BIBLIOGRAPHY JESSICA P. OYANG. MARCH...
BIBLIOGRAPHY
JESSICA P. OYANG. MARCH 2006. Benefits Derived by Members from the
Services of Baguio Market Vendors Multipurpose Cooperative, Benguet State University,
La Trinidad, Benguet.
Adviser: Andrew K. Del-ong, BS.
ABSTRACT
This case study was conducted to determine the benefits derived by members
from the services of Baguio Market Vendors Multipurpose Cooperative, to identify the
reasons of members in joining the cooperative, to identify the expectations of members
rom the cooperative, and to find out if these expectations were fulfilled.
This study was conducted at Baguio Market Vendors Multipurpose Cooperative
with 50 members as respondents. Majority of them were female, married, college
graduate, and were sellers or vendors. Most of them became members during the early
years of the cooperative for the following reasons: to avail of its services, gain or
contribute knowledge on cooperativism, and to have access on the various services of the
cooperative . These services were savings deposit with higher interest rate, loan with
lower interest, hospitalization aid and mutual aid. Majority of the members derived
economic and social benefits from these services. The expectations of the members from
joining the cooperative were also met thus, they rated the services of the cooperative as
satisfactory.
TABLE OF CONTENTS
Page
Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ii
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Rationale of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Statement of the Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Objectives of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Importance of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Scope and Limitation of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
REVIEW OF LITERATURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
METHODOLOGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Locale and Time of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Respondents of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Data Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Data to be Gathered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Profile of the Respondents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
Year of Membership in the Cooperative. . . . . . . . . . . . . . . . . . . . . . . . .
14
Category as member in the Cooperative. . . . . . . . . . . . . . . . . . . . . . . . .
15
Respondents’ Membership to Other
Cooperative. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15
ii
How the Respondents Joined
BAMARVEMPCO. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16
Purpose in Joining the Cooperative. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
Services Availed by the Respondents . . . . . . . . . . . . . . . . . . . . . . . . . .
17
Benefits Derived by the Respondents. . . . . . . . . . . . . . . . . . . . . . . . . . .
19
Uses of Loans Availed from the Cooperative. . . . . . . . . . . . . . . . . . . . .
20
Respondents’ Rating BAMARVEMPCO’s
Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
Preferred Institutions for Saving and Borrowing
and Reason for Choice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23
Respondents’ Expectations When joining
BAMARVEMPCO. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25
SUMMARY, CONCLUSIONS AND
RECOMMENDATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28
Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28
Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30
Recommendations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31
LITERATURE CITED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33
SURVEY QUESTIONNAIRE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
34
iii
INTRODUCTION
Rationale of the Study
The Baguio Market Vendors Multipurpose Cooperative (BAMARVEMPCO) was
conceived and organized because of the earnest desire of the small vendors to own and
manage the public market. The cooperative was formed on January 1998 by businessmen
in the city market for the bonafide vendors and peddlers with the end view of uplifting
their economic well-being (BAMARVEMPCO Brochure).
The incorporators were composed of five individuals namely: 1) Leopoldo Dino,
2) Dr. Leonardo Ritos, 3) Angelita Gayados, 4) Peter Sagayo, and 5) Pablo Agulto. The
cooperative was registered with the Cooperative Development Authority (CDA) on April
28, 2998 with CDA registration No. CEO-o852. The subscribed share capital then was
P62,500 with 15 incorporators.
As of December 31, 2003, the paid-up share capital of 946 members amounted to
P15,628,487.49. Savings deposits of 1,630 associate members and 610 regular members
amounted to P8,193,305.96. The total asset of the cooperative amounted to
P43,546,749.95. The cooperative employed 13 regular staff to man the operation. The
services offered by the cooperative to its members are as follows: 1) savings and time
deposits, 2) lending/credit, 3)mutual services in the form of “damayan” aid plan, 4)
hospitalization aid plan, and 5) medical clinic for community service catering to all city
populace of Baguio City and suburbs (medical, ophthalmology, EENT, OB-GYN, and
dental services).
Benefits Derived by Members from the Services of Baguio Market Vendors
Multipurpose Cooperative / Jessica P. Oyang. 2006
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The cooperative is an affiliate of three secondary cooperatives namely:
NORWESLU, CUBC , NORLUCEDEC. It is also affiliated to the National Market
Vendors Confederation of Cooperatives (NAMVESCO). The cooperative was lucky to be
picked as one pilot cooperative of the NATCCO Social Economic Development for
Cooperatives in the Philippines (SED COP) and the Financial Intermediation Project for
Northern Luzon. The said project was a joint venture of NATCCO and CIDA of Canada
which aimed to strengthen the organizational and financial capabilities of primary
cooperatives by providing technical assistance and needed training for the officers and
management staff of primary cooperatives. After the project had been terminated, the
cooperative is now following the CDA set of financial performance standards for all
savings and credit cooperatives in the Philippines.
Since the cooperative is affiliated to various strong organizations and a recipient
of some projects of NATCCO and CIDA, it is expected that the benefits derived by the
cooperative from this assistance should spill over to its member beneficiaries.
