Causes of Failure of Cooperative Societies in a Country
Cooperative society means assistance of the society where a few people create a democratic institution voluntarily. Earning profit is not the main goal of cooperative society, rather prosperity of the members, ensuring the rights and dignity, develop, the worse situation, change the fate, believes, honesty, economic as well as increase the aides are the main goals of this society.
An undeveloped and developing country has a great possibility to succeed in the movement of cooperative society. But it is not successful for some causes which are as follows:
Inefficiency in management: An undeveloped and developing country suffers greatly with lack of efficient and experienced manager who is able to conduct the business. As a result, cooperative can get expected success.
Insufficient sacrifice: The cause of failure of cooperative society is the insufficient sacrifice in the members of cooperative society the people of service mentality are not enough to succeed in an undeveloped and developing country. There are the barriers to establish in cooperative society is our country.
Lack of interest and inspiration: Inspiration and interest are very much crucial to establish a cooperative society. An undeveloped and developing country has lacked inspired and interested people to conduct this business. So this is also causing to fail the cooperative business in an undeveloped and developing country.
Inadequate capital: The cooperative business can’t be successful in an undeveloped and developing country because of a shortage of capital. For this reason, investment is not possible immediately because of the financial limitation of the members.
Improper training facilities: Strong training is needed for the betterment of cooperative society in an undeveloped and developing country. But the cooperative society of undeveloped and developing country has not provided enough training facilities that members can’t grow efficiently.
Lack of unity and cooperation: Cooperative is established through the unity and cooperation with each other’s by following the principle unity is a strength. But is not maintained in all activities which create lack of unity and cooperation, consequently, it fails again.
Lack of public trust: The people of an undeveloped and developing country have minimum trust towards the cooperative society. They become victim also by the different cheater. So they are not interested to attend in the cooperative society.
Corruption and nepotism: Corruption and nepotism enter the ins and outs of an undeveloped and developing country; Cooperative society is not free form this curse. Various levels directors involve with corruption and nepotism which are very harmful to the cooperative business.
Shortage of government facilities: Govt. support is very much essential to ahead of the cooperative organization. But govt. support of an undeveloped and developing country is very rare even various rules of government mate harriers in the development of cooperative society in Bangladesh.
Legal complexity: The lacking of direction has been noticed to the Cooperative Act of an undeveloped and developing country. So cooperative society falls into various legal complexities to conduct and establish the cooperative society in an undeveloped and developing country.
From the above discussion, we can say that cooperative society has a great potentiality to forward in an undeveloped and developing country. But above-mentioned problems are the harriers to the advancement of cooperative society. So it needs to come forward everyone to remove these problems and try to develop with the help of cooperative society.