Co-Operative Societies Opportunities And Threats In A Capitalist Economy
(A Case Stydy Of Anambara State)
In a capitalist economy, cooperative societies emerge as distinctive entities that navigate a dynamic landscape characterized by opportunities and threats. These cooperative entities, founded on principles of collective ownership and democratic control, represent a collaborative alternative to traditional capitalist structures. The opportunity lies in their ability to empower individuals within the community, fostering economic inclusivity and shared decision-making. Cooperative societies can serve as incubators for local entrepreneurship, offering a platform for members to pool resources and expertise, thus enhancing their economic standing. However, challenges abound, as these cooperative endeavors may face resistance within the competitive capitalist framework. Threats manifest in the form of limited access to capital, potential for internal conflicts, and the need to adapt to market fluctuations. Successful cooperative societies in a capitalist economy navigate these challenges by fostering a resilient community spirit, exploring innovative business models, and forging strategic alliances to amplify their impact on both economic and social fronts.
Cover Page
Title Page
Approval Page/Certification Page
Dedication
Acknowledgement
Table of Content
CHAPTER ONE
1.0 Introduction
1.1 General Overview of the Study
1.2 Statement of the problems
1.3 Objectives of the Study
1.4 Scope of the Study
1.5 Research Questions
1.6 Significance of the Study
1.7 Limitation of the Study
1.8 Definition of Terms
CHAPTER TWO
2.0 Literature Review
2.1 The concept of Capitalist
2.2 Means Production
2.3 Concentration of Means of Production in
Monopoly form and in the hands of one Social
2.4 The appearance of a social class which has
no passion save for its own hands and no
means of subsistence other than the sale of its labour power
2.5 Cooperative in Nigeria concept
2.6 The cooperative concept historical
background of cooperative
2.7 Objective and principles of cooperation
2.8 Capitalist as it Effects Cooperative
CHAPTER THREE
3.0 Research Methodology
3.1 Introduction
3.2 Population size
3.3 Research design
3.4 Method of data collection
3.5 Procedure for Processing Data
(using % method)
CHAPTER FOUR
4.0 Presentation and Analysis of Data
4.1 Presentation of Data
4.2 Analysis of Data
4.3 Discussion or Interpretation
CHAPTER FIVE
5.0 Summary Conclusion and Recommendations
5.1 Summary Conclusion
5.2 Recommendations
Bibliography
1.0 INTRODUCTION
Different economic system exist in the world economy, among these are prominent namely: socialist, capitalist and mix-economic system.
In their drive towards achieving their set objectives, they face a lot of challenge especially that posed by the capitalist business men. This piece of work look s into the very nature of capitalism and its general principle as it effects the growth of cooperative societies.
Cooperative societies started as the proverbial child of necessity, being the mother of invention, it arose in the 19th century out of atrocities of the shrewed capitalist businessmen. The use of false weight and measure among others were some at the bad business practices which characterized the capitalist system of economy. This is because the capital business men aimed at maximizing profit at the determent of the consumer. As a result, the spirit of cooperation was born in the minds of the founding fathers of the movement who formed business enterprise which by its principle and practices has a negative attitude towards capitalist and still remains today what is known and referred to as cooperative societies.
1.1 GENERAL OVERVIEW
THE SOCIALIST SYSTEM: This is the type of economic system where type is government control of all sectors within the economy. This implies that there is government ownership of every investment in the systems today. Socialism is giving in to other types of economic systems, in that most countries of the world that practice socialism are loosing their hold in the economic countries, the unions of soviet is socialist republic (USSR) is a good example of dividing socialist countries.
CAPITALISM: On the other hand, is a reverse of what is obtainable in a socialist economy. This is because capitalism is seen as an economic system where individuals control the main of the economy. It s characterized by the interplay of market forces, the forces of demand and supply, cut throat completion and indiscriminate like in prices of goods and services.
MIXED ECONOMY: the mix economy is an economic system which comprises the feature of both capitalist and socialist systems of economy in the mixed economic system.
In the mixed economic system there is joint ownership of factors there is joint ownership of factors of production by the government and private. Entrepreneur although there is state control on vital or key industries and services very essential to the masses. These services are known as statutory service which if left in the hands of individuals will either be exorbitant to procure or be reserved for the higher social class.
The government therefore, takes charge of administering such statutory services in a mixed economic system. The individuals on the other hand exercise the legal right of embarking on any type of business enterprise as the law demands.
The write up takes a look at capitalist system of economy as it effects cooperative societies. Cooperation is a unique form of business organization which aim of uplifting the living standard of their members.
1.2 STATEMENT OF PROBLEMS
Most often business activities are faced with numerous problems which hinder achievement of their objectives. Some of these problems are posed by the vagaries in the economy. Such as inflation, while some arises as a result of the type of economic system which the business enterprises operates.
This project piece takes a direct look into the problems passed by capitalism to a unique form of business enterprise known as cooperative societies.
Given a case a study of Anambra state the activities of capitalist businessmen and the problem it passes against the growth and development of cooperative societies is discoursed.
Cooperative societies are faced with many problem in a capitalist economy which hinders the growth and development of cooperative such problems which the cooperative societies have to contend with in a capitalist economy include:
a. Stiff and cat throat competition
b. Lack of enough financial resources
c. Lack of adequate government support
d. Lack of people interest in cooperatives
e. Lack of proper legislation.
These problems mentioned above are among the numerous problems which faces cooperative societies in capital economy.