This study therefore was conducted to look into the benefits derived by the
members from the services of the cooperative.
Statement of the Problem
The study was conducted to answer the following questions:
1. What are the types of benefits derived by the members from the cooperative?
2. What are the reasons of members in joining the cooperative?
3. What were the expectations of the members from the cooperative and are these
expectations fulfilled?
Benefits Derived by Members from the Services of Baguio Market Vendors
Multipurpose Cooperative / Jessica P. Oyang. 2006
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Objectives of the Study
The study aims to find out the following:
1. the types of benefits derived by the members from BAMARVEMPCO,
2. the reasons of members in joining the cooperative,
3. the expectations of members from the cooperative, and
4. if these expectations were fulfilled.
Importance of the Study
Cooperative members play an important role in the cooperative organization.
Without their loyalty to the cooperative, it cannot continue to operate and serve its
members. This is the unique set up of a cooperative different from that of a profit-
oriented business.
The findings of this study would provide inputs to the management staff and
officers of BAMARVEMPCO in order for them to assess their performance and plan out
activities that would further benefit the members.
Furthermore, this study would provide information to individuals, agencies and
other organizations that are giving support to the cooperative movement to know what
members expect from a cooperative and come up with better strategies to satisfy these
expectations.
Benefits Derived by Members from the Services of Baguio Market Vendors
Multipurpose Cooperative / Jessica P. Oyang. 2006
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Scope and Delimitations
This study focused mainly on identifying the types of benefits derived by
members of BAMARVEMPCO from its services. It did not go into estimation of these
benefits. It only included the benefits derived by members, regular and associate, and
excluded second parties who may have been benefited out of the benefits obtained by a
member.
Benefits Derived by Members from the Services of Baguio Market Vendors
Multipurpose Cooperative / Jessica P. Oyang. 2006
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REVIEW OF LITERATURE
There is strength in group cooperation as demonstrated in many fields of human
endeavor. There are tasks which can be more efficiently performed through group
cooperation than by a single individual. A cooperative provides maximum economic
benefits to its members, propagate effective practices and new ideas in business and
management, and allow the lower income groups to increase their ownership in the
wealth of the nation (Leung, 1993).
The cooperative code of the Philippine (R.A. 6938), states that a cooperative shall
provide goods and services to its members and thus enable them to attain increase income
and savings, investment, productivity and purchasing power and promote among them
equitable distribution of net surplus through maximum utilization of economies of scale,
cost sharing, and risk-sharing.
In a cooperative, members are treated with respect and dignity, as it is democratic
in governance. This provides a fertile environment for members to pursue their own
development and growth with in their capabilities and inclinations as everyone is
encouraged to participate actively in all affairs of the organizations from planning to
management, Botigan (1995).
For a cooperative to be of true service to its members, It must understand their
basic needs of the basic needs. It demands patience in taking into accounts the
cooperative goals and objectives, likewise the visions and long term goals, in the process
of incorporating these as real part of the members lives. Cooperatives, being institutional
Benefits Derived by Members from the Services of Baguio Market Vendors
Multipurpose Cooperative / Jessica P. Oyang. 2006
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aid in increasing the income and productivity of their members, are primarily concerned
with human betterment and advancement of people by improving life in the community.
Cooperatives play crucial roles in community development particularly with the human
resources aspect where man is considered the most important factor of development.
Desirable values are infused to the members especially in the wise use of money to be
self-reliant, likewise demonstrate the importance of group cooperation and social
awareness. Concepts on the cooperative development program teaches members how to
save, how to spend money wisely, how to work together for common goal, to help others
and build a better community. It encourages members to prosper through their own
cooperative efforts and acquire legitimate incomes, thereby fairly distributing wealth
among its members. Negative attitudes and values are reversed through continuous
cooperative education of members particularly on the policy of social commitment where
the development of human resources and the community goes hand in hand, Fajardo and
Fabian (1942)
According to Onagan ( 1973), cooperatives improves the quality of life of the
people by developing positive attitudes and active participation in working together to
solve economic and social problems. The cooperative serves these functions:
A. It will serve as means of building capital and savings.
B. It undertakes effective and continuous cooperative education among members
where cooperative concepts and practices are inculcated in a meaningful way.
C. It also serves as an exercise for self-government to fortify leadership in the
community and delegate positive relationship with the people.
Benefits Derived by Members from the Services of Baguio Market Vendors
Multipurpose Cooperative / Jessica P. Oyang. 2006
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D. It will also serve as a conduit for essential services provided to members
channeled from government service to the people.
Cooperatives that pay a little attention to serving their members are unlikely to
survive against the competition. In order to improve services, the cooperative
must first be sure what the members want, needs and priorities. Members are
more likely to make use of a cooperative if it provides responsive services at
competitive prices.
The Cooperative Development Authority (1996) emphasized that, to be
successful, a cooperative needs at least to maintain its volume of member transactions.
With increased competitive prices. Improved service may mean expanding the range of
services offered to members or improving the delivery of existing services.
