EVALUATION OF ELEMENTS THAT HINDER CO-OPERATIVE DEVELOPMENT IN THE RURAL AREAS OF ENUGU STATE
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Enugu, Nigeria
Nigeria
Enugu State
Nigeria

Evaluation Of Elements That Hinder Co-operative Development In The Rural Areas Of Enugu State

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ABSTRACT

This research work evaluate the element that hinder co-operative development in the rural areas of Enugu State, with special reference to Udi Local Government Area. The main objectives of the study were: to identify the problems that hinder co-operatives as an instrument for rural development. To find out certain loophole of using co-operative in development, to find out how government policies can help in co-operative development and to makes useful recommendations on how to effectively utilize co-operative in rural development based on the study findings. In order to discover more details ten (10) research questions here asked, and this formed the basis for design of a comprehensive questionnaire administered to the target respondents. Also the review of related literature was carried out, this constitute the source of secondary data. Given a population study of 390,681 made up of members co-operative societies in the study area, a sample size of 400 was statistically determined. Tables frequencies and percentage were employed as statistical tools for data analysis. The study reviewed major finding inclng the lack of funds, poor management of co-operatives, attitude of people who come in control contact with co-operative and inadequate support from government were identified as problems hindering co-operative in the study area. Effort has been made by the government establishment of financial institution, provision of extension words and research institute that analyze the problems. Based on the study findings, the following points were recommended on areas that need serious improvements,  that the government of Enugu State should  give more recognition to co-operative and implement co-operative policies, particularly those that have to do it with agriculture and processing of foods, they need for co-operatives to enlighten her members, in other to reduce ignorance of the people about co-operatives in the area, more incentive should be giving to co-operative officers to enhance their performance.

   

TABLE OF CONTENTS

Title Page

Approval Page

Dedication

Acknowledgment

Abstract

Table of contents

CHAPTER ONE

1.1      Background

1.2      Statement of the study

1.3      Objective of the study

1.4      Significance of the study

1.5      Research questions

1.6      Research Hypothesis

1.7      Scope and Limitation of the study

1.8      Definition of scope

CHAPTER TWO

Review of Related Literature

2.1 Definition of Related Literature

2.2 Classification or Type of Co-operative

2.3 Aims of Co-operative Movement

2.4 Procedure for forming Co-operative

2.5 How to developed already formed Co-operative

2.6  Major element that hinder Co-operative development

2.7 Functional Programmes on Rural Development

2.8 Definition of rural development

2.9 Definition of development

2.10 The Characteristics of the rural area

CHAPTER THREE

Research Design and Methodology

3.1 Research Design

3.2 Area of Study

3.3 Research Population

3.4 Sample size

3.5 Source of Data

3.6 Method of data Collection

3.7 data analysis Techniques

CHAPTER FOUR  

Presentation and Interpretation of Findings

4.1 Data Presentation and Analysis

4.2 Analysis of Research Question/Hypothesis

CHAPTER FIVE

Summary of Findings, Recommendation and Conclusion

5.1 Summary of Findings

5.2 Recommendations

5.3 Conclusion

       Bibliography

       Appendix

       Questionnaire 

 

 

CHAPTER ONE

1.0 INTRODUCTION

1.1BACKGROUND OF THE STUDY

According to Ebue, (2012) co-operative organization is an association of persons who operate their private business enterprises or households and share at least one common need; a group of persons in the sociological sense. They have joint action by the group towards attainment of the group goals through economic betterment her members and mutual help. Co-operative organization is more of rural base and grassroots oriented business unit.

In 1933’s a cooperative expert Strickland F.C. was commissioned by the colonial government to carryout feasibility study on the possible introduction of the cooperative movement in Nigeria as a vehicle for the mobilization of the rural people for the full participation in the socio-economic development of the nation. The outcome of the strict land report gave the impetus for the establishment of the cooperative society in Nigeria precisely in 1935, today, many of such organization are scattered all over the country in great number (Okonkwo, 2010). After many decades of co-operative operation as a business unit in Udi Local Government Area of Enugu state in Nigeria, many are operating below capacity, some are moribund, while others have been wind up. However, more cooperative are still being developed. But there are several constraints faced when developing a cooperative society.

These constraints are as a result of inadequate sources of finance for their project. Other factors included inefficient and ineffective allocation of funds to competing alternative venture and embezzlement of funds for the project. The amount of capital that a cooperative can raise from its members is very limited because the membership is generally confined to a particular section of the society. Again due to low rate of return, the members do not invest more capital. Thus, cooperatives are not suitable for the large scale business which requires huge capital. And also, due to lack of capital, the cooperative in the other hand cannot afford to get the benefits of professional management as their leaders lack managerial skills and talent. Another constraint is the inadequate external and internal funding, cooperative's financial strength depend on the capital contributed by its members and loan raising capacity from state cooperative banks. The membership fee is limited for which they are unable to raise large amount of resources as their members belong to the lower and middle class. Thus, cooperatives are not suitable for the large scale business which require huge capital as the external resources of the organisation is also limited. Government intervention is inadequate this is as a result of inadequacy of capital and various other limitations make cooperatives dependent on the government for support and patronage in terms of grants, loans, subsidies etc.

Therefore, in view of the above the researcher intends to study the constraints of cooperative development in Udi local government area of Enugu state.

 

 

1.2 STATEMENT OF THE PROBLEMS

There are so many constraints faced when developing cooperative society. In Udi local government area of Enugu state in particular constraints in co-operative development are;

1. Insufficient capital: The amount of capital that a cooperative can raise from its members is very limited because the membership is generally confined to a particular section of the society. Again due to low rate of return, the members do not invest more capital. Thus, cooperatives are not suitable for the large scale business which require huge capital. And also, due to lack of capital, the cooperative in the other hand cannot afford to get the benefits of professional management as their leaders lack managerial skills and talent.

