BIBLIOGRAPHY VICTOR, ANNA LYN K. APRIL 2008....
BIBLIOGRAPHY
VICTOR, ANNA LYN K. APRIL 2008. Members’ Perceived Benefits from the
Services of Benguet Rural Peoples’ Multipurpose Cooperative.Benguet State University,
La Trinidad, Benguet.
Adviser: Clifton D. Llanes, BSc.
ABSTRACT
This study was conducted to determine the benefits perceived by members from
the services of Benguet Rural Peoples’ Multipurpose Cooperative, to identify the reasons
of the members in joining the cooperative and to know if the members are satisfied with
services of the cooperative.
This study was conducted on the members of Benguet Rural Peoples’
Multipurpose Cooperative with forty respondents. Most of the respondents were
relatively new members of the cooperative and most of them had a formal education. The
main reason of members in joining the cooperative is to avail of its credit services, and to
develop close association among the clan members. Such purposes are continuously
being analyzed.
Most members are aware of the economic and social benefits of the cooperative
though the existence of members not aware of the cooperative’s inherent benefits from
the operation indicates a lack of appreciation on their part.
i
For this, it is recommended that the cooperative further strengthen its members’
education programs by ensuring that all members understand the reciprocal relation
between membership and the cooperative.
ii
TABLE OF CONTENTS
Page
Bibliography….……………………………………………………………………. i
Abstract……………………………………………………………………………. i
Table of Contents…………………………………………………………………. iii
INTRODUCTION………………………………………………………………… 1
Rationale………………………………………………………………….. 1
Statement of the Study…………………………………………………….. 3
Objectives of the Study……………………………………………………. 3
Importance of the Study…………………………………………………… 3
Scope and Limitation of the Study…………………………………………. 4
REVIEW OF LITERATURE……………………………………………………… 5
METHODOLOGY…………………………………………………………...……. 11
Locale and Time of the Study………………………………………...…… 11
Respondents of the Study………………………………...…………...…… 11
Research Instrument……………………...…………………………...…… 11
Data Collection………...………………...………………………...…….... 11
Data Analysis………………………………………………………...……. 12
RESULTS AND DISCUSSION………………………………………………….. 13
Profile of the Respondents…………………………………………...……. 13
Purpose in Joining the Cooperative………………………………...……… 15
Services Availed …………………………………………………...…….... 16
Benefits Perceived…………………………………………………...….…. 17
iii
Actual Uses of Loans Availed from the Cooperative………………...…… 19
Satisfaction and Extent of Satisfaction……………………..………...…… 20
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS….………...…… 22
Summary……………………………………………………………...…… 22
Conclusions…………………………………………………………...…… 23
Recommendations…………………………………………………………. 24
LITERATURE CITED……………………………..………………………...…… 25
APPENDICES…………………………………………………………...………… 26
Appendix A. Policies……………………………………………………… 26
Appendix B. Letter to the Respondents…………………………………… 28
Appendix C. Survey Questionnaire……………………………...…...…… 29
iv
INTRODUCTION
Rationale
The Benguet Rural Peoples’ Multipurpose Cooperative started as a clan
organization. It was organized to help other members of the clan who are in need of
financial assistance. In December 10, 1994 it applied for registration with the
Cooperative Development Authority and the certificate of registration was issued on
February 2, 1995.
As of December 31, 2006, the cooperatives’ paid-up share capital amounted to P
1,759,617.50 with 136 members. The cooperatives’ total asset was P 2,396,098.19. The
service offered by the cooperative was savings deposit, loan/credit, mutual death aid
system.
In the study of Palista (2007) shows the financial performance of the cooperative.
The asset yield of the cooperative shows the cooperatives’ asset was able to generate
P 0 .14 for every one peso of asset invested. The operational self-sufficiency shows that
the cooperative has the ability to sustain its operation, the rate of return on members share
shows that the earning power of the members’ money placed in the cooperative is much
higher than the return that they could get if they put their money in a bank. The loan
portfolio profitability of the cooperative is very profitable credit operation, the
cooperative cost per peso loan of 0.08 shows that the cost of acquiring the funds for
lending is very cheap, and the administrative efficiency shows that the cost of managing
the cooperative is very low. For the liquidity, the cooperative has the ability to service the
withdrawals of members on time. The loans receivable to asset of the cooperative shows
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
2
that almost all of the total asset was invested in the loan portfolio and if the cooperative
faced with delinquency problem, its reserves would not be enough to met the needed
capital. The total members share to total asset shows that the asset was financed by
members’ share capital. Moreover, the members’ savings to asset was below the standard
ratio.
