The Factors That Can Influence The Establishment Of Cooperative Society In Enugu State (A Case Study Of Nsukka L.G.A Enugu State)

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The Factors That Can Influence The Establishment Of Cooperative Society In Enugu State (A Case Study Of Nsukka L.G.A Enugu State)


The project work on the factor that can influence the establishment of co-operative societies in Enugu state (A study of Nsukka L.G.A) the study involves the origin of co-operative societies in Enugu metropolis with respect to Nsukka Local Government Area. The researcher gathered information through primary and secondary data. This source of data help to organize, arranging, and the analysis of the data collected. Many methods of data collection were employed in this research work such as research design, population of the study, sample size and sampling techniques, validity and reliability of the instrument, method of data collection, method of analysis, etc. the researcher observed from the research finding that, there are a lot of co-operative societies that are viable and a good number of them that are not viable in the local government. The researcher also recommended that government should continued to create good political stability so to enable these societies grow and develop. Government should provide loans or credit facilities to the co-operative societies especially those in the rural areas.



Background of the study 2
Statement of the problem 4
Objective of the study 5
Significance of the study 6
Research questions 7
Scope and limitation of the study 8
Definition of terms 9
References 10



2.1 Definitions of cooperatives 11

2.2 History of cooperative in Nigeria 12

2.3 The factors that influence the establishment

of cooperative in Enugu state 19

2.4 The factors that can influence the establishment of

cooperative in Enugu State 21

2.5 Problems of co-operative establishment in the area of study 31

2.6 Achievements of cooperative in Nsukka L.G.A Enugu state 33

References 35



3.1 Sources of data 36

3.2 Secondary data 37

3.3 Primary data 38

3.4 Instrument used 39

3.5 Sample size (population) 41

3.6 Sample procedure 41

3.7 Return of completed questionnaire 42

3.8 Method of analysis 42

References 43


Data presentation Analysis and Interpretation 44



5.1 Findings 49

5.2 Conclusion 56

5.3 Recommendations 57

Bibliography 58

Appendix 60



In the early centuries cooperative societies have been in existence this is to say that they started even before the creation of the Earth. There was cooperation between the holy spirits or trimly (that is God the father God the son and God the Holy Spirit) which led to the achievement of the creation of the world. This was as a result of certain factors.

In addition at the time of the Stone Age men and the wonders there was need for cooperation. This occurred at the agricultural sector through it was limited within families. After some time things begin to improve and it came a time when there was communal farming system. This occurred because of certain factors and because there is need for it.

Further more countries began to relate in businesses exchanging goods and services from one country to another or from one state to among countries. Certain factors gave rise to that because there is need for it. That is to say that nothing achieving can come into existence without needs for it or without needs for it or without certain factors which must have led to it indeed these factors leading to cooperation among people states. Countries and the world at large are not for fetch but are those desires that need to be satisfied or measured. These factors as put under this introductory section can be either positive or negative.


The invention of cooperative has been and still is often attributed to Robert Owen in England and to Charles forcer in France. The first cooperative institution arose spontaneously from necessity and the spirit of association among the people not by the act of some great social reformer secondly they were stimulated and at times divested by doctrine emerging beside them or build upon them, which enthused cooperative with the vision of a complete social transformation to be achieved by development of cooperative and nothing alse..

The cooperatives of urban and industrial areas originated and developed first in great Britain from the last third of the 18th century and during the 19th century in other centuries where it followed their by them of industrialization.

Consumers cooperatives is generally made to data from the establishment of Rochdale society of equitable prodders in 1844. How ever the research of William max well, J.A. Hanagen Kerl munching, Hansumuller T.W mercer and Percy Kedfer and the document published by the cooperative education on the pre-Rochdale period of he cooperative movement in create Britain. This period covers more than eighty years and is divisible into two phases; the pre activity of such Scottish cooperators and the first cooperative congress of 1830 to 1834. During this period a number of cooperative spring up where they have as their object the establishment of autonomous colonies of the Robert Owen type. They devote the precedes of their business t the purchase of land and the setting up integral communities (FAUQUET 1951)


As indicated earlier the factors that can influence the establishment of cooperatives can either be positive or negative. These factors as well differs from state to state country to country etc. But the most important is the type of cooperative or its members involved in its operations.

