) re-engineering is done by assessment of the current operational environment to determine the most appropriate strategies for the future. At the inception of modern cooperatives in the country, government intended to foster and nurture cooperatives to grow and become self reliant, as government gradually
withdraws. However, seven decades of modern cooperation in Nigeria, government still remains in fourth control of cooperatives. The implication is perpetual dependency on government resulting into erosion of self-help and self-responsibility nature of cooperatives. In fact the so called work place cooperatives that are supposed to demonstrate intellectuality in this regards could not help the matter which is mostly the legal framework. The roles of government and cooperative societies prior to the National Cooperative Development Policy of 2002 were not clearly defined and this had been the bane of cooperative development in Nigeria. Akinwumin (2006:16) therefore suggested the need for total reengineering of cooperative movement This definition of roles of cooperatives and government by the cooperative development policy has helped to address the most fundamental constraint to the growth and development of cooperatives in Nigeria which is the relationship between the government and cooperative society. However the document is yet to be fully implemented by the government. Reengineering becomes necessary to sustain the good advantages of cooperative societies in an economy. It will give the cooperative movement a strategic repositioning to meet the need of SMEs and other economic requirements.
RESEARCH METHODS AND PROCEDURES 3.1 RESEARCH DESIGN The research method selected for the study is a combination of a survey and an industrial study. The survey research method is described hereunder that: (i) It is a design in which primary data is gathered from members of the sample that represents a specific population; (ii) It is a design in which a structure and systematic research instrument like a questionnaire or an interview schedule is utilized together with the primary data; (ii) It is a method in which the researcher manipulates no explanatory variables because they have already occurred and so they cannot be manipulated; (iii) Data are got directly from the subjects; The subjects give the data the natural settings of their workplaces; (iv) The answers of the respondents are assumed to be largely unaffected of the content in which they are brought;
The impacts of the confounding factors are “controlled” statistically; and
The aim of the research may span from the exploration phenomena to hypotheses testing (stone 1995). The survey research method has some merit, which are to be articulated hereunder: In the survey research method, the sample of the respondents are selected in such a way as to make it low due to the utilization of big sample sizes, which results in generally low sample errors. The survey research method also has the merit that data collection takes place in the “natural” settings of the workplace rather than an activated laboratory. Data are got directly from the respondents. The advantage that the survey yields data that suggests new hypothesis is very illuminating. There is also the merit that a set of systematic data collection instruments such as questionnaire interview schedules and observation gadgets can either be used alone or in conjunction with other instruments (stone, 1995).
SAMPLING Spiegel (1992) observes that sampling theory is a study of the relationship existing between a population or universe and the samples drawn from it. The population in this study is from the senior junior staff of the firms. In order to make conclusions of sample theory and statistical references to be valid, a sample must be selected as to be representative of the population (Spiegel,1992). One way in which a representative sample may be got, is by the process of stratified random sampling. In this research work, the technique of simple random sampling is used to select the sample of 100 respondents from each group of the personnel, making a total sample size of 200. The list of all senior and junior staff of the firm is from the personnel department of the company. The numbers were written on a piece of paper, put in a basket and the papers were folded to cover the numbers and one of the pieces of paper was selected at a time without replacing it and any name corresponding to the number becomes a number of the sample. This method of sampling without replacement was done until the sample of 100 respondents per group of personnel was arrived at.
Population The population, in this study is the totality of the senior and junior staff of FARMERS COOPERATIVE SOCIETY OYI LG Anambra State Nigeria. The sample size is 200 and this number of respondents was chosen from the population. The rationale for studying a sample rather than the population includes that:
Most empirical research work in the social science involves studying a sample in place of the population.
Statistical Laws reveal that statistics composed from the sample data are usually reasonably accurate.
Luckily, it is usually possible to estimate the level of confidence that can be placed on the results. We should note that above is only possible if the probability sample size is large enough.
DATA COLLECTION Questionnaire As earlier stated, the primary data collection instrument in this study is the questionnaire. In the questionnaire method of primary data collection, heavy dependence is placed on verbal reports from the subjects to get information on the earnings per share and standard set. The questionnaire has a lot of merits. It needs less skill to administer. Questionnaire can be administered to a big number of individuals at the same time. Also with a specific research budget, it is usually possible to cover a broader area. The impersonal nature of a questionnaire, its structure and standardized wording, its order of question, its standardized instructions for recording answers might make one to conclude that it offers some uniformity from one measurement occasion to another (Selltiz et al, 1976). Another merit of questionnaire is that subjects may have a bigger confidence in their anonymity, and thus feel freer to express views they feel might be disapproved.
