Full Project – The problems and prospects of cooperative societies – case study of Owerri north cooperative movement

Full Project – The problems and prospects of cooperative societies – case study of Owerri north cooperative movement

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There have been a myriad of problems associated with the existence of cooperative societies, these varieties of problem have created a severer set back towards the growth and progress of cooperative societies today.

Actually the existence of cooperative sprang up as a means of subduing the act of degradation or humiliation embedded on individuals by the capitalist. It was established for economic reasons, that is to say; to promote the common economic interest. Despite reason and intention of cooperative societies. it has been embedded with various problems which has been a set back on their success.

Lack of fund is one of the major problems of cooperative societies that wish to expand or diversify their business; fund is the life wire of any organization and it enhances the activities of the members. This is why cooperatives make their initial savings and share capital which seems not to be enough to foster the activities of the society.

Lack of proper orientation and education has turned out to be of great negative impact towards the success of cooperative society. High level of illiteracy is a problem in the modern cooperative society. Most of the members are illiterate, with proper orientation of members of cooperative on certain issues; a certain number of illiterate members creates a great depression towards the survival of the society.

This to an extent has set back cooperative societies especially in Owerri North. Cooperative Movement as members have different ideologies.

Embezzlement is another sickness or problem of cooperative societies, lack of trust siphoning of money and mismanagement of fund excitably by the management committees of the societies. That is misplacement of priority of cooperatives investment and lack of advanced and useful project that will be profitable to the entire society.

lack of project is also seen as one of the existing problems associated with cooperative society, most cooperative society do not have viable projects that can yield money to the society as a result most cooperative are dead as a case study, about 65% of cooperative in Owerri North do not  have viable project at all. this leads to many cooperative being unable to live up to their expectation and this are ready to be liquidated.
Inspite of all negative impact detected from the activities of cooperative societies, it has also created a positive impact towards the existence of humanity. According to Adensanya (1998) cooperative is seen as an organization which can not know the importance of educating the neighbors or worker and makes efforts to bring them together to form the society.

So it has to be organized by someone with vision and who knows the value.

Co-operative societies are expected to be gathering of human beings not animals. The involves people with acceptable behavior and good character, people who are considerate and always, ready to help other.

Okonkwo (2001) said that cooperative society are established for economic reasons. Members should indicate that it is their common goal and should join hands together to achieve it. The desire of cooperative movement are quite essential it create high extent of benefit to existing members. Cooperative is an autonomous association of persona united voluntarily to meet their common economic, social and culture needs and aspirations through jointly owned and democratically controlled enterprise.

Existing members in cooperative movement are of “self Help” to members such as it the first and foremost of the cooperative values. people should  not wait for the movement to provide everything, people should strive to control their own destiny self-help covers both individual and joint action. Individual action is limited to what he/she can achieve, but through joint action and mutual understanding, people can achieve much. Cooperative calls upon people to become aware of their problems and take individual or joint action to solve them

The existence of “Equity” in cooperative movement spells out the way rewards for participation, in cooperative are carried out. Cooperative wealth or earnings must be distributed on the basis of one’s contributions. Equity couches on members, employees, suppliers or editors and even in members odr non members customers.

For contribution to the share capital, members receive a fixed and limited interest on their shareholding. for patronage of the society, business, they receive dividends proportionate to their patronage Every effort is made to  ensure that no one gains at the expense of another.

It is the tradition of the cooperative to allocate annually, parts of their net sulplus for the purpose of “Caring for others”. Cooperatives, in developing nations receive assistance from cooperatives in developed countries or nations.

Co-operatives aspire to maintain sustainable human development. They are not just law abiding and peace living people but they do not involve themselves in any anti-social behaviour. People jointly co-operatives in order to take up responsibility both for themselves and for the community.


The under-listed factors are problems associated with co-operative movement.

  • Inadequate funding associated in co-operative movement.
  • Irregular patronage by members of co-operative movement.
  • Environmental constraints affecting the growth of co-operative movement.
  • High rate of dishonesty that affect the growth of co-operative movement.


       The main aim of the study is mainly to highlight on the problems and prospect of co-operative societies in Owerri North Local Government Area in Imo State and investigate on the activities of the association which are listed below.

  • To examine various ways by which inadequate funding can subdue the survival of co-operative movement.
  • To determine if irregular patronage of members can create a negative impact towards the livelihood of cooperative movement.
  • To observe the rate of envrionemtal constrains affecting the existence of cooperative movement.
  • To proffer solution towards the existence of high rate of dishonesty associated in co-operative movement.


The following are the research question.

  • In what way has the inadequate funding created negative effect in cooperative movement?
  • How does the irregular patronage by the members affects the cooperative movement?
  • What extent has the environmental constraints affected the co-operative movement?
  • In what way has high rate of dishonesty affected the growth of co-operative movement?


This research work was carried out in owerri North L.G.A of Imo State. The movement comprise of t he executive member and non executive co-operative who are expected to provide adequate information need by the researcher.


This study is significant to

  • individuals
  • organization
  • society
  • Individual: the study is significant is partial fulfillment of the requirement for the award of National Diploma in Co-operative Studies.
  • Organization: the study is significant to co-operative movement. Creating a view of understanding on negative effect which Affect the growth of the co-operative movement in Owrri North. It will enable them to proffer solution against what has been observed against the survival of their movement.
  • Society: the study is significant to the society in terms of creating awareness of the benefit associated in co-operative movement. it will expose the extent of self-help which seems as one of the objective of the movement. Therefore, influence the heart of the prospective members.


In an attempt to produce the work, the researcher face several handicaps which includes inadequacy of data, non-cooperative attitude of some official visited resulting in their failure to give some vital information about their societies.

It was equally not easy to contact some official of the local government council of cooperative division whose experience would have helped the researcher in developing broad approach.

Finally, the insufficient fund moving to the specially sampled cooperative societies and other research center within the high rate of transport fares and other financial problems.


Co-operative society: According to the International Labour Organization (ILO) 2014 cooperative society is an association of persons who have voluntarily joined together to achieve a common goal and through the formation of a democratically controlled organization, making equitable contributions to the capital required and accepting a fair share of the risk and benefit of the undertaking in which members actively participate.

PROBLEMS: Simply refers to something which is very difficult to deal with or understand.

PROSPECT: It has to do with the possibility or chance of been successful. When applied to the topic under discussion; it means the chance of succeeding in cooperative society (ies)

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Full Project – The problems and prospects of cooperative societies – case study of Owerri north cooperative movement