Question

What are the disadvantages of Cooperatives? (Any 3)

Answer 1

1. Limited funds:
Co-operative societies have limited membership and are promoted by the weaker sections. The membership fees collected are low. Therefore the funds available with the co-operatives are limited.

2. Over-reliance on Government funds:
Co-operative societies are not able to raise their own resources. Their sources of financing are limited and they depend on government funds.

3. Imposed by Government:
In Western countries, cooperative societies were voluntarily started by the weaker sections. The objective is to improve their economic status and protect themselves from exploitation by businessmen. But in India, the co – cooperative movement was initiated and established by the Government.