Entrepreneurs and small scale business owners have been urged to take advantage of the cooperative movement to reap inherent benefits.
This is as Cooperatives Society are said to administered credit leaves door open to members with limits tied to extend of financial contributions.
Speaking on the a theme: ” Cultivating Saving Habit for A Safe Future Through A Reliable Cooperative Society ” on Saturday, a Financial Expert, Dr. Gabriel Udendeh, said Cooperative loans are less onerous, devoid of excessive collateralisation, saying a simple guarantee by a member of the society suffice.
According to him, circulating loans within members, help sustain the objective of a cooperative society.
“In mobilising saving through cooperatives, members are expected to look more at safety of their savings than quantum of interest income. Higher interest goes with higher risk, including of failure. Safety enable one to accumulate savings slowly but, also, steadily to afford an income generating capital asset.
“Cooperative society movement has become a vehicle through which members can access credit. Not cooperative movements aim at closing credit gaps between the socially excluded members that are economically active and their socially inclusive and buoyant counterparts in the society. Credit societies of this nature reside mostly; though not exclusively in rural communities with officers that double as businessmen,” he counselled.
He said people look up yo Cooperative societies to mobilise savings through resource pooling. Saying proper organisation of savings culture assists in building capital for earnings assists.
Saying taking advantage of emerging opportunities and that a well organised cooperative society provides business education and opportunities to members..
He therefore charged farmers to learn the habit of saving saying experience has show’s that petty traders observes saving habit more than big time earner.
According to him, saving goes with a lot of sacrifice and required self discipline. The culture of saving decides size of pool of funds available for collective benefit of members.
“The bigger the size, the more access to credit facilities by member. Members size of fund also determines the scope of profitable investment. More members imply wider ideas to fully take advantage of cooperative society.