The Impact Of Co-Operative Business Organization In Socio-Economic Development (A Case Study Of Ekwusigo Lga In Anambra State)

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

The Impact Of Co-Operative Business Organization In Socio-Economic Development (A Case Study Of Ekwusigo Lga In Anambra State)


The role of co-operate in the socio-economic development of any society cannot be over emphasized. Co-operative movement plays an important role in the socio-economic development of any state. In Nigeria, the impact of co-operative movement in the development of the economy has not been fully recognized.

This contributed to the need for this research study, in socio-economic development of Ekwusigo Local Government Area. In this research study the major aim is to identify the contributions, future prospects, problems and recommendations for solving these problems.

Some relevant literatures about co-operative organization on this research study were reviewed. Data were then collected from Ekwusigo Local government Area in Anambra state, through questionnaires and oral interview.

The major recommendations are that co-operative business should be injected with more capital to boost their business, proper education to the members for effective management. The government should come to the aid of societies through loans, grants and subsides, this will go a long way to improving the members socio-economically.

With this recommendation, co-operative organization can stand a better chance to play a major role in socio-economic development of Ekwusigo Local Government Area.

Table Of Contents

Preliminary Page(s)

  • Title
  • Approval Page
  • Dedication
  • Acknowledgement
  • 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 Research Questions
  • 1.5 Research Hypothesis
  • 1.6 The significance of the study
  • 1.7 The scope of the study
  • 1.8 Limitation of the study
  • 1.9 Definition of terms

Chapter Two

2.0 Literature Review

  • 2.1 Introduction
  • 2.2 Cooperative Ethos and systems
  • 2.3 Brief history of cooperative society
  • 2.4 Organization of cooperative society
  • 2.5 Social and Economic viability in cooperative societies
  • 2.6 The Relevance of cooperative in Agricultural Development
  • 2.7 The need for cooperative in employment opportunities
  • 2.8 The problem facing Nigeria cooperative society opportunity
  • 2.9 The contributions of cooperative society in Nigeria

Chapter Three

3.0 Research Methodology / Introduction

  • 3.1 Research Design
  • 3.2 Population of the study/sample size
  • 3.3 Source of data
  • 3.4 Method of data Analysis
  • 3.5 Validation of research instrument

Chapter Four

4.0 Presentation and Analysis of Data

  • 4.1 Introduction
  • 4.2 data presentation

Chapter Five

5.0 Summary of Findings, Conclusion and Recommendation

  • 5.1 Summary of findings
  • 5.2 Conclusion
  • 5.3 Recommendation
  • Questionnaire
  • Bibliography

Chapter One

1.0 Introduction

1.1 Background Of The Study

The general history of co-operative can be traced back to industrial revolution which took place in the 19th century in England.

Co-operative societies are autonomous bodies formed by human beings with similar economic and socio-interest. Their major object is to improve on the socio-economic contributions of their members by mutual assistance.

The effort of the government basically is to enhance the socio-economic conditions of the citizens, this is prevalent in both developing and developed countries. There is a common task by the government and the citizen in trying to the vicious circle of underdevelopment. In pursuing and attaining these goals the formation of co-operative was advocated.

Co-operative can be viewed from different angles. According to Berko (1989) he gave a comprehensive definition of co-operative “as association of persons with variable membership, who have pooled themselves and their resources together on mutual or self-help basis to form a business enterprise which seeks to solve the socio-economic problems of these members by directly providing goods and service to them in their capacity as either the customers or employees of the co-operative enterprises.

In the above definition, some points are very important. First the society membership is voluntary and not by force, secondly the members must be free unlike what happen between the capitalist and their work where they were exploited and so many evils were made upon them. So co-operative can be seen as an effective instrument for obliterating the evils of capitalism.

The factory workers sufferings includes high prices of goods, very low wages, adulteration of goods and short weight and measures, long hours of work, unsanitary living and working conditions. As a result of these evils, a philanthropist and social reformer by name Sir Robert Owen (1771-1858) came to rescue of these poor workers by the formation of a consumer co-operative.

In Nigeria 1934, Mr C.P Shickland presented a report on the advisability of introducing co-operative in Nigeria 1935 marked the passing of the of the first co-operative ordinance known as the ordinance No 39 of 1933 with Mr. E.F.G Haig as the first registrar of co-operative. The first co-operative was the cocoa co-operative followed by credit and consumer co-operative societies.

Seeing the impact of co-operative in Nigeria, the Shagari’s led administration in 1980 established the federal department of Agriculture co-operative as one major step taken towards boasting food production in the country for the development plan period 1981-1985.

Later different types of co-operative were formed; their major objective is to increase the socio-economic of the members. This invariably contributed to the gross domestic product (GDP) which implies increases in economic development movement.

