The Effect Of Good Credit Management On Cooperative Organization
TABLE OF CONTENTS
Table of contents
1.1 Statement of Research problem.
1.2 objectives of the study.
1.3 Research Questions.
1.4 Research Hypothesis.
1.5 significant of the study.
1.6 Scope and limitation of the study.
1.7organisation of the study .
1.8 Definitions of terms.
2.1 the definition of corporate social responsibility
2.2 conceptual framework.
2.3 theoritical framework.
2.4 Empirical framework
3.0 Research methodology
3.1 Area of study
3.2 Method of data collection
3.3 Sample size
3.4 Instrument used for data collection
3.5 Method of data analysis
DATA PRESENATATION AND ANALYSIS
4.1 Distribution and collection of questionnaire
4.2 Testing of Hypothesis
SUMMARY OF FINDINGS, RECOMMENDATION AND CONCLUSION
5.1 summary of the findings.
5.3 Conclusion .
Credit management is one of the most important activities in any organization and cannot be overlooked by any economic enterprise engaged in credit irrespective of its business nature. Sound credit management is a prerequisite for a cooperative institutions stability and continuing profitability, while deteriorating credit quality is the most frequent cause of poor financial performance and condition. As with any financial institution, the biggest risk in cooperative organisation is lending money and not getting it back. The study sought to determine the effect of credit management on cooperative organization in Owolowo cooperative organization, thrift and credit union. The study adopted a descriptive survey design. Out of 108 societies under Owolowo cooperative thrift and credit union limited Ijemo Abeokuta, nine (9) societies were randomly selected without bias. Questionnaires were given to five members and employees under each societies and the union. In all (60) questionnaire were distributed out of which (50) were completely filled and returned.
Descriptive statistics were used to analyze data. Furthermore, descriptions were made based on the results of the tables. The study found that client appraisal, credit risk control and collection policy had effect on financial performance of owolowo cooperative organisation in Abeokuta. The study established that there was strong relationship between financial performance of MFIs and client appraisal, credit risk control and collection policy. The study established that credit mismanagement is caused by overspending, lack of necessary skills by the staff / employees, irregular supervision and the act of “I don’t care” by the committee and staff of the societies. So, in reducing the level of credit mismanagement in any cooperative organizations, the above stated factors should be taken into considerations in Owolowo cooperative. Collection policy was found to have a higher effect on financial performance and that a stringent policy is more effective in debt recovery than a lenient policy. The study recommends that Owolowo Cooperative employees and committee members should show full commitment in the discharge of their duties.
Cooperative organization should employ skilled and competent manager that are knowledgeable about cooperative studies.
1.1 BACKGROUND TO THE STUDY
Cooperative movement, a worldwide phenomenon, has become a veritable vehicle of both rural transportation and urban improvement.
Cooperative is an autonomous association of person, united voluntarily to meet economic, social and cultural needs and aspiration, through jointly owned and democratic controlled enterprise.
As a business organization of men and women of common interest, looking for mutual benefit. It has existed and still thrives today even more vigorously in rural as well as urban communities where emphasis has shifted from agricultural production alone to the promotion of socio-economic activities in commerce, transportation, education, finance, manufacturing, tourism industries, and culture e.t.c.
A cooperative may also be regarded as an organization that is owned by members who use it services, and can provide virtually any product or services, and can be a non-profit enterprise.
However, unlike other business organization, cooperative is based on the principles of self-help, self-responsibility, democracy, equity, equality and solidarity. The statement on the cooperative identity which set out the seven, core cooperative principle was adopted by international cooperative Alliance (ICA) and is widely accepted by the cooperative movement throughout the world.
These principles are:
- Voluntary and open membership
- Democratic members control
- Members economic participation
- Autonomy and independence
Cooperative is usually driven by both economic and social concern. They are community based organization that care not only about profit of their business but about the needs of their members and the quality of life of their members.
1.2 STATEMENT OF THE PROBLEM
There are lots of manmade problem associated with issuances and recovery of the loan in cooperative organization.
- How faithful and honest are members of the society?
- Are credit guideline well explained to the member?
- Are records used in cooperative well kept?
- Are members educated enough to understand the loan guidelines and conditions?
1.3 OBJECTIVE OF THE STUDY
The broad objective of this study are to determine the effectiveness of good credit management in cooperative organization
The specific objective shall seek to.
- To determine how cooperative education and seminar produce good credit management in cooperative organization.
- To identify some technicalities of regular supervision and auditing of societies book of account
- To measure the prospect of good credit management policy and the customer
1.4 RESEARCH QUESTION
- Is there any relationship between cooperative education and good credit management?
- Does technicalities of regular supervision and auditing of societies book have any effect on cooperative organization?
- Is there any relationship between credit policy and customer?
1.5 RESEARCH HYPOTHESIS
- H0: There is no relationship between cooperative education and good credit management
H1: There is relationship between cooperative education and good credit management
- H0: That technicalities of regular supervision and auditing of societies book does not have any effect on cooperative organization
H1: That technicalities of regular supervision and auditing of societies book has effect on cooperative organization
- H0: There is relationship between credit policy and customer
H1: There is no relationship between credit policy and customer
1.6 PURPOSE OF THE STUDY
The general purpose of the study is to determine the effectiveness of good credit management in cooperative organization.
The specific purposes of the study are to:
- Identify the effect of good credit management
- Know how credit are being managed in cooperatives
- Know whether there are difficulties in the management of the cooperative movement
1.7 SIGNIFICANCE OF THE STUDY
Cooperative organization has been identified to be of most importance to the nation as a whole. This project is set out with the aim to educate the cooperators on the impact or effect of good credit management in cooperative.
This project will help to inform management of cooperative organization of a more effective of managing the credit. This will ensure that cooperative fund are properly and prudently managed in order to standardize the level organizing and members of the public willing to join cooperative.
This research project will also serve as guideline for students who intend to carryout research related to this topic.
1.8 LIMITATION TO THE STUDY
The limitations of this research work were time constraints and financial assistance.
1.9 DEFINITION OF TERMS USED
Cooperative: is a voluntary association of individual human being with common socio-economic felt needs and with the conviction that such needs can be best attained by pooling resources and effort in a collection economic democratically controlled business organization and sharing of risks and benefit of the undertaken.
Credit Management: is the skillful administration of the financial resources of an organization for the achievement of the desire goal.
Management: it can be defined as a social process that entails responsibility for the effective and economical planning and regulation of the operation of an enterprise.
Credit: it can be defined as the process whereby the buyer (member) take possession of goods or services with an agreement to pay back at an agreed date and with the exact amount collected.[email protected].[email protected].