MEKELLE UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF COOPERATIVE STUDIES [ACCOUNTING AND
AUDITING STREAM)
ASSESMENT OF PUBLIC ATTITUDETOWARDS COOPERATIVES IN
ADI HAQI SUB CITY (INCASE OF AMORA KEBLE)

SENIOR RESEARCH ESSAY SUBMITTED INPARTIAL

FULLFILLMENT OF BACHLOR ART OF BA DEGREE IN
COOPERATIVE ACCOUNTING AND AUDITING

Prepared by: KALAYOU BERHANU

ID NO: CBE/UR/165349/2006
ADVISOR: NAHUSENAY TEAMER(M.Sc.)

JUNE, 2016
MEKELLE,ETHIOPIA

1
 Acknowledgment

First and for most I would like to extend my heartfelt gratitude to my GODand his mother sanity
merry for his in a valuable cares, support, charity and willingness who helped me through my
life, my gratitude thanks goes to my advisor Nahusenay Teamer for his valuable effort for the
process of my paper and for his constructive and harmonious comments which have given me a
benchmark for his stance with me.
I would like thanks my family, friends and all of 3 rd year cooperative students for their support,
sharing valuable ideas on the issues and providing me relevant documents for this study.

i
 ABSTRACT
The paper mainly focuses to examine public’s attitude towards the social and economic
relevance of cooperatives in Adihaqi sub city Amora Keble.
The objective of this study is to assess the public’s attitude towards cooperatives and the
researcher has been used primary and secondary data.
The primary data gathered through questionnaire and interview and secondary data from
different books and documents. The data collected by the researcher has been analyzed and used
simple random sampling technique simple statistical tools as percentage, tables, and others were
implemented. Generally the attitude of public towards cooperative by the majority of the
respondents is good and the contribution of cooperative in the social, economic and political
development of the country is very high. Because of this the government and the society should
work hard to increase the number of cooperative societies and service to the member and the
society as whole.

ii
TABLE OF CONTENT PAGE
CHAPTER ONE
1.1 Background of the study-------------------------------------------------------------------1
1.2 Statement of the problem------------------------------------------------------------------2
1.3 Objective of the study ----------------------------------------------------------------------2
1.3.1 General objective of the study--------------------------------------------------------2
1.3.2 Specific objective of the study--------------------------------------------------------3
1.4 Scope of the study ---------------------------------------------------------------------------3
1.5 Significances of the study-------------------------------------------------------------------3
1.6 Research question----------------------------------------------------------------------------3
1.7 Limitation of the study-----------------------------------------------------------------------3
CHAPTER TWO
REVIEW RELATED LITRATURE----------------------------------------------------------4
2.1 The concept of cooperative-----------------------------------------------------------------4
2.2 Types and classifications of cooperative-------------------------------------------------6
2.3 Cooperative movement in Ethiopia ------------------------------------------------------7
2.4 Role of cooperative --------------------------------------------------------------------------8
2.5 Cognitive attitude of cooperative ---------------------------------------------------------9
2.6 The objective of cooperative ---------------------------------------------------------------9
2.6.1 Economic objective-------------------------------------------------------------------------9
2.6.2 Social objective------------------------------------------------------------------------------10
2.6.3 Ethical objective-----------------------------------------------------------------------------10
2.6.4 Political objective----------------------------------------------------------------------------10
2.7 Cooperative development and local community-----------------------------------------11
2.8 Cooperative principles------------------------------------------------------------------------11
CHAPTER THREE
RESEARCH METHODOLOGY---------------------------------------------------------------14

iii
3.1 Description of the study area----------------------------------------------------------------14
3.2 Types of data and data collection methods------------------------------------------------14
3.3 Methods of analysis----------------------------------------------------------------------------14
3.4 Sample size and sampling techniques------------------------------------------------------14
CHAPTER FOUR
DISCUSSION
4.1 Demographic characteristics of the respondents------------------------------------------16
4.2 Peoples attitude towards cooperative--------------------------------------------------------18
4.3 Awareness of peoples towards cooperative society----------------------------------------18
4.4 Attitude of publics towards the objective of cooperative---------------------------------19
4.5 Attitude of the public towards the importance’s of cooperative------------------------19
4.6 Attitude towards the economic and social importance of cooperative-----------------20
4.7 Attitude of their environment suitable for cooperatives----------------------------------20
4.8 Attitude of the public towards the advantage of cooperative to their members----21
4.9 Willingness of members to continue their membership-----------------------------------22
4.10 Attitude of the public’s towards to join cooperative societies--------------------------22
CHAPTER FIVE
5.1 Conclusion------------------------------------------------------------------------------------------24
5.2 Recommendation---------------------------------------------------------------------------------25
Reference…………………………………………………………………………………..26
Appendix……………………………………………………………………………………28

iv
LIST OF TABLES
Table 1 Distribution of respondents by sex, age, education, occupation and members----16
Table 2 The awareness of cooperative-----------------------------------------------------------------18
Table 3 The awareness concept of cooperative------------------------------------------------------18
Table 4 Attitude of publics towards the objective of cooperative-------------------------------19
Table 5 Attitude of the public towards the importance’s of cooperative----------------------19
Table 6 Attitude the believes of their society environment suitable for cooperative--------20
Table 7 Attitude of the public’s towards the economic and social importance of
cooperative…………………………………………………………………………………….20
Table 8 Attitude of the public towards the advantage of cooperative to their members----21
Table 9 Willingness of members to continue their membership----------------------------------22
Table 10 Attitude of the public towards to join cooperative societies---------------------------22

