CO OPERATIVE BUSINESS ORGANIZATION AS A VIABLE TOOL FOR MICRO AND SMALL BUSINESS DEVELOPMENT IN NIGERIA (A CASE STUDY OF ANAMBRA STATE CO-OPERATIVE FEDERATION)

CO OPERATIVE BUSINESS ORGANIZATION AS A VIABLE TOOL FOR MICRO AND SMALL BUSINESS DEVELOPMENT IN NIGERIA (A CASE STUDY OF ANAMBRA STATE CO-OPERATIVE FEDERATION) BY ADIKAIBE RACHAEL UDOKA 10H/0517/CEM A RESEARCH PROJECT SUBMITTED TO THE DEPARTMENT OF CO-OPERATIVE ECONOMICS AND MANAGEMENT, SCHOOL OF BUSINESS MANAGEMENT AND TECHNOLOGY, FERDERAL POLYTECHNIC NEKEDE OWERRI IMO STATE INPARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF HIGHER NATIONAL DIPLOMA (HND) IN CO-OPERATIVE ECONOMIC AND MANGEMENT, SCHOOL OF BUSINES MANAGEMENT AND TECHNOLOGY, FEDERAL POLYTECHNIC NEKEDE OWERRI IMO STATE AUGUST, 2012 APPROVAL PAGE This project is written by Adikaibe Rachael Udoka has been read and approved, having met the partial requirements necessary for the award of Higher National Diploma (HND) in the department of Co-operative Economic and Management, school of Business Management and Technology, Federal Polytechnic Nekede Owerri, Imo State. ……………………………………… ……………………………… MR. DICKSON .I.O. OZUITEM DATE ……………………………………… ……………………………… MR. DICKSON .I.O. OZUITEM DATE ……………………………………… ……………………………… EXTERNAL EXAMINER DATE DEDICATION With great joy in my heart, this project is dedicated to the God Almighty who gave me wisdom and knowledge to achieve this aim. I also dedicate this work to my lovely mother Caroline Adikaibe for her caring and moral support throughout my years of study. It is equally dedicated to my sweat husband Chinonso Aribemma whose love his and financial support has been the source of my strength. ACKNOWLEDGEMENT I give the greatest thanks and praises to Almighty God for His love, life, mercy, guidance and blessing towards me especially whenever I am travelling. I greatly express my thanks and gratitude to my mummy project supervisor as well as my Head of Department (HOD)Mr. D.I.O. Ozuitem for his contribution throughout the period of my academic programme, the entire staff and management of co-operative economics and management, school of Business Management and Technology, Federal Polytechnic Nekede, Owerri. I will extend my gratitude to the management of Udoji Housing Cooperative Ltd the in Awka South L.G.A, Enugu multi-purpose co-operative society Ltd, Ifunanya Credit and Thrift Co-operative society for the assistance during my research work. My special thanks to my beloved husband Chinonso Aribemma and my sweet mother Mrs. Caroline Adikaibe for their caring, financial and moral support, thank you all and be blessed. ABSTRACT The role of co-operative movement in the micro and small business development of any society cannot be over emphasized. Co-operative movement plays an important role in the business development of any state. In Nigeria, C-operative movement has not much impact in the development of the economy. This contributed the need for the research study cooperative business organization as a viable tool for business development of Anambra State. In this research study, the major aim is to identify the contribution future prospects and problems. This research work will make the reader understand the important of producers (Agricultural) Society in the development of a developing country. This work will also help to analyze the importance of cooperative in the micro and small business development of Anambra State and at the end of this research work, there will be need to improve the effectiveness of cooperative organization. Some relevant literatures about cooperative organizations to the research study were reviewed. Data were the collected from the three selected cooperative organization in different local government areas in Anambra State, through questionnaires and interviews. The data collected mode was that the contributions of cooperative are the micro and small business development of Anambra State has not been so effective. The major recommendations are that cooperative business, proper education for the management and members and adequate government assistance. With these recommendations cooperatives organizations can stand a better chance to play a major role in micro and small business development of Anambra State. TABLE OF CONTENTS Title page i Certification page ii Dedication iii Acknowledgement iv Abstract v Table of contents vi CHAPTER ONE 1.0 Introduction - - - - - - - - 1 1.1 Background of study - - - - - - 2 1.2 Statement of problem - - - - - - 8 1.3 Objective of the study - - - - - - 10 1.4 Scope of the study - - - - - - - 10 1.5 Statement of hypothesis - - - - - - 11 1.6 Significance of the study - - - - - - 12 1.7 Limitation of the study - - - - - - 13 1.8 Definition of term - - - - - - - 14 CHAPTER TWO 2.0 Literature review - - - - - - - 16 2.1 Introduction - - - - - - - - 16 2.2 Definition and meaning of cooperative - - - 17 2.3 History of cooperative movement - - - - 20 2.4 Forms of cooperative societies - - - - - 26 2.5 Organization of the cooperative movement - - 30 2.6 Economic and social viabilities of cooperative organization in societies - - - - - - - - 31 2.7 The relevant of cooperative in developing agriculture and employment opportunities - - - - - 35 2.8 The problems of cooperative society in Nigeria - 2.9 The achievements of the cooperative movements in 40 Nigeria - - - - - - - - - CHAPTER THREE 3.0 Research Methodology - - - - - - 42 3.1 Introduction - - - - - - - - 42 3.2 Research design - - - - - - - 42 3.3 Sampling design - - - - - - - 43 3.4 Method of data collected - - - - - - 43 3.5 Procedure for processing of data chi-square - - 35 CHAPTER FOUR 4.1 Presentation analysis and interpretation - - - 45 4.2 Test of hypothesis - - - - - - - 63 CHAPTER FIVE 5.0 Summary of findings, conclusion and recommendation 66 5.1 Summary of findings - - - - - - 66 5.2 Conclusion - - - - - - - - 69 5.3 Recommendation - - - - - - - 71 Bibliography - - - - - - - - 73 Appendix A - - - - - - - - 76 Appendix B - - - - - - - - 77 CHAPTER ONE 1.0 INTRODUCTION This research work is to tell the reader (s) how a co-operative society has been use as a tool by the government in achieving some micro and small business development, the problem which cooperative societies is having in its operation and recommendation solution, educate the reader about the important of cooperative society. At the end of this work both the researcher and the reader(s) should be able to give definition of cooperative society, how it come about, forms of cooperative societies, the organization of cooperative society, economic and social viabilities of cooperative in developing agriculture and employment opportunities the achievement of cooperative movement in Nigeria. 