IMPACT OF COOPERATIVE SOCIETY ON THE FUNDING AND GROWTH OF SMALL AND MEDIUM-SCALE ENTERPRISES IN ASABA METROPOLIS, DELTA STATE

The study investigated the impact of cooperative societies on the funding and growth of SMEs in Asaba metropolis, Delta State. Four (4) research questions and two (2) hypotheses were formulated to guide the study. Descriptive survey design was used for the study. The population of the study comprised the entire 125 members of the National Orientation Agency Farmers’ Multi-Purpose Cooperative Society (NOAFMCS) and National Bureau of Statistics Cooperative Society (NBSCS) located at Federal Secretariat Complex, Okpanam road, Asaba, from which 85 respondents were selected as sample using simple random sampling technique. A self-structured questionnaire titled; Impact of Cooperative Societies on the Funding and Growth of SMEs Questionnaire (ICSFGSQ) was used as instrument for data collection to elicited responses of respondents on a 4-point rating scale of Strongly Agree (SA), Agree (A), Disagree (D) and Strongly Disagree (SD). Data collected were analyzed using mean, standard deviation and 2-tailed sample t-test for hypotheses test.The findings revealed, amongst others, that cooperative societies encourages enterprise formation, and provide minimal or interest-free loans to members which does not require collateral as financial backup. It was concluded that the cooperative society is the indisputable alternative to micro funding of SMEs which in turn increases investment and business productivity. Based on the findings, the study recommended, amongst others, that SMEs business owners should be encouraged join cooperative society to guarantee financial security of their businesses at micro level.