The Role Of Cooperative In Employment Generation (A Case Study Of Nchara Oloko In Ikwuano L.G.A.)

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

The Role Of Cooperative In Employment Generation (A Case Study Of Nchara Oloko In Ikwuano L.G.A.)


This study evaluate the role of cooperative in employment generation in Nchara Oloko in Ikwuano L.G.A Of Abia state Nigeria. according to some authors they see cooperative as an organization which comprises a group of person in the sociological sense, who operate individual, private business households in which one or more common aims/problem have arisen and has/have brought the group together in self & or mutual help towards solving the common problems by means of a business enterprise which is jointly owned/maintained by the group and is meant to produce not just any goods/services but rather good and services as required by and made available directly to the business household of the members in response to a special charge to promote the (economic) welfare of the members as individual private businessmen, owners of private households and in the special case of the productive cooperative, employees of the cooperative enterprises.

TWO resources of data namely, primary and secondary data were used.

Questionnaires were also used as a research instruments to supplement information while the hypothesis testing was conduced using chi-square (x) 2 at the end of the study, it was deduced that problem such as: the following hinders cooperative business viz:

  1. Lack of capital
  2. Lack of member’s commitment to cooperative business.
  3. Poor management ability etc

On the basis of the above findings, and conclusion the following recommendations were made to improve the performance viz:

  1. Exploring all available opportunities was made to expand their fund raising ability.
  2. Cooperative should mobilize and move funds so as to be involved in more economic activities, that will generate more employment with the above recommendations, it is hoped that the performance (Role of cooperative within the L.G.A. and beyond especially on their employment generation will improve).

Table Of Content

Preliminary Page(s)

  • Title page
  • Approval page
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of contents

Chapter One

1.0 Introduction

  • 1.1 General overview of the study
  • 1.2 Statement of the study
  • 1.3 Objective of the study
  • 1.4 Scope of the study
  • 1.5 Research hypothesis
  • 1.6 Statement of hypothesis
  • 1.7 Significance of the study
  • 1.8 Limitation of the study
  • 1.9 Definition of terms 1

Chapter Two

2.0 Literature Review

  • 2.1 An overview of cooperative business
  • 2.2 Problem related to cooperative business 2
  • 2.3 The employment creation potential of Cooperatives
  • 2.4 The comparative advantage of cooperatives in the field of employment generation/creation and stabilization.

Chapter Three

3.0 Research Methodology

  • 3.1 Introduction
  • 3.2 Research design
  • 3.3 Sampling design
  • 3.4 Sources and data collection

Chapter Four

4.0 Presentation and Analysis of Data

  • 4.1 Test of Hypothesis

Chapter Five

5.0 Summary, Conclusion and Recommendation

  • 5.1 Summary of findings
  • 5.2 Conclusion
  • 5.3 Recommendation
  • Bibliography
  • Appendix
  • Questionnaires

Chapter One

1.0 Introduction

1.1 Background Of The Study

Cooperative according to Chukwu (1990:1) is a generic term. It implies any form of two or more persons working together to achieve some aim, such working together many be on a formalized or informal basis, economic or non-economic.

However, a cooperative society is an association of person who have voluntarily joined together to achieve a common goals through the formation of a democratically controlled organization, it has long been a human characteristics to fraternize to provide food, shelter, employment and other forms of mutual support, mutual benefits derivable by families and individuals working together at harvest.

More over cooperative has involved as a strategy to generate economic activities in area of high implement i.e. generation of employment, such as Ikwuano L.G.A. or wherever the local economy is work or virtually non-existents.

Furthermore, membership is open to the residents of a particular locality. The establishment of community enterprises will almost certainly be multi functional in that it will be responsible for a member and a number of specific projects at any given time. It will both initiate business idea within the people in Nchara Oloko and help the masses to develop their ideas. It may also intervene in various ways in the local economy of Nchara in particular and national economy at large. It may sponsor projects of community benefits in addition to its own trading activities and business development and local development both holding company and local development agency, with the aim of seeking to provide a communal structure in a particular locality on behalf of the residence such specific enterprises might be floated as self sustaining business life cooperative.

This community is thus more than trading organization it is a means of stimulating new business growth in areas like Nchara Oloko and also among people where there is little or not tradition of entrepreneurial activities and usually a history of long term unemployment and social depreciation.

Community cooperative and community business are established mostly in areas of high unemployment so as to generate employment where their starting is likely to be the question posed by local people. What can we do to get people employed.

They search for forms of self-help by community groups and unemployment themselves have gained considerable momentum in the last decade. As practical experience has been gained more groups have been inspired to do something in their own areas, an action born out of a growing belief that neither public nor private industry will be quick enough to provide the job that are needed and of a preference to do something rather than wait on other action.

