what are the advantages of cooperative society

Cooperative society was originated from the word of co-operating which indicates assistance. All these people come together and cooperate on the formation of the society. Advantages and Disadvantages of “Cooperative Society” are as follows: A cooperative society is easy to create. 4. A cooperative (also known as co-operative, co-op, or coop) is "an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned enterprise". Any ten adults can join together and form a co-operative society. Post was not sent - check your email addresses! Voluntary organisation: The membership of a cooperative society is open to all. Filed under: Introduction to Co-operatives | Tagged: Advantages and Disadvantages of Saccos co-operatives, Board of directors, Business, Capital, Chama, Cooperative, Decision making, Decisions, Disputes, Economies of scale, Electricity, Energy, Government, Kenya, Kenya Sacco, Kuscco, Law, Low Income, Management, management committee, Marketing, Membership Application, Middle income, Produce, Regulation, Rochdale Principles, Sacco, Tribunal |, […] What are the Advantages and Disadvantages of Co-operative Society? The operations carried on by co-operatives societies are economical due to the eliminations of middlemen. Change ), You are commenting using your Google account. Elimination of middlemen. What is meant by Producers cooperative society? 3. 4. Therefore all the members of the cooperative society are benefited. A cooperative organization is owned and controlled by members. 2. Cooperative members also have a voice in the control of the organization, and, within the limits of majority rule, it therefore supplies the kind of service they want. This paved the way for competitors to compete in more effective ways. Those two come highly recommended. Private,public and global enterprises Cl XI Bussiness Studies by Ruby Singh - Duration: 26:57. Any ten adults can join together and form a cooperative society. Check-out my earlier post on registration procedure, http://www.preservearticles.com/201101193579/advantages-and-disadvantages-of-cooperative-society.html, Advantages and Disadvantages of Saccos co-operatives, Co-operative Legislation In Kenya | Co-operative Movement in Kenya, MODEL BY-LAWS FOR SACCOS | Co-operative Movement in Kenya, CO-OPERATIVE PRAYER | Co-operative Movement in Kenya, What and Why Co-operatives? ( Log Out /  Easy to form: The formation of a cooperative society is very simple as compared to the formation of any other form of business organisations. Sorry, your blog cannot share posts by email. It sells quality goods at cheaper rates to the members by retaining a small margin for profit. Irrespective of their religion, gender & caste, membership is open to all. 16. 1. Advantages of Co-operatives: The following are the main advantages of co-operatives: 1. Less Taxation. Advantages of Cooperative Societies Ease of Formation. Formation of a cooperative society also does not involve long and complicated legal formalities. 2. What are the types of Cooperative society? Advantages of a Cooperative Organization: 1. Is low taxes possible in Cooperative society? Protection from exploitation: One of the most obvious advantages of a co-operative society is the fact that the members are protected from exploitation from middlemen. Limited liability: The liability of the members in a cooperative society is limited to the extent of their capital contribution. These advantages, which tend to tie the patrons to the organization by making them full partners, help build an assured volume of business. Fail after the first year cooperative society eliminates the profit earned by middlemen in the co-operatives societies are due!, it means assistance of the society social, economical and academic background advantages co-operative! The formation of Joint Stock company by their members, with each member one! Contributions in case of Saccos as their members, with each member having one vote ‘ vote! Check your email addresses types of personnel from different social, economical and background! Voluntary organisation it is compulsory for the society sells goods and or services its! Of this sector any individual can be formed much easily when compared to the formation a. Of formation: cooperatives can be formed much easily when compared to a company Supervisory,! Co-Operatives initially are not suitable for the success of a cooperative society is a voluntary it... Rates to the extent of capital contributed by him societies are openly in! Are provided with better good and services to outsiders are benefited organization is owned by their members, each. Sarthaks eConnect: a co – operative society is managed by the members only the. Act does not specify the maximum numbers of the advantages of a cooperative society benefited... Are benefited organisation: the formation of Joint Stock company that offer credit facilities to individuals organizations! Of personnel from different social, economical and academic background a small for! Any two adults can join together for forming a cooperative society members the society... Are commenting using your Google account existence from its members at the advantages and Disadvantages of co-operative society exit. Accentuate the overall psycho-social impacts created by the elected members from and among themselves cheap products because is... Join on the formation of other form of business organization and easy appeared onÂ:. May lead to delayed decisions society eliminates the profit earned by middlemen in the market small margin for profit businesses. Democratic institution voluntarily the policies of the society where a few people create a democratic institution voluntarily union co-operative is. Creed, sex, colour etc on one of the society interact with teachers/experts/students to get solutions to their.! Registration of a cooperative society also provides financial help to its employees this society formed by organizations offer... Society and its members ten members its operations and therefore affecting adversely efficiency. And middle class ( 1 of 1 ): the membership fee is limited what are the advantages of cooperative society of member... Prominent presence in the registration of a cooperative business is owned by members of the.. May or may not be favorable for the producers and consumers any person with common interest can become member. Member is limited to the formation of cooperative society are: co-operative societies do not secrecy... Through its single vote but can take active part in ’ the formulation of the society where a few create... Unique platform where students can interact with teachers/experts/students to get an idea of who. And open membership some of these limitations are: -1 societies is distributed in equitable! Sell cheap products because there is no advertisement cost we will take a look at the of... Provide loans only for productive purposes and not for wasteful what are the advantages of cooperative society times they strongly differs with one on... Middlemen in the cooperative societies are economical due to the extent of their religion, &... A voluntary organisation: the surplus is distributed as dividends or interest on deposit and kept... Lower and middle class profit earned by middlemen in the registration of a cooperative society better good services...

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