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Abstract

This study examines the impact of cooperative membership on rural income generation. It also analyzes the factors influencing participation in cooperatives among rural households in Southwest, Nigeria. The study was designed to account for selection bias into cooperative organizations. Rural household survey data were used and the estimates were based on both the Probit model and non-parametric propensity score matching method. The findings show that income generated through cooperative membership is approximately 10% higher than those generated by noncooperative members. Empirical estimates of determinants of cooperative membership indicate that years of education, age and land size have significant influences on the decision to join cooperatives.
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... Divergent findings have been reported regarding the relationship between ownership assets such as household durable goods, land holding and size, and livestock and cooperative membership. Studies conducted in Nigeria (Afolabi and Ganiyu, 2021;Wossen et al., 2017) indicate that households with larger land holdings were more likely to join cooperatives. Similar results were reported from studies in Ethiopia (Nugusse et al., 2013;Ahmed and Mesfin, 2017) and Malawi (Matchaya, 2010). ...
... Some studies show the relationship between education attainment and the decision to join co-operative societies. The probability of co-operative membership increased with increase in the years of schooling or literacy levels in Ethiopia (Chagwiza et al., 2016;Abate, 2018), Zambia (Matchaya, 2010;Manda et al., 2020), Nigeria (Afolabi and Ganiyu, 2021;Olagunju et al., 2021) and in Thailand (Jitmun et al., 2020). For example, in Zambia, education (years of schooling) increased the probability of membership in co-operatives by 1.4% (Manda et al., 2020). ...
... Demographic characteristics such as age, gender and household size affect co-operative membership. The tendency to join co-operatives was higher amongst older heads of households in Selale, Ethiopia (Chagwiza et al., 2016;Ahmed and Mesfin, 2017) and Nigeria (Afolabi and Ganiyu, 2021). In Selangor and Kuala Lumpur, farmers who were 45 years or older were 19 times more likely to join co-operatives compared to the younger ones (Othman et al., 2012). ...
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Purpose Despite the potential for co-operatives to improve smallholder farmers' livelihoods, membership in the co-operatives is low. This study examines factors that influence smallholder farmers' decisions to join agricultural co-operatives. Design/methodology/approach This study involved a survey of 1,274 smallholder chicken farmers. The data were analysed through a two-sample t -test of association, Pearson's Chi-square test and binary probit regression model. Findings The results suggest that farming as the main source of income, owning a chicken house, education attainment, attending training or accessing information, vaccination of goats and keeping a larger herd of goats are the key factors which significantly influence co-operative membership. However, gender, age, household size, distance to the nearest agrovet, vaccinating chicken and the number of chickens kept do not influence co-operative membership. Research limitations/implications The survey did not capture data on some variables which have been shown to influence co-operative membership. Nevertheless, the results show key explanatory variables which influence membership in co-operatives. Practical implications These findings have implications for development agencies that seek to use co-operatives for agricultural development and improvement of smallholder farmers' livelihoods. The agencies can use the results to initiate interventions relevant for different types of smallholder farmers through co-operatives. Originality/value This study highlights the influence of smallholder farmers' financial investments in farming and the extent of commercialisation on co-operative membership. Due to low membership in co-operatives, recognising the heterogeneity of smallholder farmers is the key in agricultural development interventions through co-operative membership. Peer review The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-03-2022-0165 .
... Nigeria is not left out of this discourse and there are pointers to the formulation of institutional arrangements in form of cooperatives. This is because cooperative societies are perceived as having the capacity to revamp dwindling economic misfortunes and enhancing livelihood [11]. ...
... Existing studies suggest that cooperatives can help reduce market failures and improve access to financial resources without stringent interest rates or harsh conditions on small businesses [11,42,43]. ...
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Small-scale businesses are the mainstay of the Nigerian economy and the Covid-19 pandemic that is ravaging the world did not leave this sector untouched. As a result of the devastating effect of measures adopted in curbing the spread of the virus, many small businesses appear to be grappling to find their bearing. Hence, this paper examined the enhancement of small-scale businesses in the Post-Covid-19 era through cooperatives in Nigeria and seeks to establish that cooperatives remain the only essentialist and mutual option for small-scale businesses to remain relevant in a turbulent environment. The ex-post factor study revealed that many small businesses in Nigeria were badly hit by the pandemic and emerging from the aftermath of the virus has not been easy. The paper also indicated that institutional formations like cooperative societies can only help to salvage the plight of small business owners and equally has the capacity to revamp the sector. The paper concluded that the support small businesses might need to revive their business lie within cooperatives and only active involvement can enable proof. The paper, therefore, recommended among others that small business owners should endeavour to join or form cooperative societies and be active in the patronage of cooperatives services. This is because cooperative societies have been proven to have the capacity to empower and revive dying businesses. The government should be made to understand the capacity of cooperatives in economic development and adequately partner with them in incorporating small businesses into cooperative societies.
... With an increase in the income of cooperative members, it can reduce the poverty rate that occurs in the community (Wanyama, 2015;Sentime, 2019;Afolabi & Ganiyu, 2021). Meanwhile, the poverty of cooperative members is mostly structural poverty. ...
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The main purpose of this study is to analyze the technical efficiency of Saving and Credit Cooperatives (SACCOs) and the impact for SACCOs' health using primary data obtained from a survey of 178 respondents of SACCOs in East Java, Indonesia. The three stages of the analysis used are Data Envelopment Analysis (DEA), Tobit Regression and Logistic Regression. Based on the results of the analysis using the DEA method, it is concluded that the average performance that can be achieved by SACCOs with existing technology is 65 % of the maximum potential yield. There are 61.3 % of SACCOs which are declared technically inefficient. The factors that influence the level of technical efficiency of Saving and Credit Cooperatives are interest, loan term, manager's age, and type of business. Furthermore, the factors that affect the health of the cooperative based on logistics analysis are the variable frequency of management meetings, age of the cooperative, fixed deposits and average loan. This study supports the SACCOs in becoming more efficient and healthy with the influence of external policy (from government) and internal policy (from SACCOs).
... However, as far as the researcher is aware, no empirical study has investigated the effect of internal control on the performance of cooperative societies. The few studies that have focused on cooperatives in Nigeria examined the commitment of members in cooperative organizations [18], the impact of cooperative membership on rural income generation [1] and relevance of entrepreneurial orientation strategy [17]. This study intends to bridge the gap by investigating the impact of internal control on performance of cooperatives in Abuja, Nigeria. ...
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Indonesia Cooperative is believed as the most appropriate institution in increasing the welfare of its members and the society, and also participating to build the national economic in order to create the advanced society, fair, and prosperous society based on Pancasila and the 1945 Constitution of the Republic of Indonesia. In proving, the purpose of this research is to analyze the effect of Indonesia cooperative existence to the welfare of its members. The method of analysis is the data panel regression, where cross section data covers all provinces in Indonesia, and time series data during 2010-2015. The result shows that the main factors that have effect to the members' welfare are number of members, number of managers, self-capital, and business volume. The variables that have no significant effect to the members' welfare are numbers of cooperatives, the annual member meeting (AMM), number of employees, outside capital, and macro economy variable in regional level. Economic growth and outside capital variables have indirect effect to the members' welfare through volume of cooperative business.
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In this article we investigate a simple theoretical model of cooperative organisations which are capable of enhancing its members’ human capital through efficient management of all their abilities. Thus, increased human capital has impact on the household’s wealth and consumption. Cooperatives can help alleviate poverty in developing countries. However, the model shows that cooperatives cannot increase the number of their members infinitely. They are constrained by managing capacity and the free-rider problem. Also, efficient cooperative is limited by its size.
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