2. Lack of commitment: There is lack of total commitment/apathy among members. As cooperative is not a profit earning institution, members do show indifference attitude towards the cooperative and this is an obstacle in the way of its progress.

3. Absence of cooperation: In most cases, there is absence of cooperation among members of the cooperative. Due to internal quarrels and individualistic tendencies- especially the Igbos, there is little or no cooperation spirit among the members which becomes the cause of business failure.

4. Dishonesty of cooperative leaders and committee members: Basically, the management of the cooperative remains in the hands of the selfish and dishonest members and they take undue advantages of their powers. This has negative effects on the business.
5. Illiteracy: There is poor member education and high level of illiteracy among members. Members lack experience. Most do not know the principles and rules of the cooperative so they create problem for it.
6. Wrong conception of what cooperatives are: Many members cannot distinguish between the cooperative and their political parties. Political parties get involved in it due to which the basic principle of the cooperative comes to an end. This leads to corruption of power and money in the society and may result in quarrels and disputes amongst the members thereby constraining the progress of the cooperative.

7. Inadequate external and internal funding: Cooperative's financial strength depend on the capital contributed by its members and loan raising capacity from state cooperative banks. The membership fee is limited for which they are unable to raise large amount of resources as their members belong to the lower and middle class. Thus, cooperatives are not suitable for the large scale business which require huge capital as the external resources of the organisation is also limited.
8. Personality and community clashes: Internal quarrels and rivalries among members is another limitation of cooperatives. As a result of these internal quarrels, personality clashes and tensions, general body members cease to take any interest in the working of the cooperative. All these frictions ultimately bring the cooperative to ruin.

8. Government intervention: The inadequacy of capital and various other limitations make cooperatives dependent on the government for support and patronage in terms of grants, loans, subsidies etc. Due to this, the government sometimes directly interferes in the management of the cooperative and also audits their annual accounts. Sometimes government goes further to put a nominee in the board of management of cooperative. They influence the decision of the board which may or may not be favourable for the interest of the cooperative. Excessive state regulation, interference with the flexibility of its operation affects adversely the efficiency of the management of the cooperative.
1.3 OBJECTIVE OF THE STUDY 

The aim of this research was to determine the constraints that are involved in co-operative development in Udi Local Government Area of Enugu State, Nigeria.

The specific objectives were:

1. To find out the constraints that face cooperative development in Udi L.G.A. of Enugu State, Nigeria.

2. To assess the extent that funding of co-operative societies would have in Udi L.G.A. of Enugu State, Nigeria.

3. To know the level of impact that various sources of finances have made on co-operative societies in Udi L.G.A. of Enugu State, Nigeria.

4. To proffer solutions to the above constraints.

1.4 RESEARCH QUESTIONS

1. What are the constraints that face cooperative development in Udi L.G.A. of Enugu State, Nigeria?

2. What is the extent that funding of co-operative societies would have in Udi L.G.A. of Enugu State, Nigeria?

3. What is the level of impact that various sources of finances have made on co-operative societies in Udi L.G.A. of Enugu State, Nigeria?

4. What are the solutions to the above constraints?

1.5 RESEARCH HYPOTHESIS    

The following research hypothesis were formulated by the researcher:-

H0:  There is no problem militating against the development of

co-operative in Udi local government Area.

H1:  There is so many problem militating against the

development of co-operative in Udi local government Area.

H0:  Co-operative has no effect on the economic development

of Udi local government Area.

H1: Co-operative has significant effect on the economic development of Udi local government Area.

H0:   Government policies do not help in the development of

co-operative in Enugu state and Udi local government area in particular.

H1: Government policies helps in the development of co-operative in Enugu state and Udi local government area in particular.

 

 

1.6 SIGNIFICANCE OF THE STUDY   

This study provides information and what should be done to promote co-operative in Enugu state as well as Udi local government area and how to adopt modern co-operative and achieve the aim and objectives of modern co-operatives as in Denmark, Britain, Switzer land, Germany and India with other developed countries. It also forms a base to other researcher who wish or may want to carry further research on co-operative in Enugu state.

 

1.7 SCOPE AND LIMITATION OF THE STUDY

Due to the issue if time factor, the scope of this study was narrowed to Udi local government area in Enugu state. It covers all available co-operatives in Udi local government area.

The researcher encountered certain limitation in the course of this work. Firstly, is the time bond given to the researcher which made him rain short of his expected desired area of coverage. Secondly, the researcher is combining the research work with academic activities and other programmes

1.8 DEFINITION OF TERMS

Constraints: These are difficulties and challenges faced in cooperative development

Co-operative:- It is a voluntary and democratic. Association of persons, with variable membership and variable capital, whose embers pooled themselves and their resources together on mutual and self-help basis to form a business enterprise which seeks to solve the socio-economic problems (s) of these members by directly providing goods and services to them in their capacity as either the owner/customers or owner-employees of the co-operative enterprise.

Programme: This is a definite plan or scheme of any intended proceedings or an outline or abstract of anything to be done.

Development:- The growth of some area, so that if any it becomes more advance.

Village:- This is a mother of nature, it is the area where creation originated, it is the area where nature is at peace with itself, it can also be referred to as rural area.

Rural Area: They are those areas that not attained the maximum development.

Education: This is the transfer of peoples ideals to another person it also entails learning, improvement and illumination.

Culture:- This is a definite plan or scheme of any intended proceedings or an outline or abstract of anything to be done.

Infrastructure:- These are the basic structures and facilities e.g roads, electricity, houses, hospitals etc. needed for the operation of a society or organization.

Welfare: The general health, happiness and safety of a particular purpose.

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