Abstract
The study was on causes of failures in co-operative society using Ukwa Cooperative Multipurpose society, Abia state as a case study. Three societies namely: obalu, umuorie and obiahia municipal were sampled. this empirical study (n=135) was conducted in march 2010. the determinants of failure were measured using the questionnaire whose reliability as estimated by cronbach alpha was 93%. based on an extensive in-depth interview and closed ended questionnaire with the ordinary and the executive committee members, the findings show a significant interaction between management, financial and human resource constraints (β=0.427, 0.351& 0.216 sig= 0.000, 0.000, 0.000<0.005.) respectively and sccs failure, while the relationship between members‟ participation and sccs failure was not significant (β=-097, sig= 0.225>0.005) despite a higher r2 valueof 78.8%. the presence of
organisational culture as a moderator variable has a strong effect in accounting for variability in SCC failure in Obiahia. The study concludes that whilst membership participation, financial and human resources constraints affects SCCS performance, there were management aspects of the crisis which aggravated the situation and the SCCS problems. The study recommends that for effective and successful performance of the SCCS, strategic planning, capacity building of staff and performance evaluation should be practiced and considered very imperative for sustainable operations.
CHAPTER ONE
INTRODUCTION
1.0 Introduction
The study was carried out to refine the current understanding of determinants of failure of Savings and Credit Co-operative Societies (SCCS) in Nigeria using Abia State as the case study. Determinants represent the independent variables while SCCS failure is the dependent variable. These variables are further conceptualized in the conceptual framework. This chapter provides a brief background to the study, problem statement, and purpose of the study, objectives, hypotheses, justification and the conceptual framework used.
1.1 Background to the Study
The background to the study is organized in four broad themes that include: historical, theoretical, conceptual and contextual backgrounds.
1.1.1 Historical Background
From their early origins, SCCS were unique depository institutions created not for profit, but to serve their members as credit co-operatives (NZCU, 2010). The origin of SCCS dates back to 1846 when crop failure and famine struck Germany. Herman Schulze and William Raiffersen organised a co-operatively owned mill and bakery which sold bread to its members at substantial savings, and a “people‟s bank” that provided credit to farmers.