Another attribute of the questionnaire that is sometimes, though not always desirable is that it might place less pressure on the subjects for immediate response (Selltiz et al, 1976). The questionnaire also has some demerits. It has noted that for purpose of giving dependable responses to a questionnaire, respondents must be considerably educated. Thus one of the demerits of the usual questionnaire is that it is appropriate only for with a considerable amount of education. There is also demerit that subject may be reluctant and unable. To report on the particular subject matter. Also, if a subject misinterprets a question or give his or her answer in a batting manner, there is often a little that can be done to ameliorate the situation. In a questionnaire, the information the researcher gets is limited to the fixed alternative answer format, when a specific answer is not available, it can lead to error (Selltiz, 1976). There is also limitation of memory in reporting on past facts. The researcher is not a policeman that can compel answers. That is, the information may not be readily accessible to subject and thus the subject may be reluctant to put forth enough alternative information that he or she is only barely conscious of (Selltiz et al, 1996).
In this research project, a structured and undisguised questionnaire is utilized which is made up of two parts namely, the personal data section and the section on the data on the actual subject matter of the work. The questionnaire was undisguised in the sense that the purpose of the data collection which was to collect primary data for writing up the researcher’s ND project was made know to the 200 respondents. The questionnaire was structured in the sense the questions are logically sequenced and are to be asked to the respondents in the same manner and no follow up questions are to be allowed. Some of the questions are of the fixed alternative answer format type. Ten (10) of the questions have yes or no answers, Ten (10) of the questions have alternative answer for the respondents to tick. The structured questionnaire has the merit that it yields data that is easier to analysis than data produced by an unstructured questionnaire. Also the structured nature diminishes both
researcher’s and research instrument biases. It however has the demerit that the rigidity of the research instrument diminishes the amount of information that could be got.
Interview The method of communication of the research instrument is by means of the personal interview. The method has the merit that it produces a better sample of the population than either mail or the telephone methods. It also has the merit that it gives a very high completion and response rates. It has the merit that the interview has a bigger sensitively misunderstandings by the respondents and gives a chance for clarification of misunderstood questions. It has the merit that it is a very feasible method (Selltiz et al, 1976). The personal interview method has the demerit that it is more costly than the mail or the telephone methods of communication of a questionnaire. Observations In addition to questionnaire and face-to face interviews, observation was also carried out. This was to enable the researcher to witness by herself the officers of this firm and to interact with these people.
FIELD WORK The researcher and three other field data collectors did the fieldwork. The field data collectors were other classmates also offering the Parttime ND program, who have also offered research methodology.
They had no problem gaining entrance into the office under consideration since one of them has a friend working there. They were to be trained by the researcher on how to greet the respondents and how to tick the questionnaire correctly and honestly. 3.6 DESCRIPTION OF DATA PRESENTATION AND ANALYSIS TOOLS The data presentation tools are simple bar charts, histograms, and pictorial tables. The most important parts of a table include; (a) (b) (c) (d) (e) (f) title. (g) Source note, which refers to the literally or scientific source of Table numbers Title of the table Caption Stub or the designation of the rows and columns The body of the table. The head note or prefatory note or explanatory just before the
the table (Mills and Walter 1995) Anyiwe (1994) has observed that a table has the following merits over a prose information that; (f) A table ensure an easy location of the required figure;
Comparisons are easily made utilizing a table than a prose
information; (h) Patterns or trends within the figures which cannot be visualized
in the prose information can be revealed and better depicted by a table; and A table is more concise and takes up a less space than a prose formation: The data is to be analysed by means of percentage, cross tabulation and the chi-square test of population proportions for testing the two hypothesis. Percentages express the ratio of two sets of data to a common base of 100. The researcher made us of the computer program called SPSS (statistical package for social science) to carry out the computation of the hypothesis testing.