It is
true that the steps which have to be taken in order to expand or contract the life of a
cooperative is not to be found in the procedures or steps one takes in order to maintain its
structure and organizational operations, but more covertly in the reasons why members
would want to join.
According to Leung (1993), in a competitive market, members will increasingly
seek providers who serve them best. In order to maintain member’s loyalty in the
cooperative, it should offer prompt credit and low- interest loans to keep existing
members to attract new ones. It should provide what members need at the time they need
it. Cooperative members derive several benefits from the operation of their cooperatives.
The main benefit is economic since the members get a share of the cooperative’s net-
surplus by patronizing its services. A certain percentage of the cooperative’s net-surplus
is annually returned to the members. It is called patronage refund. Economic benefits
Benefits Derived by Members from the Services of Baguio Market Vendors
Multipurpose Cooperative / Jessica P. Oyang. 2006
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may come in forms of higher interest on savings accounts and lower interest on loans,
credit availability, hospitalization and mutual assistance, and dividends on share capital.
Patronage refund shall be distributed to the members in proportion to their
patronage to the services of the cooperative. The computation of patronage refund shall
be in accordance with the cooperative policies and by-laws, the R.A. 6938. Through the
patronage refund, members are actually saving while using the services of the
cooperative.
According to the Cooperative Development Authority, other benefits derive from
cooperatives are:
A.
Cooperative members develop the habit of thrift and saving.
B.
Cooperative serves as the training for its members in simple business operation,
democratic leadership and responsible citizenship.
C.
It offers opportunities to its members benefits and progress. Purposes that may
redound to their material benefits and progress.
D.
A cooperative teaches its members, which make every members a better
individual and a better member of the society.
The way cooperative members receive economic benefits is by way of patronizing
its services. Members who do not patronize the services of the cooperative are not
entitled to patronage refund but only entitled to interest on their share-capital invested in
the cooperative.
Mather and Preston (1978) cited, benefits of cooperatives are difficult to measure
since some are tangible or direct as in the case of net margins in savings while others are
Benefits Derived by Members from the Services of Baguio Market Vendors
Multipurpose Cooperative / Jessica P. Oyang. 2006
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intangible or indirect such as the greater for some types of cooperatives in specific areas
that most benefits are evaluated in economic terms as well as social.
Benefits Derived by Members from the Services of Baguio Market Vendors
Multipurpose Cooperative / Jessica P. Oyang. 2006
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METHODOLOGY
Locale and Time of the Study
This research was conducted at BAMARVEMPCO, Baguio City on January
2006.
Respondents of the Study
The respondents of the study were the members of the cooperative. Fifty members
were randomly taken as respondents. The researcher stood by at the cooperative and
whoever come to transact business was given the questionnaire. The manager or
chairman of the board of the cooperative was also interviewed.
Data Collection
To collect the data needed in this study, a survey questionnaire was prepared and
was distributed to the respondents as they go to the cooperative. Furthermore, secondary
data was taken from the records of the cooperative on their policies, benefits given to
members, and the services they offered.
Data Gathered
The data gathered was based on the objectives of the study. In order to answer the
objectives the following data was collected: the services offered by the cooperative, the
cooperative’s policies on members’ benefits, members’ perception of the benefits they
Benefits Derived by Members from the Services of Baguio Market Vendors
Multipurpose Cooperative / Jessica P. Oyang. 2006
11
derived from the cooperative, reasons of members in joining the cooperative and the
expectations of members from the cooperative.
Data Analysis
The data was analyzed using descriptive statistics like frequency and percentage.
Benefits Derived by Members from the Services of Baguio Market Vendors
Multipurpose Cooperative / Jessica P. Oyang. 2006
12
RESULTS AND DISCUSSION
Profile of the Respondents
Age. Out of the fifty respondents surveyed, the youngest respondent was 22 years
old, while the oldest was 69 years old. Table 1 presents that majority of the respondents
were between the ages 21-30 years old while the least number belonged to the age
bracket 51-60 years old. This finding implies that majority of the members were still
young.
Sex. There were more female respondents than male. The table shows that there
were 76% female and only 24% were male. This implies that the members of
BAMARVEMPCO were dominantly female.
Civil status. Majority of the respondents interviewed were married and around
one third of the total respondents were single, and two were widowed.
Educational attainment. Table 1 also presents that majority of the respondents
(68%) finished college education and 16% took a vocational course. Sixteen percent
finished high school and two respondents were elementary graduates.
Occupation. Most (58%) of the respondents interviewed were sellers or vendors
and few of them were private employees (28%) while five respondents were government
employees. Only two respondents indicated that they were students.
Out of the twenty-nine (29) respondents who were vendors, 17 respondents sell
their goods in a business stall located at the different sections of the Public Market, Hill
top, Hangar and Abanao while 12 respondents peddle their goods along the side walks.
Benefits Derived by Members from the Services of Baguio Market Vendors
Multipurpose Cooperative / Jessica P. Oyang. 2006
13
Eleven respondents among the 29 sellers vend dry goods while nine respondents
sell vegetables. Five seller-respondents sell fish while three seller-respondents sell fruits
and only one seller-respondent sell auto parts.
