Managing A Cooperative Society As Small Business Venture

Project and Seminar Material for Business Administration and Management BAM

Managing A Cooperative Society As Small Business Venture


Co-operative society was introduced into Nigeria in 1935.The objective include the pooling of sources together to achieve common goal and the substances of rural economy through marking fund available to the enterprising rural populace. However, members have been too much reluctant over the service offered to them by these co-operative societies, especially in Oji-River local Government Area of Enugu state. There is need to ensure effective and efficient management system in order to realize the aspirations of its member, for this reason, management system of Oji-River cooperative supermarket and the full participation of its members constituted the core of this research work. The research dealt with preliminary studies and statement of the problems, purposes, scope and significance of the study were properly treated. Furthermore, history of co-operative movement in Nigeria, importance of co-operative movement in rural development was covered. The research used both questionnaire and face to face interview method in data collection. In addition, the research highlighted problems and prospects as it concerns to co-operative education, marketing and production some of the problems besetting effective management system of co-operative supermarket Oji-River, not only emanated from their functional constraints and lack of orientation and massive education of member and staff but all due to poor accountability by the leaders, with respect to fund handling.

Chapter One


Cooperative movement is by and large a product of the altered socio-economic condition brought about by industrialization and a better farming economy in many of the advanced countries as well as the developing countries. Cooperative movement is designed to bring independent persons together for the betterment of their economic condition.

Cooperative I one or the other, have been used for effective 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 economic 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 Oji-River Local Government Area 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. These rapid Urbanization bring in it’s wake several problems for industrial workers and other fixed income earners who also have to compete for commodities.

In developing countries, scarcity of commodities leads to high degree of adulterated products 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 quantities of commodities selected are in accordance with the consumer taste and cooperate in an efficient manner at the prevailing margin to build up enough capital 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 therefore tend to improve the extent of which his subject organization has been able to apply the main techniques of business management with the view of identifying the area for improvement.

1.1 Background of the Study:

Onwukike M.J.C in his lectures 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, financed and controlled by them for socio-economic benefits.

Management it self can be defined as the process of designing and maintaining an environment in which individuals, working together in groups accomplished efficiently selected aim.

As managers, people carry out the managerial function of planning. Organization 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

This success of any cooperative society depends on the managerial ability of the executive and the unification or cooperative of the members. Therefore, poor management planning and market planning has being the case of Kerworm eating the productivity and revenue generation of some cooperative societies. Another problem facing cooperative societies is inadequate organizational structural and execution of plans.

One of the problems of cooperative societies is that most of the members are illiterate and some have never had the opportunity to attend workshops, seminar or symposia on cooperative society management.

Also inadequate and effective allocation of funds to business ventures hinders cooperative management.

Other problems include inadequate capital, poor competitive position and poor communication management strategies have caused a great failure in cooperative societies. This is the case with cooperative society in Oji-River

1.3 Purpose and Objective of the Study:

The broad objective of this research was to identify the problems in managing cooperative society. However, the following specific objectives have been carefully 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 problems

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 Research Question

The following questions will guide this study;

  1. Does co-operative societies provide social and economic benefits to the Oji- River local government?
  2. Does the government adequately provide support to cooperative societies in Oji- River local government?
  3. What are the problems militating against the management of cooperative society?
  4. What are the challenges of co-operative supermarket in Orji- River?

1.5 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 studies, management and trainers in cooperative discipline and other who may be keen in undertaking further research in cooperative management.
  2. To make available to the government and operational and decision making tool for efficient, effective and virile cooperative development.
  3. Numerous cooperators in the state will be exposed in area to exploit business.
  4. To help lectures in the cooperative field to teach properly.
  5. To help the cooperators as well as the future ones on the area of planning, organizing and business control to avoid liquidation.

1.6 Scope of the Study

In Oji-River Local Government Area, there are over 23 cooperative societies as at last year, over 85% of these societies lack effective management system. My study is therefore limited to Oji-River Supermarket cooperative area as a representation of problems cooperative society movement in Enugu State are Nigeria in general.

This research is limited to Oji-River supermarket due to time constraint and limited space

Other restriction occurs due to the attitude of the respondents that is their inability to give out information about the cooperation society.

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

Finally inaccurate information supplied in the questionnaires and financial problem.

1.7 Definition of Terms

Cooperative societies:

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

Small Business:

Small business 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 and industry with capital not exceeding #750.000 including working capital but excluding cost of land.

Share Holders:

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


They are the member of cooperative societies

Chapter Five

Summary, Conclusions and Recommendations:

5.1 Introduction

This chapter summarizes the findings on managing a cooperative society as small business venture using Oji-River Supermarket cooperative as case study. The chapter consists of summary of the study, conclusions, and recommendations.

5.2 Summary of the Study

In this study, our focus was on managing a cooperative society as small business venture using Oji-River Supermarket cooperative as case study. The study is was specifically aimed at; determining if co-operative societies provides social and economic benefits to the Oji- River local government, ascertaining if the government adequately provide support to cooperative societies in Oji- River local government, identifying the problems militating against the management of cooperative society, finding out the challenges of co-operative supermarket in Orji- River, and suggest ways of eradicating these problems.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 50 responses were validated from the enrolled participants where all respondent are member of the selected Supermarket cooperative in Oji-River local government of Enugu State.

5.3 Conclusions

Co-operative efficiency is a function organization- combining and utilizing human material and financial resources to achieve the common objective. Therefore, if co-operative is properly managed, the co-operative societies will provide some social and economic benefits to the Oji- River local government and Enugu state on general. This include; contributing to the Gross National products (GNP) of the country. And will also generate employment opportunities for the citizenry.

In the light of the analysis carried out, the following conclusions were drawn.

  1. Co-Operative Education: The learning ability of the society is not encouraging, this because most of the staff have no expert knowledge of the use of these modern equipment and consequently cannot teach the members of the usage effectively. Again the council uses annual general meetings as the majority means of educating members of the co-operative societies.
  2. The co-operative societies have limited resources of fund and this leads to substance nature of their activities, because successful farming demands 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 working capital: it is difficult for co-operatives to obtain loan from banks and grants government.
  5. Lack of accountability is a persistent problem the societies executives. This is because most of them are illiterates and have not learnt the techniques of accounting
  6. Most of the customers buy goods on credit and do not pay on time.
  7. The reliance of middlemen is the main problem of the co-operative supermarket Oji- River. They exploit them by given them false weight, pay low price and the market system is already out of data as it involves handling by too many buying agents who fail to give the producers best possible return. (a) co-operative supermarket Orji- River encountered the problem of poor transportation and warehousing and marketing of their producer.

5.4 Recommendations

The researcher considers it necessary to make the following recommendations to reduce problem facing co-operative 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 sources of fund like membership monthly dues, thrift savings, share capital etc.
  2. The leaders should also ensure adequate accountability with respect to fund handling.
  3. Government should try to aid co-operative through provision of grants and modern equipment
  4. The societies should repay their loan properly to ensure adequate credit worthness
  5. Public awareness of co-operative, incentives should brings more membership
  6. Co-operative organization should organize massive education and orientation for both members and staff of co-operative.
  7. Device like films, visitations should be providing to impact adequate knowledge.
  8. Middlemen should be eliminated and co-operative shops used as distribution center only.
  9. Leaders should try to hold general meeting at least once every month to know the needs of the members.
  10. Viable marketing system should be provided to help increase return

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