v
 CHAPTER ONE
INTRODUCTION
1.1BACKGROUND OF THE STUDY
Cooperation has been the very ease of human’s civilization. The interdependence and the mutual
help among human being has been the base of human life. Cooperation has been the essence of
social life and human progress. Cooperation is established for serving the common need of
people. The recently held international cooperative alliance conference at Manchester in 1995
stated that a cooperative is an autonomous association of person’s united voluntarily to meet
their common economic, social and cultural needs and aspiration via jointly owned and
democratically controlled enterprise (KrishnaSwami, 1992).
This implies that cooperation as a form of organization whose member joint together as human
being to satisfy their common economic, social and cultural need cooperative association of
person who have voluntarily joint together for the purpose achieving economic goal via the
formation of democratically controlled organization making equitable contribution of capital
required and accepting affair share of risk and benefit of the undertaking in which the number of
activity participate(ILO,1999). Cooperative organizations provide opportunity for every
individual to develop the highest degree and at the same time contribute to the development of
the society. Opportunity is provide to all those to whom the society will be beneficiary. (Frank,
1995)
A cooperative is a based on equality of members, who are its basic units. This basis of human
personality is one the main feature distinguishing a cooperative from firms controlled primarily
in the interest of capital. Members have right of participation, a right to be informed, a right to be
heard and a right of participation in decision making. (R.Selvaraj, 2000)
For a few years ago the number of cooperative limited but within a short period of time the
number of cooperative become rewrite and expanded rapidly throughout our country Ethiopia
because cooperate become of people their economic, social and cultural needs relation on
cooperate. Among region of Tigraythe number of cooperative has been gaining statically benefit
being working cooperator are at the entire population as whole and Mekellecity. Specifically, in
Adihaqi sub cityAmoraKeble as compared to the previous year know aday the society as more
interested to make and work in cooperative manner. The main reason is that the society of
Adihaqi subcity becomes aware about the important of cooperation and working together. In

1
other words the people attitude towards cooperative society making advanced as aresult of their
life change in many ways. There are a lot of research conduct on the title but there is a shortage
well standard research conduction on the area where I will work because of this reason my senior
research paper will participate areal significantfor both governmental and non-governmental
organization to take long strategy also used for cooperative to know the their problem and to find
out necessary decision.
1.2 STATEMENT OF THE PROBLEM
Cooperative has the power to strength the social, economic and in some extent it has the ability
to strength the political linkage among people because of this and other benefit people become to
eager and interested to join cooperative. Currently cooperative initially start to encourage the
social interaction of people but they gradually developed into economical manner(EwellPawll,
1998).
Cooperative empower people by enabling the poorest segments of the people in economic
progress by working together and they will accomplish more than the same of each individual
effort the same is also better true for cooperative contribute agreat role to the improvement of
economic development(Alemayeh,1993)
Thus, now a day the people understanding cooperative society become well developed and
improved however, there are a lot of problem that hinder the understanding of people towards
cooperative society and its rival development such as traditional(back ward) attitude towards
cooperative principle, lack of economic motive, lack of education, slow or lack of government
attention and lack of coordinated government strategy for cooperative, culture of the society and
other related problem face in the development fate of cooperative ,therefore the researcher as
much as possible try to assess those problems to find ultimate solution and there is no awell
detailed and explanatory research held in this area based on this title and concept because of this
the researcher interested to conduct this research on general understanding of people attitude
towards cooperative in Adihaqi sub cityAmoraKeble.
1.3 OBJECTIVE OF THE STUDY
1.3.1 GENERAL OBJECTIVE OF THE STUDY
The main objective of this paper/study is to assess the attitude of the public towards cooperative
in MekelleAdihaqi sub city specifically AmoraKeble.

2
1.3.2 SPECIFIC OBJECTIVE OF THE STUDY
 To assess public attitude towards the economic relevance of cooperative.
 To examine public attitude towards the social relevance of cooperative.
 To find out the tendency of people to join cooperatives.
 To analysis the benefit of cooperative in Adi-Haqi sub city.
 To support strategies for promoting the public attitude towards cooperatives.
1.4 SCOPE OF THE STUDY
Cooperative society exists in many parts of the city and its surrounded area but the study would
limit to Amora Keble because of time, finance and broadness of the area to cover all area of the
region and also there is a constraint of source of the information.
1.5 SIGNIFICANCE OF THE STUDY
This study would have the following significance majorly
 It woulduse to know the perception and attitude of the public towards cooperative concept.
 To create positive image to cooperative in the mind of the public.
 It would create awareness about importance and benefit of cooperative.
 This paper would be use as a reference material for further investigation in future for
researcher and government body investigation.
 It would help to develop the researcher experience for next by give a clue of how to
conduct other research.
1.6 RESEARCH QUESTION
a) What looks like the attitude of people to join cooperative?
b) What is the economic relevance of cooperative?
c) What is the social benefit of cooperative?
d) What thing encourages tojoining cooperative societies?
1.7 LIMITATION OF THE STUDY
While conducting this study the researcher found different limitation and difficulty to held the
study more effectively like:
 Lack of sufficient reference material on the topic.
 In adequacy of time due to different reason to gather relevant information which is
necessary for the study like taking interview and data collection.
 Lack of finance, scarcity of logistics

