Role of Cooperative in Income Generating Activities for Rural Development

Abstract

The present study has focused "Role of Cooperative in income Generating Activities for Rural Development" of Kanchanpur district. This study aims to find out the contribution of Janata Bachat in local employment generation, impact of its by assessing credit and to examine the effectiveness of cooperative for income generating activities of Bhimdatta - 8. The design for the study was descriptive design. It was mainly based on quantitative research approach. The researcher selected 100 respondents among 500 shareholders through simple random sampling method. Cooperatives are the main instrument for small business, agricultural production 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 questionnaire survey and key informants interview, the research is carried out to find the role of cooperative in generating income from different activities assisted by cooperatives. From the study the researcher concluded that most of the members are involved in business sector. The educational status of the respondents were highly of bachelor levels i.e. about 70 percent. About 80 percent of the members were informed by the help of electronic media. About 50 percent of the respondents were given job in the cooperative itself and approximately 25 percent were provided loan to do the business. About 50 percent of the respondents changed their attitude after entering into the cooperative. This cooperative had developed irrigation project, managed road and helped in the economic growth of the study area. About 56 percent of the respondents took credit through cooperative society. The interest rate for credit distribution provided by cooperatives is approximately 13 percent. About 60 percent of the respondents did not took credit because enough loan is not given. About 64 percent of the respondents took credit from the cooperative because of easy loan procedure. 3 This cooperative had given awareness program, skill training and service in cooperative for the people of the study area. About 60 percent of the respondents got information providing sources from community interaction. Commercial banks are the main sources of credit provider. Approximately 90 percent of the respondents sold their agricultural production through open market. About 90 percent of the respondents were satisfied from the distribution of the loan. About 40 percent of the respondents had invested in the Janata Bachat. This cooperative increase social and economic relation, exposure, empowered and access to formal financial institution. 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.