CHAPTER ONE
INTRODUCTION
BACKGROUND TO THE STUDY.
Cooperative societies are often regarded as one of the
microfinance institution (MFI’s) that promote entrepreneurship or small and
medium scale industries and rapid industrialization.
They have been widely acknowledged as imperative for the
economic development of any country. And as such, they are described as the
springboard for small and medium scale industries development in Nigeria.
Cooperative societies are seen as a means for rapid
industrialization, sustainable economic development, poverty eradiation and
employment generation bodies. They have helped small and medium scale
industries to mobilize domestic resources for capital formation. Also reduce
the distress of working class by obtaining some of the machinery and greater
production for workers.
Management in each sector has profound knowledge of the
various industries and is therefore able to respond to customers peculiar
needs.
1.02 STATEMENT OF THE PROBLEM
The purpose of investigating the problems of establishing an
industry is due to some important requirement which shall be considered
necessary for an industry to grow and function effectively and efficiently.
This problem can ever present, and to solve or identify those cankerworms and
determine what extent they could be solved for overall interest of small and
medium scale business in Nigeria, the support of cooperative societies will be
needed financially and morally.
The lack of interest among members during meetings and
administration is also a problem of the management.