1.1 BACKGROUND OF STUDY Co-operative organization are autonomous bodies formed by people with similar economic and social interest, they exist in most advanced and developing countries of the world where they operate in the urban areas as well as in rural areas. These co-operatives have been able to make a very significant impact in most of the countries of the world where they exist, their useful activities have led to the economic growth of such state and this is why the government of these state play active role in the encouragement and development of co-operative movement in their inspective countries. However, in the opinion of Ijere, the insult from cooperative activities has not been enough to match the massive efforts in human and material recognizes by government to sustain cooperative. In recognition of the usefulness of cooperative in Nigeria the Shehu Shagaris led administration in 1980 established the Federal department of agricultural cooperative as one major step taken towards boasting food production in the country for the development plan period 1981-1785. The government policy on agriculture’s during the plan period included fostering the development to which could be used as an system in Nigeria which could be used as an effective tool for social economic development not only at the grassroots but throughout the other levels in the Federation. The primary aim of cooperative societies is to improve the welfare of the member that could result into an improved general welfare of the masses through the society’s contribution to the gross domestic product (GDP) and the spread effect of their derived benefits. This is an increased in nations real gross domestic product implies economic growth and since cooperative societies can bring about such increase through their operations. Therefore, cooperative movement needs to be given a solid foundation and proper nourishment to enhance economic development. The agricultural cooperative is a good example of how cooperatives can lead to economic development of a state. The productive of farmer cooperative are usually higher than that of individuals farming, when farmer cooperatives are able to achieve the level of food production necessary to satisfy the increasing population of a developing state. The tendency will be the occurrence of a shift from the primary agricultural section and this course is a mark of economic development. The high production leads to agricultural surplus and raises the purchasing power which tends to raise the demand for manufactured goods and extend the size the market, leading further to the expansion for the industrial or manufacturing sector. Moreover, the demand for such imputs as fertilizers tractors, national facilities in the agricultural sector leads to greater expansion of the industrial sector. The agricultural surpluses resulting from farmers cooperative function in the rural areas also tends to increase rural incomes and improve rural welfare. Peasants start consuming more food especially of higher nutritional value, building better house and also receive direct satisfaction from such services as school, health centres and banks. All these improve the rural people’s standard of living which is a measure for economic development of a nation. Anambra state government and local government have a great need for cooperative development particularly at this period of economic emergency when such element as unemployment, high rate of inflation are increasing population and the need for mechanized agricultural development within the state. A proper development of cooperative government particularly in Anambra state as in any order form of business Endeavour, cooperative business determines the degree of economic and social development of Anambra state and it is one of the greatest activities which government can render effective support for effective development of state economy. In the most of the third world countries, Cooperative societies are given adequate official recognition as a tool of socio-economic development. According to Ijere (1986) co-operative societies are remarkable instruments in development of developing states. According to Helen, (1986) she said that economic and sociological factors are the factors that were responsible for the development of cooperative. The economic factor was formed by the desire of the cooperative members to improve as their economic status and to gain a considerable economic benefit. The sociological factor was as a result of peoples need for security leadership self actualization and solidarity provided by the cooperative society. Cooperative first started in Great Britain by a social reformer called Dr. William King and Sir, Robert Owen. Co-operative was first established among people whose economic positions livelihood and living standard were jeopardized by evils of capitalist system such as exploitation. The introduction of cooperative in Nigeria standard after the treatment of the cooperative ordnance in 11955, which market a turning point in the development of the cooperative movement in Nigeria a legal status and governmental recognition, but also conceptualized it as development. In 1986, the cooperative regulations were passed and the cooperative department established. The first cooperative producer marketing society registered in 1937. In 1939, the first plan was to registered in the Western Nigeria on the Ibadan co-operative producer marketing society, plan ltd. In 1940, the Western Nigeria cooperative association Federation was development cooperation in collaboration with the government of Northern Nigeria launched the Mokwa settlement scheme. In 1943, an independent cooperative department was established but in 1050, due to the tremendous growth in the number of societies in the country, the problem of Administration became visible and decentralization became necessary. Hence in 1951, separations of cooperative department were set up to the West and East and Nigerian cooperative. Federation was replaced by the cooperative Union in these regions. In 1952, the co-operatives plan of Eastern Nigerian was launched in Aba in 1954, separation of cooperative department were set-up in Northern Nigeria and Western Cameroon. FOR FULL MATERIAL PLS CALL 08032849308 CHINEDU J