A co-operative Society is a business organisation in which a group of individuals who have common interest mutually agree to come together to establish in order to promote their exotic activities like production, distribution or marketing of goods and services and provision of other welfare benefits to their members.
FEATURES OF CO-OPERATIVE SOCIETIES
1. They are owned by from two persons to any number.
2. Membership is open to those who fulfill certain conditions.
3. They are not necessarily formed to make profits.
4. They apply the principles of democracy.
5. Profits if made are shared on the basis of patronage.
6. They hold meetings at regular intervals.
TYPES OF COOPERATIVE SOCIETIES.
- Consumers co-operative society: As the name indicates, consumers pool their resources together in order to buy goods in bulk from manufacturers.
- Producers Co-operative Society: This is the association of producers of similar products who have come together in order to promote the sale and production of their products.
- Credit And Thrift Co-operative Society: In this society, members are encouraged to save their money together, which all or part of it maybe lent to any member that is in need.
ADVANTAGES OF COOPERATIVE SOCIETIES.
Encouragement of savings. They prevent price fluctuation. They are Democratic in nature. Results in low prices of goods. Prevention of hoarding. Increase in standard of living. They fight; inflation and deflation. They avoid cheating. Savings in advertising cost. Education of their members. Encouragement of hand work. They encourage economic development. They encourage inter-personal relationship.
DISADVANTAGES OF COOPERATIVE SOCIETIES.
- High embezzlement rate.
- Insufficient capital.
- Weak management.
- Problem of politicsIlliteracy.
- Limited expansion.
- Denial of individual initiatives.
- Lack of discipline.
- Evasion of tax.
- Indiscriminate of enrollment of members.