Table 1. Profile of the respondents
PARTICULARS
FREQUENCY
PERCENTAGE
a. Age
21-30
17
34
31-40
15
30
41-50
15
30
51-60
1
2
61 and above
2
4
TOTAL
50
100
b. Gender
Male
12
34
Female
38
76
TOTAL
50
100
c. Civil status
Single
17
34
Married
32
64
Widowed
1
2
TOTAL
50
100
Benefits Derived by Members from the Services of Baguio Market Vendors
Multipurpose Cooperative / Jessica P. Oyang. 2006
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Table 1. Continued….
d. Educational Attainment
FREQUENCY
PERCENTAGE
Elementary
2
4
High school
8
16
College
34
68
Vocational
6
12
TOTAL
50
100
e. Occupation
Seller
29
58
Private employee
14
28
Government employee
5
10
Students
2
4
TOTAL
50
100
Year of Membership in the Cooperative
Table 2 presents that most (38% ) of the respondents became members between
1998 and 2000, at the time the cooperative started its operation as savings and loan
cooperative. Seventeen or 34% became members in 2001 – 2003 while 14 or 28%
became members in 2004 – 2006. This implies that majority of the members in the
cooperative were just new who became members between 2001 to 2006.
Benefits Derived by Members from the Services of Baguio Market Vendors
Multipurpose Cooperative / Jessica P. Oyang. 2006
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Table 2. Distribution of respondents according to year of membership.
PARTICULARS
FREQUENCY
PERCENTAGE
1998-2000
19
38
2001-2003
17
34
2004-2006
14
28
TOTAL
50
100
Category as Member in the Cooperative
Majority (76%) of the respondents were regular members of the cooperative and
only thirteen or 26% have joined as associate members (Table 3). This finding shows that
the cooperative had been accepting associate members.
Table 3. Distribution of respondents according to membership category.
CATEGORY
FREQUENCY
PERCENTAGE
Regular
37
74
Associate
13
26
TOTAL
50
100
Respondents’ Membership to Other Cooperative
Table 4 presents that among the fifty respondents, nine of them were members of
other cooperatives prior to joining BAMARVEMPCO. These other cooperatives were
Benefits Derived by Members from the Services of Baguio Market Vendors
Multipurpose Cooperative / Jessica P. Oyang. 2006
16
BBCCI, where most of them were members and BAMAPCO where only one was a
member.
Table 4. Distribution of respondents according to membership to other cooperative.
MEMBERSHIP TO OTHER COOPERATIVE
FREQUENCY
PERCENTAGE
Yes
9
18
No
41
82
TOTAL
50
100
How the Respondents Joined BAMARVEMPCO
There were 52% who said they were influenced by others. From the good
information herd from their friends, relatives, co-sellers, and neighbors, they became
interested to join. Twenty three respondents voluntarily joined the cooperative because
they need its services while one was recruited.
This findings shows that when people knows that an organization is good and of
advantage to them, they tend to join in.
Table 5. Distribution of respondents as to how they join the cooperative
HOW THEY BECAME MEMBERS
FREQUENCY
PERCENTAGE
Recruited
1
2
Voluntary
23
46
Influenced by others
26
52
TOTAL
50
100
Benefits Derived by Members from the Services of Baguio Market Vendors
Multipurpose Cooperative / Jessica P. Oyang. 2006
17
Purpose in Joining the Cooperative
Table 6 presents that majority of the respondents (68%) joined
BAMARVEMPCO because they knew that they can easily borrow from it. Sixty four
percent said they can easily deposit and withdraw their money from the cooperative and
20% said they wanted to gain knowledge on cooperatives through seminars while 8%
said they can contribute their knowledge and skill to the cooperative.
Table 6. Distribution of respondents according to their purpose of joining the cooperative
PURPOSE OF JOINING
FREQUENCY
PERCENTAGE
Easy access to credit
34
68
Easy access to savings deposit
32
64
Gain knowledge on cooperatives
10
20
Contribute knowledge and skill to the coop.
4
8
Services Availed by the Respondents
Majority of the respondents had availed of the two major services offered by
BAMARVEMPCO, these were savings and credit as shown in Table 7. There were 14
respondents who mentioned they availed of the hospitalization assistance while nine
respondents availed of mutual aid.
One of the major services offered by the cooperative to their members was
providing loans. Thirty nine of the respondents availed of the loan service with credit
amount ranging from P10,000 to P300,000. From the fifty respondents, only 14 availed
of the hospitalization assistance with amounts ranging from P1,000 to P10,000. There
Benefits Derived by Members from the Services of Baguio Market Vendors
Multipurpose Cooperative / Jessica P. Oyang. 2006
18
were 9 respondents who said they availed of the mutual aid assistance with amounts
ranging from P3,000 to P5,000. Table 5 presents the distribution of the number of times
the respondents have availed of the cooperative’s loan, hospitalization assistance, and
mutual aid services.
