THE IMPACT OF DEMOGRAPHIC AND SOCIOECONOMIC FACTORS ON COOPERATIVES PERFORMANCE
Professor Boniface Mwasusu Sababu
Pwani University, Business Management and Economics Department
P. O Box 195 – 80108 Kilifi, Kenya
CITATION: Sababu, B. M. (2015). The Impact Of Demographic And Socioeconomic Factors On Cooperatives Performance. European Journal of Business Management 2 (6), 49-56.
The Kenyan economy is to a large extent pegged on cooperatives. They play very important role in the country as they are found virtually in all trades and industrial sectors such as retailing, wholesaling, production, fishing, craftsmanship, banking, insurance, and quarrying among other sectors. Available statistics from the Ministry of Cooperative Development show that there are 9,151 registered cooperatives in Kenya with membership of 5, 177,200 and annual turnover of Kshs 15, 798,000,000. These cooperatives are found both in urban and rural areas and employ thousands of people both on permanent and casual basis. It is estimated that one out of every two Kenyans directly or indirectly derives their livelihood from the cooperative sector. Of late, many cooperatives have been reported to be dormant or under liquidation. It was on the basis of this realization that the researcher of this study set out to investigate the impact of demographic and socioeconomic factors on cooperatives performance. A statistical model relating demographic and socioeconomic factors to cooperatives performance was developed. Out of the 9,151 total registered cooperatives in Kenya, 3660 (40%) are dormant and 1281 (14%) are under liquidation. Only 4210 (46%) are active. Out of the 4210 active cooperatives, a sample of 147 cooperatives was selected by stratified sampling method and tested at 95% confidence level. The results show that demographic and socioeconomic factors do not influence performance of the cooperatives. Perhaps there are other factors which do so. More research is therefore needed to identify those potential factors causing the demise of these cooperatives.
Key Words: Cooperatives, performance, demographic and socioeconomic factors