CHALLENGES AND OPPORTUNITIES OF CONSUMER COOPERATIVE IN CASE OF GURAGE ZONE

Abstract

Cooperatives are economic and social institutions that are established by the full interest of members regardless of race, color, gender, religion, disability, economic and political affiliation, by collectingresources, labors and knowledge of its members. Consumer cooperatives are used as one of the best way of supplying consumer goods and services with an affordable price to its members, by making chain with potential suppliers. Thus, the main objective of the study was the challenges and opportunities of consumer cooperatives in case of Gurage zone. The study was focused on 5consumer cooperatives with sample of 255 respondents, who are selected using simple random sampling(SRS) technique The study used both qualitative and quantitative research approach techniques. Focus group discussion and key informant interview instruments were employed in a qualitative approach technique. The available data was collected using both primary and secondary data sources. The collected data was analyzed by employing both descriptive statistics and exploratory research techniques. From the analysis of descriptive statistics result showed that the main challenges of consumer cooperatives were absence of permanent employer, lack impressive service providing, leave of permanent establisher committees to other areas, lack of networking with potential producer and supplier cooperative, lack of permanent income generating activities other than members saving, lackof sense of ownership both in members and management committee, small membership participation, lack of leadership skill and lack of identifying and supplying consumer goods. On the other hand, from the qualitative data analysis; that is from FDGs and Key informant group discussions, the finding revealed that organizational problems, constraints of sufficient government support, leaders’ commitment problems and absence of potential unions supplying consumer goods are the major challenges of consumer cooperatives. On the contrast, the opportunities of consumer cooperatives were: market instability and inflation as the cause of member size increment, government initiative to support the cooperatives, force of inflation as an opportunity of membership size increment, government regulation structures from federal down to wereda level and positive attitude of members towards the growth of the cooperatives. The researcher recommended the government by facilitating a returnable credit access, planning to form potential unions that distribute basic consumer goods, awareness creation to members and leaders to have sense of ownership and; the consumer cooperative leaders should be responsible and accountable to the cooperatives and the consumer cooperatives should hire permanent employer.