DATA PRESENTATION AND ANALYSIS
In the previous chapter, the research methods and procedures have been handled. In this chapter the data presentation and analysis are to be done. The data is to be presented by means of tables, two simple bar charts, one histogram and one pie chart to make it amenable for further analysis. By analysis is meant the act of noting relationship and aggregating the set of variables with similar attributes and also breaking the unit of their components (Mills and Walters 1995). In this research work, the research accepts the contention of Podsakoff and Dalton (1995) that the factual information from the data can be used as a basis for reasoning, calculation and discussion. Apart from the heading above, the other headings in this chapter include: Data Presentation, Percentage analysis Cross-tabulated analysis Hypothesis testing
4.2 DATA PRESENTATION
TABLE 4.1 THE SUMMARY OF THE PERSONAL DATA OF THE RESPONDENTS
SEX Male Female Total Marital Status Married Single Total AGE 21-30 years 31-40 years 41-50 years 51-60 years Total HIGHER EDUCATIONAL QUALIFICATION DIPLOMA OND HND FIRST DEGREE SECOND DEGREE NIM TOTAL
FREQUENCY 150 50 200 130 70 200 90 90 10 10 200 Angles subtended in degree
10 30 80 20 40 20 200
18 54 144 36 72 36 360
The marital statuses of the 200 respondents it is found that 130 of them are married while 70 of them are single. For the ages of the 200 respondents they are 21-30 years, 31-40 years, 40-50 years, 51-60 years with frequency of 90,10 respectively. For the educational
qualification of the 200 respondents they are diploma, OND, HND, First Degree, Second Degree, NIM. and they have frequencies of 10, 30, 80, 20, 40 and 20 respectively. Figure 4.1 below shows the simple bar chart of the data on the sex of the respondents.
FIGURE 4.1: THE SIMPLE BAR CHART OF THE DATA ON THE SEX OF THE RESPONDENTS GENDER OF THE RESPONDENTS
16014012010080 60 40 20
- TABLE 2. GENDER OF THE RESPONDENTS 0 Frequency percentage Valid Cumulative MAIL Percent Percent FEMALE MAIL 150 75.0 75.0 Gender 75.0 FEMALE 50 25.0 25.0 100.0 Total 200 100.0 100.0
Source: from data in table 1 (generated from SPSS) statistical package for social science. From figure 4.1 above, it is shown that male respondents have the modal frequency of 150 out of the 200 respondents while the female respondents have the frequency of 50 of them. Figure 4.2 below shows the simple bar chart of the data on the marital statuses of the respondents. FIGURE 4.2: THE SIMPLE BAR CHART OF THE DATA ON THE MARITAL STATUSES OF THE RESPONDENTS
140 120 100 -
80 60 40 20 0
MARITAL STATUS OF THE RESPONDENTS
frequency Percentage Valid Cumulative Percent Percent MARRIED 130 65.0 65.0 65.0 SINGLE 70 35.0 35.0 100.0 Total 200 100.0 100.0
From figure 4.2 above, it is shown that the married respondents have the modal frequency of 130 out of the 200 respondents while the single respondents have the frequency of 70 of them. FIGURE 4.3: THE HISTOGRAM OF THE DATA ON THE AGES OF THE RESPONDENTS. AGES OF THE RESPONDENTS
Age group Cumulative Categories Frequency Percentage Valid Percent (years) Percentage TABLE 4. AGES OF THE RESPONDENTS 21 TO 30 90 45.0 45.0 45.0 31 TO 40 41 TO 50 51 TO 60 Total 90 10 10 200 45.0 5.0 70 5.0 100.0 45.0 5.0 5.0 100.0 90.0 95.0 100.0
SOURCE: From the data in Table 1.
From figure 4.3 above, it is shown that the age classes limit are 20.5-30.5 years, 30.5-40.5 years, 40.5-50.5 years and 50.5-60.5 years with frequencies of 90, 90, 10, and 10 out of 200 respectively. This shows that this is bi-modal distribution as the age classes of 20.5-30.5 years and 30. 540.5 years have a frequency of 10. Figure 4.4 below shows the pie chart of the data on the highest educational qualifications of the 200 respondents. FIG.4.4 THE PIE CHART OF THE DATA ON THE HIGHEST EDUCATIONAL QUALIFICATIONS OF THE 200 RESPONDENTS
OND 5% 15% SECOND DEGREE 10% 20% 80% FIRST DEGREE 10% DIPLOMA
FIRST DEGREE OND
TABLE 4. 5 EDUCATIONAL QUALIFICATION OF THE RESPONDENTS Educational level DIPLOMA OND HND FIRST DEGREE SECOND DEGREE NIM Total Frequency 10 30 80 20 40 20 200 Percentage 5.0 15.0 40.0 10.0 20.0 10.0 100.0 Valid Percentage 5.0 15.0 40.0 10.0 20.0 10.0 100.0 Cumulative Percentage 5.0 20.0 60.0 70.0 90.0 100.0
SOURCE: from the data in table 1.