3
 CHAPTER TWO
LITRATURE REVIEW
2.1 THE CONCEPT OF COOPERATIE
The modern concept of cooperative conforms to the review that it is aspecial made of doing
abusiness and social action which may go on side by side with the profile business and with
political government using their currency supplementing each of them, and expanding as its
efficiency justification cooperative is applied to the solution of variety of economic
activities.The universality of cooperative is widely achieved by everybody as it is capable being
applied to wide range of activities such as production, distribution, banking marketing, housing
and insurance. It is organization of weak and vulnerable and means for their self-defense against
unequal competitions and economic exploitation. The satisfaction of economic need of group of
people who constitutes the society by means of combined action of cooperative organization.
(Warbasse J. 1946).
Cooperative is universal form of organization and it is applicable to consumer cooperative use
credit cooperative forming cooperative, industrial cooperative and other type of cooperative.
Cooperative engaged in business activity, production, distribution, supply marketing or credit. It
is not charity, it is engaged on in business relevant to the common economic need of members.
Perhaps cooperative is the only form of economic organization which certain human being which
treats capital as mere tool in their hands. The rules “one member one vote”(Kirshan swami,
1968)
Cooperative organization, the members and user are the same. The member users own the
organization and control that i.e. democratically. All members enjoy equal right in exercising
control irrespective of variety on the amount of share capital subscribed by them. This system
eliminates the appropriate for any members or small group to gain control over the cooperative
by capital is eliminated (Krishan swami,1981)Cooperative has been the very basis of human
civilization the interdependence and the mutual help among human beings have been the
dependence basis of social life (KrishamSwami, 1992). However modern type of cooperative
enterprise has enterprises its origin in the 19th center and has become one of the most ever prints
example form of business economic enterprise.
The first modern cooperative the Rochdale society was established in England 1844. It started
with 28 members who purchased one share each of stock. The members consisted of craftsman

4
such as weaves or shoemakers. The members decided to join to work together, sell their products
under one roof and use a part of enraging to purchase supplies in quantity at economic price
another portion of the earning would be reinvested in growth of the society and the remainder
would be returns to the individual members in the form of refund (Chukwu, 1990).
Cooperative movement in Germany evolved in response to the economic crisis. Both farmer and
town dollars were (in the average of starvation in 1878) in agricultural area of western Germany
the disastrous year of 1946, inspired Fredrick Wilhelm Raiffeisan, to take some action to
alleviate the problem hunger. He believed that farmer could improve their condition by
eliminating money lenders and middle men. The government formed a local committee in
raffeisan district that is responsible for the action of an agricultural credit society. Most of writers
and authors agreed in the motivation to form cooperative having three particular aspects.
 The need for protection against exploitation by economic forces too strong for the
individual to with stand-alone.
 The impulse for self-improvement by making the best sue of often scarce resources.
 The concern to secure the best possible return from whatever form of economic activity
with the individual engages whether as a producer, intermediary on consumers.
Cooperative is an autonomous association of persons united voluntarily to meet their common
economic, social and cultural needs and aspiration through a jointly owned and democratically
controlled enterprise (ICA, 2000).
Cooperative may have policies of equity and equality opportunities for both women and men
their practices may differ truly equality may not in reality exist, women contribute significantly
to the cooperative and hence to the national economy of nearly all countries in the world. The
percentage women’s members participation on compared to men is notably lower, women
participation also practically none existence in cooperative (ILO, 2001).
Cooperative is driven business that has contributed greatly to the development of one the world
most production and scientific based agricultural system. They have played an important role in
strength market accesses and competitive returns of independents from operators during 20th.

A true cooperative is defined as a business, voluntarily organized, operating at cost which is

owned, capitalized and controlled by members patrons, sharing risks and benefits proportionally
based (Ewell, 1964).

5
Cooperative may render of least four valuable services of capitalists system of which they are
enhance private property, preserve market completion, and retain profit motive and strength the
individual consumer entrepreneur (Ibid, 1964).
2.2 TYPES AND CLASSIFICATION OF COOPERATIVE
Cooperative operating in the urban areas of country there is housing, saving and credit, consumer
and labor etc. real cooperative are those operating in rural area. Most of the cooperative in
Ethiopia fall in this category. There are grain, livestock, dairy, coffee etc., marketing
cooperative in different areas of the country (chukwu, 1990).
Cooperative can also be classified base on the organizational level the smallest individuals set up
in the cooperative organizational level are primary cooperatives. They usually cover a limited
area of operation. They have individual person as a member the working capital is obtained from
paid up share of each members. The other organizational form is a secondary cooperative that
starve to meet the interest of member cooperative. The working capital is collected from share of
the constitutes primary cooperatives. The third layers in the organizational set up are the tertiary
cooperatives. This type of cooperative usually formed by the secondary cooperative and the
working capital are obtained from paid up share of the constituent secondary cooperatives.
[Chukwu, 1990].
The other classification criteria of cooperative are the sector in which the cooperative engaged in
the agriculture sector are classified as agricultural cooperatives. There are many agricultural
cooperatives operating in different sub sector of the agriculture economy such as dairy, fishery,
coffee, grain, input purchasing etc. individual cooperative [small scale industry ] engaged in the
industry sector.
This type of cooperative includes hand increase cooperative and other metal and wood work
cooperative. Service cooperative are those engaged in the service sector of the economy. The
usually engaged in the banking, insurance, transport, health and electricity etc.(Chukwu, 1990).
The number of cooperation in which the cooperative engaged is another classification criterion
of cooperatives. Those are single purpose cooperative which have only one field of activity [one
purpose example marketing]. There also multipurpose cooperative which have more than one
field of activity [two or more purpose example producer and marketing cooperative].
2.3 COOPERATIVE MOVMENT IN ETHIOPIA

