Objectives and Importance of Co-Operative Society

Topics: Cooperative, Business Pages: 4 (1209 words) Published: July 16, 2008
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...
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