The objective of this study is to show the overall development trends and the challenges encountering the multi-purpose cooperatives (MPCs). To do so, research methodology employed was descriptive, which involved both qualitative and quantitative methods. Data were collected from both primary and secondary sources. Data were collected from the sample through cross-sectional survey from 210 respondents. Besides, 16 key informants and three FGDs were considered in the assessment. The instruments used were questionnaires, FGDs, in depth interviews, observation and document review. Both probability and non-probability sampling techniques were applied. Data analyses were done using descriptive statistics. The result of the study shows that the average rate of growth of members in sample MPCs is 19% as calculated from 2016-2018 and 79.3% from their formation period.
The capital of the sample MPCs increased from 305,081 to 9.3 million and their profit was nearly 1.5 million ETB. Of the multifaceted services they provide, marketing agricultural inputs accounts for the great proportions. In general, the sample MPCs are contributing somewhat to the economic development of the MPCs. However, their performance is not as expected due to major problems identified: lack of professional managers, devoted management committees, limited capital base; weak horizontal and vertical linkages, low members’ participation, insufficient dividend, lack of diversified activities; limited awareness, inadequate infrastructure, low stakeholders’ participation, lack of adequate credit facilities and other necessary technical supports are among hitches to be tackled.
Table of Contents
1.1 Background of the Study
1.5 Significance of the Study
1.6 Scope and Limitation of the Study
1.7 Description of the Study Area
1.8 Organization of the Paper
2.1. Conceptual Frameworks
2.1 Conceptual Frameworks of Factors Affecting Multi-Purpose Cooperatives
2.2 Concept of Cooperatives
2.3 Definition of Cooperatives
2.4 Types of Cooperatives
2.5 Principles of Cooperative
2.6 The Cooperative Movement in Ethiopia
2.6.2 The Formation of Formal Cooperatives in Ethiopia
2.7 Major Contributions of the Cooperatives
2.8 Challenges of Cooperatives
2.8.1 Internal Challenges
2.8.2 External Challenges
3.1 Research Design
3.2 Types of Data and Sources
3.3 Sampling Design Process and Sample Size
3.4 Data Collection Methods
3.5 Method of Data Analysis
4.0 Introduction
4.1 Socio-Economic Profile of Sample Respondents
4.2 The Overall Status of the Multi-Purpose Cooperatives in the Study Area
4.2.1 Welfare Status of Sample Respondents
4.2.2 Membership Status of Study MPCs
4.2.3 Types of Services Provided by MPCs in the Study Area
4.3 Contribution of MPCs in the Economic Development in the Study Area
4.3.1 Resource Mobilization and Capital Formation by the Sample MPCs
4.3.1.1 Profit Status of the Sample MPCs
4.3.2 Investment Trends among the Sample MPCs
4.3.3 Employment Creation and Livelihood Diversification by Sample MPCs
4.3.3.1 Direct Employment Creation
4.3.3.2 Self-Employment and Income Diversification Roles of Sample MPCs
4.4 Major Problems of the Study Multi-Purpose Cooperatives
5.1 Conclusion
5.2 Recommendations
Research Objectives & Key Themes
The primary objective of this study is to assess the role of multi-purpose cooperatives in the economic development of the Lalo-Assabi District. The research explores the operational status, contributions to local livelihoods, and the various obstacles that hinder the effective performance of these cooperatives.
- The overall development trends and current status of multi-purpose cooperatives.
- Economic contributions including resource mobilization, capital formation, and employment creation.
- Internal and external challenges hindering cooperative performance.
- Strategies and policy interventions to enhance cooperative effectiveness.
- The influence of member participation and management structures on cooperative success.
Excerpt from the Book
2.6 The Cooperative Movement in Ethiopia
A free market economy posed many challenges, particularly for small holder farmers and youth entrepreneurs that have limited bargaining power, skills and capacity. Thus, collective efforts through cooperative organization have been chosen by many disadvantaged groups as a means for accessing the benefits associated with a liberalized market system. As a result, different types of cooperatives have been formed to meet different objectives over the years. Though there is a dearth of uneven time runs in the country, registered cooperatives in Ethiopia have generally increased overtime. There are also several non-registered groups or associations that provide functions similar to the cooperative model. The number of registered primary cooperatives has increased from 7,366 in 1991 to 82,089 at the beginning of 2019 showing 1,014% rate of growth (Desalegn, 2019).