One of the ways co-operative led to economic development is through Agricultural co-operative. The resultant effect is shift to the secondary manufacturing sector. The total effect of this is large scale production, rise in the demand for manufactured goods and extend in the market size.

Agricultural co-operative also leads to expansion of the Agro-based industries. It leads to increase rural income and welfare, better feeding and housing, better services from schools, health centers, banks, and transport and communication facilities. All these improve the rural people’s standard of living which is a measure for economic development of a nation.

Co-operative business determines the degree of economic and social development of Ekwusigo Local Government Area and it is e very of the greatest activities which government can give support for effective development of the state.

Co-operative is seen as a tool for socio-economic development in most third world countries. Ijere (1986) stated that co-operative societies are remarkable instrument in development of developing states.
Helin (1986) stated that economic and socio-logical factors are the factors that were responsible for the development of co-operative. The economic factors was informed by the desire of the co-operative members to improve as their economic status to gain a considerable economic benefit. The sociological factor was as a result of people’s needs for security, leadership, self actualization and solidarity provided by the co-operative society.

1.2 Statement Of The Problem

The statement of problem in this study is to investigate the impact of co-operative business organization in socio-economic development in Ekwusigo Local Government Area. On the basis of this knowledge gained from this investigation, some recommendations will be made for improvement.

1.3 Objective Of The Study

The objective of this study is to focus on the efforts of basic social and economic needs in order to narrow the disparities in standard of living of population in Ekwusigo Local Government Area and stress on renewed poverty alleviation. Under these following base that this study can be appraised.

  1. To identify the activities of the study co-operative society in Ekwusigo Local Government.
  2. To find out the achievements and contributions of the societies to the development of Ekwusigo Local Government.
  3. To identify problems facing co-operative societies in the Ekwusigo local government area.
  4. To examine the source of finance of the cooperative society Ekwusigo Local Government
  5. To find out how to reduce poverty in Ekwusigo Local Government

1.4 Research Question

For the purpose of this study or based on the objectives as well as the problem statement of the study the following research question were postulated or formulated. This will enable the research to thoroughly examine the viability of the cooperative in the socio-economic development of Ekwusigo Local Government Area.

  1. To what extent have the cooperative societies enhanced the socio-economic development in Ekwusigo Local Government Area.
  2. What are the major problems encounter by the cooperative societies in Ekwusigo Local Government Area?
  3. What are the source of financing Cooperative societies in Ekwusigo Local Government Area?
  4. What are the achievement and contributions for the cooperative society to the development of Ekwusigo Local Government Area
  5. What are the contributions of cooperative in Ekwusigo Local Government Area towards poverty alleviation.

1.5 Research Hypotheses

For this purpose of this study the following hypotheses were tested and come up with the following results:-

  • Ho: lack of infrastructural facilities did not pose any problem to the realization of the dreams and aspiration of cooperative in Ekwusigo Local Government Area
    Hi: Lack of infrastructural facilities posed a lot problems to the realization of the dreams and aspirations of the cooperative in Ekwusigo Local Government Area
  • Ho: Cooperative has not contributed in the upliftment of the living standard of the members in Ekwusigo Local Government Area
    Hi: Cooperative has contributed in the upliftment of the living standard of the members in Ekwusigo Local Government area.

2.6 Significance Of The Study

The research work is aimed to analyse the importance of socio-economic development of co-operative societies of Ekwusigo Local Government Area especially to the rural communities.

  1. The research work can be also notice on the socio-economic amenities for the up keep of the areas where these co-operative may include construction of good roads.
  2. This research work can also give a directive to the state development planner and help them to identify areas which need crucial rehabilitation.
  3. This research work will help to eliminate doubts as to whether or not cooperative are of any significance in rural development of Ekwusigo Local Government Area.
  4. This research can give people who are ignorance of cooperative movement an open eye to the significance of cooperative societies which can help them be aware or knowledge about the activities of cooperative In existence.

Finally, the study will teach the members of cooperative societies the new economic and social order which will help the members to understand the rationality of organization in both cooperative and business.

1.7 Scope Of The Study

The scope of this study is that it should take proper care of socio-economic development in Ekwusigo Local Government Area. This research work will be limited to co-operatives in Ekwusigo Local Government Area.

1.8 Limitations Of The Study

The study emphasizes on the impact of co-operative business organization in socio-economic development in Ekwusigo Local Government Area. In carrying out this research work. The following constraints were experience.


Due to limited time and resources available for this study, the time given for the study was rather too short coupled with short semester period, the researcher being a regular student had to read and take lectures in other courses during the period of this study. This research requires concentration time and effort to enable the researcher come up with an exhaustive result.


