An Analysis Of The Different Regular Sources Of Cooperative Finance (A Case Study Of Some Selected Cooperative Socieites In Ideator South Local Government Area, Imo State)

Project and Seminar Material for Cooperative Economics and Management (CEM)

An Analysis Of The Different Regular Sources Of Cooperative Finance (A Case Study Of Some Selected Cooperative Socieites In Ideator South Local Government Area, Imo State)


In the course of this research work topic “An Analysis of the different regular sources of cooperative finance project was appraised. This was done in order to evaluate the different ways of financing the cooperative project. In cooperative finance project, a lot of sources are enumerated but the most source of it is the share capital which are contributed by members of the society.

Data for the research work was collected from both the primary and secondary data, which include questionnaire, personal face to face interview etc. The general constraints that militate the achievement of the cooperative project and how it affect the societies at large was also identified.

Finally, to court these constraints, the cooperative society should look for a way to increase their share capital; moreover, the government should assist the society regularly and not seldom so that meaningful project can be initiated.

Table Of Contents

Preliminary Page(s)

  • Title page
  • Approval page
  • Dedication
  • Acknowledgment
  • Abstract
  • Table of Contents

Chapter One

1.0 Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of the Problem
  • 1.3 Objectives of the Study
  • 1.4 Scope of the Study
  • 1.5 Research Hypothesis
  • 1.6 Significance of the Study
  • 1.7 Limitation of the Study
  • 1.8 Definition of Terms

Chapter Two

2.0 Literature Review

  • 2.1 Definition of Cooperative
  • 2.2 The Role of Finance in Business Enterprise
  • 2.3 Source of Cooperative Finance
  • Reference

Chapter Three

3.0 Research Methodology

  • 3.1 Introduction
  • 3.2 Research Design
  • 3.3 Method of Data Collection
  • 3.4 Population
  • 3.5 Sample Size
  • 3.6 Method Of Data Analysis
  • 3.7 Questionnaires

Chapter Four

4.0 Presentation and Analysis of Data

  • 4.1 Presentation of Data
  • 4.2 Analysis of Data
  • 4.3 Test of Hypothesis

Chapter Five

5.0 Summary, Conclusion & Recommendations

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendation
  • Bibliography

Chapter One

1.0 Introduction

1.1 Background Of The Study

Cooperative organization as a form of business organization and an instrument of government development police have undergo series of problems.

The history of Rockdale Equitable pioneers has shown that began in Britain as a revolt against evil practices of individualistic capitalism. Therefore, it emerged as an attempt to create a new, social order where human values will be respected from the equitable pioneers ideas and those of prominent crusaders such as Robert Own, William king, Charles, Philip Buchere, France and all over the word.

Since cooperative arises when individuals realized the need and benefit of acting collectedly, everything aims towards serving great economic need or advantage of members.

But coming to the developing countries of the world of which Nigeria is not exclusive, and taking a critical look at the nature of the problem of which this research work as based that is financial problem in the cooperative, this happens to be the most important bottle neck to rapid cooperative development.

Robert Owen is one of the prominent crusaders, who a capitalist and factory owner, He adopted humanitarian idea of treating the workers with respect, he paid than lucking wages, reduced their hours of work, put a stop to child labor, keep the factory clean, started school for workers children, created workers leisure hours for games and recreation, retained part of the profit made for weeks welfare etc. all these were done in the belief that people world work best if they are healthy and happy. He further proposed that government should pass factory acts regulating factory conditions and enforcing children education.

1.2 Statement Of The Problem

In third world countries which are most peasant economics, the limited amount of capital determines the small scale nature of the most industries and agricultural enterprises. The smallness in sizes of the business is also one of the factors giving rise to low income, low capital formation and hence low investment.

The low income in relation to the requirement for production and consumption, ha often led to peasant farmers in the post to seen financial help from money lenders and small scale industrialism. Today some aphesis is now being placed on the encouragement of cooperation’s for carious resources for the advancement of their members but because of the structure of most cooperative, the finance of cooperative make available information about their operations, cooperative finance method are not usually understood by people both inside and outside the cooperative circle.

1.3 Objectives Of The Study

The general objectives is to generate adequate information in area of problem definition. The information is expected to improve the present knowledge about cooperatives and economic activities and different sources of financing cooperative development and to provide knowledge of capitalization. Such information can be of help in designing appropriate strategy for improvement.

The objectives can be further classified into following :

  1. To identify the regular source of finance to a cooperative.
  2. To determine the advantage, disadvantage and cost of each source of finance.
  3. To determine the effects of each source to cooperative development.