This indicates that the financial performance of the cooperative showed that the
cooperative has the ability to sustain its operation for the immediate succeeding years.
The cooperative is also very stable in both the short and long term. The asset structure
shows a not so good picture of the cooperative. The ratio between the loans receivables to
asset and the ratio between the share capital to asset were way above the ideal ratios
based on the SOP for Credit Cooperatives in the Philippines. On the other hand, the
deposit to asset ratio was quite low.
The problems met by the cooperative were delinquency of loan payment, poor
recruitment of members and delayed payment of share capital. To solve these problems,
the Board of Directors made a resolution wherein the delinquent members should report
to the office or personal visit to remind them of the loan, and for the poor recruitment of
members, the Board of Directors decided to give promo incentives to members who
would be recruited to join the cooperative.
Since the cooperative has demonstrated its ability to sustain its operation even as
it has met problems through its course. As the strength and success of any cooperative lie
on its members, it would be of interest to find out what the members think of the
organization or how they value it.
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
3
This study therefore was conducted to know the benefits perceived by the
members from the services of the cooperative.
Statement of the Problem
In consideration of the need to understand what the members’ perception of the
cooperative, the following must be determined:
1. What are the reasons of members in joining the cooperative?
2. What are the perceived benefits by the members from the cooperatives’
services?
3. To know if these services satisfy the members?
Objectives of the Study
In pursuit of the necessity to learn more about members’ perception of the
cooperative, this study aims to find out:
1. the reasons of members in joining the cooperative
2. the benefits perceived by the members from the cooperatives’ services
3. if these services satisfy the members
Importance of the Study
This study was conducted to aid the cooperative and identifying components of its
services that would need improvement to better service its membership.
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
4
Scope and Limitation of the Study
This study focused on the benefits perceived by the members from the main
branch of Benguet Rural Peoples’ Multipurpose Cooperative.
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
5
REVIEW OF LITERATURE
Cooperative Defined
Various texts will explain that the word cooperative is derived from the French
word “cooperari”, the “co” means with, combine with “operari” (to work from
opus/operas, work), cooperative delineates the concept of working together and it is a
chain that links the weakest to strongest.
A cooperative is defined as a duly registered association of persons with a
common bond of interest who have voluntarily joined together to achieve a lawful
common social or economic end, making equitable to contribution to the capital required
and accepting a fair share of the risks and benefits of the undertaking in accordance with
universally accepted cooperative principle (Abasolo et al., 1996)
Furthermore, Ignacio (1977) stated that a cooperative is a dynamic form of
business enterprise that embodies the philosophy of cooperative. It signifies the voluntary
assent of people to form themselves into a group for the promotion of their common
needs by mutual action, democratic control and sharing of economic benefits on the basis
of patronage refund by members. It is a business enterprise, like any other business which
has its primary aim, the promotion of economic welfare of its members.
Objectives of Cooperatives
The primary objectives of a cooperative is to provide goods and services to its
members and thus enable them to attain increased income and savings, investments,
productivity, and purchasing power and promote among them equitable distribution of
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
6
net surplus through maximum utilization of economies of scale, cots-sharing and risks
sharing without, however, conducting the affairs of the cooperative for eleemosynary or
charitable purposes (Abasolo et al., 1996).
The objectives of Benguet Rural Peoples’ Multipurpose Cooperative is stated in
the study of Palista (2007) are:
a. To identify their common basic need, interest and aspirations in life,
b. To pool their human, intellectual and financial resources for the collective
solution to the socio-economic needs of members,
c. To strengthen their bond of relationships
d. To build-up common capital,
e. To grant loans for livelihood activities and other related services to the
members, and
f. To support the government and other organizations in their activities that
would promote sustainable socio-economic development.
Key of Success in Cooperatives
Ongan et al., (1993) stated that quality and responsibility of both officers and
members of a certain cooperative will result to high arte of success. Thus, all members
have faith in their own ability. To run their business continuously, a high degree of
loyalty among members, towards their association and their responsibility in supporting
the financial needs of the cooperative give a lot of contributions to progress of the
cooperative.