In Ethiopia, there are indigenous organizations which exist in diverse forms in different cultural, religious and socio-economic contexts. The first organizations in Ethiopia were self-help systems. They existed in the country for centuries before they started to develop some sort of structure. Certain amounts of informal cooperation between farms described mostly involved in lending or borrowing of farm implements. Working for a neighbor or lending a hand for special jobs (labor mobilization in agriculture and construction), and livestock sharing, saving and credit (in monetary or in material form such as oxen) are some of the features (Dejene, 1993; Woldu, 2007).
The spirit of self-help and cooperation has long been a part of the farming community in Ethiopia. There have been mutual organizations in urban areas, too. When communities face problems, they devise ways of addressing these problems based on their values, culture and beliefs. In Ethiopia various self-help cooperatives still exist. They are very common across different cultures, but different names are given in different languages. In fact, their objective and functions are almost similar. Among the many others, some of the common ones are mentioned as follows:
Summary of Chapters
CHAPTER ONE: INTRODUCTION: This chapter provides the background, problem statement, and specific research objectives regarding the role of multi-purpose cooperatives in the Lalo-Assabi District.
CHAPTER TWO: LITERATURE REVIEW: This section details conceptual frameworks and the historical context of cooperative movements, specifically focusing on the Ethiopian experience.
CHAPTER THREE: RESEARCH METHODOLOGY: This chapter outlines the descriptive research design, sampling techniques, and data collection instruments used to conduct the study.
CHAPTER FOUR: RESULTS, INTERPRETATION AND DISCUSSION: This main body presents the analysis of survey data, financial performance of cooperatives, and the findings regarding employment and socio-economic contributions.
CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS: This final chapter synthesizes the study findings and offers actionable policy recommendations to enhance the effectiveness of multi-purpose cooperatives.
Keywords
Cooperatives, Economic Contribution, Local Development, Multi-purpose Cooperatives, Ethiopia, Lalo-Assabi District, Resource Mobilization, Capital Formation, Employment Creation, Socio-economic Development, Agricultural Inputs, Marketing, Cooperative Governance, Rural Development, Self-Help.
Frequently Asked Questions
What is the primary focus of this research?
The research fundamentally examines the role of multi-purpose cooperatives in driving economic development in the Lalo-Assabi District of Ethiopia.
What are the core thematic areas covered in the work?
The work covers cooperative growth trends, capital formation, employment generation, member participation, and the major operational challenges faced by these organizations.
What is the central research question?
The study seeks to answer how multi-purpose cooperatives contribute to local economic development and what specific factors or problems hinder their optimal performance in the study area.
Which scientific methodology was applied?
A descriptive research design was employed, utilizing mixed qualitative and quantitative methods, including cross-sectional surveys, key informant interviews, and focus group discussions.
What does the main body of the research address?
The main body focuses on data analysis and interpretation, covering socio-economic profiles, financial performance (profit and capital), and the impact on local employment and livelihood diversification.
Which keywords define this academic work?
Key terms include Cooperatives, Economic Contribution, Local Development, Multi-purpose Cooperatives, and Rural Development in the context of the Ethiopian economy.
How is capital formation measured for these cooperatives?
Capital formation is evaluated by analyzing the financial status of the sample cooperatives over three consecutive years, noting the growth from initial capital to current balances.
What are the primary reasons identified for low member participation?
Low member participation is attributed to insufficient dividend incentives, a lack of awareness regarding cooperative rights and duties, and poor management communication.
What role do NGOs play in the development of these cooperatives according to the study?
NGOs are identified as significant stakeholders that can facilitate the establishment of cooperatives and provide necessary technical support, although their current involvement in the study area is limited.
- Quote paper
- Desalegn Fekadu Etefa (Author), 2019, The Role of Multi-Purpose Cooperatives in the Economic Development, Munich, GRIN Verlag, https://www.grin.com/document/506803