1.3 OBJECTIVES OF THE STUDY
The write up is aimed at looking specially into cooperative societies. As agents of social and economic development, thereby bring into play their problem as they effects or hinders their development plans. The study also considers capitalism as a contrast to the very principle on which cooperation was founded. It focuses on the numerous problem created by capitalist economy and the threat which those problems poses to the cooperative enterprise.
The study also looked at opportunities and tries to relate them as factors necessary for social and economic development. In addition to this it also throws more light on the activities of cooperative societies as unique forms of business organization.
1.4 SCOPE OF THE STUDY
This work boarded on the influence of the capitalist system on the co-operative belief and principle taking into consideration of given area where there is a greatly felt incidence of activities of capitalist businessmen. The case study of Anambra State where there is high level of capitalism oriented business activities. The interplay of the forces of demand and supply and the spirit of profit maximization as can be seen in most commercial town of Anambra state namely, Onitsha Akwa etc presented wider scope for the study.
1.5 THE RESEARCH QUESTIONS
1. What are the risks taken by cooperative societies in capitalist economy?
2. Are there factors that hinder socialism in cooperative societies opportunity and threats?
3. Are there some benefits that attach to those three mentioned economic systems that exist in the world economy?
4. What are the factors that can hinder those existing economic system?
How does government benefit from all those systems?
1.6 SIGNIFICANT OF THE STUDY
Importance of the piece of work cannot over emphasized. The reason that the write up will above all bring out the hidden problems which the cooperatives societies face within. At the same time put up some suggestions as that would help in solving those problems. This will ensure proper and will articulated programme aimed at withstanding the problems posed by the capitalist concept.
The present day is a point in time when bad business practice have become the order of the day, this become the order of the day, this can be attributed to peoples drive to maximum profit. This cooperative brought about serious competition in the economy. In take of this, this work will related the efforts of the cooperative societies in trying to clurb these bad business practices with the aim of bringing a relief to the poor masses by breaking the chains of capitalism. Thus, it is believed will make a new socio-economic world where the suffering populace will enjoy some form of economic freedom.
1.7 LIMITATION OF STUDY
In carrying out the study within the given scope, some limiting factors existed which reduced the pace at which the study was carried out. Such limiting factors, ranges from scarcity of cooperative establishment within the area of study to the are of inaccessibility of cooperative inspectorate in government ministries.
Also among the numerous problems faced during the conduct of this research work is financial constraints.
1.8 DEFINITION OF TERMS
Cooperative societies is defined as a group of people who come together with their resources and efforts aiming at making surplus to uplift the standard of living of its members that is Ogujiofor (2003:12).
Capitalist economy: This is seen as an economic system where individuals control the main features of the economy and where there is free allocation of market resources and private participation in market economic activities.
Threats: The threats were the way capitalism dominated and controlled the economy of all the developed and under developed countries which made the poor masses suffer before the intervention of cooperative societies.
Co-Operative Societies Opportunities And Threats In A Capitalist Economy:
Cooperative societies, often referred to as co-ops, can exist and thrive in a capitalist economy, but they face both opportunities and threats unique to their structure and principles. Here’s an overview of these opportunities and threats:
Opportunities:
- Economic Democracy: Cooperative societies promote economic democracy by giving members a say in the organization’s decision-making processes. This can empower individuals and create a sense of ownership and control over their economic activities.
- Income Distribution: Co-ops can help reduce income inequality by distributing profits among members based on their participation or patronage rather than concentrating wealth in the hands of a few shareholders.
- Local Economic Development: Cooperatives often have a local focus, which can contribute to the development of communities and regions. They may support local employment and businesses, helping to stabilize local economies.
- Resilience: Cooperative businesses tend to be more resilient during economic downturns because they prioritize member needs over maximizing profits. They may be better equipped to weather economic crises.
- Access to Capital: Some cooperatives can access capital through member investments or cooperative banks, reducing their reliance on external financing, such as loans from traditional banks.
- Social and Environmental Responsibility: Cooperative principles often include a commitment to social and environmental responsibility, which can appeal to consumers and align with evolving market trends.
Threats:
- Limited Access to Capital: Cooperative societies can face challenges in raising capital, as they may have limited access to traditional financing options like venture capital or stock markets. This can limit their ability to grow and compete.
- Competitive Disadvantage: In a capitalist economy where profit maximization is often the primary goal, cooperatives may face a competitive disadvantage compared to traditional, profit-driven businesses. They might struggle to attract investors or compete on price.
- Governance Challenges: Decision-making processes in cooperatives can be slower and more consensus-based, which may hinder agility and responsiveness in a rapidly changing market.
- Scale and Growth Constraints: Scaling up a cooperative can be challenging due to democratic decision-making processes and limited access to capital. This can limit their ability to compete with larger, more centralized corporations.
- Member Engagement: The success of cooperatives depends on active member participation. If members become disengaged or if there is a lack of commitment to the cooperative principles, it can lead to inefficiencies and internal conflicts.
- Legal and Regulatory Barriers: In some capitalist economies, there may be legal and regulatory obstacles that make it difficult for cooperatives to operate or expand. These barriers can vary by jurisdiction.
- Market Pressures: In markets where price competition is intense, cooperatives may struggle to maintain competitive prices while still meeting their social and environmental goals.
In summary, cooperative societies have distinct opportunities to promote economic democracy, income distribution, and community development in a capitalist economy. However, they also face challenges related to access to capital, competitive disadvantages, governance, and regulatory barriers that can impact their growth and competitiveness. Success often depends on the ability to balance cooperative principles with effective business strategies in a capitalist context.