1.0 Introduction
Co-operative as a business model, are not a new concept in Nigeria. Co-operative act as agent towards sustainable community development. Cooperative act as an important role in community development in the rural, northern and remote communities, they provide a means of addressing many social and economic concerns as youth retention, community identify/spirit and preventing leakage f local money.
A Co-operative is defined by international Co-operative Alliance statement on the Co-operative identity as an autonomous association of person united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owed and democratically controlled enterprise.
It may also be defined as a business owned and controlled equally by the people who use its services or who work at its Co-operative economics.
1.1 Background of the Study
Co-operative society is a society formed by a group of persons who have voluntarily agreed to come and pull their resources together to finance and control for their economic benefit (Ozuitem and Mbanasor 2009).
In light from the foregoing, co-operative organization are business organizations that invest much concern on its member's economic well being through contributory efforts with the aim of achieving a set goal. (Mbansor 2005).
Co-operative Society contributed to the society's economic development in so many ways. It is also center where Government operates its activities in alleviating the poverty of member by giving to them loans and also providing equipment to work. Co-operative Societies has rules and regulations that governs it activities like any other business to irrespective of their kind of Co-operatives Societies formed. It is democratic in nature where member have the right contest for any post in the society and may wish to employ an external body to conduct election for them.
In the past, Co-operative Society was in form of community (attributed to Robert Owen) where people contribute what they have for their social well being as a result of the industrial revolution which was one of the ills of the era that brought terrible suffering to the masses. As times proceeds, adjustment and readjustments was made as regarded to its administration and now grown into a full statutory body. Different co-operative societies have come up are employing progress based on strict principle of the organization. (Ozuitem 2008).
1.2 Statement of the Problem
Upon all this incentive given to societies by the Government to see its progress, yet a lot of problems still exist and it is these problems that the researcher has in mind such problems are:
1. Lack of effective management:
The co-operative society is experiencing inadequate managerial skills.
2. Illiteracy:
Some of the management and the members of the co-operative are illiterate and do not know or understand the term co-operative.
3. Lack of adequate finance:
We all know that finance is the all and all in this world for any business to stand it has been identified among the problems weakening the progress of the co-operative society. In fourth national development plan of 1980-1984, the total sum of N173, 21million was embarked for running co-operative in Nigeria, Government has also made various sources of finance its agricultural scheme, co-operative banks etc. Yet their exist some problems to the light of this, the researcher looks into identifying the means of improving these societies in the economic development in its area of operation.
1.3 Objectives of the Study
This study will not doubt the immense benefit to the co-operative societies for the research into finding out the sources of fund for achieving records, the problem and strategies for solving them.
The objective are as follows:
- To ascertain the socio-economic characteristics of members in the co-operative.
- To find out the nature and types of members business in area of study.
- To determine the ways that those co-operative have helped in the development of the area.
- To identify the problems encountered by the co-operative in the discharge of their functions.
- Make recommendation based on the findings.
1.4 Research Questions
The researcher questions for the study are as follows:
- What are the contributions of co-operative towards the increase of capital development?
- What are the contributions of co-operative towards output growth?
- What are the contributions of co-operative societies towards provision of infrastructure facilities?
- What are various sources of finance for the co-operative in Udi Local Government Area?
- What are the various problem confronting co-operative societies in Udi Local Government Area?
1.5 Statement of Hypothesis
The term hypothesis can be defined as a proposition or abstraction from reality which are designated by words or phrase and may be judged true or false if the refer to observable phenomenon or a statement of assumption of relationship between at least two variables in a project study, therefore the hypothesis of this study is stated thus:
- Hi: Co-operative Societies have contributed to the success of members.
- Ho: Co-operative Societies do not contribute to the success of the members.
- Hi: Inadequate finding hinders the practice of Co-operative Societies.
- Ho: Inadequate finding do not hinder the practice of Co-operative Societies.
1.6 Significance of the Study
It is envisaged that the finding of the study will be of value of thus;
Member:
Member will appreciate the need for them to be committed to the co-operative business as a way of taking.
General Public:
The public to general will understand the need to for or join co-operative society in order to increase their per capital income as well as the nationals gross domestic produce (GDP) especially in Udi Local Government Area.
Government:
This will help the government to embark on polices that will promote and create a conducive atmosphere necessary to support the growth and success of the Co-operative Societies. The findings will also act as references material for other research.
1.7 Scope of the Study
In the research work, the area that was covered is the introduction that pointed out co-operative as a growth driver in the economic development of Nigeria and the research will limits this study with the contribution of Udi Local Government Co-operative Society limits Enugu State.
1.1 Limitations of the Study
The study is limited to Udi Local Government Co-operative Society in Enugu State and the finding may not be valid for the whole Government but what happens in Udi can be said to applying other Co-operative in town. This research is intended to cover more on the contribution of Co-operative in the economic development of Nigeria but as a certain factors militating against the research. All humans activities are faced with the same problem which the research encountered during the course of the study.They are as follows:
i. Availability of relevant material:
as a result of this, it became difficult for the research to obtain enough information as can be seen in chapters of this project.
ii. Transportation:
In terms of going to Udi Co-operative society for the distribution and collection of questionnaire for the project is very hectic.
iii. Finance:
Finance is another limitation encountered by the researcher. It was difficult for the researcher to raise enough money for transportation and other things (Uzoka 2009 financial management).
iv. Finally:
is the problem of time couple with crowded semester programmed. The researcher attends classes at the same time working on the project.
1.9 Definition of Term
1. Co-operative:
According to the international co-operative alliance (ICA) Co-operative is an autonomous association of persons united voluntary to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.
2. Society:
This is a system to which people live together in an organized form to achieve specific aim. Definition of Co-operative Society or business; a Co-operative Society or business is voluntary owned and operated by people (owner/member) that have identified their social and economic needs and have fixed common realize objective to respond to the need.
3. Primary Co-operative Societies:
They are usually formed with a minimum of producer, consumer, marketing thrift and credit Co-operative Societies.
4. Secondary Co-operative Societies:
They are referred to as Co-operative; it is the coming together of two or more Co-operative Societies. They co-ordinate and control the activities of the Primary Societies.
5. Role:
The task or duties of Co-operative Society.
6. Economic Development:
Any activity likely to improve the standard of living of individuals and society in general.
7. Co-operative Shop:
They are sort of supermarket organized and managed by the Co-operative Societies for benefit of its member and non-members.
8. Co-operative Inspector:
They are employed by the Government to take charge of supervision of the activities and programmed of Primary/Secondary activities in an area. They also organized seminars to acquaint Co-operative with new ideas.
9. Multi-Purpose Co-operative Societies:
This type of Co-operative has different objective and roles to perform.
10. Farmers Co-operative Societies:
These are association of farmers who come together to produce jointly using Co-operative tools.
11. Marketing Co-operative:
They market jointly items produce by the individual members.
12. Consumer Co-operative:
They consume good and sell to their member thus, avoiding the exploits of the middle men.
13. Thrift and Credit Co-operative Societies:
These societies encourage member to make periodic deposit.
