CHAPTER ONE

1.0      INTRODUCTION

1.1   BACKGROUND OF THE STUDY

        The advent of cooperative societies in all parts of the economy has created unmeasured effects on the lives  and activities of rural and urban dwellers alike. By way of understanding, a cooperative society may be seen as an association of the individuals of limited means who voluntarily join together to achieve a common economic end through the formation of a democratically controlled business organisation, making equitable contributions to the capital required and accepting a fair share of this risk and benefits of undertaking by which members activity participate

        Cooperative society is further regarded as a form of organisation wherein persons voluntary associate as human beings on the basis of equality for the promotion of economic interest of themselves. Business activities, interwoven with business operations accord the business owners the opportunity to build up capital to finance their business via gradual and regular savings of money.

        Cooperative societies also come to existence that the business owners achieve the right results from their various imputes. A business is seen as an organisation formed to produce and supply goods or services to satisfy the needs of people in order to gain profit. Here cooperative societies provide ready markets for such products. By so doing, such business owners are encouraged to produce good quality products and those enhance increase in the national gross domestic product and income.

        Worthy of note is the fact that business activities in various communities, societies and urban areas are the pivot of cooperative societies because its role or major objective is to see that business organisation record huge success on regular basis.

        The question that does come to mind based on the above assertion is, “do cooperative societies make any contribution to business in any given settlement.

1.2      STATEMENT OF RESEARCH PROBLEM

The core or fundamental objective or basis of any existing business organisation among many others is: profit making, provision of public services, promotion of a special course and provision of aid to others.

It is the efforts of nursing these business objectives that cooperative societies came to existence every research work must have this backdrop, Gupt {1973:22} asserted that failure to work out a statement of purpose clearly and carefully can lead only to misunderstanding and confusion. It will result in diffusion of effort, gradual over-expansion of field covered and aimlessness.

Despite the laudable efforts and programs of cooperative societies in the interest of business operation in communities and nation at large, the following statement post out for analysis.

1.           Do business organisation have cognizance of the cooperative society?

2.           Are the objectives, programmes and business strategies of cooperative societies accepted by the business organisation?

3.           How positive cooperative societies contribute to business?

1.3      OBJECTIVE OF THE STUDY

The core objective of this research work is summarized in the title of the work “the contribution of cooperative society/scheme in business”. Therefore, to make it crystal clear, the following findings objective will provide anchor to the objectives of the research work.

i.             Finding out if cooperative society/scheme really have interwoven co-existence with business in any society.

ii.           Finding out the degree to which cooperative societies are recognized and accepted by business owners.

iii.         Finding out the level of contributions cooperative societies and business organisation.

1.4       Significance of the study

This research work will be of considerable usefulness for those within the academic circle, government establishment or agencies, business sector and various policy makers. It will be measurable use for information education and policy making purpose. The suggestions in the directions and ways in which improvement can be made will also be of significance in problem solving and decision-making.

Again, this research study is carried out with the hope that its outcome will stimulate academic discussions and useful research to the business and cooperative.

Though this research may not be comprehensive analysis of cooperative society. Business relationship in the economy, it will no doubt make some revelations that would be useful to both potential and practicing cooperative society members and business owners.

1.5      STATEMENT OF RESEARCH HYPOTHESIS

Base on the nature of the problems aforementioned, hypothesis testing, as a measure will assist immensely in carrying out the research to a logical conclusion because of the statistical testability of the problems formulated.

“Hypothesis is an assumption or statement which may or may not be true concerning the population”. Walpole {1974”191}. Hence, the hypothesis of this research is considered as tentative statement, which would be considered positive or negative at the end of the research presentation.

i.             F0: Business organizations operate ignorant of the existence of cooperative societies.

F1: business organizations are fully aware of cooperative societies.

ii.           F0: The objectives, programme and business strategies of cooperative societies are not recognized and accepted by business organizations.

F1: The objectives, programme and business strategies of cooperative societies are recognized and accepted by business organizations.

iii.         F0: cooperative societies have not contributed positively to business activities.

F1: cooperative societies have contributed positively to business activities

1.6      DEFINITION OF TERMS

BYE LAWS: Regulations that guide the operations of the company.

COOPERATES AFFAIRS COMMISSION: Body that registers companies before they start functioning.

SHARES: Value of one’s investments in a company

LATENT NEED: A need that exist but consumers are not aware of.

PRIVATE ENTERPRISE: Business organizations that are owned by private individuals and have profit making as chief aim.

PUBLIC ENTERPRISE: Business organization that is owned by the government of an economy.

GOING CONCERN: Ability for a business organization to continue operation without an end.