So, It means assistance of the society where a few people create a democratic institution voluntarily. These advantages, which tend to tie the patrons to the organization by making them full partners, help build an assured volume of business. 16. Advantages of Co-operatives: The following are the main advantages of co-operatives: 1. It sells quality goods at cheaper rates to the members by retaining a small margin for profit. Voluntary organisation: The membership of a cooperative society is open to all. Economical Operations 7. … The co-operative society is managed by the elected members from and among themselves. It assists in setting up production units and marketing of produce of small scale farmers. There are 5 different types of cooperatives: Consumer: owned by consumers who buy goods or services from their cooperativeProducer: owned by producers of commodities or crafts who have joined forces to process and market their productsWorker: owned and d Hence, they are relieved from the fear of attachment of their private property, in case of the society suffers financial losses or goes bankrupt. Protection from exploitation: One of the most obvious advantages of a co-operative society is the fact that the members are protected from exploitation from middlemen. Its registration is very simple and can be done without much legal formalities. It is compulsory for the co-operative society to get registration. The formation of a cooperative society is very simple as compared to the formation of any other form of business organisations. Similar to an LLC, cooperatives that are incorporated normally are not taxed on surplus earnings (or patronage dividends) refunded to members. Therefore, members of a cooperative are only taxed once on their income from the cooperative and not on both the individual and the cooperative level. The cooperatives society supplies goods and services to the members at the wholesale price. The operations carried on by co-operatives societies are economical due to the eliminations of middlemen. 4. It is Very well: What are the Advantages and Disadvantages of Co-operative …! But secrecy is very important for the success of a business organisation. 20%). 5. Another benefit is its simple handling during the time it is being founded.There is no hassle of … Procurement of products is done directly from the producers, which removes the middlemen, thereby generating more profit for the producers and consumers. ( Log Out /  Unless and otherwise specifically debarred, the membership of cooperative society is open to everybody. Easy formation: Cooperatives can be formed much easily when compared to a company. Advantages of Cooperative Society. Cooperative society was originated from the word of co-operating which indicates assistance. Fill in your details below or click an icon to log in: You are commenting using your WordPress.com account. 3. Easy to form: The formation of a cooperative society is very simple as compared to the formation of any other form of business organisations. The main objective of a cooperative society is to serve the public. It is an age long established fact that nobody can escape poverty without a … Easy to Form 2. The member can join and leave society as per their wishes. 2. Credit union co-operative society: This society formed by organizations that offer credit facilities to individuals and organizations. Cooperatives are democratically owned by their members, with each member having one vote in electing the board of directors. Check-out my earlier post on registration procedure. Create a free website or blog at WordPress.com. The profits are utilized in meeting the day-to-day administration and other costs of the society. Advantages of a Cooperative Organization: 1. Filed under: Introduction to Co-operatives | Tagged: Advantages and Disadvantages of Saccos co-operatives, Board of directors, Business, Capital, Chama, Cooperative, Decision making, Decisions, Disputes, Economies of scale, Electricity, Energy, Government, Kenya, Kenya Sacco, Kuscco, Law, Low Income, Management, management committee, Marketing, Membership Application, Middle income, Produce, Regulation, Rochdale Principles, Sacco, Tribunal |, […] What are the Advantages and Disadvantages of Co-operative Society? Advantages: 1. | Co-operative Movement in Kenya, THE DEPARTMENT OF CO-OPERATIVE DEVELOPMENT AND MARKETING – RANGE OF SERVICES AT SUB-COUNTY (DISTRICTS) | Co-operative Movement in Kenya, Division of Co-operative Societies | Co-operative Movement in Kenya. 2. 2. Stability 6. Li… The membership fee is kept low so that everyone would be able to join and benefit from cooperative societies. They may not possess any managerial and special skills. Its registration is also easy. 3. What are the types of Cooperative society? The different opinions and disputes may paralyses the effectiveness of the management. This provides you with the best possible value … This is one of the most prominent objectives of all co-operative societies. Create a free website or blog at WordPress.com. A person can become a member of a society at any time he likes and can leave the society if he does not like to continue as member. Change ), You are commenting using your Twitter account. Limitations or drawbacks one vote ‘ from and among themselves much legal formalities the following are advantages! The overall psycho-social impacts created by the control parameters in these communities certain limitations or drawbacks societies are due! 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