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
7
Fajardo and Abella (1999) mentioned several factors that have been contributing
to the success of credit cooperative in the past. The following factors were, as based on a
survey of successful credit cooperatives in the Philippines.
a. Continuous trainings and education of the officers, members, and
employees,
b. Appropriate and adequate organizational structures to cooperative with the
varying and increasing needs and problems of the cooperative members
and the community,
c. Progressive and people-oriented policies on loans, savings, education,
management, and community development,
d. Presence of effective, honest, and dedicated cooperative and community
leaders,
e. Active involvement and participation of the officers and members in the
affairs of their cooperative and the community,
f. Trust and confidence in cooperative officers,
g. Dependence on self-help process in achieving their programs and projects,
h. Wise selection of cooperative officers,
i. Spirit of cooperative and camaraderie prevails among the officers,
members, and employees of the cooperatives,
j. Efficient service fro the promotion of social and economic advancement of
the cooperative members, good public relations, and
k. Availability of competent and honest managers.
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
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Bencio et al (1999) also pointed out that the successful operation and progress of
the business or their kind of business can be achieved through seminars and training. The
motto” Education is the Key to Success” applies to all business ventures as well as to
cooperatives.
Furthermore, Batanes (2006) cited that one effective way to get the best possible
results is to include the participation of those who work for the implementation and those
who will be affected by the plans of the organization. Implementation is easier if workers
are consulted in planning their own work. Supportive management utilizes participation
to improve the operation of the organization. Management consults its employees about
the plans, policies, goals and problems of the organization. Through this process,
employees and members who will be affected by the plans of the organization.
Implementation is easier if workers are consulted in planning their own work. Supportive
management utilizes participation to improve the operation of the organization.
Management consults its employees about the plans, policies, goals and problems of the
organization. Through this process, employees and members feel a sense of responsibility
and involvement in the objectives of the organization. A significant factor in the
management concept of participation is that it motivates the employees, officers and
members to contribute their ideas and experiences to appropriate situations with in the
sphere of their competence. They are given the encouragement and opportunity to unfold
their resourcefulness, creativity and talents towards the goals of the organization.
Another positive effect of participation is that it encourages the officers and
members to accept responsibilities in-group activities. When people accept responsibility,
they become interested in the affairs of the organizations. They like to do job because
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
9
they feel their responsibility to accomplish it. This leads to better teamwork, which is
very important in achieving the goals of the organization.
Members Benefits
Leung (1993) explained that in a competitive market, members will increasingly
seek providers who serve them best. In order to maintain members’ loyalty in the
cooperative, it should offer prompt credit at low-interest loans to keep existing members
to attract new ones. It should provide what members’ needs at the time they need it.
Cooperative members derived several benefits from the operations of their cooperatives.
The main benefit is economic since the members get a share of the cooperatives’ net
surplus that is annually returned to the members, it is called patronage refund. Economic
benefits may come in forms of higher interest on savings accounts and lower interest on
loans, credit availability, hospitalizations and mutual assistance, and dividends on share
capital.
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, who make every members a better individual
and a better member of the society.
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
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For a cooperative to receive economic benefits from the cooperative 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 on their capital
share invested in the cooperative.
Oyang (2006) cited that 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
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.
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
11
METHODOLOGY
Locale and Time of the study
This study was conducted on the members of Benguet Rural People’s Multi-
Purpose Cooperative in Longlong, La Trinidad, Benguet and Balacbac, Baguio City. This
study was conducted from January 2008 to February 2008.
Respondents of the Study
The respondents of the study were the members of Benguet Rural People’s Multi-
Purpose Cooperative. Forty members were taken as respondents and were chosen at
random from the list obtained from the cooperative.
Research Instruments
A survey questionnaire was constructed and used to gather the information
needed in the study. The primary data gathered from the respondents were their: reasons
in joining the cooperative, the benefits perceived from the cooperative, and whether the
members are satisfied with the cooperatives’ services.
Data Collection
To gather information needed in the study, a survey questionnaire was used.
Secondary data pertaining to the services and status of operation of the cooperative were
sourced from their records, reports and policies.