6
Cooperative is the way life of Ethiopians and has along years of experiences. This cooperation
may be a cultural or religious organization that makes the population a close tie. For example
Idir, which is related to funeral celebration, IKUB which is used for saving money and self-help
to the member and Weffera or Debo, which focuses on the cooperation labor peak times like in
the time of harvest wedding etc. (cooperative theory and practice course material)
However, a modern cooperative in Ethiopia was started during the imperial regime in 1960s.
During that time the first cooperative legal action was made and it is known by decree NO
44/1960. It was concerned to organizing farmer’s cooperatives. The second attempt towards legal
cooperative was in 1966. The first cooperative organization legal proclamation number 241/1966
was declared. It aimed at organizing cooperative societies in sectors (cooperative legal system).
In 1974 emperor Haile Selassie government was over thrown and replaced by the socialist type
of government called derg. The Derg government proclaimed cooperative proclamation in 1978
and it was called proclamation number 138/1978 during which, there were 10524 different types
of cooperative with 4529259 members and combined capital of birr 465467428 throughout the
country. From these cooperative 80% were rural cooperative. (Amare, 2005)
Currently in Ethiopia cooperatives are taken as a key organizational form in combating poverty
and social exclusion through local development initiative according to federal cooperative
agency report (2007EC, 2015GC).
Currently there are 63000 cooperative in Ethiopia. Although there are urban cooperative mostly
credit union and hand crafts producers over80% are rural and agriculturally based. Those all
cooperatives are organized in to approximately 333 cooperative unions.
The proclamation so far mentioned the latest two (proclamation number 147/1998 and
amendment act number 402/2004) ensure that cooperative policy is fully consistent with the
universal cooperative principles and the ILO promotion of cooperatives. (Recommendation 2002
Bezabih, 2009 as cited in Muluneh, 2010).
The existing Ethiopian government, aside from enacting cooperatives proclamation has
formulated a five year cooperative developed program this demonstrates that the government has
fully realized the contribution of cooperative to economic and social development food security
and poverty reduction in Ethiopia.
The federal cooperative agency (FCA) is the highest government stricture for cooperative
promotion control in Ethiopia. FCA has the mandate for overseeing the appropriate

7
implementation of the legislation for cooperative, designing cooperative policies and legal
procedures consistent with the international convention on cooperatives and ensuring policy
coherence between cooperative policy and the broader policy environment (muluneh, 2010).
2.4 Role of cooperatives
In agricultural development and poverty reduction according to the US department of agriculture
(2002), cooperative are user driven business that have contributed greatly to the development of
one of the world most productive and scientific based agricultural systems. They have played an
important role in strengthening market access and competitive returns for independent operators
during the 20th century. They adapted their operations to agricultural, technological innovations
such as the use fertilizers, plant and electricity and new source of energy and to new information
systems.
A true cooperative is defined as a business voluntarily organized operating at cost with is owned,
capitalized and controlled by member patrons, sharing risks and benefits proportionally based on
their participation. Cooperative may render at least four valuable services at capitalistic system
of which they are apart
 Enhance private property
 Preserve market competition
 Retain profit motive and
 Maintained and strengthening the individual consumers and entrepreneurs.
The primary purpose of cooperative is to provide service and to make profit for its members or
users of the cooperatives. A contractual agreement between the cooperative and the member
patrons requires that all margins above the cost of productions be returned to the member patrons
in proportion to their business with the cooperatives Roy, 1964 (as cited in Zemen, 2005).
Cooperative is not only performing the above mentioned duties but also serve as financial
institutions that provide credit to the small holders. Cooperative also help farmers to increase
their net income through finding good market for their product by supplying agricultural inputs
and service needed in day to day operations.
Therefore, farms look their cooperative to increase their bargaining in the market for their
product, and to provide large and growing number of general farm services. Among different
services that cooperative provides to their members, advancing credit to the members at
appropriate amount and time is the major one Zemen, 2005(as cited Asqual, 2010).

8
2.5 COGNITIVE ATTITUDE OF COOPERATIVE IN SURROUNDING.
Us to interpret and understand our surrounding recognitions of objective is major function, for
example both peoples and animals recognize familiar in their environment but since cooperative
principles focuses on people. The study is focus on people attitude rather than object attitude.
How people perceive one other has been labeled social cognition and social information
processing. In other words attitude is the process of selecting, organizing and interpreting
information in order to make sense of the world around us. (Kiretner, 1989)
2.6 THE OBJECTIVE OF COOPERATIVE
People effectively work together in different field of economic end over and promote their
welfare. Through cooperatives is not panacea for all kinds of socio economic problems and it not
performing miracles it is an effective instruments for up lifting the economically weaker section
through their distribution and the like the role cooperation the planning is much greater in the
countries which are wedded to the decentralized, democratic malty level planning. The goal of
planning such as economic decentralization,regional balance in equality opportunity growth with
justify and employments generation are in conformity with the objective of cooperatives
(Krishan swami, 1978)
2.6.1 ECONOMIC OBJECTIVE
The basic for starting a cooperative organization is necessity of satisfying a common economic
need by mutual help and efforts, every cooperative has certain specific economic aim, as an
economic entity as an cooperatives primarily responsible for seeking solution, to the common
economic problems of its members. By the satisfaction of their common economic need by the
cooperative method, the members are themselves able to improve their economic condition and
rise themselves from weakness to strength. Thus the cooperative association is a means for the
economic wellbeing members. It is an economic and legal instrumentality which or by means of
which members units carry out their purpose to conduct a jointly integrated activity.(Krishan
swami, 2000)
2.6.2 SOCIAL OBJECTIVE
The ultimate aim of cooperatives is to create better society the specific contributions the
cooperation can make for social progress are discussed as follow:-

