Background of the study

Introduction

1.1 Background of the study

A co-operative is an  organization whose primary functions are concerntrated with collection  of idle money from  general public  and providing loan to small business and individuals for expenditure.In other words, cooprative are the important financial instititutions in the local economic and needs. Normally co-opratives finance collects money from customer to saving their a small part of money.A small parts os money collects and they can be invest different sectors such as small business, agriculture's product for which it changes certain percentage  of interest.The interest is higer than interest paid  by the coopratives to collected fund.Generally the interest rate of collection of fund of cooperative higer than bank because this is more risky than bank.The cooperative orgnization income from their difference in pays interest and receives interest.

Cooperative is an autonomous association of person united voluntarily to meet their  common economic,social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise

Cooperatives are based on the values of self-help,self-responsibility ,democracy ,equallity,equity and socidarity.In the tradition of their founder,cooperative member belive in ethical value of honesty,openness,social responsibility and caring for other.Co-operatives are business owned and run by and for their members.whether the mambers are the customers,employees or residents they have an equal say in what  the business does and a share in  profits.As business driven by values not  just profit, cooperatives shares internationally agreed principle and act together to build a better world through cooperation successful cooperatives arround  the world are allowing people to work together to create sustainable enterprises that generate jobs and prosperity and provide answers to poverty and short  term  business practice