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
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Data Analysis
The data gathered was analyzed and summarized based on the objectives of the
study and used descriptive statistics – frequency and percentage to determine trends.
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
13
RESULTS AND DISCUSSION
Profile of Respondents
Table 1 presents the background information of the respondents in terms of
educational attainment, occupation, and number of years as members of the cooperative.
Educational attainment. Twelve (30%) of the respondents have at least graduated
from college, twelve (30%) respondents have at least graduated from high school and
fourteen (35%) respondents have at least graduated from elementary. This implies that
most of the members had formal education.
Occupation. As to the occupation of the respondents, sixteen (40.0%) of the
respondents were farmers. Nine (22.5%) were housewife while five (12.5%) respondents
were businessmen and four (10%) respondents were drivers. Other respondents were an
engineer, teacher, mechanic, and students. This shows that a significant number of the
members were farmers. It also shows that regardless of the source of income or
occupation, anyone can be a member of a cooperative.
Number of years as members of the cooperative. As to the number of years of
membership in the cooperative, most (42.5%) of the respondents have been member for
one to four years. Twelve (30%) respondents have been member for five to eight years,
and eleven (27.5%) respondents have been member for nine to twelve years. This implies
that a significant number of the members were relatively new to the cooperative.
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
14
Table 1. Profile of the respondents
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
Educational Attainment
No Formal Education
1
2.5
Elementary
14
35.0
High school
12
20.0
College
12
30.0
Vocational course
1
2.5
TOTAL
40
100
Occupation
Farming
16
40.0
Engineering
1
2.5
Teaching
1
2.5
Driving
4
10.0
Businessmen
5
12.5
Mechanic
1
2.5
Housewife
9
22.5
Student
3
7.5
TOTAL
40
100
Number of Years as Members of the Cooperative
9-12
11
27.5
5-8
12
30.0
1-4
17
42.5
TOTAL
40
10
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
15
Purpose in Joining the Cooperative
Table 2 shows the purposes of the respondents in joining the cooperative. Most
(77.5%) of the respondents joined the cooperative to avail of credit service. Twenty five
(37.5%) respondents said to develop close association among the clan, thirteen (32.5%)
respondents said to save their money for future use, nine (22.5%) respondents said to
support the cooperative in its management. Some respondents’ purposes in joining are to
gain knowledge through seminars and to visit other places through field trips. This
implies that most members’ purpose in joining the cooperative are to avail of its services
as well as to develop close ties though it is a revelation to find out that access to credit is
not the purpose of all who have joined. This further implies that the intention to join is
not always based on economic reasons but social development as well.
Table 2. Purpose of respondents in joining the cooperative
PURPOSE IN JOINING
FREQUENCY
PERCENTAGE
(F)
(%)
Access to loan/credit
31
77.5
Access to savings deposit
13
32.5
To gain knowledge through seminars
6
15.0
To support the cooperative in its management
9
22.5
To develop close association
25
62.5
To visit other place through field trips
2
5.0
*multiple response
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
16
Services Availed
Table 3 shows the services availed by the respondents from the cooperative.
Thirty four (85%) of the respondents have availed credit. This finding concurs with what
the manager pointed out in the study of Palista (2007) that about 80-90% of the total
members availed of loans from the cooperative. Eleven (27%) respondents have availed
savings deposit, and three (7.5%) respondents said they have not availed services of the
cooperative. One of the respondents who did not avail service is a new member and the
two who said they did not avail joined the cooperative to gain knowledge about
cooperative through seminars.
This finding implies that most of the members are patronizing the services of the
cooperative though very few have not since their intentions in joining are different. This
also implies that the cooperative (BRUPEMCO) is fulfilling one of its objective to
provide for the economic needs of the members.
Table 3. Services availed by the respondents
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
Savings Deposit
11
27.5
Loan/Credit
34
85.0
No Services Availed
3
7.5
*multiple response
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
17
Benefits Perceived
Benefits perceived by the members from the services of the cooperative were
categorized as economic benefits and social benefits. Economic benefits may come in
forms of higher interest on savings accounts, lower interest on loans, credit availability,
patronage refund, dividends on share capital, etc (Leung,1993). Social benefits may come
in through continuous cooperative education among members and stronger ties between
members.
