CHAPTER ONE

INTRODUCTION

1.1BACKGROUND OF THE STUDY

Development comprises a number of tasks and processes generally aiming at developing and implementing growth opportunities within and between societies and organizations. It is the process of growing and it is related to discrete projects, specific modes of growth, and organizational units, activities, and practices (Ibrahim, 2010).

Cooperative development involves tasks and processes concerning analytical preparation of potential growth opportunities, and the support and monitoring of the implementation of growth opportunities in cooperative establishment. Cooperative organizations/societies emerged as self help entities to combat economic and social inadequacies (Baarda, 2011). Cooperative organizations serves as an effective

community development vehicle by their nature they build economic self reliance and civil society. The benefits of cooperative organizations accrue to the larger society because they create local jobs, re invest locally, emphasis on education and skills raises local management capacity, reduce migration and concentration of capital. People come together in cooperative

societies to pool their resources together so as to meet individual needs that could not be resolved by individual limited financial capacity. The aim of cooperative societies is to produce goods and deliver services, and to satisfy the legitimate needs of members and also to promote cooperation, relations, participation and consequently to promote interpersonal connections. Cooperative societies provide services that benefit both members and the local community. It was also observed that it is an essential tool for development of less economically developed communities.