Cooperative Society

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Objectives/Importance of co-operative society
1.Bringing economic welfare: A cooperative is not just formed to make profits; its objective is to ensure the economic welfare of its members. 2.Creating unity and solidarity: A cooperative is characterized by the strength of its unity. Therefore bringing the extorted and deprived together and encourage them work in unison is a goal of a cooperative society. 3.Awakening of working zeal: Cooperatives also helps to invoke confidence in the minds of people who have lost their will to work as they had faced constant failures in their lives. 4.Creating interest in saving: A cooperative encourages its members to save more. Then it accumulates these small amounts of savings from the members to raise capital. 5.Solution to capital problem: Lower middle class people cannot utilize their capabilities due to lack of capital. They are extorted by landlords and the richer class. Therefore another prime objective of a cooperative is to manage necessary resources for its members. 6.Development of efficiency: Another aim of cooperatives is to create a skilled and efficient labor force by arranging training sessions for its members. 7.Removal of middlemen: Producers are often deprived of their rightful returns as the middlemen cheat them by unfair means. Cooperatives can be formed to deal with such problems. 8.Co-coordinating ability: Bringing together the limited skills of the lower middle class to create a large business is the target of a cooperative. The cooperative benefits from the returns from the large business and share it among them. 9.Defense against disturbance: Small producers often face various types of disturbances from different parties like extortion by certain landlords. A cooperative can be formed to deal with such problems. 10.Advantages of large scale business: A cooperative combines the small fortunes of its members into a large capital and then a big business is formed. This leads to greater production and greater yields which is enjoyed by the members. 11.Teaching of moral principles: Cooperatives not only ensure economic stability but also inserts moral principles into the members’ minds, making them stronger mentally. 12.Improvement of skill: Cooperatives play a vital role in improving the technical kills of the uneducated and the poor. They arrange for trainings so that their members can show appropriate skills in their respective fields. 13.Removal of middlemen: Small producers are deprived of certain percentage of their rightful earnings as the middlemen take advantage by cheating them. Formation of cooperatives can prevent such unfair means. 14.Removal of monopoly business: Some producers try to create a monopoly in market economy. This poses difficulty for small investors to come forward. Cooperatives unite these small investors and create an environment of competition. Thus monopolies are prevented. 15.Capital formation: Cooperatives encourage its members to save more and then combine their small savings into a large capital. This leads to greater investment and hence greater production. 16.Creation of loan facility: Small producers often face high shortages of capital. When they turn to certain landlords for loans, they are mistreated and get caught in loan traps. Cooperatives arranges for easy term loans for its members to ensure continuous and rapid production. 17.Solution to unemployment problem: Cooperatives create more job opportunities for their members. 18.Social development: Cooperatives also plays a vital role in the development of the society. They not only foster psychological and economic development of their members but also resolve their residential problems in certain situations develop transportation, education, health and carry on family planning programs. 19.Economic development: By helping to develop the agricultural sector, small and cottage industries, etc. and hence reducing poverty in the country, cooperatives...
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