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CHAPTER ONE
INTRODUCTION
1.01 BACKGROUND TO THE STUDY.
Cooperative societies are often regarded as one of the microfinance institution (MFI’s) that promote entrepreneurship or small and medium scale industries and rapid industrialization.
They have been widely acknowledged as imperative for the economic development of any country. And as such, they are described as the springboard for small and medium scale industries development in Nigeria.
Cooperative societies are seen as a means for rapid industrialization, sustainable economic development, poverty eradiation and employment generation bodies. They have helped small and medium scale industries to mobilize domestic resources for capital formation. Also reduce the distress of working class by obtaining some of the machinery and greater production for workers.
Management in each sector has profound knowledge of the various industries and is therefore able to respond to customers peculiar needs.
1.02 STATEMENT OF THE PROBLEM
The purpose of investigating the problems of establishing an industry is due to some important requirement which shall be considered necessary for an industry to grow and function effectively and efficiently. This problem can ever present, and to solve or identify those cankerworms and determine what extent they could be solved for overall interest of small and medium scale business in Nigeria, the support of cooperative societies will be needed financially and morally.
The lack of interest among members during meetings and administration is also a problem of the management.
1.03 THE PURPOSE OF THE STUDY
The purpose of the study is to highlight the role of cooperative societies in the development of small and medium scale industries in Nigeria. The under listed factors were basically aimed at:
1. To know the level at which cooperative societies has contributed to small and medium scale industries development through their loans and advances.
2. To find out the role of cooperative societies towards the growth and development of the people living.
3. To find out possible solution to the factors against effective management of the societies.
1.04 SIGNIFICANT OF THE STUDY
It is the opinion and concern of every business to remain in existence if the objective is realized. To give the right information to intending investors on the support and contribution of cooperative societies to the fulfillment of small-scale business in Nigeria.
With result derived, the small-scale industries will utilize to set up other business and branches. It will also help to point out some of the problem caused by the proprietors themselves which to a large extent contributed to the financial problems of small and medium scale industries in Nigeria.
It is therefore applicable to find in detail the work done so fair by government and other bodies (cooperative societies) on financing small and medium enterprises, there problems that still hinder the growth and development of this sector and economy at large.
1.05 SCOPE OF THE STUDY
The scope of the study is limited to selected cooperative societies in Isoko North Area, Delta State. The cooperative societies in the area form the sampled areas.
Nevertheless, a reasonable effort was made to gather enough information or data to justify the validity and reliability of this research work.
1.06 RESEARCH QUESTIONS
1. Has cooperative societies contributed to small and medium scale industries growth and development through their loans and advances?
2. Does the role of cooperative societies increase the standard of living of the economy?
3. Is there significant solution to the factor against effective management of the small and medium scale industries?
1.07 LIMITATION OF STUDY
The investigation of the role of cooperative societies to the growth and development of small and medium scale enterprise is limited by the following constraints.
Finance, time administrative bottleneck and distance is also part of the limitation.
During the period of the research study, the researcher was engaged in other activities like; receiving lectures, doing assignments, test, examination and other former commitment.
Problem of finance and insufficient time allocated for the research is also involved.
Also, the period given for the research was rather too short and as a result, there was no enough money to reach all the part of the various communities and cooperative societies chosen to visit.
1.08 RESEARCH HYPOTHESIS (ES)
HYPOTHESIS 1
Ho: Cooperative societies have not contributed to the development of small and medium scale industries through granting of loans and advances.
Hi: Cooperative societies have contributed to small and medium scale industries through granting of loans and advances.
HYPOTHESIS 2
Ho: The role of cooperative societies does not increase the standard of living of the economy.
Hi: The role of cooperative societies increases the standard of living of the economy.
HYPOTHESIS 3
Ho: There are no significant solutions to the factors against effective management of small and medium scale industries.
Hi: There are significant solutions to the factors against effective management of small and medium scale industries.
1.09 DEFINITION OF TERMS
Cooperative Societies: This is generally the group of people acting together to meet the common needs and aspirations of its members towards an aim.
Management: Are the bodies that make policies, decisions and day- to –day business activities of the organizations. It is also the process of utilizing human material resources to accomplished desired goals and objectives.
Interest: This is willingness of members to partake.
Industries: Economic activities concerned with the processing of raw materials and manufacture of goods in factories. A particular form or branch of economic or commercial activity.
Needs: This refers to psychological and physiological requirement of human beings.
Work: This means the essential part of human life that relates to its sustenance, survival, status and the link to the societies.
Business: Any human activity pertaining to the production and distribution of goods and services.
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