1.4 Scope Of The Study

The are intended to cover in the course of this investigation are stated as follow,

  1. How cooperative finance the economic activities or project.
  2. Identify the regular source of each source of cooperative finance in Ideator south.
  3. The advantages, disadvantages of each source of finance.
  4. The necessary steps taken to see that the problem is solved or minimized

The interest has been focused on the area of primary cooperative organization while the approach adopted in investigating the present problem area focused on gaining deeper understanding of what is happening in the real world.

1.5 Research Hypothesis

The following hypothesis were formulated and going to be tested.

  1. HO; Insufficient of fund has led to poor funding of cooperative project.
    HI; Sufficient of fund has led to good financing of cooperative project.
  2. HO; Irregular assistance through loans has affected the cooperative financing project
    Hi; Regular assistance through loans has not affected cooperative financing project.

1.6 Significance Of The Study

Generally, the important of cooperative Financing can not be over emphasized, being a formal at business organization and a total social reformation cooperatives need adequate capital formation to discharge its activities effectively.

The investigation therefore strives to develop in to details on how cooperatives are financed with special interest and reference to Ideator south local government Area. This will provide enough guidance to prospective, an incumbent cooperative on the best ways of financing cooperative organizations.

This investigation will also unravel those problems that are associated with the financing of cooperatives which is the most battlement to cooperatives development in the developing countries of the word which Nigeria is inclusive.

1.7 Limitation Of The Study

In carrying out this research, the research encountered some difficulties or constraints and inherent factors the results. These factors include.


financial problem encounter in the cones of this work limited the research from getting more text books, journals, seminal works magazines relating to how cooperatives sort for funds for financing their projects more so, the high cost of transportation to and to the cost study area.

Time Constraint:

This research work was carried out in second semester which involves lectures, time papers, research in other courses and examination and Test etc. thereby necessitating the disruption and jam packing of academic work.

Attitude Of Some Respondent:

Another difficulty was the respondent unwillingness and some times blunt refusal to most of those who are in possession of the research materials could not do it.

Library Insufficiency:

This insufficient text books at the school library lack books relating to the research topic, at times the re-arrangement of text at the librarys reference room also constitute a limitation

1.8 Definition Of Terms


According to Bob-IGWE .It is association of person united voluntarily to meet their common economics, social cultural needs and aspiration through jointly owned and democratically controlled enterprise.


It refers as cash or its equivalent for example, chaquevalent for example, cheqne, drafts, money, it is also a percent stock capital which is used for a set purpose, a store. According to UZOKA N.D. ( 2006)

Financial Techniques:

This is the process of raising money necessary to organize, recognize, recognize or extend on enterprise either by sale of stocks, bounds notes or otherwise.


This is a board programmed for achieving organization and thus implementing its mission. Strategy also creates a united direction for the organization in term of its main objective and its guides for development of the resources used to move the organization towards those objectives (seonner 1982)

Economic Activities:

This is the science of anything done or performed which deals with the ruler governing the production, distribution and consumption to the words resources and the management of states and expenditure in term of money (mc crow and Hill 1973)

Development Economy:

It is a process by which capital income is increasing but at lower rate relative to the most advanced countries in Nigeria is recognized as one of the developing nation (NRANG 1980)

Chapter Five

Summary, Conclusion And Recommendations

5.1 Summary

This study is far discussed various regular source of cooperative finance.

The researcher choose different cooperative societies for the study, 52 respondents respondent to the questionnaires issued to them and the following facts were discovered.

First and foremost, I discovered from the returned questionnaires the most source of finance in the cooperative finance is share capitals which have various advantages. M0reover, it is observed that there are some problems which militate against the financing of cooperative society project some which include smaller in size, some which are difficult and too hard to get finally inadequate utilization all these are main constraints and impediments that militate against the financial of cooperative project.

5.2 Conclusion

There are lots of financing options for cooperative societies and proper harnessing of these options will definitely give rise to cooperative effects / advantages.

Notwithstanding, the cooperative society find it difficult to improve on the profitability and progress of the society due to smallness of their share capital and how difficult it is before member get it.

So, at this juncture, it is worthy for cooperative to increase their alternatives source of financing the society project level in order to ensure that their financial position in financing economic project is improved.

5.3 Recommendation

I, hereby recommend that a cooperative society needs to be carefully planned and scientifically organized form the beginning. Identifying financing options for cooperative societies is one issue and the application and control at funds are equally essentially. Cooperative society should make use of carefully prepared feasibility studies before embarking on any business venture. This should back with stead, inspection exercise and other internal control mechanisms. The golden rule for cooperative organizers is NOT TO SET UP A COOPERATIVE TOO HASTILY …ONUOHA ( 1996:2) furthermore the society should embark on education Confronting the publics on the new to join cooperative, when this is the case, the share capital will be increased which will lead to improvement of financing the cooperative project.

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