1.0 Introduction
The modern type of cooperative was introduced formally into Nigeria by then colonial administration in 1935. The British colonial government had in 1904 introduced the cooperative movement in India, which was one of the British colonies then.
The same 1904 was the year then colonial government in India enacted a cooperative law in India. Following the successes recorded in India, the British colonial government in Nigeria tried to experiment the introduction of cooperative in Nigeria.
The same year, 1935, cooperative movement in Nigeria was born. First step was taken by then colonial government in Nigeria to enact the Nigerian cooperative societies ordinance.
Before the formal introduction of cooperative in Nigeria, there had been moves by various groups and individuals to organize what looked like cooperative societies. During the early nineteen thirties, the cocoa farmers in the Western part f Nigeria were organized in to small cooperative societies.
The initiative was taken by then ministry of Agriculture. These cooperative societies could be described as the fore runners of modern agricultural cooperative societies. Though they used the name cooperative, they did not operate really under the cooperative principles as they were not guided by any cooperative law.
The colonial government tried to investigate the possibility and desirability of introducing the cooperative movement into their Nigerian colony. Thus, 1933, the government invited a cooperative expert, Mr. C. F. Strickland, from India and requested him to make an investigative tour of Nigeria and to advise then Nigerian government on the desirability and possibility of Nigeria. Mr. C. F. Strickland carried out the investigation and submitted his report on the 17th April, 1934. In his report titled, “Report on the introduction of cooperative societies in Nigeria” he strongly recommended the introduction of the cooperative movement in the colony of Nigeria, maintaining that cooperative societies would help to improve the economic and social conditions of Nigerians and among others; the report was accepted by the government.
After the acceptance in 1935, the government enacted the first Nigerian cooperative societies' law, while in 1936; regulations were drawn up to guide the running of cooperative societies. The Nigerian cooperative societies law was fashioned after the cooperative societies law operating in India, which was another British colony at that time. Cooperative cocoa societies started in the Western part of Nigeria. 1938, workers formed cooperative thrift and loan societies in the Eastern and Western parts of Nigeria.
In 1936, Major E. F. G. Haig was appointed the first registrar of cooperative societies in Nigeria. His legacy to the Nigerian cooperative movement thereafter, was nothing short of complete government control. Thus, control continued from the colonial time till date.
In 1937, Mr. J. U. Eka, was appointed as the first inspector of cooperative societies in Eastern Nigeria and he worked in Calabar province.
As soon as the cooperative movement was introduced into the country, it started to grow. By the end of 1944, there were one hundred and eighty one (181) cooperative societies in Nigeria.
The history of cooperative movement in Nigeria has been one of continuous growth. For better appreciation, it is grouped into three stages:
- The stage that describes the introduction or birth of the movement to the Rochdale centenary conference held in Lagos in August 1944.
- The stage that describes the regionalization of the movement in 1951 and
- The stage that describes the period of consolidation.
After the birth of cooperative in Nigeria, the Rochdale Centenary conference was held in Lagos starting from 8th August, 1944, for three days. The then registrar of cooperatives invited delegates from all the cooperative societies in the country to the conference.
The conference was formally opened by an address by His Excellency, Sir. Arthur Richard, then Governor–General of Nigeria. The aim was to join British cooperators and celebrate the centenary of the first successful cooperative venture of the Rochdale pioneers.
Based on the above, one can safely ask does cooperative societies achieve all the set objectives?
- What are the impediments to the achievement of these objectives?
- How can cooperative societies stand firmly as business organization or as social organization or both?
The conduct of this research was motivated by the questions already posed whether or not cooperative societies achieve objectives with which they are set and if not, what are the obstacles that hinder the progress of these societies. In other words, are cooperative societies viable as business organizations in Ahiazu Mbaise Local Government Area of Imo state?
Based on the findings, the researcher will advance some recommendation that would lead to the improvement of the performance of these cooperative societies in the local government in particular and the society in general.
The researcher tends to find out ways cooperative societies are successful as other business organization. The success can be seen as providing functional education, social amenities, infrastructure, agricultural development, etc.