9
The chief social value of the cooperative organization is the trains the people to take initiative in
organizing, to assume responsibility in administration and direction and to create experts from
their own interest. A significant contractive rule the cooperative movement in the social field that
is teaching people to administration their own affair (Krishna swami, 1955)
Cooperative movement is an instrument to set right the imbalance in economic development. It
can contribute to reduction disparities of income and wealth at any rate preventing aggravation
disparities. It serves as means of emancipation for weaker section who are victims of lopsided
development. This organization towards the poor is legally due to the working class
characteristics of cooperative (M.Wiscosin, 1973)
2.6.3 ETHICAL OBJECTIVE
As human being associate an equal term of or mutual benefits they get opportunity for
developing unselfishness and fellow ship cooperative arms at achieving effectively ethical
objective (G. Fauguet 1998). Morality cooperation in the forefront of human action in the most
ordinary affair of life it is pursuit in building human character and strength the factor of ethics in
the society, dishonesty, deceit and corruptions of all forms are discoursed under cooperative
system cooperation with as emphasis on human dignity, service motive and democratic
convolvulus such as locality, sincerity and fraternity
Human’s value cooperation fosters human value which are fundamental to spiritual way of life
to the ethical basis of cooperation being organized on mutual and it beigest of neighborly
helpfulness and charitableness. (Sanniches, 1993)
2.6.4 POLITICAL OBJECTIVE
Cooperative has the power to strength democracy and liberty. The cooperatives democracy will
reinforce the democratic structure in the social and political dialed. It is fallacious to expect
democracy unless we have first built the base of political democracy under the guidance of
leadership that has faith in democracy as they follow a system of management which would
guarantee cabs solute control over the potation.
Develop state policies economic interest and doctrine play an important role in the shipping of
political policy and the choice of its objective as pointed by ICA commission (1966)
Cooperative movement should give government the benefit of its experience when it is
considering economic policies. The method to be chosen for political intervention may range

10
from private representation to government department and deputation to ministers to lobbying in
parliament, agitation among the public (ICA report of ICA commendation 1967)
2.7 COOPERATIVE DEVELOPMENT AND LOCAL COMMUNITY
The real basis for any essentially bottom up self-help approach to economic, social and induced
individual development of cause most of cooperative communities of the members engaged in
the money economy computing in agree global market to delivery service and product in the way
meet the individual and social needs of their member. The community in term of network of
family, friends and neighbor’s represent both as purees of added social value and an opportunity
for the accumulation of social capital. Social capital may be a tangible asset that is available the
community and sternness or it can be intangible in the collective knowledge of a community.
(Davis Peter, 1995)
2.8 PRINCIPLE OF COOPERATIVE
Cooperative principles are fundamental characteristics feather which determine the character of
cooperative in form of association. The principle are not abstract notation but are these principle
that the success of cooperative organization (Calcultta,1959)
The 1937 ICA committee divided these principles in to essential and non-essential principle. The
cooperative movement in different countries went their Owen ways, providing their own
modification to these principles. The 1966 commission report was characterized by important
gesture. The commission didn’t differentiate between essential and non-essential. Second,
informing principle of brevity or brilliancy phraseology at the cost of its accuracy and adequacy
was avoided. Cooperative in most parts of the world is required by cooperative legislation to
abide by number of so called principle of cooperative. These principle of cooperative are
sometimes called Rochidal principle.(Krishan swami, 1968).
There are basic principles of cooperative that govern cooperatives. These principles define
cooperative organizations, the strength and cooperative basis and rational for their public
supports (ICA, 1995).
Cooperative was investigated as important principles and instrument to accelerate economic
development to help people’s voluntary participation in economic planning and implementation
of various development programs (Hajela, 1994).
i. Voluntary and open membership principle

11
Open membership means that cooperative is open to all peoples who need and able to use the
service of the cooperatives and willing to accept the responsibility of membership without any
discrimination.
ii. Democratic members control principle
Within cooperative democracy includes consideration of right and responsibilities it mean for
strengthening the spirit of democracy within cooperatives. Controlled member means member
participating control their cooperative and they do so in democratic manner.
iii. Members economic participation
In cooperative, capital is servant and not most of organization cooperative exists to serve the
needs of members this principle describes how members both interest in their cooperative decide
how to allocate surplus.
iv. Autonomy and independence
Cooperative in all part of the world is very much affected by their relationship with the state
government determine the legislative framework within which cooperative may function in their
taxation.
v. Education training and information
The principles emphasis the vital importance played by education and within cooperatives
educations means more than just distributing information encouraging patronage, it means
engaging the minds of members, elected managers and employees comprehended fully the
complexity riches cooperatives thought and actions.
Training means making sure that all those who associated with cooperatives have the skills
required in order to caring out responsibility effectively.
vi. Cooperation among cooperatives
It is crucially important for development of cooperative to join together when speaking to
government or promoting the cooperative may the public. In order to build an integrated
cooperative should cooperate among themselves. They should not complete with their own
consistent of members.

vii. Concern for community

12
Cooperative organizations generally exist for the benefit of their members. Cooperative has
social responsibilities to ensure that the development of the community economically, socially
and culturally is sustained. They have responsibility to work steadily for environmental
protections of these communities.

13
 CHAPTER THREE
METHODOLOGY
3.1 DESCRIBTION OF THE STUDY AREA
Mekelle is located in northern part of Ethiopia in Tigray, which is the capital city of the region.
Mekelle city is far apart 783 k.m away from AddisAbaba but the research study area exist only in
adihaqi sub city what we call it Amora Keble.
In adihaqi sub city there are almost 5 Keble’s among them one is AmoraKeble, it consider as a
single Keble with around 17,177 total population.(Adi-Haqi sub city plan and finance report
2007E.C).
3.2 TYPE OF DATA AND DATA COLLECTION METHOD
In this study the researcher was used two main sources of data, these are primary and secondary
data sources. Primary data source are the data which collected from respondents through
questionnaire’s, interview and direct observation whereas secondary source of data obtained
from published and unpublished propose material and work paper etc. but among these research
would be given great emphasis to primary data source because those source are more reliable and
they have the power to give high confidence to the researcher for his work.
3.3 METHOD OF DATA ANALYSIS
The researcher analyzed the data were collected from in different manner in two methods these
are qualitative and quantitative method. The qualitative data were analyzed using techniques like
percentage, tables and frequency. Whereas qualitative data were analyzed via qualitative data
analysis method such as deep explanation and interpretation or the data which were collected
materials of direct observation from respondents.
3.4 SAMPLE SIZE AND SAMPLING TECHNIQUES
The researcher were used multi stage sampling techniques ; in the first stage the study area
Amora Keble, sub city of Adi-Haqi selected as study area purposely because the target
population mere medium in number and this help to the minimize information gap created by the
limitation of the study like finance and capital.
In the second stage the researcher were used random sampling technique to select the
respondents from 17177 population, according to the sub city administration around 9980 were
child which is under the age of 18 and around 2283 are at age of 65 and above this tell that
around 1226 are not capable for cooperative then the researcher would use only 4914 population

