Cooperative(s) is a

people-centred enterprises owned, controlled and run by and for their members
to realize their common economic, social, and cultural needs and
aspirations. Cooperatives bring people together in a
democratic and equal way.

What is the
importance of cooperative?

Cooperatives are viewed

as important tools for improving the living and working
conditions of both women and men. Since the users of the services they provide
owned them, cooperatives make decisions that balance the need
for profitability with the welfare of their members and the community, which
they serve.

Cooperative management,
also co-management, tries to achieve more effective and equitable
systems of resource management. In cooperative management,
representatives of user groups, the scientific community, and government
agencies should share knowledge, power, and responsibility.

IMPORTANCE OF COOPERATIVES
The Cooperative Development Authority (CDA), the government agency in charge of
development and monitoring
cooperatives in the country gives this definition - a voluntary organization of
people who have agreed to pool their resources together in order to undertake
an economic enterprise for the purpose of meeting their common needs, and which
they themselves democratically manage and control, and share the economic benefits on
the basis of participation and patronage.
In this definition, cooperatives are SHOs which are also business
enterprises which the members themselves own, manage and control in accordance
with accepted democratic principles. They are not organized primarily for
profit nor to serve other people but to serve the needs of their own members.
Memberships in cooperatives is voluntary and open to all those who need their
services. Finally, the economic benefits from cooperatives are shared by the
members in proportion to the individual member's patronage of the business or
enterprise.

CLASSIFICATION OF
COOPERATIVES

The business or
enterprise of the cooperatives may be classified according to the following
activities:

a. credit cooperative- promotes thrift among its members and creates funds in order to
grant loans for productive and

b. consumer cooperative - the primary

 purpose is to procure and distribute commodities to

Why is good management important in cooperative?

In a cooperative, management also must strongly emphasize member relations because

ownership, control, and patronage all are member functions. ... It means keeping members
informed about policies, operating practices, and financial requirements; and pointing out
their responsibilities for making the cooperative successful.

THE IMPORTANCE OF STUDYING CO-OPERATIVE ECONOMICS

AND MANAGEMENT IN INSTITUTIONS

The importance of studying co-operative in schools and tertiary institutions could as well-
known as co-operative education and is at the heart of co-operative for work
motivation, growth, development, commitments in co-operative because is said
that once a co-operative is always a co-operative. Despite these, many co-operatives have
failed in their respective institutions or organizations because their members indisposition
to the cooperative education or without organizing the importance of cooperative
education to members. Cooperative education is an indisputable part of cooperative
function.

Therefore, to research for the importance of studying Co-operative Economics and

Management in tertiary institutions, the strategies and to suggest few
solutions out of the million solutions to the failure of cooperative practices in the
institutions or organizations.

Furthermore, why education is necessary co-operative. Through the one hundred and 40
years of co-operative history, eminent co-operators have always insisted on the
importance of education to the cooperative movement. Robert Owen
emphasized, education for citizenship to achievement of a just and moral
society.

Rochdale Pioneer followed in his footsteps. This should be aside for educational
purposes because human resources is very essential to cooperative movement.

Advantages of a co-operative include that:

 there are equal voting rights for members

 this structure encourages member contribution and shared responsibility
 liability for members is limited
 there is no limit on the number of members

Disadvantages of a co-operative include that:


 members
 have equal voting rights regardless of investment - which may not suit an investor-driven
business
 legal limits on payments of dividends on shares may not suit an investor-driven
business

Cooperative Principles

1. Open and Voluntary Membership

Membership in a cooperative is open to all people who can reasonably use its
services and stand willing to accept the responsibilities of membership,
regardless of race, religion, gender, or economic circumstances.

2. Democratic Member Control

Cooperatives are democratic organizations controlled by their members, who
actively participate in setting policies and making decisions. Representatives
(directors/trustees) are elected among the membership and are accountable to
them. In primary cooperatives, members have equal voting rights (one member,
one vote); cooperatives at other levels are organized in a democratic manner.

3. Members’ Economic Participation

Members contribute equitably to, and democratically control, the capital of

their cooperative. At least part of that capital remains the common property of
the cooperative. Members allocate surpluses for any or all of the following

purposes: developing the cooperative; setting up reserves; benefiting members

in proportion to their transactions with the cooperative; and supporting other
activities approved by the membership.

4. Autonomy and Independence

Cooperatives are autonomous, self-help organizations controlled by their

members. Cooperatives are democratic organizations controlled by their members, who
actively participate in setting policies and making decisions. Representatives
(directors/trustees) are elected among the membership and are accountable to
them. In primary cooperatives, members have equal voting rights (one member,
one vote); cooperatives at other levels are organized in a democratic manner.

5. Education, Training, and Information

Education and training for members, elected representatives

(directors/trustees), CEOs, and employees help them effectively contribute to
the development of their cooperatives. Communications about the nature and
benefits of cooperatives, particularly with the general public and opinion
leaders, help boost cooperative understanding.

6. Cooperation among Cooperatives

by working together through local, national, regional and international

structures, cooperatives improve services, bolster local economies, and deal
more effectively with social and community needs.

7. Concern for Community Cooperatives work for the sustainable development of their
communities through policies supported by the membership.