Co-operative societies are not a new concept. This is almost a universal concept, prevailing across all the countries. These co-operative societies are formed to secure low cost credit, purchase supplies, market products and to secure the services like insurance, irrigation, finance, electric power.
Functionality of co-operative societies is easy to understand and can be
summed as under:
- Aim to provide services and supplies (goods)
- Seek to prevent the exploitation of society’s weaker members
- Aim to exclude unnecessary profits of middlemen in commerce and trade
- Ultimately protect the rights of people as both, producers and consumers
Moreover, co-operation further means that isolated individuals can receive the same benefits that are received by the rich and powerful ones of the society, by connecting one member with another. These benefits are not only be materialistic but also morally.
More specifically, a co-operative society is a business organization which is owned by those who use its services and its control rests among all its members equally. Recognizing moral, educational and community values, these cooperative societies are democratic and voluntary.
Co-operative societies play key role when it comes to development goals. They not only generate income for their members, but also offer a range of benefits. By accomplishing their members’ needs, they ultimately enhance the income standards and secure the livelihood of their members and their communities. By doing these things, co-operative societies ultimately enhance the growth of economy and boost development in the country.