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70 Percent Members of Cooperatives Found Saving Money: Study

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70 Percent Members of Cooperatives Found Saving Money: Study

May 2: In contrary to the general belief that people become members of cooperatives to get loans, a recent study has revealed that overwhelming majority of people in rural areas join cooperatives with the objective of saving their money.

The study conducted by Kathmandu University shows that 70 percent customers join cooperatives with the motive of saving.

The university had conducted the study focused on the contribution of cooperatives in Lumbini and Karnali provinces with the help of National Cooperatives Federation. Unveiling the preliminary report of the study, KU informed that 70 percent of members of cooperatives were found saving money.

Likewise, the study found that 15 percent members join cooperatives for financial service while another 15 percent become members to get loan.

At a time when the cooperatives in urban areas are under scrutiny, the study revealed that 86 percent customers in Karnali Province were satisfied with the cooperatives. The report further states that women were more happy with the service of cooperatives than men.

More than half of the respondents of the study conducted by the KU School of Management said they became entrepreneurs after joining cooperatives.

“Cooperatives have not only helped in developing saving habit but also played a vital role in creating entrepreneurship,” Prof Dr Binod Krishna Shrestha of KUSOM said referring to the preliminary report.  

“The study has shown that 62 percent of people who joined cooperatives in Lumbini Province and 57 percent in Karnali Province started their own business,” he added.

The study shows that cooperatives  have helped in developing saving habit as well as decision-making  capacity, establishment of new businesses, creating employment opportunities, and ensuring financial independence among others.

The  study has recommended concerned bodies to ensure access of services of cooperatives among extremely poor communities and getting cooperatives involved in social works. Other suggestions of the report include involvement of cooperatives in education and risk management.  

 

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