Co-Operative society heard this term before? No, not an issue today we will give you a basic overview of it. “Co-Operative” the term itself means collectively working towards a common goal of Business ideas. Robert Owen is the person behind this, he is known as the pioneer of the co-operative society.
So, in simple terms we can say Co-Operative Society is an associations of persons united voluntarily with the motive of mutual welfare of the members and the society. In a Commercial organization the sole motive is to maximize the profit; where as the main motive of Co-Operative Society is social welfare, to provide service to the society and their members. start up business
A Co-operative society is registered under The Co-Operative Act, 1912. Every organization needs funds for their functioning; the capital for this society is raised from the shares which anyone who wants to join the society has to buy.
There can be various types of Societies. Few of which are listed below (These are just a few, the list actually goes very long):
• Consumer Society
• Cooperative Bank
• Producers Society
• Farming Society
• Housing Society
Now let me share a small story with you which will help you to build a clear picture. Ever Questioned what business can i start. There was a farmer and he had a cow which used to produce 10 liters of milk every day. Now the farmer used to keep 2 liters of milk the rest 8 liters his used to sell so that he can gain some profit. But the person to whom he used to sell the milk gave him 18 rupees a liter whereas the actual rate in market was 40 rupees a liter. Yes, the middle man made a lot of profit but the farmer got nothing.
So one fine day he thought to go to the city and sell the milk by himself so that he can eliminate the middle man and have a better profit. Now to go to the city he needed a vehicle, so to buy it he took a loan. So now he used to collect 5 days milk; 40 liters and went to the city to sell. In city the shopkeeper said that minimum 15 liters of the milk must have spoil because you have kept it for 5 days. So he gives money only for 25 liters and a little bit more for the rest 15 liters.
The farmer gets frustrated that he has now loans to pay, he works harder but he still earns less profit; he wants to expand his business but he is not able to. Then from his friends he came to know about an organization which does milk procurement from farmers and also provides them a good amount for the milk. This was a very well know organization of India, AMUL. zero investment business
Yes Amul, by its white revolution Amul today has provided lots of farmer’s new hopes and new lives, because it gives the farmer a decent amount of profits. So this story shows us an example of Farmers.
Cooperative society has great advantages yet sometimes it is not able to bloom because of its limitations.
• Low on Funds
• No Secrecy
• Lack of Reliability
• Lack of Motivation
In spite of the drawbacks experienced in the working , they have still contributed to the development of the national economy.
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