Table 7. Distribution of respondents according to service availed and the number of times
they have availed
PARTICULARS
FREQUENCY PERCENTAGE
a. Services Availed
Savings and time deposits
35
70
Credit loan
39
78
Mutual aid
9
18
Hospitalization assistance
14
28
No. of times of credit loan availed
Once
4
8
Twice
8
16
Thrice
5
10
Four times
3
6
Five times
2
4
Six and above times
17
34
No. of times mutual aid availed
Once
9
18
No. of times hospitalization assistance availed
Once
10
20
Twice
3
6
Thrice
1
2
Benefits Derived by Members from the Services of Baguio Market Vendors
Multipurpose Cooperative / Jessica P. Oyang. 2006
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Benefits Derived by the Respondents
The benefits derived by the members from the services of the cooperative were
categorized into economic and social benefits.
Economic benefits. Table 8 presents the economic benefits that the respondents
perceived to have derived from availing the cooperative services. Majority (83%) of the
respondents mentioned that they got higher interest for their savings as compared to what
the banks offer. They also said that interest on loan was lower than what informal lenders
were charging. Besides, they also got patronage refund from the interest they paid.
Twenty three or 46% of the respondents said they availed of financial aid in the form of
mutual aid and hospitalization assistance. An almost equal number of respondents
recognized that the dividend or interest on share capital was an additional income.
Sixteen or 32% said that the cooperative was a regular source of operating capital. This
was because they could always get loan from the cooperative when they needed capital.
Table 8. Perceived economic benefits received from the services availed
PARTICULARS
FREQUENCY PERCENTAGE
Higher interest for savings
43
86
Dividends for share capital
22
44
Patronage refund
44
88
Credit at low interest
39
78
Financial aid
23
46
Regular source of operating capital
16
32
Benefits Derived by Members from the Services of Baguio Market Vendors
Multipurpose Cooperative / Jessica P. Oyang. 2006
20
Social benefits. Majority of the respondents (86%) mentioned that they benefited
socially in the form of improvement in their camaraderie or social dealings with other
people. Sixteen percent of the respondents indicated that their leadership qualities were
developed or improved. They learned how to help others and with the knowledge they
gained from seminars attended they are now capable of handling meetings or organize
group activities. Three respondents said that they were able to visit places like Banaue,
Batangas, Boracay, Davao, Laguna, Palawan, and Vigan during cooperative field trips,
and attendance to seminars. Only one respondent indicated that he acquired skills on
credit management (Table 9).
Table 9. Distribution of respondents according to social benefits received from services
availed
PARTICULARS
FREQUENCY PERCENTAGE
Improvement in social dealing
43
86
Acquired skills
1
2
Acquired knowledge
7
14
Able to visit places during coop field trip seminars
3
6
Developed or improved leadership qualities
8
16
Uses of Loans Availed from the Cooperative
Table 10 shows that among the 39 members who availed of the loan service,
thirty one respondents used their loan as capital for business expansion in order to earn
more income. Some of the respondents were able to purchase land or house and lot while
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some were able to construct or at least renovate a portion of their house. There were
respondents who mentioned that they were able to purchase appliances. There were also
respondents who mentioned that they were able to provide for the education of their
children while one respondent said she was able to send her niece to school and another
respondent was able to help with the tuition fee of her siblings. Thirty six percent said
their loans from the cooperative enabled them to send their children to school and 12%
were able to buy their own vehicle from the loans they got from the cooperative.
This finding implies that the loans provided by the cooperative was able to help
its members uplift their economic as well as social conditions.
Table 10. Distribution of respondents according to uses of loan availed
LOAN USES
FREQUENCY PERCENTAGE
Capital to expand business
31
62
Send own children to school
18
36
Improve own house
12
24
Purchase appliances
30
60
Purchase house or lot
4
8
Purchase vehicle
6
12
Tuition fee of siblings and niece
2
4
Respondents’ Rating of BAMARVEMPCO’s Services
Table 11 presents the rating of the respondents on the different services of the
cooperative. These were on savings deposit, time deposit, mutual aid, hospitalization
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assistance. Majority had evaluated the cooperative’s performance as good to very good
and no respondent rated the cooperative’s performance as fair or poor. There were a few
who rated the services of the cooperative as excellent.
Evaluation on savings. Fifty-six percent of the respondents rated the savings
deposit service of BAMARVEMPCO as very good and 26% evaluated it as good. Eight
respondents gave their ratings as excellent while one respondent did not give her
evaluation for the savings deposit service.
Evaluation on time deposit. Forty six percent of the respondents rated the
cooperative’s time deposit service as very good and twenty-four percent gave their
evaluation as good. Nine respondents rated it as excellent while there were six
respondents who did not give a rating for the time deposit service.
Evaluation on mutual aid. Forty percent of the respondents gave a rating of good
on the mutual aid service of the cooperative while 8% rated it as very good. Four
respondents gave their rating as excellent while there were eight respondents who did not
give their rating for the mutual aid service.
Evaluation on hospitalization assistance. Twenty 23 or 42% of the respondents
rated the cooperative’s hospitalization assistance service as good and thirty-eight percent
gave a rating of very good. Five respondents gave their evaluation rating as excellent
while another five respondents did not rate the hospitalization service.
