Problems of financial management in cooperative society and remedial measures (a case study of njaba l.g.a imo state)

Project Abstract

Cooperative societies play a vital role in the economic development of communities by providing financial services and support to their members. However, many cooperative societies face challenges in financial management that hinder their effectiveness and sustainability. This research project aims to investigate the problems of financial management in cooperative societies, with a focus on a case study of Njaba L.G.A in Imo State, Nigeria. The study identifies various financial management issues such as inadequate record-keeping, lack of financial transparency, poor budgeting practices, and limited financial education among members. These problems contribute to inefficiencies in fund utilization, mismanagement of resources, and ultimately, the failure of many cooperative societies to achieve their objectives. To address these challenges, the research proposes several remedial measures that can enhance the financial management practices of cooperative societies. These include implementing proper accounting systems, conducting regular financial audits, providing financial training to members and officials, establishing effective internal controls, and promoting transparency and accountability in financial transactions. By implementing these remedial measures, cooperative societies in Njaba L.G.A and beyond can improve their financial management practices, enhance their financial sustainability, and better serve the needs of their members. This research contributes to the existing literature on cooperative society management and offers practical recommendations for addressing the financial management challenges faced by these organizations. Overall, this study highlights the importance of effective financial management in cooperative societies and emphasizes the need for proactive measures to address the identified problems. By strengthening financial management practices, cooperative societies can enhance their overall performance, attract more members, and contribute significantly to the economic development of their communities.

Project Overview

<p> </p><p><strong>1.0 INTRODUCTION</strong></p><p><strong>1.1 BACKGROUND OF THE STUDY</strong></p><p>So far we have learnt about sole proprietor shop, partnership and joint stock company and different forms of business organization. It has been noticed that besides many differences among them in respect of their formation, operation, capital contribution as well as habilitation, one common similarity is that all endanger in business acridities to earn profit. Without profit it is impossible for them to survive and grow. But there are certain organizations which undertake business activities with the prime objectives of providing service to the members. Although some amount of profit is essential to survive in the market, their main intention is not to generate profit and grow. They pool available resources from their members, utilize the same in the best possible manner, and also the benefits are shared by the members, IKabua (1984: 271). It is an autonomous association of persons united vohuntanty to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise and are based on the values of self-help, self responsibility, democracy, equality, equity and solidarity, ICA (1995). In the tradion of their founders, cooperative members believe in the ethical values of honesty, openness, social responsibility and caring for others.</p><p>Cooperative has play a vital role as a significant part of the global economy, cooperative sector represent a significant contribution to our global economy According to the /CA annual survey, Global 300, the top cooperatives around the world had nearly $ I trillion in revenue in 2005. That is only slightly less than the economy of the world’s 9th largest economy, Canada cooperation create over 100 million jobs more than all the multi-national corporations combined.</p><p>Cooperative enterprise also contribute to early sector of the economy and are among the largest businesses in the world (ICA, 2008) in Nigeria today, it is known that the nature and contribution of cooperative societies are organ size Normally by troop to the demand to settle one family problem to the other of the members as a group.</p><p>In this study, the economic development is not equivalent to the total development. The aim of this research is therefore to examine the problems of financial management of cooperative in Njaba L.G.A which make them not to grow well in the economy and also proper some solutions to the problem.</p><p><strong>1.2 STATEMENT OF THE PROBLEM</strong></p><p>The specified deficiencies and problems ravaging cooperative financial management that has imparted negatively on the general management and performance of the cooperative societies in Njaba L.G.A are</p><ul><li>Unable to determine appropriate soirees of funds</li><li>Inadequate record keeping of their financial transactions.</li><li>Inadequate management of cash.</li><li>Wrong investment of funds.</li><li>Unable to determine the appropriate capital composition of pastiness.</li></ul><p><strong>1.3 OBJECTIVES OF THE STUDY</strong></p><p>The purpose of this study is to enable us review the financial management problems of cooperative in Njaba local government Area and proffer some remedial measures to the problems as well the objectives are.</p><ul><li>To determine the appropriate soirees of funds which will help the cooperatives in Njaba L.G.A float well in their business ventures.</li><li>To enable and equip the cooperatives in Njaba on the importance of adequate record-keeping of their business transactions.</li><li>To proffer solutions and remedial measures on the management of cash in Njaba L.G.A. for better performance in their business.</li><li>To prepare the financial management on the pest way of investing their fund for good productivity and growth of the enterprise.</li><li>To menace the problem of capital composition for business in cooperatives in Njaba L.G.A</li></ul><p>1.4 <strong>RESEARCH</strong>&nbsp;<strong>QUESTIONS</strong></p><p>1) &nbsp; Which sources of fund can be seen to be appropriate to the cooperative societies in Njaba?</p><p>2) &nbsp; How effective is the financial management employed to record their business transaction?</p><p>3) &nbsp; In what can the financial management implore their management of cash?</p><p>4) &nbsp; What are the best ways of investing their funds for good productivity?</p><p>5) &nbsp; In what way can the problem determination of capital composition can be solued?</p><p>1.5 &nbsp; SIGNIFICANCE OF THE STUDY</p><p>The importance of this study are:</p><ul><li>The study will form a solid base upon which further</li></ul><p>research will be carried out.</p><ul><li>The study will also guide cooperative societies on ways of getting financial help from other peoples government.</li><li>The study will aid contribution to know the importance of financial management in cooperative movement.</li><li>The study will help to utilize the developing economy for a specify purposes towards achieving their goals.</li></ul><p><strong>1.6 &nbsp; SCOPE AND LIMITATION OF THE STUDY</strong></p><p>The research is intended to cover more areas of the problems of financial management as well as their remedial measures in cooperative societies in Njaba L.G.A. Imo state. But as a result of certain factors imitating against the research; the scope has been narrowed down to objectives, function and problems of financial management of cooperative societies in Njaba L.G.A. these factors are finance is one of the limitation encountered by the researcher, it was difficult for the researcher to raise enough money for transportation in terms of going to sustain ourself during the researching process.</p><p>Secondly the problem of time. Due to academic activities within the semester coupled with the SIWES programme and finally examinations the researcher could not reach a large population concerning the work.</p><p>Thirdly problem encountered by the researcher was non availability of leianat materials, as a result of this it become difficult for the researcher to obtain enough information as can be scare in chapter of this study</p> <br><p></p>