Economic benefits. Table 4 shows the economic benefits perceived by the
respondents in patronizing the services of the cooperative. Thirty four (85%) of the
respondents said they pay for lower interest on loan as compared to other lending
institution. Twenty five (62.5%) respondents said they received patronage refund because
of their availment of the cooperative’s services while twenty two (55%) respondents’ said
that another benefit in the dividend they would receive based on the share capital. The
number of response for patronage refund is partially affected by the fact that not all
respondents availed of the cooperative services. It however is still a wonder why not all
have identified or indicated all these listed factors as economic benefits, while obviously
they all are specially for a credit cooperative.
These findings indicate that the respondents may have been considering only the
immediate effects of their current relations or transactions with the cooperative or they
may not be aware of these economic benefits, such as dividend, inherent with the
cooperative’s operation.
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
18
This then implies that some members may not be well versed with how the
cooperative works or the benefits inherent with its operation or their support of these
operations.
Table 4. Economic benefits perceived by the respondents
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
Interest on savings deposit
11
27.5
Low interest on loan
34
85.0
Interest on share capital
22
55.0
Patronage refund
25
62.5
*multiple response
Social benefits. Table 5 shows the perceived social benefits of members from the
cooperative. Thirty one (77.5%) have recognized the closer relationship with clan
members as a social benefit from the cooperative. Although in Table 2, only 62.5% of
respondents intended to gain stronger ties with clan members in joining the cooperative.
This indicates that this objective of theirs has been fulfilled with the addition of 6 more
respondents who did not intend this but now realize this social benefit. Ten (25%)
respondents said they have acquired knowledge. One said she acquired knowledge about
bookkeeping. Four (10%) respondents said their leadership qualities has developed or
improved.
The results implies that the cooperatives’ objectives to strengthen the bond of
relationship among the members of the clan and to improve the social aspect of the
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
19
members through sponsoring seminars, and sending members to trainings and to field
trips are being fulfilled.
Table 5. Social benefits perceived by the respondents
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
Closer relationship with the clan members
31
77.5
Leadership qualities were developed/improved
4
10.0
Acquired knowledge
10
25.0
*multiple response
Actual Uses of Loans Availed from the Cooperative
Table 6 shows the uses of loans availed by the respondents from the cooperative.
Among the Thirty four respondents who availed loan, sixteen (40%) of the respondents
were able to buy farm supply for their farm. Twelve (30%) respondents said they were
able to support the studies of their children, Seven (17.5%) respondents said they use
their loan for their business. Other respondents were able to improve their house, able to
support her studies, able to build house and able to send children abroad to work.
This findings shows that the loans availed by the members were for varied
purposes but nonetheless important to the members themselves.
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
20
Table 6. Uses of loans by the respondents
PARTICULAR
FREQUENCY
PERCENTAGE
(F)
(%)
Business investment
7
17.5
Buy farm supply
16
40.0
Improve house
4
10.0
Build house
1
2.5
Support studies
1
2.5
Support the studies of their children
12
30.0
Send children abroad to work
1
2.5
*multiple response
Satisfaction and Extent of Satisfaction
Table 7 shows that from the services of the cooperative availed by the
respondents, 39 (97.5%) of the respondents said they were satisfied with services of the
cooperative, while one is not satisfied. The respondent, though having availed credit
service from the cooperative said his dissatisfaction is because the cooperative could not
provide all his credit needs. The cooperative’s loan policy states that the maximum
amount to be loaned by a member is twice the paid-up share capital and in times of many
applicants for loans, first come first serve principle is applied. Though only one
respondent indicated dissatisfaction, it is important to note that such dissatisfaction is
rooted on either a certain deficiency in loan of the cooperative on the member’s lack of
understanding or appreciation of such policies.
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
21
Table 7. Extent of satisfaction by the respondents
PARTICULAR
FREQUENCY
PERCENTAGE
(F)
(%)
Very Satisfactory
5
12.5
Satisfactory
34
85.0
Dissatisfactory
1
2.5
*multiple response
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
22
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This study was conducted to determine the benefits perceived by the members
from the Benguet Rural Peoples’ Multipurpose Cooperative as well the reasons of
members in joining the cooperative, and to find out whether the members are satisfied
with the services of the cooperative.
A prepared questionnaire was used to gather information needed from the forty
members taken as respondents. The researcher explained questions that were not
understood by the respondents. The data collected was tabulated and analyzed using
frequency and percentage.
