Strategies of Sustainable Cooperative Partnerships

Misbahul Munir,S Basir,Maretha Ika Prajawati

doi:10.5430/ijfr.v12n3p157

Abstract

Cooperatives also have an active role in efforts to enhance the life of the nation and to realize a national economy based on the principles of family and economic democracy. The problem faced by cooperatives today is that cooperatives are less able to become business institutions that provide good services to all members and society in general. Limited funds and low human resources become a barrier for cooperatives to develop. Partnerships between cooperatives and other financial institutions are alternatives to improve cooperatives in developing their businesses. This study purpose on developing a cooperative economic development through a strategic partnership approach between cooperatives and other financial institutions so that cooperatives can grow, develop, and be sustainable. The method used in this research is descriptive qualitative research using in depth interview with informant. The informant is a cooperative for savings and loan managers who are willing to be interviewed in Batu City. The results showed that the cooperative strategy in building partnerships between cooperatives and other financial institutions was carried out based on the principle of mutual benefit. Cooperatives need to improve themselves so that they can meet the feasible and bankable criteria. Thus partnerships between cooperatives and other financial institutions will be established, thus cooperatives will grow and develop.

Highlights

Cooperatives have the potential to increase community income in the micro-scale informal economy sector (Djawahir, 2012)
Cooperatives have an active role in enhancing the life of the nation and creating a national economy based on the principles of family and economic democracy
The partnership must be seen as a strategy that can empower cooperatives to be independent and gain the trust of the parties concerned

Summary

Introduction

Cooperatives have the potential to increase community income in the micro-scale informal economy sector (Djawahir, 2012). Cooperatives have an active role in enhancing the life of the nation and creating a national economy based on the principles of family and economic democracy. Furlough and Strikwerda (1999 cited in Hill, 2000) suggested that cooperatives have an important role in contributing to the economic development of both capitalist and non-capitalist countries. The welfare of members and the community through business maximization is the goal to be achieved. The cooperative does want to display its different forms from other forms of the company, they want to uphold a certain set of values in the economic field (Baswir, 2003). Wijono (2005) states that, despite the development of microfinance institutions, including savings and loan cooperatives, there are still many obstacles in accessing sources of financing from formal financial institutions. The requirements for proposing financing include the adequacy of guarantees, capital, and business feasibility (bankable)

Methods

Results

Conclusion