Managing Cooperative As A Small And Medium Business Enterprise (A Case Study Of Proda Staff Cooperative Thrift And Loan Society Emene Enugu State)

Project and Seminar Material for Cooperative Economics and Management CEM

Managing Cooperative As A Small And Medium Business Enterprise (A Case Study Of Proda Staff Cooperative Thrift And Loan Society Emene Enugu State)

Chapter One

1.0 Introduction

Cooperative movement is by a large product of the altered socio-economic condition brought about by industrialization and a better farming economy in many of the advanced countries well as the developing countries.

Cooperative movement is designed to bring independent persons together for the betterment of their economic condition.

Cooperative one or the other have been used for effectively in one form or the other. Labour combination of Agro-industrialization development programme with the aim of promoting more egalitarian distribution of economic growth in all communities. Hence the slogan “self help through mutual help” by cooperators. The government of a country has been helping in the formation of cooperative societies since it is a way to improve the economy as well as the standard of living of the populace, greater emphasis has been laid on rural development and self dependency and sufficient in food production. In Enugu state and in Nigeria as a whole urbanization for instance is taking place at a rap rate owing to a variety of such factor as immigrations growth of industrialization and high rate of population increase. This rapid urbanization brings in its several problems for industrial workers and other fixed income earners who also have to complete for commodities. In developing countries, scarcity of commodities leads to high degree of adulterate goods and high prices. In this case, cooperative societies has to ensure adequate supply of commodities anticipate members demand, buy commodities in required quantities ensure that selection and quantity of commodities selected are in accordance with the consumer taste and cooperate in an efficient at the prevailing margin to build up enough capita for future development. These task call for a high degree of management skill and development of proper organizational structure and system that ensure efficient operation. This research work therefore tend to improve the extent of which has subject organization has been able to apply the main techniques of business management with view of identifying the areas for improvement.

1.1 Background of the Study.

Onwukike M.J.C in his lecture titled “structure and organization of cooperative said that a cooperative society is a business organization registered under the cooperative society law. It belongs to people who own and use it” services. It is also run financial and controlled by them for socio-economic benefit. Management it’s self can be defined as the process of designing and maintaining and environment in which individuals working together in group to accomplished efficiently selected aim.

As a manager people carry out the managerial function planning organizing, staffing leading and controlling. Management is concerned with productivity that implies effectiveness and efficiency with the sole aim of creating surprise. This help to rectify the problem of poor management in cooperative societies and to mobilize the rural people to fully participate in socio-economic development.

1.2 Statement of the Problem

The success of any cooperative society depends on the managerial ability of the executive and the unification or cooperation of the member. Therefore, poor management planning and market planning has being the case of cankerworm eating the productivity and revenue generation of some cooperative societies. Another problem facing cooperative societies is inadequate organizational structure and execution of plan. One of the problems of cooperative societies is that most of the members are illiterates and some have never had the opportunity to attend workers seminar or symposia on cooperative society management. Also inadequate and effective allocation of funds to business enterprises hinders cooperative management. Other problem includes inadequate capital poor competitive position and poor communication management strategies have caused a great failure in cooperative society in emene Enugu State.

1.3 Purpose and Objective of the Study

The braod objective of this research was to identify the problems in managing cooperative society. However, the following specific objectives have been delineated by the researcher for achievement.

  1. To identify
  2. To find out
  3. To determine
  4. To ascertain
  5. To suggest

Ways of eradicating these problem. Another purpose is to know the factors militating against the growth of cooperative societies and the contribution of government in finding cooperative societies.

1.4 Significance of the Study

The important of this study is to meet the following demands:

  1. To provide more available information to student of cooperative societies, management and trainer in cooperative discipline and other who may be keen in undertaking further research to cooperative management.
  2. To make available to the government and operational and decision making tools to efficient, effective and virile cooperative development. Numerous cooperators in the state will be exposed in area to exploit business.
  3. To help the lectures in the cooperative field to teach properly.
  4. To help the cooperative as well as the future ones on the area of planning, organizing and controlling of business to avoid liquidation.

Scope of the Study

In Enugu East Local Government Area, there are over 7 cooperative societies as at last year, over 85% of these societies lack effective management system. My study is therefore limited to Proda Staff Cooperative Thrift and loan Society Emene Nike Enugu cooperative area as a representation of problems cooperative society movement in Enugu State and Nigeria in general. This research is limited to Proda staff cooperative thrift and loan society due to time constraint and limited space, other restriction occurs due to the respondents, that is their inability to give out information about the cooperative society.

Another limitation arises as a result cost of transportation which was quite exorbitant in buying text book and research work.

Finally inaccurate information supplied in the questionnaires and financial problem.

Definition of Terms

Cooperative Societies:

This is defined as a form of organization where people voluntarily associate together as human beings on the basis of equity for the promotion of the economic interest of themselves.

Small Business:

This is defined as a type of business which the managers are also the owners; they operate mainly in local areas with a limited size. According to NBCI (Nigeria Bank of Commerce and Industries). It is defined as an industry with capital but excluding cost of land.

Medium Business:

This is a business independently owned and managed. Profit seeking enterprise with fewer than 100 employers (krectner 1995-1962) It is also a business that is managed by some experienced people not fully educated in the field.

Share Holders:

They are those that contribute to the capital used in established business.

Chapter Five

5.0 Finding, Recommendation and Conclusion


The major findings of the research project are summarized below:

  1. COOPERATIVE EDUCATION: from the research project conducted, the research observed that the learning ability of the society is not encouraging, this because most of the staffs have no expert knowledge of the use of modern equipment and consequently cannot teach the members the usage effectively. Again the council uses annual general meeting as the majority means of educating members of the cooperative society.
  2. The cooperative societies have united resources of fund and this leads to substance nature of their activities because successful farming demand a great deal of money.
  3. Manpower planning is done on a skeletal level the range is one year and it is on the previous performance.
  4. Lack of accountability is a persistent problem the societies executives. This is because most of there are illiterates and have not learnt the technique of accounting most of the customers buy goods on credit and do not pay on time the reliance of middlemen is the main problem of the cooperative thrift and loan society Emene Enugu. They exploit them by given them false collateral after borrowing from them out of the data as it involves handling by too many buying agents who fail to give the best possible return.
  5. In production of cassava, yam and other items the Proda staff cooperative thrift and loan society encounter the problem of poor transportation for delivery of their farm produce a lack of warehouse for storage of their produce.


The research considers it necessary to make the following recommendation to reduce problem facing cooperative and to ensure viability and growth.

  1. On the area of finance, they should depend on themselves through mobilizing for economic transportation. They should increase their internal source of fund like membership monthly dues, thrift savings, share capital etc.
  2. The leaders should also ensure adequate accountability with respect to find handling.
  3. Government should try to aid cooperative through provision of grants and modern equipment.
  4. The society should repay their loan properly to ensure adequate credit worthless public awareness of cooperative incentives should bring more members. Cooperative organization should organize massive education and orientation for both members and staff of cooperative.

Devise like films, visitation should be providing to impact adequate knowledge middlemen should be eliminated and cooperative shops used as distribution centre only. Leaders should try to hold general meeting at least once every month to know the needs of he members. Viable marketing system should be provided to help increase return.


Cooperative efficiency is a function organization combining and utilizing human material and financial resources to achieve the common objective. Therefore, it cooperative is properly managed the cooperative societies will provide some social and economic benefits to the PRODA STAFF

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