v. Farming cooperative societies: These societies are formed by the small agriculturalists to get the benefits of large scale Farming. These societies provide help to the farmers for the improved methods of cultivation by providing large scale farming tools such as tractors, threshers and harvesters etc.
vi. Housing cooperative societies: These societies were formed for the procurement of land for the construction of houses on a homogeneous basis. These societies are formed by those members who intend to construct their own home. These societies provide loan to the members for the construction of houses. These also purchases, construction materials in bulk and provide these materials to its members at cheaper rates.
vii. Insurance cooperative societies: This society make contract with insurance companies for the purchase of different insurance policies for its member at a lower premium. This society may take a group insurance policy for its members. The main object of the society is to minimize the risk of its member.
viii. Transport cooperative societies: These societies were formed to provide transport services to its members at lower rates. Welfare bus scheme is an example of this type of society. A pass is handed over to the member for traveling on approved routes.
ix. Storage cooperative societies: These societies are formed for the provision of storage facilities to its member for perishable and non perishable goods at lower rates. These societies also provide grading and distribution services to its members.
x. Labour cooperative societies: These societies are formed by unskilled Labour for selling their services at reasonable wage rates. This type of society makes a contract with different firm for the provision of Labour to them.
xi. Miscellaneous societies: Some other important societies, in addition to the major form of societies discussed above include: processing cooperative societies, Fisheries co-operative societies societies, Forestry and poultry Farming etc.
2.2 CONCEPTUAL FRAMEWORK
COOPERATIVE SOCIETIES
Cooperatives societies are the first and foremost, voluntary business associations formed by people of limited means through contribution of share capital that forms the basis of sharing out the profits that accrue from the business or use as dictated by its members, reasons why it has to be democratically manage by the members themselves. ICA (International Cooperatives Alliance) defined cooperatives as an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically-controlled enterprise. Cooperative is a group-based and member-owned business that can be formed for economic and social development in any sector (Ohio Co-operative Development Center, OCDC, 2007). The International Labour Organization (ILO) sees cooperative as an association of person usually of limited means, who have voluntarily joined together to achieve a common economics and through the formation of a democratically controlled business organization, making equitable contribution to the capital required and accepting fair share of the risks and benefits of the undertaking in which members actively participate. Cooperative is a catalyst for local entrepreneurial growth; because it retains within the communities in which they operate the capital that they mobilize themselves, as well as surplus derived from outside transactions, both accumulating for further entrepreneurial development. This opinion supports the view of Olaleye (2004) who sees cooperative societies as a business voluntarily owned and controlled by its members and operated for them and by them on a non-profit or cost basis. Cooperative enterprises provide the members means whereby a significant proportion of humanity is able to take into its own hands the tasks of creating productive employment, overcoming poverty and achieving social integration and continue to be an important means, common to all are the co-operative values of self-help, self-responsibility, democracy, equality, equity and solidarity. According to DFID (2005), cooperatives have four main characteristics: first, they are formed by groups of people, who have a specified need or problem. Secondly, the organization is formed freely by members after contributing to its assets. Thirdly, the organization formed, is governed democratically in order to achieve desired objectives on equitable norms, and fourthly, it is an independent enterprise promoted, owned and controlled by people who are members to meet their needs. Although, the poor have very weak transferable assets or lack of recognition for the assets they have i.e. they lack adequate welfare exactly where the relative concept of cooperatives focuses.
