(GIST OF YOJANA) Cooperative Entrepreneurships for Economic Development

(July-2023)

Cooperative Entrepreneurships for Economic Development

Introduction:

India has a long history of both entrepreneurship and cooperative movements. In India, the cooperative movement has always used financial and social resources to promote inclusion and community growth.

Cooperative Entrepreneurship:

Cooperative entrepreneurship is a type of collective or joint entrepreneurship. A “cooperative entrepreneur” is a social leader with a vision to develop effective plans to run businesses democratically, not just for profit. Democratic governance based on one person, one vote and equality are the pillars of cooperative governance.

Focus and Importance of Cooperative Entrepreneurship:

Focuses on quality employment generation.
Wealth creation.
Optimal use of available resources at the community level.
Potential to deliver goods and services at the grassroots.
Social bonding and cohesion.
Control and dignity of the workplace.

Current Situation:

In India, cooperatives account for:

19% of our agricultural financing
35% of fertiliser distribution and 30% of fertiliser production
40% of sugar production
13% of wheat procurement and 20% of paddy procurement

Numerous cooperative business models exist around the country that serve the requirements of both members and non-members.
Sixteen Indian cooperatives have been featured in the ‘Turnover over GDP Per Capita’ category of the World Cooperative Monitor 2022. This includes:
Indian Farmers Fertiliser Cooperative Limited, New Delhi (IFFCO)
Gujarat State Cooperative Milk and Marketing Federation, Anand, Gujarat
Seven state cooperative banks e.g. Kerala, Maharashtra Karnataka and Pradesh, etc.

Growth Potential:

Finding ways to form cooperatives can be done effectively by solving community problems and observing sectoral trends.
There is a great opportunity to establish and grow cooperatives in developing economic sectors such as manufacturing, services, renewable energy, tourism, transport, hand weaving, crafts, healthcare, student/campus consumer cooperatives, etc.
There is enormous potential in the social field that is not usually economical for other types of business enterprise.

Challenges:

Difficulty in gaining access to capital.
There are often legal restrictions on the range of operations or membership.
The operations and processes are expensive and time-consuming due to democratic decision-making, etc.

Way Forward:

The cooperative entrepreneurial spirit should aim to improve the cooperative's operations through strategic management, innovation and creativity.
The governance mechanisms of the cooperative must be dynamic.
Qualified, competent and committed human resources must be available.
Modern management techniques to achieve the unit's goals.

Conclusion:

Better expansion of the sector is expected with government backing through campaigns like Sahakar se Samridhi and the creation of a separate Ministry of Cooperation, etc. Additionally, the inclusion of women and young people with cooperative values and knowledge can be helpful for faster growth.
The eleven vows mentioned earlier in the article are the best formula for living a simple and happy life. It is the best representation of ‘Live and Let Others Live’.