Project Materials

PRIMARY COOPERATIVE AND MEMBER’S SOCIO-ECONOMIC WELL BEING.

Chapter one

INTRODUCTION

Background of the study

Primary cooperatives have an important role in promoting socioeconomic well-being for their members, particularly in varied communities around the world.

These cooperatives, based on the concepts of mutual help, democratic control, and member engagement, have played an important role in tackling socioeconomic difficulties, empowering individuals, and promoting communal development.

This report examines the strong relationship between primary cooperatives and their members’ socioeconomic well-being, using data from 2015 to 2023.

Cooperatives are member-owned and member-controlled businesses that work for the benefit of all members. They exist in a variety of industries, including agriculture, banking, consumer products, and services.

Unlike traditional firms that are purely driven by profit, cooperatives prioritise their members’ needs and objectives. Primary cooperatives are the cornerstone of the cooperative movement, directly connecting with members at the grassroots level. These cooperatives frequently form in rural and marginalised communities when access to resources and services is limited.

Socioeconomic well-being has many components, including income levels, access to necessary services, social capital, and general quality of life. Primary cooperatives make important contributions to improving socioeconomic well-being by providing a variety of benefits to their members.

Cooperatives help individuals overcome common challenges, leverage economies of scale, and get access to markets and resources that might otherwise be out of reach.

Increased income creation is one of the most important strategies for primary cooperatives to improve their members’ socioeconomic well-being. Johnson et al. (2017) found that cooperatives offer members possibilities for income diversification and stability, especially in agricultural communities.

Cooperatives assist members earn higher returns on their goods by collectively marketing their items, negotiating fair prices, and eliminating the influence of intermediaries.

This additional income not only improves the financial security of individual households, but it also helps to drive community-wide economic development.

Furthermore, primary cooperatives make it easier to obtain important services like credit, healthcare, and education, all of which are necessary for socioeconomic growth.

For example, agricultural cooperatives frequently develop credit unions or savings and loan programs to provide members with reasonable funding for farming supplies or home expenses.

Khan and Hossain (2019) found that cooperative-based microfinance efforts have a good impact on poverty reduction and empowerment, particularly among rural women.

Similarly, healthcare cooperatives and community-owned clinics ensure that members obtain high-quality medical treatment at reasonable costs, filling gaps in public health infrastructure.

Furthermore, elementary cooperatives play an important role in developing social capital and instilling a sense of belonging in their members.

Cooperatives enable individuals to express their concerns, contribute ideas, and collaboratively define the organization’s future by encouraging democratic decision-making processes and active participation.

Wilson and Janoski’s (2018) research emphasises the importance of social cohesion inside cooperatives, which not only boosts internal solidarity but also increases members’ resilience to external shocks such as natural catastrophes and market volatility.

Cooperatives foster a supportive environment by holding regular meetings, training sessions, and community activities in which members share information, skills, and resources for mutual benefit.