From figure 4.4 above, the Educational Qualifications are Diploma, O.N.D, First Degree, Second Degree and NIM and the subtended angles in degrees are equal to 180, 540, 1440, 360, 720 and 360 and respectively at the center of the circle.
PERCENTAGE ANALYSIS Table below shows the percentage analysis of the responses to the yes or no Questions
S/ N 1
TOTAL IN NUM.
TOTAL IN % 100
DOES COOPERATIVE SOCIETY CREATE MPLOYMENT TO MEMBERS? DO COOPERATIVE SOCIETY GRANT CREDIT TO EMPOWER MEMBERS TO OWN THEIR OWN BUSINESS? DOES COOPERATIVE SOCIETY CONTRIBUTION TO GDP ? DOES ADVOCACY AND LOBBYING FOR BETTER LEGISLATION ONE OF THE ROLES OF THE COOPERATIVE SOCIETY? Do cooperative society offers Better services to members to enable them increase their income? Cooperative society helps to Improve business entrepreneurial skills Cooperative society plays a leading role in poverty reduction Cooperation is unique because it promotes. * Reliance & * Empowerment Is Cooperative society organization owned by the people and for the people Do Cooperative society put people at the centre of their business and not capital. In cooperative society, is Welfare of members is emphasized? Do cooperatives engage in business activities that touch members eg schools building, credit? Is Creation of jobs and empowerment of
45. 5 38. 5
44. 5 35
44. 5 36
44. 5 25
100 50 100 50 200 200
4.3 CROSS-TABULATED ANALYSIS Table bellow show the analysis of the statuses of the 200 respondents
TABLE 6. CROSS- TABULATION 1
The liability of the members is unlimited
YES NO DON’T KNOW NO ANSWER
2 7 9
DIPLOMA OND HND FIRST DEGREE SECOND DEGREE NIM Total
6 19 60 31 21 100
2 31 10 43
2 9 11
12 19 91
26 31 21 200
The above table shows that the total of 100 respondents (out of 200 said YES. this proved that The liability of the members is unlimited
TABLE 7. Cross-tabulation 2
The society is managed by one person only. DON’T NO
DIPLOMA OND HND FIRST DEGREE SECOND DEGREE NIM 10 19 14
10 19 91
40 21 104
19 40 21 200
The above table indicates that The society is managed by one person
only. 104 respondents out of 200 said yes. While 40 did not agree
with the fact. 4.4 HYPOTHESIS TESTING In attempting to arrive at decisions about the population, on the basis of sample information, it is necessary to make assumptions or guesses about the population parameter involved. Such an assumption is called statistical hypothesis, which may or may not be true. The procedure, which enables the researcher to design on the basis, is sample regards whether a hypothesis is true or not is called test of hypothesis or test of significance. The null hypothesis asserts that there is no significant difference between the statistics and the population parameters and what ever is observed difference is there, is merely due to fluctuations in sampling from the same population. Null hypothesis is thereby denoted by the symbol H0. Any hypothesis, which contradicts the H0, is called an alternate hypothesis and is denoted by the symbol H1. The researcher used chi-square analysis.
CHI-SQUARE TEST The c is one of the simplest and most widely used non-parametric test in statistical work. It makes no assumptions about the population being sampled. The quantity c describes the magnitude of discrepancy between theory and observation i.e. with the help of c test we can know whether a given discrepancy between theory and observation can be attributed to chance or whether it results from the inadequacy of the theory to fit the observed facts. If c is zero, it means that the observed and expected frequencies completely coincide. The greater the value of c the greater will be the discrepancy between observed and expected frequencies. The formula for computing chi-square is – c =∑ (O-E)2/E Where,O=Observed frequency E=Expected or theoretical frequency 4.5 SOFTWARE USED FOR DATA ANALYSIS: For the data analysis and the interpretation, the researcher has adopted advanced version of SPSS (statistical package for social science). This application software has facilitated the researcher to construct the frequency table, various types of charts and to find out the valid percentage responses from the sample. By this automated data analysis it has minimized the researcher’s time constraints and reduced human error and give also accurate outlay of information. 77
Chi-Square Test (1) The liability of the members is unlimited
Observed Expected F F 100 50.0 43 50.0 39 18 200 50.0 50.0 Residual 50.0 -7.0 -11.0 -32.0 Decision Accept Reject Reject Reject
YES NO DON’T KNOW NO ANSWER Total
Chi-Square Test (2)
The society is managed by one person only.