14
and select the respondents from one family and the researcher use the house hold leader as a
major respondents finally the researcher selected45respondents from three ketena each of ketena
have 15 respondents.

15
 Chapter four

Data analysis, presentation and interpretation

This part deals with data analysis and discussion. In addition to this the demographic
characteristics of the sample respondent was analyzed and discussed in details.

4.1 Demographic characteristics of the respondent

Table 1:Distribution of the respondent by sex, age, marital status, education, occupation and
membership.

1 SEX NUMBER PERCENTAGE%

Male 26 57.7
Female 19 42.3
Total 45 100
2 AGE
18-25 17 37.7
26-35 20 44.4
36 and above 8 17.7
Total 45 100
3 EDUCATION
Illiterate 9 20
12th complete 15 33.3
Certificate 5 11.1
Diploma 7 15.5
Degree 9 20
Total 45 100
4 MARTIAL STATUS
Single 19 42.2
Married 24 53.3
Divorced 2 4.4
Total 45 100
5 OCCUPATION

16
 Guard 2 4.4
Merchant 10 22.2
Government employee 21 46.6
Teacher 2 4.4
Police 2 4.4

Student 8 17.7
Total 45 100
6 MEMBERSHIP
Member 15 33.3
Non member 30 66.6
Total 45 100
Source: Survey result, 2016

As clearly stated in the above table, from the total sample respondent 26(57.7%) are male while
the remaining 19(42.3%) are female. In addition to this, out of the total sample respondent
17(37.7%) i.e. In the age range between 18-25 years old and 20(44.4%) are between 18-25 years
old while the remaining 8(17.7%) are in the range between the age of 36 and above years old.

Regarding educational level, 9(20%) of the sample respondents are illiterate,15(33.3%) of the
sample respondent are grade 12th completed, 5(11.1%) are certificate holders, while the
remaining 7(15.5%) and 9(20%) are college diploma and degree holders respectively.
Concerning to marital status, 19(42.2%) of them are single, 24(53.3%) are married whereas the
remaining 2(4.4%) of the respondent are divorced. Relating to the occupation of the respondent,
2(4.4%) are guard, 10(22.2%) merchants, 21(46.6%) are government employees, 2(4.4%) are
teachers, the remaining2 (4.4%) and 8(17.7%) are police and students respectively.

Concerning to membership, as indicated in the above table, from the total respondents 15(33.3)
are members of different cooperative societies especially in consumer cooperatives, and the
remaining 30(66.6%) are not member of cooperatives.

4.2 People attitude towards cooperative

17
Table 2: The awareness of cooperative

Have you heard about cooperatives? Number Percentage %

Yes 43 95.6
No 2 4.4
Total 45 100%
Source: Survey result, 2016

As clearly stated above in the table, of the total sample respondents 43(95.6%) of them replied
that they have heard about cooperative, whereas the remaining 2(4.4%) of the total sample
respondent have not heard about cooperative. Therefore, most of the respondents heard about
cooperative and some of the respondents have not heard about cooperative

4.3 Awareness of people towards cooperative society

Table 3: Distribution of respondent about the awareness of the concept of cooperative society

Are you aware of the concept of cooperative Number Percentage%

society?
Yes 39 86.6
No 6 13.3
Total 45 100
Source: Survey result, 2016

As shown in the above table from the sample respondent of the population 39(86.6%) of them
replied that they are aware about the concept of cooperative society. On the other hand 6(13.3%)
of the sample respondent are not aware about the concept of cooperative. Regarding the above
result, most respondents have awareness about the concept of cooperative society. Most of the
respondents define the term cooperative as working together for mutual benefit or a cooperatives
stands for the benefit of the members.

4.4 Attitude of publics towards the objective of cooperative.

Table 4: The attitude of public towards the objective of cooperative

18
 Do you know the objective of Numbers Percentage
cooperatives?
Yes 36 80
No 9 20
Total 45 100
Source: Survey result, 2016

As clearly shown in the table above from the total respondents 36(80%) of them know about the
objective of cooperative whereas the remaining 9(20%) of the respondents have no
knowledgeabout the objective of cooperative, this implies that majorities of the sample
respondent have good knowledge about the objective of cooperative.

4.5 Attitude of the public towards the importance of cooperative

Table 5: Knowledge of the respondents on the importance of cooperatives

Do you thing that cooperative is important NUMBER PERCENTAGE

to our country?
Yes 42 93.3
No 3 6.6
Total 45 100
Source: Survey result, 2016

As shown in the above table 42(93.3%) of the sample respondent replied that cooperative are
important for our country, while the remaining 3(6.6%) respondent replied that cooperative is not
important for our country. As stated by most respondent cooperative are important for our
country because of cooperative plays an important role in social and economic developments,
like fair distribution of resources to the public’s, in promoting infrastructural services, job
opportunity, improve saving habit of society and technology like introduction new products etc.
the remaining 3(6.6%) respondents replied cooperative is not important to our country
becauselow attitude of the society towards cooperative, lack managerial system through
cooperative principles and values and dependence on government only.

