CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
1.2 STATEMENT OF THE PROBLEM
1.3 OBJECTIVES OF THE STUDY
1.4 RESEARCH QUESTIONS
1.5 RESEARCH HYPOTHESIS
1.6 SIGNIFICANCE OF THE STUDY
1.7 SCOPE OF THE STUDY
1.8 DELIMITATION OF THE STUDY
1.9 DEFINITION OF TERMS
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 CONCEPTUAL CLARIFICATION
2.2 THEORETICAL FRAMEWORK
2.3 EMPIRICAL REVIEW
2.4 SUMMARY OF LITERATURE REVIEW
CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 RESEARCH DESIGN
3.2 AREA OF STUDY
3.3 POPULATION OF THE STUDY
3.4 RESEARCH SAMPLE AND SAMPLING TECHNIQUE
3.5 INSTRUMENT FOR DATA COLLECTION
3.6 VALIDITY OF THE INSTRUMENT
3.7 METHOD OF DATA COLLECTION
3.8 METHOD OF DATA ANALYSIS
CHAPTER FOUR
4.0 DATA ANALYSIS AND PRESENTATION
CHAPTER FIVE
5.0 SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.1 SUMMARY
5.2 CONCLUSION
5.3 RECOMMENDATIONS
REFRENCE
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
International Co-operative Alliance (ICA) (1895) defined Cooperative Society as an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise. Also, Ebonyi and Jimo (2002) described cooperative societies as associations of persons who have voluntarily come together to achieve common objectives through the formation of democratically controlled organization; making equitable contributions to the capital required and accepting a fair share of the risk and benefits of the undertakings. UWCC, (2002) summarily described Cooperative Society as a business or group enterprise that is voluntarily owned and controlled by its members, patron and operated for them on a non-profit or cost basis.
The essence of cooperatives as observed by Dogarawa (2005) is an effective way for people to exert control over their livelihoods; provide a unique tool for achieving one or more economic goals in an increasingly competitive global economy; own what might be difficult for individuals to own or pursue by their efforts; strengthen the communities in which they operate through job provision. Generally, cooperative provides an economic boost to the community. This cooperation to Audu et. al., (2007) enables people to achieve through joint efforts, what they are unable to achieve while working as individual.
Unavailability of funds to rural dwellers has been consistently reported in extant literatures and researches to be a hindrance to rural productive ventures (Ekong 2007; Aremu, 2004; Ndifon, 2012). Cooperative societies therefore have the enormous potentials to address these issues. Afolabi (2008) elucidated that group efforts are necessary to bring people together so that they can use pooled resources to produce. Cooperative societies are therefore veritable instruments to use in achieving this goal. The ILO report in 2001 and Mukarugwiza (2010), characterized cooperative societies as having the potentials for economic, social and political development of their members. According to the ILO (2001), the economic role of cooperative involves provision of opportunities for improved incomes to members as well as tool to help alleviate poverty. Cooperatives play an important role in facilitating access to credit, procurement and storage distribution of input and marketing of products, these create employment opportunities particularly in the rural areas and allow disadvantaged groups to be organized for social and economic benefit. According to Brawerman et al., (1991); Gertler, (2001); Dogarawa, (2005); Gibson, (2005); Berko, (2001) craft and artisans cooperatives have the ability to develop rural economy and improve the socio-economic conditions of its members. Because of this, there has been considerable expectation from these cooperatives to achieve social and economic goals and also spur development and alleviate poverty. It is against this background that various Micro and Small Scale Enterprises (MSEs) have grouped themselves for greater efficiency and effectiveness through mutual cooperation. Thrift and Credit Societies are member-based organizations that help members to address economic problems. They are not banking institutions because of their goal. The ultimate goal is to encourage thrift among the members and to meet credit needs of people who might otherwise fall prey to loan sharks and other predatory lenders (Babatunde et. al., 2007).
1.2 Statement of the Problem
There have been many misconceptions and opinions from individuals, small and medium business enterprises and corporate business entities that microfinance institutions have outlived their relevance in the twenty first century with the proliferation of larger commercial banks that provide a wide range of financial services due to their sophisticated infrastructure, technology and innovations (Philip, 1993). However, there are other schools of thought that agitate that micro-finance institutions such as Credit Cooperative are still relevant in the twenty first century. Though large commercial banks provide wider coverage and larger volumes of financial services to their clientele but such services are mainly confined to larger commercial and industrial sectors. Also in as much as traditional banks are perceived to provide needed financial services to individuals, small and medium scale enterprises (SME’s) access to credit facilities remains a formidable constraint to most small scale business. Not only accessibility to credit but where they are made available, their inadequacies, high cost of borrowing pose a great challenge to many small scale businesses in due to predominant agrarian economic activities that most people engage in
1.3 Objective of the Study
The main objective of this study is to find out the effect of cooperative thrift and credit facilities on members business performance, specifically the study intends to:
1. Find out the factors that influence people to join cooperative thrift and credit facilities
2. Analyze the effect of cooperative thrift and credit facilities on members business performance
3. Find out the factors that aid business performance
1.4 Research Question
1. What are the factors that influence people to join cooperative thrift and credit facilities?
2. Is there any significant effect of cooperative thrift and credit facilities on member’s business performance?
3. What are the factors that aid business performance?
1.5 Research Hypothesis
Ho: there is no significant effect of cooperative thrift and credit facilities on member’s business performance
Hi: there is significant effect of cooperative thrift and credit facilities on member’s business performance
1.6 Significance of the Study
This study will enable cooperative thrift and credit facilities members know the importance of credit thrift on business performance. The study also offered an opportunity for the practitioners to get feedback from people who are participating and those not participating in cooperative thrift and credit facilities and this feedback includes suggestions on what can be done better which can be used to create a positive change income levels.
This research will also serve as a guide to other researchers who will embark on the same research.
1.7 Scope of the Study
This research work will be conducted in Abeokuta Metropolis, Ogun State, also this research will vividly examine the effect and contribution of cooperative thrift in the society. cooperative thrift
1.8 Delimitation of the Study
Finance for the general research work will be a challenge during the course of study. Correspondents also might not be able to complete or willing to submit the questionnaires given to them.
However, it is believed that these constraints will be worked on by making the best use of the available materials and spending more than the necessary time in the research work. Therefore, it is strongly believed that despite these constraint, its effect on this research report will be minimal, thus, making the objective and significance of the study achievable.
1.9 Definition of Terms