1.2 Statement Of Problems

The issue of employment generation can be said to be as old man, since no man can make progress when idle. Now that there is a high rate of employment resulting in comparative high rate of emigration. In 1985 the country’s labour force employed about 14 million, which has increased by 16% over the decade. There are over 250,000 unemployed persons and emigrations again increase (Daily Time Sept 19th 1995).
A cruel twist is that many of our emigrants and the unemployment are the bright graduates or our universities and other higher institutions they were educated with tax payers money.
Nigeria as a nation is segmented into two:

  1. Those who have the world as their paradise and can secure good employment in civil or private sector etc.
  2. Over 24 of our population who face poverty everyday of their life and helpless without the following disturbing statistics, more than one quarter of the population of the developing world still lives in poverty as measured by the human poverty index HPI.

Income poverty is more pervasive than human poverty and it continues to grow in other worlds, high unemployment has reduced highly educated people to poverty.

However, there is, no fact that cannot be over emphasized, that is no country can succeed in providing a reasonable standard of long for its citizens without developing its own trade institutions that are relatively large, technically sophisticated and able to complete in the international market, in that respects, cooperative activities must be developed and relatively large to absorb our employed population.

1.3 The Objective Of The Study

The objective or general purpose of the study/research is to investigate the effort of cooperative in generative employment in Nchara Oloko in Ikwuano L.G.A.
However, the specific objective of the study is as follows:

  1. To identify active cooperative societies existing in Nchara Oloko in Ikwuano L.G.A.
  2. To analyze economic activities of cooperative societies in the area.
  3. To assess the involvement of members in economic activities of cooperatives.
  4. To assess the impact of cooperative activities on employment generation in the area.
  5. To identify problems affecting cooperative in its activities.
  6. To analyze the problems of cooperative in the area.
  7. To make recommendations

1.4 Scope Of The Study

The scope of this write up is to know the role of cooperative in employment generation n our community using Nchara Oloko in Ikwuano L.G.A. as a case study.

The scope of this study is very wide if its has to be carried out in all Ikwuano L.G.A. the study is limited based on the fact that there is no time and materials resources to see the whole Nchara Oloko in Ikwuano government areas.

Also the scope have to be shortened in some selected cooperative in Nchara Oloko because of time (duration) finance proximity (distance) also inadequate data non-cooperative altitude of some official visited in limitation to the completion of this work. The phrase role of cooperative employment generation already brings to our attention that there are some other ways of employment generation but this study is religiously restricted to the role of cooperative only.

1.5 Research Question

  1. How many cooperative are still active in Nchara Oloko in Ikwuano L.G.A?
  2. Have cooperative impacted education on members and employees?
  3. Would you say that cooperative have created the much needed employment opportunities in your L.G.A?
  4. How committed are the members of your cooperative?
  5. As a member of a cooperative society have you ever applied for loan?

1.6 Statement Of Hypothesis

Ho: Cooperative has not played any role in employment generation in Nchara Oloko in Ikwuano L.G.A

Hi: Cooperative has played a vital role in employment generation in Nchara Oloko in Ikwuano L.G.A

1.7 Significance Of The Study

Cooperative business is the route to the ownership of capital and likewise participation towards the economic and industrial growth of a nation. This research is particularly importance to the growth of people as it provides the following.

  1. Opportunities to persons who may need to appreciate what constitutes cooperating business in generating employment are expected to be encountered.
  2. The study is practically significance to the Nigerian government as it affords the government aim opportunity to appreciate the problems facing the establishment which must be looking under laid down rules/principles.
  3. The profitability process venting in cooperative business.

1.8 Limitation Of Study

This study is limited to Nchara oloko in Ikwuano L.G.A. and the findings may not be valid for the whole local government but by and large, what happens in Nchara can be said to apply in other cooperative in the town.

All human activities are beset with some problems which the researcher encountered during the course of the study. Some of the problems are listed below:-

Firstly, problem of transportation due to the scarcity of fuel during the distribution and collection of the questionnaires for the project.

Moreso, problem of finance this made the researcher to limit the study to Abia state as she could not travel to gather facts outside Abia state.

Lastly, lack of time coupled with crowed semester programmed. The researcher was attending classes at the same time working on her project.

1.9 Definition Of Terms


It is a form of business, which involved the coming together of individuals who have same socio-economic problem to pool their resources together in other to help solve it. The cooperative must be registered and must be working under laid down rule/principles.


A business deals with buying and selling trade or commercial establishment. Also business is viewed as a means of satisfying human want. Because is that vital organ or society that is responsible for providing the society with goods and services.


It is the act of employment or using the state of being employed occupation, business, which one undertakes to occupy her time.


