The Role of Cooperative Societies in Micro-Business Development in Benin City, Nigeria

Gbandi Eleazar Chibuzor (PhD) & Dimowo Oiza

Abstract


The study is an empirical investigation on the role of corporative societies in the development of micro-businesses which has received much consideration and attention from academics in different industries and countries. Despite several studies on the relationship between the activities of corporative societies and micro-business development, the researchers are not aware of any study on the relationship between corporative societies and micro-business development in Benin City, Nigeria. This study is intended to fill this identified gap. In pursuance of this, we constructed a model of four roles of corporative societies to micro-businesses development and empirically evaluated it using Nigerian samples. The dependent variable identified in the model was micro-business development which is expressed through acquisition of business assets, ownership of business and business expansion/profitability and while the independent variables was corporative society using four dimensional roles (access to fund, low interest rate,  promotion of savings, and bulk purchases for members). To test the four dimensional roles, the survey research methods was adopted using the questionnaire as data collecting instrument which were administered on a sample of 500 micro-business owners in Benin metropolis. The data collected for the variables of the model were subjected to multiple regression and analysis of variance (ANOVA). The result indicates that; role of corporative society in terms of access to fund, low interest rate, promotion of savings, and bulk purchases for members were all positively related to micro-business development in Benin-City. We therefore, recommended that government will continue to support and encourage the formation of corporative societies and young entrepreneurs should also be encouraged to join corporative societies in order to develop and expand their businesses.


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