Cooperative however, has acquired technical and modern meaning. Modern cooperative movement is associated with the successful experiment of 28 weavers from Rochdale England who in 1844 established the first successful cooperative consumer society. Their success became widely acclaimed and their working principles were accepted and adopted as the basic principles were accepted and adopted as the basic principle of cooperative organization.
To this end, this study is geared towards finding out the viability of cooperative society as business organization in Ahaizu Mbaise Local Government Area of Imo state and find out those rodent that hinder the viability by finding out possible solution to ensure the growth of cooperative business organization.
1.2 Statement of Problems
Business organization exists in so many forms and different capacities. Some business organizations are viable while some are not.
Can cooperative societies as business organization be said to be viable in Ahiazu Mbaise Local Government Area or not?
The non-viability of cooperative as a business organization depends on so many problems that confront the societies.
The researcher is intended to look into the following problems, the problems are; whether mismanagement hinder the success of cooperatives, inadequate financing of cooperative business, effect of illiteracy on the viability of cooperative as a business organization, wrong perception/opinion of cooperatives, aspects of cooperative acts and regulation and activities of competitors. These and other factors mentioned hinder the cooperative business from being viable.
1.3 Objectives of the Study
The objectives of the include the following:
- To determine the extent to which poor funding hinder the viability of cooperative
- To find out the effect of wrong perception of cooperative on successful execution of cooperative business.
- To determine whether or not some aspect of cooperative acts and regulation are inimical to successful cooperative business.
- To find out whether or not poor management of cooperative society obstruct the functioning of the society.
1.4 Scope of the Study
This study will center on the problems of viability and the analysis of the viability of cooperatives as business organizations. The research will be limited to cooperative in towns located in Ahiazu Mbaise local government area.
1.5 Hypothesis
- Ho: Poor perception of cooperative do not constitute a major hindrance to cooperative being a viable business organization in Ahiazu Mbaise.
- Hi: Poor perception of cooperative constitute a major hindrance to cooperative being a viable business organization in Ahiazu Mbaise.
- Ho: Illiteracy do not constitute a major hindrance to cooperative being a viable business organization in Ahiazu Mbaise.
- Hi: Illiteracy constitute a major hindrance to cooperative being a viable business organization in Ahiazu Mbaise.
- Ho: Poor funding do not constitute a major constraint to viability of cooperative as a business organization
- Hi: Poor funding constitution a major constraint to viability of cooperative as a business organization.
- Ho: Cooperative societies in Ahiazu Mbaise local government area are not profitable.
- Hi: Cooperative societies in Ahiazu Mbaise local government Area are profitable.
1.6 Significance of the Study
- It will highlight the level of cooperative development in Ahiazu Mbaise local government area and the society in general.
- It will eliminate doubt as to whether or not cooperative are of any significance to business development especially the case of Ahiazu Mbaise local government area.
- To individual investors and organization, it will provide a guide on how to invest a long cooperative business.
- to the government and policy makers, it serves as an aid on developing business environment.
- The information in this study will be of enormous help to individual and organization wishing to conduct further research in area of viability of cooperative enterprises as business organization not covered in this study.
1.7 Limitations of the Study
The research limited the study due to some obstacles that militated against the smooth conduct of the survey. Which include the following:
The researcher limited the study as a result of some financial ad tie constraints
1.8 Definition of Terms
Operating / Working Capital:
This I money needed to keep the cooperative going as a business concern. Money required for purchase of goods, payment of wages, and overheads, current bills for telephone, gas, stationary etc, such capital is coming and going.
Internal Or Owned Fund:
Internal funding or woned capitals are resources (funds) which belong to the cooperative society. The right to use, the source and cost are relatively free because it belongs to the cooperative society. This source of financing is very important in the life of the cooperative society.
Share Capital:
Share capital is money which an incoming member pays into the cotters of cooperative society. Share capital is paid at the beginning of the life of a cooperative or when an incoming member joins.