Is said to be an organizational process that is involved in utilizing human and materials resources of the organization for the purpose of accomplishing defined objectives. The need of coordinating efforts, towards attainment of results. It also implies the process of planning, organizing, directing and controlling the effort of organization members by using al other organizational goals.


This is measurement of effort by comparing how much is produced with the resources utilized.

Micro Credit:

This are short term loans given for production activities the loans are normally small and interest paid on it is not too high.

Chapter Five

5.0 Summary Of Findings, Conclusion And Recommendations

5.1 Summary Of Findings

This has far evaluated the employment potential (roles) of cooperative business enterprises in Nchara Oloko in Ikwuano L.G.A. of Abia state and Nigeria general. As earlier stated, the study was purely and essentially specific and as result, the research design adopted by the researcher was the field survey, data was collected from questionnaires administered to cooperative societies as well as oral interview conducted. Also books, internets and related materials contributed in assembling data for the work. The data collected were analyzed in the hypothesis formulated at the beginning of the study. It should however noted that due to the relationship between the employment possibilities and their effectiveness which was highlighted earlier on the study, this study viewed the employment generation as the effect cooperative enterprise in Nchara Oloko in Ikwuano L.G.A.

5.2 Findings

Generally, at the end of this study, the following findings were made based on defense from the data analysis and the result of hypothesis testing.

  1. Cooperative business exists in Nchara Oloko in Ikwuano L.G.A.
  2. Cooperative business holds employment generation in Nchara Oloko in Ikwuano L.G.A.
  3. Each cooperative business set up has goals and objective, which it wishes to achieve, and for what it comes into existence, but how to get the members towards achieving those goals remain a problem.
  4. Also cooperative business in Nchara Oloko in Ikwuano L.G.A. apart from improving the value of the goods and service engaged themselves in the production of such goods and services and most importantly utilize low capital cost for creating employment opportunity.
  5. Cooperative business operating in Nchara Oloko in Ikwuano L.G.A. encounter a lot of problems prominent among which are lack of funds, managerial inefficiency, limited access to credit facilities, dilapidation, unreliable and sub-standard infrastructural facilities, lack of members commitment (Lack of cooperative nexus).
  6. Cooperative organization suffer for low share capital as a directed consequence of low membership size and general poverty among the members coupled with non-negotiable and non-holding of multiple shares.
  7. The embezzlement of fund in some cooperative societies by corrupt officials, members display high degree of apathetic attitude towards the affaire of their society, this affects employment generation.
  8. Cooperative organizations in Nchara Oloko in Ikwuano L.G.A. extend cooperative education to some of their members and employees and this gesture help to improve their importance.
  9. The prevailing economic depression of the country has adversely affects the employment potential and consequently the efficient and effectiveness of cooperative business organizations.
  10. The cooperative lack the ability or rather are not knowledgeable enough to explore all available opportunities that can expand their ability to borrow extend credit and invest fund as cooperative banks are regularly being hijacked by other interest groups.

5.3 Conclusion

This study has successful evaluated the employment generation of cooperative organization in Nchara Oloko in Ikwuano L.G.A.

This study has equally identified some problems militating against the success and survival of cooperative business especially as it affects employment generation with a view to findings solutions to them.

However, bearing in mind the objectives of this study which was the role of cooperatives in employment generation in Nchara Oloko in Ikwuano L.G.A. It could be concluded that cooperative have played a meaningful role in employment generation within this present economic scenario in Nigeria, but yet they still offer some prospects.

Moreover the low employment generation resulted as a result of some factors responsible for this state of affairs which include lack of inadequate shares, capital, poor feasibility study, illiteracy, lack of encouragement from government.

Also lack of members commitment and managerial incapacities. This problem as long as they exist, the employment generation role of cooperatives business cannot improve.

Finally, a recommendation have been made and if the recommendations suggested are implemented by both individuals and government at all levels, the roles of cooperative in employment generation in Nchara Oloko in Ikwuano L.G.A. in particular and Nigeria at large will improve.

5.3 Recommendations

The following recommendations are made improving the overall performance if cooperative and the role they play in employment generation.

  1. Mapping out strategies and measure to increase membership.
  2. Removal or review of laws and regulations containing cooperative ability raise fund.
  3. Cooperative should refrain from looking up to government for assistance and be innovative in their fund raising activities,
  4. Distribution of some percentage of research fund to retrieving members as a way of encouraging political membership.
  5. Responding to the complex economic environment of today to being innovative in choice of financing sources and strategies.
  6. Cooperative education should be impacted to the employee and members of cooperative societies.
  7. Government assistance through development of loan guarantees schemes.
  8. Cooperative should mobilize more finds so as to be involved in more economic activities

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