Findings showed that the member-respondents joined the cooperative
(BRUPEMCO) to avail of the services of the cooperative, to strengthen clan relations and
to gain knowledge through seminars.
Most of the respondents availed credit/ loan and savings deposit service of the
cooperative. The respondents perceived economic benefits from the services availed as
well as social benefits.
The economic benefits perceived by majority of the respondents are the low
interest on loans, and the expected patronage refund and dividend. Since not all have
indicated the benefits in patronage refund and dividend, this may imply that some
members are not well versed or informed on these inherent economic benefits derived
from their support of cooperative operations. Most members have realized the social
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
23
benefit of closer ties among clan members of the cooperative implying that the
cooperative continues to fulfill this social objective of theirs.
Findings also showed that the loans availed from the cooperative were used for
varied, albeit important purposes.
It was found out that most of the respondents were satisfied with the services of
the cooperative and only one is not satisfied. The dissatisfaction may be due to his
misunderstanding of the loan policies or that there may be certain deficiencies in the
policy itself.
Conclusions
Based from the findings of the study the following conclusions were made:
1. Most of the respondents were relatively new members of the BRUPEMCO
2. Most of the respondents joined the cooperative to avail of credit and for the
purpose of strengthening ties. These intents are continuously being realized by
the members.
3. Most of the respondents are aware of the economic benefits and social
benefits derived from cooperative operations though some are not aware of
the inherent benefits dependent o their relationship and support of the
cooperative operations. This indicates a lack of understanding by there
members of these factors.
4. Most of the respondents were satisfied with services offered by the
cooperative. One member’s dissatisfaction, however, stems from his lack of
understanding of policies or maybe the deficiency of the policy itself.
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
24
Recommendations
From the conclusions, it is recommended that:
1. Since the cooperative is continuously able to fulfill most of its objectives as
well as the members’ intents in joining, further strengthening of its operations
would be desirable in order to meet all of its objectives. This could be done
through policy review and development and strategy formulation.
2. The cooperative’s weakness of having misinformed members requires that the
cooperative improve its members’ education program by ensuring that
members truly grasp the cooperative’s policies, objectives and reciprocal
relation between membership and the organization.
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
25
LITERATURE CITED
ABASOLO, P. A., Ma. A. V. RUIZ and F B. BERTOL. 1996. Cooperatives in the
Philippines: History, Organization and Management. GIC Enterprises & Co., Inc.,
Manila, Philippines. P. 5, 8.
BATANES, J. T. 2006 Level of Understanding on the Purpose and Principles of
Cooperative by Members and Officers of Selected Cooperatives in Kibungan,
Benguet. BS Thesis. Benguet State University, La Trinidad, Benguet. P. 5.
BENCIO, A. P. and V. B. AWACAN. 2006. Topdac Multipurpose Cooperative Case. BS
Thesis. Benguet State University, La Trinidad, Benguet. P. 5.
FAJARDO, F. R. and F. D. ABELLA. 1999. Cooperatives. Fourth Edition. Rex Printing
Company, Inc., Quezon City, Philippines. Pp. 129.
IGNACIO, M. H. 1997. An Introduction to Business Management. Second Edition.
Sinagtala Publishers Inc., Manila. Pp. 67-68.
LEUNG, C. 1993. Development Diary: Return to Cooperatives. Baguio Midland Courier.
Baguio City. Pp. 5, 24.
ONAGAN, L.D. and SIMANGAN, J.T. 1993. Cooperation Principles and Practices.
Onagan and Sons Publishing Co., Quezon City: P. 92
OYANG, J. P. 2006. Benefits Derived by the Members from the Services of Baguio
Market Vendors Multipurpose Cooperative. BS Thesis. Benguet State University,
La Trinidad, Benguet. Pp. 8-9.
PALISTA, M. D. 2007. Benguet Rural Peoples’ Multipurpose Cooperative: A
Documentation. BS Thesis. Benguet State University, La Trinidad, Benguet.
Pp.19-20, 30.
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
26
APPENDICES
Appendix A. Policies
Membership Policies
1. Member of the clan if possible.
2. He/she must be a resident of Province of Benguet, Baguio City, and special
cases.
