A Cooperative Society is a voluntary association of persons who have come together to achieve a common goal of promoting their economic interests as well as bettering their living standards. Cooperatives follow the principles of mutual benefit, self-help, and collective responsibility. The management of the cooperative societies is by the members, democratically elected irrespective of shares owned. This structure ensures that the target of the organization is service to members, rather than making profits. Cooperative societies also aim at eradicating intermediaries and maximizing economic well-being for all its members.
This article will delve into the concept of cooperative societies, their importance, functions, types, and the benefits they offer.
A cooperative society is a body of owners/members who own and control the business organization; it implies that the people work together for mutual gains. Each member makes available a certain resource to the organization – in the form of capital, labor, or both-and the surplus generated by the society either serves to create more surplus for the society’s development or is distributed among the members. The basic objective of a cooperative society is to protect its members from exploitation by middlemen, thus enabling the members to engage in undertakings such as production, purchase, and sales under improved conditions that would have arisen had the members been acting independently.
Cooperative societies are very important because they enhance economic cooperation, uplift the downtrodden, and avail self-sufficiency among its members. Indeed, cooperative societies solve a lot of socioeconomic problems as people can share resources, share profits, and work toward common goals.
Co-operative functions vary depending on the kind and size of the cooperative. However, the general functions revolve around improving their members’ welfare, enhancing the economic position, and offering competitive goods and services.
There are numerous benefits of cooperative societies, which make them a popular choice for many individuals, particularly in rural and economically weaker regions.
There are several types of cooperative societies, each serving a specific purpose or addressing a particular need within the community.
A cooperative society is a voluntary organization of persons with common economic interests that holds democratic principles and offers services. The major objective of cooperative societies is to eliminate middlemen, improve the living standards of members, and achieve full economic self-sufficiency. It provides a number of benefits, from cost-cutting to profits and plays a significant role in development of rural areas, in banking and other financial sectors, and in the empowerment of communities. It is only through understanding the different types of cooperative societies and their functions that one can come to appreciate the importance of cooperative societies in the modern economic landscape.
Cooperative society refers to the ownership and control that comes among the members of an organization coming together to form and achieve an economic goal through member ownership, which can be buying affordable goods and services or obtaining credit.
These, in turn, benefit the individuals by paying lower prices, profit-sharing, democratic decision-making, and financial support through affordable loans.
Some of the key functions include bulk purchases of products, availing affordable credit, mobilizing savings, and mutual aid to the members.
Main types include consumer cooperatives, producer cooperatives, credit cooperatives, housing cooperatives, and agricultural cooperatives.
Co-operative societies encourage economic equality, remove exploitation, provide employment and ensure a sense of belonging and community among its members.
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