Role of Cooperative in Income Generating Activities for Rural Development A Case Study of Unnatisil Cooperative Ltd. Swyambhu-15, Kathmandu District, Nepal

Abstract

The present study has focused "Role of Cooperative in income Generating Activities for Rural Development" in five VDCs of Kathmandu district. This study examines role of Cooperative in income generating activities in rural development. The study is confined to five VDCs namely Ichangunarayan , Ramkot, Sitapaila, Syuchatar and Bhimdunga VDCs. The main focus of the study to find out the effectiveness of cooperative credit for rural development. It was mainly based on quantitative and qualitative research approach. The researcher selected 50 respondents among 152 shareholders through simple random method. Cooperatives are the main instrument for small business, agricultural production and as well as income generating activities. The particular area is chosen for the study because it is easily accessible and heterogeneous in socio-economic and geographical structure. The study assess the roles played by cooperative societies’ savings and loans services on members’ economic condition, standard of living and in meeting participants financial needs in rural locations in income generation. Using a combination of interview, focus group discussion and questionnaire techniques, the impact of cooperative societies the research is carried out to find the impact of cooperative in generating income from different activities assisted by cooperatives. The study is the first empirical investigation in Unnatisil cooperative ltd that focuses on the relevance of cooperative societies on members’ standard of living in rural communities and villages. The study shed light on how income generating activities function – how their relationships develop, how individual esteem is increased, how interdependence grows, how hierarchies are maintained – and how this is facilitated in part by the loan-making of members promoted cooperatives. It has also provided more evidence on the importance of land ownership, and how this is enhanced when rural communities have access to cheap and affordable loans. The study breaks new ground in informal cooperative functioning, community development and rural finance research by providing a distinction between standard of living and quality of life variables in measuring the economic condition of rural dwellers, and the production of circle of social capital theory that the role of cooperatives to the members involve financial capital, physical capital and social capital which are interrelated. This helps to appropriately identify the roles of cooperative societies in rural finance to increase in household income, ownership of household assets and acquisition of enterprise assets. Particularly in Nepal, the institutional mechanism for financial management as well as development activities are poor and inadequate. Most of the rural poor have to depend on unorganized source for their credit at high interest rate. There is high prospect of changing situation through cooperative by meeting the small credit needs of the poor members in the village level in equally can provide the better service at the grass root level for launching development programs and activities. By Virtue of having volunteer groups of people, with motives of people oriented, self help and meeting basic need of communities through collective action, Cooperatives are essential organization for rural development in Nepal.