3. He/ she must attend the PMES (Pre-membership Seminar).
Loan Policies
1. Loan Ceiling
share capital times two
2. Interest on Loan
2% per month
3. Service Fee
!% per month
4. Fines
!% per month
5. Period of Loan
6 months
6. Loan Renewal
once only
7. Grace Period
14 days
8. Retention of share capital
1% of loan for those who have share
capital of less than 5,000.00
9. Payment of Loan
installment or full
10. Application
first come first serve basis
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
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Loan Procedure
1. Get loan application forms from the Treasurer.
2. Fill up forms and submit it to the Credit Committee for processing and
approval.
3. Bring application form back to the Treasurer fro recording and approval of the
Chairman for the release of the amount loaned.
4. See Treasurer for the release of loan.
Basis for the Approval of Loan
1. Capacity to pay loan
2. Purpose of loan
3. Borrowers character
4. Availability of funds
5. Collateral
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
28
Appendix B. Letter to the Respondents
College of Agriculture
DEPARTMENT OF AGRICULTURAL ECONOMICS AND
AGRIBUSINESS MANAGEMENT
Benguet State University
La Trinidad, Benguet
January 2008
Dear Sir/Madam,
I am a graduating student of Benguet State University taking up Bachelor of Science in
Agribusiness, major in Cooperative Management. As part of the course requirement, I am
presently conducting a research study titled, “Members’ Perceived Benefits from the
Services of Benguet Rural Peoples Multipurpose Cooperative”.
May I then request a portion of your precious time to answer the questionnaire. Please
give your honest answers for the success of this research. Rest assured that all
information you provide will be treated with utmost confidentiality.
Thank you very much for your support. God Bless!
Very respectfully yours,
Anna Lyn K. Victor
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
29
Appendix C. Survey Questionnaire
I.
Respondent Profile
1. Name(Optional):___________________________________________
2. Educational Attainment:
_____Elementary
_____College
_____High School
_____Vocational Course
3. Main source of income / Occupation:___________________________
4. Number of years in the cooperative:____________________________
II.
Reasons and Expectations
1. What are your reasons in joining the cooperative?
_____to have easy access to credit
_____to have easy access to savings deposits
_____to contribute my knowledge and skills in the cooperative
_____to gain knowledge and skills through trainings and seminars
_____to meet my relatives / co-member of the clan
_____to visit other places through field trips
_____others (pls. specify) ___________________________________
III.
Benefits Perceived
1. What are the services of the cooperative you have availed?
_____savings deposit
_____credit/ loan
_____mutual death aid
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
30
_____livelihood projects
_____others (pls. specify)____________________________________
2. What benefits did you perceive from the cooperative?
a. Economic/ Financial Benefits
_____interest for savings deposit
_____low interest on loan service
_____interest on share capital
_____patronage refund
_____others (pls. specify) ________________________________
b. Social Benefits
_____closer relationship with clan (family) members
_____improvement on social dealing/ camaraderie
_____leadership qualities was developed or improved
_____acquired skills and knowledge on (pls. specify)___________
_____others (pls. specify) ________________________________
3. How does loan service of the cooperative help you?
a. loan/credit
_____for business investment
_____is able to buy groceries for my sari-sari store
_____is able to buy farm supply
_____is able to improve my house
_____is able to build house
_____is able to support my studies
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
31
_____is able to support my children in school
_____others (pls. specify) ________________________________
4. Are you satisfied with the services of the cooperative?
_____Yes
_____No
a. If no, what improvements would you suggest for better service of the
cooperative? ________________________________________
______________________________________________________
b. What is the extent of your satisfaction?
_____Very satisfactory
_____Dissatisfactory
_____Satisfactory
_____Very Dissatisfactory
Thank you for your time and GOD BLESS!
Members’ Perceived Benefits from the Services of Benguet Rural Peoples’
Multipurpose Cooperative / Anna Lyn K. Victor. 2008
Document Outline
- Members� Perceived Benefits from theServices of Benguet Rural Peoples� Multipurpose Cooperative
- BIBLIOGRAPHY
- ABSTRACT
- TABLE OF CONTENTS
- INTRODUCTION
- REVIEW OF LITERATURE
- METHODOLOGY
- RESULTS AND DISCUSSION
- SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
- LITERATURE CITED
- APPENDICES