In recent times a lot of persons and scholars have tried to talk on the factors that can influence the establishment of cooperates. This is because slot of people and to their own understanding has failed to understand what these factors are. Rather they often mistake it for motives. So to say these worlds are two different things altogether. At the later side of this project the difference between factors and motives well is talked on.

However in Nsukka L.G.A Enugu state there are a lot of factors that can influence cooperative establishment. According to Mr L.M. Ejwnye (principal register of cooperatives Enugu state) he said that the factors that influence cooperative establishment in Nsukka L.G.A Enugu state.

In essence these factors are those things needs or desires or even set back that has led to identifications of needs there by organizing together for the purpose of establishment.

Despite these factors that have led to the establishment of cooperatives a lot of these cooperative society still fails and closes up and this occurs as a result of certain factors as well.


This academic exercise is meant to appraise the feasibility of the factors that can influence the establishment of cooperatives and the socio-economic standard of cooperatives member and its society at large in Nsukka L.G.A Enugu state. These factors are as follow;

To know how these factors has helped cooperatives its members and generally the public at large.
To know how these factors have led to the establishment of cooperatives in Nsukka L.G.A.
To know the number of cooperatives that has failed in Nsukka L.G.A.
To ascertain the number of cooperatives that are still in existence in Nsukka G.A Enugu state.
To ascertain the achievement of cooperatives in the economy of Nsukka G.A, Enugu state.
To bring foreword how much cooperatives has helped to reduce unemployment in Nsukka G.A, Enugu state
To find on the problems militating against the establishment of cooperatives in Nsukka L.G.A, Enugu state.


Cooperatives have done a lot in the development of many countries or nations. In countries like Krael, Denmark, Sweden, India, Britain etc. cooperatives has played vital role in sectors like manufacturing distributions and even consummation.

At the end of this research many people will find out the importance of cooperatives to human existence. This involves the above mentioned;

The government both the federal state and local government.
The society in general
The cooperative section and
The general academics


What are the factors that can influence the establishment of cooperatives in Enugu state?
In what ways can these factors really influence the establishment of cooperatives in Enugu state?
Are these f actors negative or positive
What are those negative factors that can influence the establishment of cooperative in Enugu state?
As a result of these factors, how many cooperatives are viable in Enugu state
What are the likely causes that has led to their failure?.

This research work is set out to investigate the factor that can influence the establishment of cooperative society in Enugu state. The researcher therefore limit the scope of study to Nsukka L.G.A. in Enugu state, because it has been used as the reference for collecting the adequate information.

The study was also limited with a lot of constraint which was dismounted this research work such as:

Time constraint: this restricted the researcher from collecting and gather adequate material from cooperative department. The researcher found it so difficult due to limited time the researcher have with activities.
Finance constraint: this restricted the researcher ‘s movement to visiting the various town in Nsukka L.G.A due to limited finance.
Finally the school activities were another major constraints that restricted the researcher that to compelled my movement to be timely and limited.


In every write up there are certain words used which have difference meaning to difference people.

ESTABLISHMENT: this is organization a large institution or the people in a society or a profession who have influence and power and who usually do not support change
ECONOMICS: This is study of how society organize its trade and industry. It is also way in which money influence or is organized within an area of business or society.
COOPERATIVE: This involves doing something together or working together with others towards a shares aim.
COOPERATIVE SOCIETY: this is a business owned and run by the people involved, with the profits shares by them
MANAGEMENT: this is act of running and controlling a business or similar organization. It is also the people who run and control a business or organization


Osita.O.(2002): Cobwebs of Cooperative Economics; Publisher, Rochas Press Benin city; Pp58-60

Enugu Newspaper, Enugu State, Cooperative Field Workers Manual Published in 1982 Vol 5 p 38.

John .J. (2008); Eastern Nigeria Cooperative Laws and Rule Punky Publisher Maraba Abuja; Pp3-5.

Fanguct G. (1951): The Cooperative Sector (Manchester, Publisher Cooperative Union Ltd )

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