Due to financial constraint as a result of the present economic condition of the students, the researcher was able to obtain review from libraries in Ekwusigo Local Government Area respectively.


Due to inadequate transportation system in Ekwusigo Local Government Area as a result of that, the transportation fare is costly which made it extremely difficult for the research to visit all the cooperative societies in Ekwusigo Local Government Area.


Due to finance and time constraint, the researcher limited literature view to what was obtainable in some textbooks, journals and seminar paper concerning cooperatives in Ekwusigo Local Government Area and also what were taught in the class. All these mentioned above are the major limitation in this research work

1.9 Definition Of Terms

For more classification and easy understanding some of the terms used by the researcher are defined below:

International co-operative Alliance (1995) defines co-operatives as an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through jointly owned and democratically controlled enterprise

Calvert defined co-operative as an association of human beings where in persons invariably of limited or moderate means, voluntarily associate as human beings on a basis of equality for the promotion of their common economic, social and moral interests by honest means and distribute their profits or surplus amongst themselves in proportion to their contribution made for earning that surplus or service.

Berko (1989) defined co-operatives as an association of persons with variable membership and variable capital who have pooled their resources together on mutual or self-help basis to form a business enterprise which seeks to solve the socio-economic problems of these members by directly providing goods and services to them as owner/customer or owner /employee of the co-operative enterprise.

It is also defined as a collection of persons who have voluntarily joined together their resources and having as its primary objectives the promotion of the socio-economic needs of the members through self-help efforts. Such an association is democratically managed by members in line with agreed co-operation principles.

Others see co-operative as an association for business social and political services. Only one concrete agreement is that co-operatives are socio-economic as well as social services to the patrons and investors alike.

Chapter Five

5.0 Summary Of Findings, Conclution And Recommendation

5.1 Summary Of Findings

From the research work carried out, I discovered that cooperative organization creative employment opportunity. This reduces the rate of unemployment in the community and also helps in the provision of educational services to the members.

Cooperative organization helps to control inflections by increasing the suppliers of food and improve distribution channel and also help in the transferring technological development in both agricultural sector and in small business.

Cooperative organization in Ekwusigo LGA has tremendously help in the development and uplifting the living standard of the members and the populace.

The study also reviews the contributions of cooperative organization, most of the write up contracted shows that most cooperative organization still follow the lay-down procedures and principles of the organization.

Despite the huge success of cooperative organization, they still have some problems which made them not operate effectively those problems are:

1. Lack Of Competent Manager:

This also constitute a problem of cooperative organization, not competent person to manage the affairs of organization.

2. Lack Of Capital:

Cooperative organizations lack capital to take care of the financial obligation which effects the performance of the organization.

3. Illiteracy:

Some of the members are not educated, they lack understanding and always suspect those cite managing and affairs of the organization make it difficult in decision making.

4. Lack of Government Assistance:

Government does not have much assistance to the cooperatives.

5. Embezzlement:

Those managing the affairs of the cooperative organization do embezzle and misappropriate the fund of the organization making them to close down without any body questioning them.

5.2 Conclusion

The role of cooperative organization in improving the life of the rural in inhabitants cannot be over emphasize, it is on that regards that government use them as an agent for social and economic transformation.

There is need to improve the effectiveness of cooperative organization because when this is done it will enhance the standard of living of the people and as well as improving the economic development of the nation.

People should know the important of cooperative organization and join or form so that most of the economic problems will be solved, it has been said that cooperative organization enhance economic development but can not be done unless people starts approach it from right angle so that to get those opportunity of improving their standard of living. Cooperative organization should be regarded as a good venture people should endeavor to form.

Finally cooperative should be treated as a distant sector in future, government plans and budget.

5.3 Recommendation

On the basis of the findings from the research, the following recommendations were made to the cooperative organization.

Law should be enacted for share holding in different organization so that they would have authorized capital and minimum paid up capital to enable them have more money and solve their financial problem. Cooperative organization with surplus in cooperative so that hey will not lack fund.

Each cooperative organization should endeavour to organize classes for those of its members who are not educated so that they can help in the decision making and also should be able to reach and appreciate the book of the account of the transition.

Government should consider cooperative organization when making law and that law make by the government should not affect the effectiveness operation of cooperative organization and also government should provide assistance to cooperative organization such as technical, administration such as technical, administrative supervision and educational assistance to the cooperative organization.

Cooperative organization should start collecting collateral before giving out loan so as to make these people offered loan to pack back and monitor them so that hey should not divert to other things apart from what they money is meant for.

Finally, cooperative organization should be given impart license to import some commodities for the general public.
With the above recommendation it apply the long way to increase improve the living standard of the people and also in the economic development.

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