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BUS1125

Introduction to Business

Lecture 08

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Co-operative societies are group of peoplewho form the business to co-operate witheach other.

The main purpose of co-operative societies isto co-operate with each other through selfhelp.People join these organizations asvolunteers.

Co-operative Societies

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Advantages of Co-operative Societies

This system provides high standard of lifedue to sharing of resources.Formation is easy because Government

support these kind of organizations.People running the business have equalrights in decision making regardless ofnumber of shares or amount invested in thebusiness.

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Economic DemocracyPeople sit together and decide about thebusiness of the society.

Elimination of middle man results in cheaperproducts.Government gives financial assistance tothese type of businesses.

Friendly atmosphere is developed in thesociety due to close relationship in the peoplerunning the business.

Advantages of Co-operative Societies

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Advantages of Co-operative Societies

Employment opportunities are created bysuch businesses.

A sense of mutual co-operation is developed

in the society. An opportunity to keep demand and supply inbalance.

This kind of business requires lessexpenditures.

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Disadvantages of Co-operativeSocieties

People do not have sufficient capital to startsuch business.Unavailability to hire professional manager

because:People do not have money in remote areas.There are no such people in those areas.

People do not have experience of suchbusiness.Lack of secrecy.

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Unavailability of new technology.These are not businesses in true sense.People might not have confidence in these

businesses.Banks might not provide loans to thesebusinesses.

Interference of the Government.

Disadvantages of Co-operative Societies

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Entrepreneurship

Entrepreneurship is that ability in which anindividual tries to find the opportunity, takerisk and avail these opportunities.

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Who are Entrepreneurs

People have more entrepreneurial abilitieswho:

Have aspiration.

Are more strategic.Have the vision.

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Characteristics of Entrepreneurs

Resourcefulness AbilitiesConcern of being good.