Why Co-operative Societies Sometimes fail


The fact that co-operative society is a non governmental organization does not denote that the government doesn’t have a role to play in making the co-operative bodies succeed in their various operations. The co-operators themselves ignorantly decided to be failure.

                    For instance, if the management structures the co-operative societies/unions is not solidly laid, that’s if the members of the board of executives don’t actually know what co-operative society is all about, there is every tendency that such body are constructed with a non durable material, it may easily wear away. To avoid such unpalatable situations,              Presidents and all members operating in the position of authority from all co-operative groups must be made up of persons who understand co-operative principles and is ready to do anything possible to represent the society, entrusted to him/her. They must also be ready to put the interest of the group above their own personal interest for the benefit of the society/Union. Backwardness that you experience in some societies/Unions is base on the lack of understanding of the groups executives.

            Members should be concern with the intentions of people that represent them. This becomes very mandatory now than ever before because, from observation and from the statistics taken by the Gofta MPCS Limited, the result shows that members don’t care whether their leaders have the quality of sustainability in mind, all what bothers on them is as far as the person/persons are ready and willing to borrow money for them (the members) to share, he can take the leadership mantle.

           Another possible reason why co-operative groups fail is the sharing formula and labor distribution. This has also become a threat to the co-operative societies/unions. Many people want to share equally with others when they are never ready to work equally with them.  The problem most rampant now is the case of the presidents, of the various Co-operative unions becoming dictators and threatening anyone that may want to identify areas that need amendments. This is another threat to success. One more problem co-operative society also face, is the issue of distrust and lack of participation by some members in the executives who prefer to serve themselves on the expense of the group.
       
           Proper structuring and orientation should therefore be given to persons proposing setting up co-operative society and operating it successfully. Co-operative is a viable tool that can be used to assist in good governance and employment creation. Therefore it must not be left in the hands of those that does not recognize the worth of this movement Read More

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