Here is your brief note on co-operatives form of business in India

The foregoing evaluation of the co-operatives leads us to the inevitable conclusion that they are best suited to small and medium enterprises in the urban area and for helping the masses through the spread of a spirit of co-operation in the fields of marketing and finance.

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The co-operative societies have brought banking facilities to the villages, provided marketing services to them and have supplied better seeds, fertilizers and implements for better farming and for better business. Despite these benefits, the following defects have been observed in the co-operative movement in India:

(a) The majority of societies have been organized for supply of credit. There has been too much emphasis on credit.


(b) Management of co-operatives has not been up to the have reached on the verge of insolvency. Loans are given rashly, recovery of loans is very slow and defaulters are not effectively dealt with.

(c) Encouragement of thrift and self-help is the ideal of co-operation. But co-operatives have not been able to inculcate the spirit among the members.

(d) Co-operatives have often become tools of sectional and communal interests. Any body interested in availing any specific benefit provided by the government or any organization, may form such society and enjoy the benefits in the name of cooperatives.

(e) Dishonest practices have been increasingly noticed in the working of co-operatives.


(f) The co-operative movement is not spontaneous but a spoon-fed child of the government. It needs to further strengthen in order to cherish the benefit for a longer period of time.

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