Observed F 104 40 47 9 200 Expected F 50.0 50.0 50.0 50.0 Residual 54.0 -10.0 -3.0 -41.0 Decision Accepted Rejected Rejected Rejected
YES NO DON’T KNOW NO ANSWER Total
Residuals The observed value of the dependent variable minus the value predicated by the regression equation, for each case. Large absolute
values for the residuals indicate that the observed values are very different from the predicted values.
SOURCE: From the questionnaires administered.
The formulated hypothesis that is subject to statistical test is at 5% level of significance in testing hypothesis, the calculated value of the test statistics is usually compared with tables of value. The critical values of the test statistics serve as criterion value. It afforded the basis for rejecting the null hypothesis is a function of the value of the tested statistic. Reject the null hypothesis if the calculated value of the test statistic is greater than the critical value. Accept the null hypothesis if the calculated value of the test statistic is less than the critical value.
The liability of the members is unlimited.
The society is managed by one person only.
79 73.880 3
note: df = degree of freedom
4.6 SUMMARY OF RESULT
Level of significance……….0.05 Critical value………………………43.0 Calculated value……………………73.880 From the above analysis, it could be seen that in the first test, The
liability of the members is unlimited, the calculated value is greater
than the critical value so we reject the hypothesis. In the second test which state that The society is managed by one
person only, the level of significance is 0.05, the critical value is 44
while the calculated value from the test statistics table is 94.120. Looking the data above, it shows very clear that the calculated value is greater than the critical value so we reject the hypothesis.
FINDINGS, SUMMARY AND CONCLUSION
-A co-operative society is a voluntary association of individuals having common needs who join hands for the achievement of
common economic interest. Its aim is to serve the interest of the poorer sections of society through mutual help.
-Membership of co-operative societies is voluntary and open to all. It is democratically managed and it has a separate legal existence . The main motive is to provide service to the members. It works on the principle of self help through mutual cooperation of members.
A co-operative society can be formed under the Co-operative Act, with a minimum of ten members. For registration, an application along with bye-laws of the society has to be submitted to the Registrar of Co-operative Societies.
-Co-operative societies may be classified as follows: 1) Consumers’ co-operative society - formed to eliminate the role of middlemen and supply high quality goods and services at reasonable price to consumers. 2) Producers’ co-operative society - formed to help producers to procure raw material, tools, equipment etc.
3) Co-operative marketing society - formed to ensure a favourable market for small producers to sell the output and get a good return on sale. 4) Co-operative credit society - formed to provide financial help to members through loans at low interest rates. They encourage saving habit among members. 5) Co-operative farming society - formed to achieve economies of large scale farming and maximization of agricultural output. 6) Housing co-operative society- formed to provide residential houses to members by constructing them or providing loans to members to construct their own houses.
Co-operative societies are easy to form and have a stable life. Membership is open to all and members have limited liability. There is democratic management based on ‘one-man, one vote’. The societies have stable life and they enjoy government patronage.
They suffer from insufficient capital, problems in management and conflict among members. There is lack of motivation in members due
to absence of direct reward for individual effort. Excessive government regulation and control may also pose problems for them.
Co-operative societies are suitable in protecting exploitation of weaker sections of society and promoting their economic interest. It is ideal where service motive, and not profit, is the priority.
Cooperative method remains the vibrant economic technique of poverty eradication, wealth creation, job creation and rural
development and SMEs financing. There are various problems militating against the performance of cooperative societies in Nigeria. Also the changing world of technology poses great challenges to the efficiency of cooperative societies in Nigeria most cooperative societies are operating with inadequate capital to cope with the need of SMEs.
? Immediate review of the cooperative law in line with the cooperative Development Policy that would re-position the Director of
cooperative, service was suggested. ? a base line study; to allow data base and statistics on registered societies, to allow data base and statistics on registered societies, members savings mobilized, total reserves, loans disbursement, percentage recovered, nature and types of cooperative societies existing in the country, that are required for effective planning. ? Research suitable for planning more effective cooperative education and training programmes for committees, members and employees of cooperative is highly essential to fit with the changing environment. ? Government should liberalize cooperatives by loosening its grip on cooperatives to allow for self-help and self-responsibility principles of cooperativeness. ? Investment in Information and Communication Technology (ICT) has become imperative for a success-drive cooperatives. On-line update of members' passbooks, loan application, etc should be incorporated into the business of cooperatives. Otherwise, such a cooperative will be living in the past.
? A guided recapitalization of the cooperative sub-sector ? Fund channelization through the cooperative societies by the Government, NGOs and commercial banks for sustainable SMEs.
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