ABSTRACT

This work investigated the determinants of capitalization of cooperatives in Abia State, Nigeria. A sample of 29 cooperative societies generated through a random sampling technique was used for the study. Data on their socioeconomic characteristics, sources of capital, capital volume. as well as the tors that influenced this capital volume were elicited from the representatives of selected cooperatives through the use of structured questionnaires. Statistical tools of central tendency and dispersion, and a regression model constituting five independent variables were used to analyse data in line with the objectives of the study. Results of the analyses showed that cooperatives in the study area shared similar socioeconomic characteristics. It was also shown that cooperatives depended heavily on equity capital generated from contributions by member for their capital needs, hence the low average capital volume observed. Two of the five independent variables specified in the model had significant influences on their capital base. These were membership size, and income from the previous year. It is recommended among others that awareness on the need to join cooperative societies by rural farmers be intensified, while existing cooperatives should pay greater attention to the production of crops that give them corn operative advantage.