Operating and Financial Performance of cooperatives in Sheka Zone

Abstract

The study is conducted with the main objective to measure the operating and financial performance of the cooperatives in Sheka Zone. An attempt is made to see their performance, specially the place of cooperatives in providing input and output market, provision of credit, capital accumulation and asset building, employment creation and income diversification to the poor society. The study used primary data from cooperative members’ household survey, key informant interview, and focus group discussion to provide background information and investigate the new opportunity and challenges created by the post 1991 policy reorientation. Secondary data are also used to supplement primary data. The analysis is carried out by applying more of explanatory, descriptive and qualitative means of analysis. Unfortunately, however, as a result of challenges and potential constraints are created due to various reasons. The cooperatives are facing to various managerial, financial organizational and operational problems. Output market is totally left out services; there is very limited access to technologies and information net work. Theses all limitation are mainly caused due to problem of qualified visionary and committed leadership, inadequate awareness and participation of members in various affaires of their cooperatives. Hence, to realize the immense development aptitude of these institutions in the area of marketing, resources mobilization, capital accumulation, employment creation and income diversification to the best merit of the poor society as well as poverty reduction, the mentioned problems should be given appropriate emphasis. Therefore there must be collective effort of all concerned bodies to find appropriate solutions to resolve the problems of the cooperatives, reduce the challenges and potential constraints, and help the cooperative flourish in the country.