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Table 11. Distribution of the respondents according to how they rate the cooperative
services
PARTICULARS
FREQUENCY PERCENTAGE
a. Rate on saving
Excellent
8
16
Very good
28
56
Good
13
26
b. Rate on time deposit
Excellent
9
18
Very good
23
46
Good
12
24
c. Rate on mutual aid
Excellent
4
8
Very good
18
36
Good
20
40
d. Rate on hospitalization assistance
Excellent
5
10
Very good
19
38
Good
21
42
Preferred Institution for Saving and Borrowing
and Reasons for Choice
Table 12 presents that all the respondents preferred to save their money in their
cooperative. They also preferred to borrow from the cooperative instead of borrowing
from the bank. Their reasons for preferring to save and borrow money from
BAMARVEMPCO rather than in the bank are also presented in Table 12.
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Choice for deposit. Majority of the respondents mentioned that they prefer to
deposit money in the BAMARVEMPCO because the cooperative is exempted from tax,
gives higher interest for their savings, compared to the bank , and they can withdraw cash
anytime because the cooperative is near their business location. Respondents perceived
that bank deposits are safer than in the cooperative yet they still prefer BARVEMPCO
because of its proximity to their work place.
Choice for loans. Majority of the respondents mentioned that they prefer to
borrow money from the cooperative because they get patronage refund, cooperative loans
have lower interest as compared to rates of informal lenders, examples are; “five-six”,
Indian traders. The respondents did not give comments on how fast their loan application
would be approved by BAMARVEMPCO indicating that they can easily have the money
they need when they borrow from informal lenders.
Table 12. Preferred place for saving and borrowing money and reasons in choosing
PARTICULARS
FREQUENCY PERCENTAGE
a. Preference for saving money
Cooperative
50
100
Bank
0
0
Reason for choosing the Cooperative
Can withdraw deposit anytime
43
86
Higher interest rate
43
86
Tax free
45
90
b. Reason for choice of loan
FREQUENCY PERCENTAGE
Lower interest
43
86
Patronage refund
44
88
Others
2
4
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Respondents’ expectations when joining BAMARVEMPCO
Table 13 presents the expectations of respondents when they joined the
cooperative and whether BAMARVEMPCO was able to satisfy these expectations.
Credit needs for business capital. There were 39 or 78% of the respondents who
said they expected to avail of loan from the cooperative to finance their business was
achieved. There were 11 however, who mentioned that their credit need was not met by
the cooperative.
Higher interest rate on savings deposit. Forty four or 88% of the respondents
mentioned that their expectation to receive a higher interest on their savings deposit was
achieved but their were 12% whose expectation was not achieve. However, they did not
mention their reason for saying their expectation of getting a higher interest rate was not
achieved.
Visit to other places. Only 16 percent respondents mentioned that their
expectation of being able to visit other places through the cooperative is met because only
3 fellow respondents were able to visit places like Banaue, Batangas, Boracay, Davao,
Laguna, Palawan, and Vigan during cooperative field trips and seminars. majority were
not able to join in any of these seminars or field trips.
Sixteen or thirty two percent of the respondents said that their expectations to visit other
places through attendance to trainings and seminars was achieved. On the other hand,
majority (68%) mentioned that their expectation to see other places was not achieved
because they were not able to join seminars conducted in other places. This implies that
only a few of the members were able to to attend seminars in other places.
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Meet more friends through cooperative seminars. As found above, only few of
the respondents were able to attend seminars in other places, however, majority (86%)
said they were able to meet more friends through cooperative seminars. This shows
that even if they did not attend seminars in other places they were able to attend seminars
conducted by their cooperative or seminars held in Baguio City or nearby places.
Financial assistance. Majority of the respondents availed of financial assistance in
the form of hospitalization and mutual aid assistances thus, they said their expectation of
availing financial assistance was achieved.
Borrow money for house improvement. Thirty-five respondents said that their
expectations of being able to borrow money for house improvement is satisfied because
of the twelve fellow respondents who availed of loan from BAMARVEMPCO and used
it to renovate their house and 33 respondents
Borrow money for lot purchase. Fifty percent of the respondents said that their
expectation of being able to borrow money for house and lot purchase was satisfied
because four fellow respondents availed of loan from BAMARVEMPCO and used it to
buy a house and/ or lot.
The respondents who mentioned that these expectations were not achieved
did not state the possible reasons.
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Table 11. Distribution of respondents according to whether their expectations in joining
the cooperative were achieved
RESPONSE
FREQUENCY PERCENTAGE
a. Credit needs for business capital
Achieved
39
78
Not achieved
11
22
TOTAL
50
100
b. Could save money at higher interest rate
Achieved
44
88
Not achieved
6
12
TOTAL
50
100
c. Could visit other places through the coop.