4.6 Attitude the believes of their society environment suitable for cooperative

19
Table 6: Availability of conducive environment to cooperatives

Do you believe that your society Number Percentage %

environment suitable for
cooperative?

Yes 40 88.9

No 5 11.1

Total 45 100

Source: Survey result, 2016

As shown in the above table 40(88.9%) of the total sample respondent replied they believe their
environment is suitable for cooperative because the society have awareness about the importance
cooperatives, decrease unemployment rate, on the other hand 5(11.1%) they believes that their
environment is not suitable for cooperative because of lack of infrastructure, lack of attitude of
peoples towards cooperative.

4.7 Attitude of public towards the economic and social importance of cooperative.

Table 7:Attitude towards the economic importance of cooperatives

Questions Response Number Percentage

How do you rate the advantage of Very good 28 62.2

cooperative in price stabilization in
Good 14 31.1
the market?

Poor 3 6.6

Total 45 100

How do you rate the social benefit Very high 20 44.4

of cooperative
High 19 42.2

Medium 6 13.3

Low 0 0

Total 45 100

20
Source: Survey result, 2016

From the table, 28(62.2%) of the sample respondents replied that cooperative is very good in
price stabilization in the market and 14(31.1%) of the respondents replied that cooperative is
good in price stabilization in the market. Whereas the remaining 3 (6.6%) of the total sample
respondents replied that cooperative is poor in price stabilization in the market. Based on the
sample respondent’s response that cooperative is good in price stabilization in the market. From
the table above, 20(44.4%) of the sample respondent rate the social benefit of cooperative is very
high, 19(42.2%) of the total sample respondent rate social benefit of cooperative is high, the
remaining6 (13.3%) of the sample respondent replied that they rate the social benefit of
cooperative is medium. To conclude that the most of the respondents are rate the social benefit is
high.

4.8 Attitude of the public towards the advantage of cooperative to their members.

Table 8: Public attitude towards the advantage of cooperative to their members

Question Response Number Percentage %

How do you rate the Very good 25 55.5
advantage of cooperative to Good 15 33.3
their members? Poor 5 11.1
Total 45 100
Source: Survey result, 2016

As shown in the above table, out of the total sample respondent25 (55.5%) of them believe that
cooperative have very good advantage to their members, 15(33.3%) of them believe that the
advantage of cooperative is just good, but the remaining 5(11.1) replied that cooperative have
poor advantage towards the members.

4.9 Willingness of members to continue their membership

Table 9: Distribution of the respondent to continue with membership

Question Response Number Percentage

21
 Are you willing to Yes 12 80
continue with your No 3 20
membership? Total 15 100
SOURCE: own survey, 2016

As shown in the above table out of the total sample respondent, 12(80%) have willingness to
continue with their membership, on the other hand 3(20%) are not willing to continue with their
membership. To conclude, most of them have willingness to continue because they got benefit,
whereas few of them have not willing to continue their membership because of lack of honesty
among members, shortage of capital and man power.

4.10 Attitude of the public towards to join cooperative societies.

Table 10: Distribution of non-member’s respondent willingness to join cooperative societies

Question Response Numbers Percentage

How interested are you Very interested 13 43.3
to join cooperative Interested 8 26.6
societies Not Interested 9 30
Total 30 100
Source: Survey result, 2016

As shown in the above table, 13(43.3%) of the total sample respondent replied they are very
interested to join cooperatives, 8(26.6%) of the respondent replied not very interested but they
are interested to join cooperative societies, whereas the remaining 9(30%) of the sample
respondent they are not interested to join cooperative societies. To conclude that most of the
respondent are very interested to join cooperatives societies because of its social, economic and
other related advantage gained through cooperative but few of them are not willing to join it
because of one and other personal also negative outlook towards cooperative, they believed
cooperative is source of corruption and cooperative societies are not applied the principles and
values of cooperatives.

22
 Chapter five

Conclusion and recommendation

According to the data presented and analyzed in chapter four from the respondents through
questionnaire, the following conclusions and recommendations are provided on the assessment
of public attitude toward cooperatives.

5.1 Conclusions.

23
According to the analysis and discussion part of this study the researcher puts the following
points as a conclusion to this study,

 As noted by most respondents they have an understanding of the establishment of

cooperative and they are aware about the concept of cooperative. According to most of
the respondent the established cooperative that follows the cooperative principle and
values.
 Even they have understanding about the objective of cooperative few of them have not
known the objective of cooperative.
 Mainly cooperative is important for our country economically, socially and cultural to
develop or advance their economy.
 Majority of the people are very interested to join the cooperative societies and this
implies that cooperative is important in many ways of their life.
 Most of the respondents have a good knowledge in relation to the advantage of
cooperative.
 The contribution of cooperative in market stabilization is very good except a few of them.
 As stated by the majority of respondenttheir environment is suitable for cooperatives.
 As responded by most respondent most of the members of cooperative are willing to
continue with their membership.
 As stated by the sample respondent most of the people have a good knowledge about
cooperative, nut it is not competent enough.

5.2 Recommendations

Based on the finding and conclusion of this study the researcher recommended that:-

 The government should work for better awareness about the concept of cooperative
within the public even though majority of the respondents aware the concept of
cooperative now a day cooperative play an important role in all activities business
so everyone should know about cooperative.
 The people should advance their knowledge about the objective of cooperative.

