Determinants of Business Cooperatives’ Success in North Gondar Zone, Ethiopia

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Fekadu Agmas Wassie

Abstract

Abstract
Cooperatives have been promoted in many developing countries including Ethiopia to address
issues such as; unemployment, rural development, and as a means of creating income-generating
activities, especially to the poor community. Although many studies have examined various key
issues contributing to the success of cooperatives, lower consideration is given to the
determinants of cooperative’s success and the researcher has directed his concerns towards the
study of determinants for the cooperative’s success in North Gondar of Ethiopia in this
particular study. To undertake the research, 272 business cooperatives operating in North
Gondar Zone have been included in the sample and questioner, interview, and focus group
discussions were used as a tool for data collection. The collected data were analyzed through
multiple linear regression model and the result shows that cooperative success measured by
cooperative’s profitability has a statistically significant positive relation with group savings, rate
of loan repayment, membership fees, financial stability, and business volume. In contrast,
cooperative’s success has a statistically significant negative relation with the size of the
membership in business cooperatives operating in North Gondar Zone. Finally, it was
recommended that cooperative managers need to focus on the factors which are significantly
affecting cooperatives success.

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