Achieved
16
32
Not achieved
34
68
TOTAL
50
100
d. Could avail financial assistance
Achieved
33
66
Not achieved
17
34
TOTAL
50
100
e. To meet more friends through coop seminars
Achieved
43
86
Not Achieved
7
14
TOTAL
50
100
f. To borrow money for house improvement
Achieved
35
70
Not Achieved
15
30
TOTAL
50
100
g. To borrow money for lot purchase
Achieved
25
50
Not Achieved
25
50
TOTAL
50
100
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SUMMARY, CONCLUSSION AND RECOMMENDATION
Summary
This study was conducted at the Baguio Market Vendors Multipurpose
Cooperative, BAMARVA Building, City Market, Baguio City in order to identify the
types of benefits derived by the members from cooperative services availed, to find out
the reasons of members in joining the cooperative, to identify the expectations of
members from the cooperative and find out if these expectations were fulfilled.
A survey questionnaire was used to gather information from member of the
cooperative. The researcher explained questions that were not understood by the
respondents. The manager was also interviewed to validate some information from the
respondents. The colleted data was tabulated and analyzed using frequency and
percentage.
It was found out that the member-respondents were generally adults of which,
majority were females, married, degree holder and were sellers or vendors at Baguio City
market area. Most of the respondents joined the cooperative between 1998 and 2000.
Some of the respondents were also members to other cooperatives like BBCCI and
BAMAPCO. The respondents became members of the cooperative through the
influence of other people such as friends, co-sellers, neighbors and relatives, and by
voluntarily filing their membership. According to them, they joined BAMARVEMPCO
because most of them wanted to avail its easily accessible services, to gain knowledge
about cooperative, and to contribute their knowledge and skills to the cooperative.
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Most of the respondents availed of the major services offered by the cooperative
like credit loans, savings and time deposits, while some had availed of mutual aid and
hospitalization assistance. The respondents did not only derive economic benefits from
the services availed but also benefits for their social life.
The economic benefits derived by the members were in the form of higher
interest on saving and time deposits as compared to the banks’ rates. In addition, they
could withdraw cash anytime with easy access because their place of business is near the
cooperative. Besides that, interest on their savings is exempted from tax. Thus, most of
the respondents were satisfied with the cooperative saving service.
Loans with lower interest rates was another benefit derived by the respondents. It
was also identified that with the loans from the cooperative the members were able to
expand their business and earned more income, purchase land or house and lot, vehicle
and appliances, construct or renovate a portion of their house, and provide educational
needs for their children, siblings, and relatives. Most of the respondents were satisfied
with the cooperative’s loan service.
This study also found out that almost all respondents acquire the social benefit of
improvement in camaraderie or social dealing. Some of the respondents were able to
acquire knowledge on cooperative development, credit management and unity as a group,
their leadership qualities were developed or improved, and were able to visit places
during cooperative field trip seminars.
It was found that majority of the respondents evaluated the cooperative’s
performance as good to very good and no respondent rated the cooperative’s performance
as fair or poor.
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Expectations of member-respondents when they joined the cooperative are saving
money at a higher interest rate, credit needs for business capital, they could avail of
financial assistance, they could visit other places through the cooperative, they could
borrow money for house improvement or lot purchase, and they could meet more friends
through cooperative seminars. it was found out that most of the respondents were
satisfied with the cooperative’s performance in relation to their expectations and the
respondents are satisfied with the cooperative’s performance in relation to their
expectations and the respondents who mentioned that these expectations were not
achieved did not state the possible reasons.
Conclusions
Based from the findings of the study the following conclusions were made:
1. Majority of the respondents was female, adults, married, degree holders, and were
sellers or vendors.
2. Majority of the respondents became members during the early years of the cooperative.
3. Some of the respondents were members of other cooperatives aside from
BAMARVEMPCO.
4. Majority of the respondents became member of the cooperative through the influence
of other people and through voluntary filing of membership.
5. Majority of the respondents joined the cooperative to avail of the easily accessible
major services like credit, savings and time deposit as well as to gain or contribute
knowledge on cooperative.
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6. Majority of the respondents not only availed of the credit and savings deposit services
but mutual aid and hospitalization assistance as well.
7. Majority of the respondents perceived that they derived economic as well as social
benefits from the cooperative services they availed.
8. Majority of the respondents were able to expand their business and earn more income.
Some member respondents were able to purchase house and lot, appliances, vehicle,
construct or renovate on of their house, and provide the educational needs of their
children, siblings, and relatives.
9. The expectations of majority of the respondents in joining the cooperative was
achieved.
11. Majority of the respondents were satisfied with the cooperative’s performance in
relation to their expectations.
Recommendations
From the conclusions it is recommended that:
1. Since the cooperative has been satisfactorily providing various services to members as
well as non-members in the form of savings and time deposits, lending/credit, mutual
services of “Damayan” aid , hospitalization aid, and were rated as very good, then the
cooperative should maintain its excellent services to the members.
2. Encouragement of inactive members to participate in the activities of the cooperative
and encourage other non-members to join the cooperative inorder for them to be
benefited also.
Benefits Derived by Members from the Services of Baguio Market Vendors
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3. There should be a regular seminar that the cooperative will conduct to remind
members of the policies and rules of the cooperative and cooperative field trip
seminars.
4. The BAMARVEMPCO should continue its operation, services and expand more
projects for the benefit of their members and their immediate community.
