Performances and Challenges of Cooperatives in Ethiopia: The Case of Werie Multipurpose Cooperative Union in Central Zone of Tigray

Teweldemedhin, Yemane (2010) Performances and Challenges of Cooperatives in Ethiopia: The Case of Werie Multipurpose Cooperative Union in Central Zone of Tigray. Masters thesis, Addis Ababa University.

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Abstract

This study is concerned with assessing the performance and challenges of Werie Multipurpose Cooperative Union (WMCU) which is found in werie –Leke woreda of Tigray Regional State of Ethiopia. The objective of the study is to assess the performances and challenges of the union in its course of development. For this purpose, the data requirements for the study were collected from different sources. The primary data were collected from 126 member respondents of two sample primary member cooperative societies of the union and 5o randomly selected non-members from the residents of the town of Edaga-Arbi. Moreover, the study made use of documents of the Union, like financial statements and audit reports as source of secondary data. In addition to this, FGD and Key informant interviews were also important sources of secondary data. The data collected were analyzed using simple statistical analysis like frequencies, percentages, tables, financial ratio analysis and t-test with the help of a statistical package called SPSS (Statistical Package for Social Sciences). The findings from the study revealed that trend of membership of the Union was increasing over the study period but the financial performance was inconsistent in the periods under study. Affiliation to a cooperative was found to increase the income of members and thereby contributes to the well-being of member household that was manifested in the betterment of oxen ownership, food, housing, and clothing and in terms of ability to send children to school and use modern health services. In addition, WMCU has some benefits to the community (non-members) in stabilizing the local market and cost saving. On average, a person was able to save Birr 8.17 per month given that s/he purchases the sampled items from the union instead of the private traders in the town of Edaga-Arbi. Regarding the challenges constraining the performance of the Union, the study has pointed out that embezzlement, limitations in the capacity of Management Committee or BoDs, lack of capital, unhealthy competition from private traders, absence of education and training and lack of physical resources are the main ones.

Item Type:	Thesis (Masters)
Subjects:	H Social Sciences > H Social Sciences (General)
Divisions:	Africana
Depositing User:	Geoffrey Obatsa
Date Deposited:	24 Jun 2019 11:06
Last Modified:	24 Jun 2019 11:06
URI:	http://thesisbank.jhia.ac.ke/id/eprint/9245

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