Evaluation Of Constraints Of Co-operative Development In The Rural Areas Of Enugu State

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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.



Title Page

Approval Page




Table of contents


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


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


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


Presentation and Interpretation of Findings

4.1 Data Presentation and Analysis

4.2 Analysis of Research Question/Hypothesis


Summary of Findings, Recommendation and Conclusion

5.1 Summary of Findings

5.2 Recommendations

5.3 Conclusion







Development comprises a number of tasks and processes generally aiming at developing and implementing growth opportunities within and between societies and organizations. It is the process of growing and it is related to discrete projects, specific modes of growth, and organizational units, activities, and practices (Ibrahim, 2010).

Cooperative development involves tasks and processes concerning analytical preparation of potential growth opportunities, and the support and monitoring of the implementation of growth opportunities in cooperative establishment. Cooperative organizations/societies emerged as self help entities to combat economic and social inadequacies (Baarda, 2011). Cooperative organizations serves as an effective

community development vehicle by their nature they build economic self reliance and civil society. The benefits of cooperative organizations accrue to the larger society because they create local jobs, re invest locally, emphasis on education and skills raises local management capacity, reduce migration and concentration of capital. People come together in cooperative

societies to pool their resources together so as to meet individual needs that could not be resolved by individual limited financial capacity. The aim of cooperative societies is to produce goods and deliver services, and to satisfy the legitimate needs of members and also to promote cooperation, relations, participation and consequently to promote interpersonal connections. Cooperative societies provide services that benefit both members and the local community. It was also observed that it is an essential tool for development of less economically developed communities.

       Surprisingly, cooperative development and its sustainability have always appeared slow, inefficient and lack of performance which could be linked to constraints that are involved in cooperative development. Some of the constraints could be attributed to lack of inadequate government support, lack of membership commitment, politicizing cooperative activities etc.

Therefore, this project research intends to investigate the constraints of cooperative development in Udi Local Government Area of Enugu state.


Cooperative development is a viable tool for economic development. Also, cooperative is playing the same role of protecting the low earner and developing their socio-economic condition from the first cooperative in Enugu state till now. There are some dishonest people who are always trying to take the advantages of social enterprise goodwill in doing microfinance and other financial activities for personal or family benefits.

The overall cooperative situation in Udi local government Area of Enugu state does not meet expectation. The prime reasons may be some constraints encountered in the process of cooperative development which may be lack of proper knowledge, unawareness, lack of trust, imperfection of the market competition and corruption.

Naturally, developing sustainable economic cooperation among individuals will be more profitable further than the creation of problems. It is only for this strictly pragmatic reason that it is justified to found ways of preventing and controlling the constraints seen in cooperative development.


The broad objective of this research work is to evaluate the constraints of co-operative development in the rural areas of Enugu state with particular reference to Udi local government Area of Enugu state, the specific objectives of this research work includes the following:_

i.            To examine the various constraints militating against the development of co-operative in Udi local government area.

ii.           To evaluate the effect of co-operative on economic development of Udi local government area.

iii.         To examine how government policies can help in the development of co-operative in Enugu state and Udi local government are in particular.

iv.         To proffer solutions to the various constraints militating against co-operative development in Udi local government area.


This study provides information on what should be done to promote co-operative in Enugu state as well as Udi local government area. It reveals how modern co-operative activities can be adopt to and to achieve the aim and objectives of modern co-operatives as in Denmark, Britain, Switzer land, Germany and India with other developed countries. This will be beneficial to both Enugu state and Udi LGA as it will improve the economic activities thereby creating employments and generating revenue for the government.

Also, this work will be beneficial to cooperative students who intend to carryout similar project topics because it will serve as a secondary material for research work.  


The following research questions were formulated by the researcher:

i.            What are the various constraints militating against the development of co-operative in Udi local government area?

ii.           What are the effects of co-operative on economic development of Udi local government Area?

iii.         How can government policies help in the development of co-operative in Enugu state and Udi local government area in particular?

iv.         What are the solutions to the constraints militating against co-operative development in Udi local government Area?



The following research hypothesis were formulated by the researcher:-

H0:  There are no constraints militating against cooperative development in Udi local government Area.

H1:  There are constraints militating against cooperative development in Udi local government Area.

H0:  Co-operative has no effect on the economic development in Udi local government Area.

H1: Co-operative has effect on the economic development in 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 cooperative in Enugu state and Udi local government area in particular.



       The project is centered on constraints of cooperative development in Enugu state. The scope will cover Udi Local Government Area.  Also, 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


Sustainable Development:- It means a new way of life and approach to social and economic activities for all societies, rich and poor which is compatible with the preservation of the environment.

Rural development:- Improved the standard of living of those that dwell in the village.

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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