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PRIMARY COOPERATIVE AND MEMEBERS
SOCIO-ECONOMIC WELL BEING
CHAPTER ONE
INTRODUTION
1.1 Background
of the Study
In order to get a clear picture of the subject matter it is
imperative to defined cooperative. ICA Statement on the cooperative defines
cooperative as an autonomous association of persons economic, social and
cultural needs and aspirations through a jointly-owned and
democratically-controlled enterprise.
However, primary cooperative which is the subject matter is
defined as a society which has as its object the promotion of the
socio-economic interest of its members through a common enterprise managed in
accordance with cooperative principles. A primary cooperative society must have
at least ten individuals if it is an auxiliary cooperative and six persons if
it is a productive or industrial cooperative. Each of these must have qualified
for membership (NCSA, 1993).
Primary cooperatives are basically established to meet
member’s social-economic need. The operations of primary societies permits the
people who live in the same locality with the same goals and aspiration to go
into synergy in order to actualize such goals collectively (Ijere, 1998).
The prospect of primary cooperative in promoting member’s
economic welfare cannot be overemphasis sequel to the economic benefits arising
from membership of primary societies: primary cooperatives in this regard
pursue mutually beneficial, social and economic interest, provide goods and services
to each other and the general public in the most cost effective way, prevent
exploitation of the weaker members of the society by bringing them together to
help themselves, protect the rights of the people as producers and consumers of
goods and services, and promote mutual understanding and peaceful coexistence
among the people of the community in which such primary cooperative is located.
The economic results of establishing primary societies arise
out of the operation of a society that is jointly own through synergy and the
gains of such enterprise is distributed in such manner as would avoid one
member gaining at the expense of the others. Primary cooperatives have been
recognised as a veritable instrument for the promotion of member economic
welfare owing to its ability in mobilizing and organising people of the same
economic and social aspiration into a common enterprise or primary societies
therefore becomes very appropriate and suitable for improving the economic
welfare of people through a common and collective enterprise that is people
oriented (Okoh, 2003).
The prospect of primary cooperative in promoting members
economic welfare cannot be overemphasis sequel to the economic benefits arising
from being a member of such society. It is against this background that the
researcher deemed the subject matter worthy of investigation.
1.2 Statement
of the problem
Primary cooperatives have the potentials to boost the
economic capacity of its members by mobilizing savings and granting soft loans
to it members, providing other services as well as investment opportunities for
its members (Okoh, 2003).
But inspite of this laudable prospect of primary cooperative
in promoting member welfare, membership of primary cooperatives in the area of
study is loe and insignificant, as such, doubt is expressed about the prospect
of primary cooperative in promoting members welfare in the area understudy.
This is so because if indeed primary
cooperatives promotes members welfae as opined by (Okoh, 2003) then why is the
membership of primary cooperative low and insignificant and their impact vague
and obscure in the study area? It is in this light that the subject matter of
this research is seen as a problem worthy of investigation.
1.3 Objective
of the study
The central objective of the study is to examine the prospect
of primary cooperatives in promoting members welfare. The specific objectives
are:
i.
To identify how primary
cooperatives promote member’s economic welfare.
ii.
To findout how primary cooperative
improves member’s social wellbeing.
iii.
To findout the functions of primary
cooperatives.
iv.
To determine the type of practical
welfare assistance primary cooperative render to their members.
v.
To identify the problems militating
against primary cooperative from promoting members welfare.
vi.
To proffer solution to the
identified promote.
1.4 Research
Questions
i. How
does primary cooperativespromotes member’s economic welfare?
ii. How can
primary cooperative be used to improve member’s social wellbeing.
iii. What
are the functions of primary cooperatives.
iv. What type of practical welfare assistance
does primary cooperatives
render
to their members?
v. What are
the problems militating against primary cooperatives in promoting members welfare?
vi. What
are the soloutions to these problem?
1.5 Significance
of the study
This study will be of great benefit to policy makers,
cooperative societies, members of the general public as well as students and
researchers.
The study will aid policy framework
regarding cooperatives development.
The study will also be useful to cooperative societies in
creating cooperative awareness by showcasing the functions and benefits of
primary societies to members and potential members.
To student and researchers, the study will serve as a
springboard to undertake similar research. This is so because the study will be
a useful reference material to students and researchers undertaking similar
study. As such the study will add to already existing body of knowledge
regarding primary cooperative societies.
1.6 Scope
of the study
The
boundaries of this study is restricted to the period of investigation, the
environment in which the research data were collected and the cooperatives
societies investigated. The study covers the activities of synergy artisan
cooperative society from 2010-2011. The research is limited to synergy artisan
cooperative as regard the collection of primary data. The subject matter is
restricted to the examination of the prospect of primary cooperative in
promoting member’s welfare.
1.7 Clarificaton
of Terminologies
Cooperative: This
is an autonomous association of persons united voluntarily to meet their
common, economic, social and cultural needs and aspiration through a jointly
own and democratically controlled enterprise (I.C.A, 1995).
Primary Cooperative:
This is a cooperative society which has as its object the promotion of the
socio-economic interest of its members through a common enterprise managed in
accordance with cooperative principles. A primary cooperative society must have
at least ten individuals if it is an
auxiliary cooperative and six persons if it is a productive or industrial
cooperative (Ishyaku 2010).
Cooperative
Cooperative failure:
This refers to a situation when cooperative societies cease to actualise or
practice cooperative values as enshined in it principles (Isyaku, 2010).
Cooperative Nexus:
This refers to the functional relationship and inter-linkages between the
cooperative organisation and member’s private business enterprise (Chukun,
1995).
Mutuals:
A term used to describe businesses owned and controlled by their members. This
includes building societies, cooperatives, credit unions, friendly societies
and many associations (operational definition, 2011).
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