Economic Values of Cooperatives towards Member Asset Creation

Abstract

The research explore the economic values of community based saving and credit cooperatives towards member asset creation in Addis Ababa. Mizan cooperatives in Akakie-Kality sub city was selected purposely due to its seniority and availability of data. Using quantitative research methods 52 respondents were selected through simple random sampling techniques. The data were collected through interviewer administered structured questionnaire. The method of data analysis was descriptive statistics and multiple binary logistic regressions. As the finding showed coop have various economic values towards members like credit disbursement in short, medium and long term basis without any collateral request, provide access of weekly and monthly saving, generate monthly income and employment opportunity, access of patronage dividend, health insurances and BBS training. Besides this, members acquired asset after membership like Sofa, Refrigerators, TV, DVD, Chair and table, Electric stove, Oven, and Small kitchen house. Patronage dividend has significant factors for member’s asset creation (P=0.002). Monthly saving has insignificant influence on asset creation but has a positive relation for asset creation. Monthly income, credit, BBS training and Health insurance have insignificant and negative relation for asset creation. Community based coop are a means for members economic values and asset creation and they need the attention of federal cooperatives agency. The agency should support them for further enhancement and maximization of member’s perceived benefit through audit and training.

Keywords: Community based Coop, Asset