The Role of Cooperative Societies in Advancing Small and Medium Scale Enterprises in Osun State, Nigeria

Abstract

Due to dwindling economic situation most especially in developing countries, people have resulted into self-help through cooperative societies to raise funds for starting small and medium enterprises (SMEs). It was on this premise that the study critically examined the activities of cooperative societies in Osun state in furthering SMEs advancement. The study adopted qualitative research method through in-depth exploratory design to explain ‘what’ and ‘how’ rather than mere prediction. A comparative multiple case study was used as it closely links empirical observations with existing theories to explore the effect of cooperative societies on enterprise creation and expansion and its impact on the advancement of SMEs in Osun State, Nigeria. Four cooperatives were selected and studied. Findings affirmed the significant role played by cooperative societies in advancing SMEs in Osun State. The study concludes that cooperative societies intervention in providing micro loans to members for investment purpose in the area of enterprise formation and expansion is encouraging and should be sustained to improve the prosperity of individuals in Osun State. It was recommended that the promoters of cooperative societies in the State and Nigeria must sustain and increase efforts towards advancing SMEs through the provision of financial facilities to members. Keywords: Cooperative society, Small and Medium Enterprises, Osun State