CREATING EMPLOYMENT OPPORTUNITIES THROUGH CO-OPERATIVE MOVEMENT

1.1 Introduction

Cooperative movement is a system of economic action and business enterprise characterized by the absence of the profit motive and involving as it’s primary function, the distribution of goods and services. Global unemployment is causing cooperate bodies sleepless night, several government bodies have setup institution that can find solution to the unemployment. Times these bodies come up with several communiqué that government should control population of Educational system and compulsory services for graduating youth etc. as means of checking unemployment rate. In Africa, particularly Nigeria, unemployment menace has caused the government to come up with employment schemes like National Directorate of Employment (NDE), to provide jobs on its teeming population.

As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.

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1.2 Background of Study

In this era of unemployment, cooperatives could become sources of self–reliance for the aged, enterprise for youth and the disabled, as well as providing care for Children cooperatives promoted self help and collectively self – reliance. Conceptually, cooperatives are private members oriented voluntary association that operates on the principles of democracy and market economy (Pur, Gwary, Gaya 2001).

Cooperatives are established by like mined persons to pursue mutually beneficial economic interest, provide goods and services to each other and to the general public in cost effective ways, prevent exploration of members through self helped project. Defend and protect the right of people as producers and consumers of goods and services and promote mutual understanding and peaceful co-existence among the people. Co-operative call of sell mutual help, integration of resources to the satisfaction of all contributions identified need(s). Besides “No man is an island” a tree cannot make a forest. People from different background pool their resources voluntarily to form their business ventures as to satisfy their expectation. The act of carrying out these activities is called co-operative society.

According to Bob – Igwe (2005) the cooperatives movements is a system of economic action and business enterprise profit motive and involving, as it’s primary function the distribution of goods and services. In other words, it is a movement of consumer who unite on the basis of mutual interest in reducing living expenses and benefiting from the ownership and accommodations shared by all. Cooperative as business enterprises comprises a number of people who come together to satisfy mutual socio – economic interest by carrying out a business activity this might include agricultural or agro – industrial production cooperatives, trade cooperatives, housing cooperatives or saving and loan cooperatives.

The cooperatives approach to business development can create employment in different ways, such as cooperatives as a common workplace for organized self–employment, cooperatives as wages employers, cooperatives as promotes of independent self–employment. In addition, cooperatives activity produces spill–over effects that create job in other enterprises. It is not claimed that creation and maintenance of cooperative business is the only solution to unemployment. Nevertheless, there is convincing evidence that for many millions of persons cooperatives have meant employment instead of constant threat of dismissals.

Therefore, in Ogbaru Local Government Area of Anambra State where the research was carried out, the activities that was conducted is to know the Creating Employment Opportunities through Co-operative Movement.

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1.3 Statement of Problems

Investigation revealed that the reason attributed this situation include lack of finance or initial capital, lack of access to credit facilities among others. It is a well known fact that in this country, many co-operative business organizations are moribund and only exist in names. The major reason responsible for this state of affair is the capitalization structure. For instance, in co-operative, both owned capital and loanable funds are found to be insufficient.

Cooperatives movements, it then becomes pertinent to carry out a study to determine of cooperative movement plays a significant role in creating employment opportunities. Taking cognizance of the time and age we are in now, coupled with the volatile native of the Nigeria economy, being an employee in a very risky affair in view of the problem, the Nigerian Government at all levels as well as private individuals have recently realized the relevant of co-operative businesses enterprises as vehicle for economic development of co-operative business organization.

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1.4 Aim and Objectives of Study

The aim of the study is to investigate the Co-operative Movement on Creating Employment Opportunities in Ogbaru Local Government Area, Anambra State. In achieving this aim, the following specific objectives were laid out as follows:

1. To determine the factors militating against the creation of employment opportunities by the cooperatives movement;
2. To identify the type of the employment opportunities created by cooperatives movement in the area under study;
3. To ascertain if the cooperatives do create employment opportunities in the area under study; and
4. To proffer possible solution to the identified problems.

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1.5 Research Questions

The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:

• What are the factors militating against the creation of employment opportunities by the cooperatives movement?
• What are the cooperatives do create employment opportunities in the area under study?
• What is the type of the employment opportunities created by cooperatives movement in the area under study?

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1.6 Research Hypothesis

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

Hypothesis One

• H0: There is no significant relationship in the activities of cooperative movement and creation of employment opportunities.
• H1: There is significant relationship in the activities of cooperative movement and creation of employment opportunities.

Hypothesis Two

• H0: There are no significant factors militating against the creation of employment opportunities by the cooperatives movement.
• H1: There are significant factors militating against the creation of employment opportunities by the cooperatives movement.

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1.7 Significance of Study

The significance of this research will be relevant to administrative of Local governments as well as leaders of cooperative movement in the sense that this work will help in creating an awareness of employment creative ability of cooperatives through the findings of this research.

This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.

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1.8 Scope of Study

The scope of the research is focused on Creating Employment Opportunities through Co-operative Movement using Ogbaru Local Government Area, Anambra State as a case study.

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1.9 Limitations of the Study

During the course of this study, many things militated against its completion, some of which are:

1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
2. Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this project work. There were lots of information needed from the staffs of this establishment to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
3. Research material: availability of research material is a major setback to the scope of the study.
4. Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
5. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

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1.10 Definition of Terms

The following definition of terms simply represents the specific meaning that will be given to them in this study;

Unemployment: This is a situation where by one is able and willing to work at a prevailing wage rate but does not have work.

Unemployment Rate: This is the percentage of labor force without jobs but is willing and available for work.

Cooperative Movements: This is a system of economic action and business enterprise characterized by the absence of the profit motive and involving as it’s primary function, the distribution of goods and services.

Employment Opportunities: This may be defined as situation in which chances or avenues exist that provides individual opportunities to participate in Jobs that are carried out towards actualization of organization goals such as in remunerative and non–remunerative jobs.