Disadvantages of Producer's Cooperative Society - QS Study
QS Study

Disadvantages of Producer’s Cooperative Society

A few of small industrialist, labor, or producers establish a cooperative society to gather their limited capability in order to get huge production facilities and this kind of organization is called producers’ cooperative society. As they can’t produce huge products as well as they can’t exist in the competition of selling, so they accumulate their limited ability to establish such kind of organization.

Though it is furnished by huge advantages, to operate the organization it also faces some disadvantages. These disadvantages are mentioned elaborately below:

Lack of capital: Lack of capital is the irresistible problem in case of producers’ cooperative society. The members of these cooperatives are not capitalist. For this problem organization can’t reach its ultimate goal.

Lack of motivation: This business doesn’t operate properly to earn a profit. Besides, the members can’t get dividend entirely. That’s why they feel lack of motivation.

Lack of education: Illiteracy problem also hurts in this organization. Most of the members of this organization are illiterate which is great an alarming condition of the organization. This organization can’t improve rapidly because of suffering this illiteracy problem.

Lack of competitive ability: Lack of capital, weakness of the capability, inefficient management, and so on in order to these problems cooperative society can’t compete with large-scale business.

Lack of inspiration: Directors have taken of ability to perform their business perfectly. They don’t get a handsome salary. This problem hampers the improvement of the business.

Inefficient management: Actually such organization is created and operated by illiterate or less educated, less capable members, labor and small producers who are not experienced in modern technology management.

Negligence of duties: It is another important problem. Members lost their speediness which creates the negligence towards the duties. It hampers the activities of the business.

At last, we can say, that besides the advantages these organizations have these drastic disadvantages also. So for the better future of the organization, these impediments should overcome at any cost.