Benefits Derived by Members from the Services of Baguio Market Vendors
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LITERATURE CITED
BOTIGAN, J. 1995. Needs and problems of existing cooperatives in Baguio. BS Thesis,
Benguet State University, La Trinidad, Benguet. Pp. 6-7.
CDA. 1996. Cooperative Development Authority. http://www.cda.gov.ph/coops.asp
FAJARDO, F.R. and A. P. FABIAN. 1992. Cooperatives 4th Ed. Manila: Rex Publishing
and Bookstore. Pp. 275 – 277.
LEUNG, C. 1993. Development Diary: Return to Cooperatives. Baguio Midland Courier.
Baguio City. Pp. 5, 24.
MATHER , J.W. and H.J. PRESTON. 1978. Cooperative Management and Development.
http://www.rurdev.usda.gov.
ONAGAN, L.D. 1973. Cooperatives: Principles and Practices. Manila: McCollough
Printing. Pp 98-200.
REPUBLIC ACT 6938. 1996. Cooperative Code of the Philippines. Manila: PUP
Printing House. PUP Consumers Cooperative. P. 20.
Benefits Derived by Members from the Services of Baguio Market Vendors
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APPENDIX
Appendix A. Survey Questionnaire
I. PERSONAL INFORMATION
Name (optional):
Age
Sex: ( ) M ( ) F
Civil status: ( ) Married ( ) Single ( ) Widowed
Highest Educational Attainment:
( ) Elementary ( ) secondary ( ) post secondary ( ) college graduate
What is your main occupation? ( ) vendor ( ) gov’t. employee ( ) private employee
( ) other (specify)
If you are a vendor, do you own the stall where you sell? ( ) yes ( )no
If no, where do you sell? ( )leased store ( ) side walk ( ) ambient vendor ( ) others
(please specify)
What type of goods do you sell? ( ) fruits ( ) vegetables ( ) others specify
What type of vendor are you? ( ) retailer ( ) wholesaler ( ) wholesaler-retailer
II. COOPERATIVE MEMBERSHIP
1. Number of years as member _____ Category as member: ( ) regular ( ) associate
2. Are you a member of other cooperatives aside from BAMARVEMPCO? ( ) yes ( ) no
3. If yes, what cooperative?
4. How did you become a member of BAMARVEMPCO?
( ) recruited by whom?
( ) voluntarily join the cooperative
( ) influenced by others (please check who influenced you)
____ friends ____ neighbors ____ family/relatives
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5. Why did you join the cooperative?
( ) to have easy access to credit
( ) to have easy access to savings deposit
( ) to have knowledge about cooperatives through seminars and training
( ) to contribute my knowledge and skills in the cooperative
( ) to be able to visit other places
( ) others (specify)
III. BENEFITS DERIVED
1. What are the services of the cooperative that you have availed? (please check)
___a. Savings and Time deposits services
___ b. credit
___ c. Mutual aid/assistance, How much?_______________
___ d. hospitalization assistance, How much? ____________
___ e. others (please specify)
2. What benefits did you derive from the cooperative?
a. Financial/economic benefits:
___ higher interest for my savings
___ higher earnings for my investment (share capital) in the form of interest or
dividend
___ patronage refund
___ credit at low interest rate
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___ financial aid
___ others (specify)
b. Social benefits
___ improvement in my social dealing/ camaraderie (overcome shyness)
___ acquired skills on (please mention)
___ acquired knowledge on (please mention)
___ was able to visit other places because of coop field trips or seminars (please
mention some places you visited)
___ my leadership qualities was developed or improved
___ others (specify)
4. How do you rate the services of your cooperative as compared to other
coops.(Please rate each service as (E) excellent (VG) very good (G) good
( F) fair or (P) poor
____ savings deposit
____ time deposit
____ mutual assistance
____ hospitalization assistance
____ others (specify)
5. How did the credit/loan from the cooperative help you?
___ was able to increase/expand my business
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___ was able to send my children to school
___ was able to improve my house
___ was able to buy appliances
___ was able to buy house and/ or lot
___ was able to buy a car
___ others (specify)
6. Please mention some problems you met regarding the services of the cooperative.
IV. EXPECTATIONS
1. What were your expectations from the cooperative when you join?
___ It could provide all my credit needs for my business
___ I could save my money at a higher interest rate.
___ I could visit other place through the cooperative
___ I will be able to learn some skill
___ The cooperative will provide consumer goods that I need
___ I will be able to meet more friends through coop seminars and trainings
___ I will be able to borrow for house improvement/construction
___ I will be able to borrow for lot purchase
___ others (specify)
Benefits Derived by Members from the Services of Baguio Market Vendors
Multipurpose Cooperative / Jessica P. Oyang. 2006
Document Outline
- Benefits Derived by Members from theServices of Baguio Market Vendors Multipurpose Cooperative
- BIBLIOGRAPHY
- ABSTRACT
- TABLE OF CONTENTS
- INTRODUCTION
- REVIEW OF LITERATURE
- METHODOLOGY
- RESULTS AND DISCUSSION
- SUMMARY, CONCLUSSION AND RECOMMENDATION
- LITERATURE CITED
- APPENDIX