DISADVANTAGES OF COOPERATIVE SOCIETIES
Majority of the co-operatives are small in size and therefore cannot benefit from economies of scale. Members have a right to withdraw from the society and when they do, co-operatives refunds the capital back which might create financial problems to the society. Corruption and embezzlement of funds is a problem for many co-operatives. Most co-operatives are not able to attract qualified managerial staff hence leading to mismanagement. Many suffer from political interference. Sometimes; the election of the management committee is interceded with by some people with personal interest in certain candidates hence the best person may not be elected to run the affairs of the society. This leads to poor management and inefficiency. Members may not take keen interest in the affairs of a co-operative society because their capital contribution is small. RELATED POSTS IMPORTANCE OF SOIL STRUCTURE 7 CHARACTERISTICS OF EQUATORIAL CLIMATE 7 ADVANTAGES OF WETLAND...