THE ECONOMIC CONTRIBUTION OF CONSUMER COOPERATIVES TO THEIR MEMBERS, IN ADDIS ABABA, KOLFIE KERANYO SUB CITY

Abstract

Today, consumer cooperatives play a vital role to safeguard the consumers from the charge of intermediaries and to provide quality goods to consumers in the desired quantity and at reasonable prices. The study was focuses on the economic contribution of the consumer cooperatives towards their members in Addis Ababa, kolfieKeranyo Sub City, Woreda 5. The specific objectives of the study are to assess the financial performance of consumer cooperatives; to assess the rate of members’ satisfaction on the services of consumer cooperatives and To identify the determinant factors of economic contributions of the consumer cooperative in the study area. About 86 respondents were selected by adopting random sampling techniques. Data was collected by interviewing the Woreda trade and industry development Office, Consumer cooperative managers and officers, and by questionnaires from members of concerned cooperative members. Both qualitative and quantitative data analysis were pursued for the study purpose. Collected data were analyzed by using Financial Ratios, Mean scores and OLS Regression with STATA version 12. It was found that financial performance of the Consumer Cooperative under study showed an improving trend over the study period. On the other hand, members’ satisfaction perception towards Sharing of profit (dividend), Accessibility, Timely supply of goods and services, Courtesy of service providers and Commitment of leaders were under the satisfaction level of the members. The study also came out A total of 4 explanatory variables were considered in the econometric model. The result revealed that economic gain of members was significantly influenced by total income; number of household; distance of the household resident from the consumer cooperative shop at 1% level of significance and, age of members were affect the level of participation at 10% level of significance. Whereas, gender and marital status were not significantly affect the economic gain.