24
  In order to improve the living standard of the lower section they should cooperate
themselves.
 Organizing of cooperative should be conducted via a village survey to fulfill the
preference of the public living standard in a particular area.
 The Adi-haqiworeda cooperative promotion should work on cooperative in order to
increase honest among members.
 It is better to prepare bazaars, promotion works and common meeting and seminars
to develop sense of belongingness experience sharing and awareness creating works
with different cooperatives.
 The Adi-haqi sub city, Amorakebele should work with different educational centers
like Mekelle universities cooperative department to give training about the
importance of cooperative.
 Adi-haqi sub city, Amorakebele administrator should work more and more in
expanding the concept and benefit of cooperative to the societies because this area
have a good potential to establish cooperative societies especially in consumer,
saving and credit, housing cooperatives.

Reference

ALEMAYEHU SEYOUM (1993) a research fellow in the development strategy and

governance division of the international food policy research institute, Washington, D.c
and is based in Addis Ababa, Ethiopia.

International cooperative alliance ICA(1995) congress Manchester agenda and report,

review of international cooperation.

25
ICA(1995), International cooperative research conferences statement on the cooperative,
identity Geneva.
ICA (1967) Report of the ICA commission cooperative principles, London,
ICA (1966) Report of the ICA commission on cooperative principles, London
ILO(2001) Facing the technological challenges, ILO studies series, macmillan press Ltd
london.
ILO(1998) Cooperative management and administration, Geneva, Switzerland.
Hajela(1994) FRANZ C. Economics of cooperative enterprises 6 th revised and enlarged
edition new Delhi, India
KREINTER(1989) training and human resource development 10th edition, new york
Chukwu (1990) Economics of cooperative enterprises, Marburg, Germany.
CALCULTTA(1959) cooperative and rural housing Bombay
Dr.KRISHANSWAMI (1985) fundamental of cooperation new Delhi S.chandcompany
Ltd.
Dr.KRISHANSWAMI(1976) cooperative democracy in action new Delhi somaiya
publication Ltd.
Dr. KRISHANASWAMI, 1967 cooperative concept and theory, India
Dr.V,KULANDAISWMY and KRISHAN SWAMI(1957) cooperation concept and
theory, first edition, tamilnada, India
M.WISCONSIN 1973 cooperative principles and legal foundation
Federal cooperative agency(FCA) Report on cooperatives (2015) Addis Ababa
Federal negartgazeta proclamation number 147/1998 Addis Ababa, Ethiopia.
PIERRE J, 1986. Cooperative for developing countries oxford publishing United
kingdom.
ASQUAL (2010) loan repayment performances saving and credit cooperatives MSC
thesis mekelle university
R,SERVARS, 2000 the cooperative on the new millennium IndiaGujrat
SEPUMUS, 2000 the competitive advantage of cooperative India New Delhi.
S.NAKKIRAN, 1968 cooperative management, Moscow
United state (2002) agricultural departments, new york
SANNICHES , undated cited research in mekonnenEndale, 2005, Wollo university

26
W.MARES, 1983 competitive advantage of cooperative.
ADI HAQI sub city plan and finance report 2006, 2007 E.C
MULUNEH (2005) cooperative movement in Ethiopia, Addis Ababa
AMAREBERHANU (2005) determinants of formal sources of credit loan repayment
performance smallholder farmers. The case of north western Ethiopia GonderM.Sc. thesis
on cooperative in Alemaya, university
EWELL PAWLL,(1969) cooperative today and tomorrow,2ndeditionUSA
DAVIS PETER, (1995) Objective and benefits of cooperative, London
WARBASSEJ.P (1946) the cooperative way method of world reconstruction, New York.

27
 Mekelle University

College of business and economics

Department of cooperative studies

Appendix

The main objective of this questionnaire is to gather data for a research on the attitude of people
towards cooperative in Adi-haqi sub city (the case of AmoraKeble)

 Dear respondents as much as possible please try to elaborate or answer clearly and
briefly.
N.B. Writing your name is not necessary and put only the mark sign on the space provided.

PERSONAL INFORMATION
1. Sex : male female
2. age: 18-25 26-35 36 and above
3. EducationLevel A, Illiterate B, 9-12th complete C, certificate

D, diploma E, degree

4. Marital status A. singleB. married D, divorced

5. Occupation --------------------------------------------------------------------------------

II. Peoples attitude towards economic relation cooperative

6. Have you heard of cooperatives?

Yes No

7. Are you aware of the concept of cooperatives?

28
Yes NO

8. If you “Yes” what is cooperatives?

---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------

9. Do you believe that your society environment is suitable for cooperatives?

10, If “ Yes” what are the factor which lead for establishing cooperatives?

---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------

11. If “No” what is the reason?

---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------

12. Do you think that cooperatives are important for our country?

Yes No

13. If “Yes” what is the reason?

A -------------------------------------------------------------------------------------------------------

B -------------------------------------------------------------------------------------------------------

C ------------------------------------------------------------------------------------------------------

14. If “No” what is the reason?

A -------------------------------------------------------------------------------------------------------

B -------------------------------------------------------------------------------------------------------

C -------------------------------------------------------------------------------------------------------

15. What is the social importance of cooperatives in the society?

29
--------------------------------------------------------------------------------------------------------------

16. What is your knowledge in relation to advantage of cooperative to their members?

A, Very good B, goodC, poor D, very poor

17, are you willing to continue with your membership?

Yes No

If “yes” why? -----------------------------------------------------------------------------------

If “no” why? ---------------------------------------------------------------------------------------

18. What is the advantage of cooperatives in price stabilization in the market?

A, Very good B, good C, poor D, very poor

19. How do you rate the social and economic benefits of cooperative?
A, very high B, high C, Medium D, low

20. How interested are you to join a cooperative?

A, very interest B, interest c, not interest

Why?
---------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------

30