BIBLIOGRAPHY CAMODA, ANNALISA T. APRIL 2012.A...
BIBLIOGRAPHY
CAMODA, ANNALISA T. APRIL 2012.A Diagnostic Analysis on the Potential to
Organize a Cooperative in Labayug, Sison, Pangasinan.Benguet State University, La Trinidad,
Benguet.
Adviser: Leopoldo N. Tagarino
ABSTRACT
The study was conducted to determine the Potentials of organizing a cooperative in the
Labayug, Sison, Pangasinan and aimed to determine the perception of the community people
about a cooperative, the need to the area addressed by a cooperative, the level of awareness on
the benefit derive from, their degree of willingness to join a cooperative, the type of a
cooperative to organize and the possible constraints to organize a cooperative in the area.
The respondents of the study were of 150 individuals who are categorized according to
their sources of income, whether on agricultural base, employees, skilled works (laborers), small
entrepreneurs such as sari-sari store owner and vendors and OFW dependents. A survey
questionnaire was distributed to the respondents to gather information complimented with either
personal interview or focus group discussion and data were analyzed through frequency counts,
percentage and mean.
Many of the respondents were housewives, female and married thus the result indicated
that most have a family to support. All of the respondents had undergone formal education
wherein many only finished high school. Most of the respondents were engaging in agricultural
activities wherein most are vegetable gardeners and majority earns Php.100, 000.00 and below a
year.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan/Annalisa T. Camoda. 2012
Based on the results most of the respondents have a little knowledge about what
cooperative is all about wherein opinions were based on the cooperatives which have organized
in the community before, and on the cooperative NCC corporation employees organized.
Respondents’ level of awareness was limited with cooperative services such as loans and
savings and provider of low cost of goods and services that affects the choices on what type of
cooperative respondents to join with.
Most of the respondents were willing to join a cooperative for a reason that the
organization will be great help for the community in terms of financial assistance. The results
revealed that credit cooperative was the first choice of community people to organize. Majority
were willing to invest Php. 1,500.00 initially though many want for a bigger investment such as
Php. 3, 000.00 and a capital build-up of Php. 500.00 every year ends.
Only few volunteered for having a position of officers for reason of helping in the
success of the cooperative. Some reason out that officers are to be voted, and not just because of
volunteerism.
Majority from the respondents agreed putting up a cooperative in the area has a potential
though the plan have to undergo some rough situations because respondents believed that
community people are not that cooperative and some thought a little knowledge about a
cooperative is not enough reason to join.
Based on the findings, majority form the respondents were willing to join a cooperative,
thus information dissemination shall be conducted to the community discussing the identified
need and how cooperative would address it. And it is recommended for the community to
organize a credit cooperative since it is the majority’s choice.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan/Annalisa T. Camoda. 2012
TABLE OF CONTENTS
Page
Bibliography............................................................................................................ i
Abstract …………………………………………………………………………………
i
Table of Contents ...................................................................................................
iii
INTRODUCTION………………………………………………………………... 1
Rationale....................................................................................................
1
Importance of the Study............................................................................
2
Statement of the Problem..........................................................................
2
Objectives of the Study.............................................................................
3
Scope and Delimitation of the Study........................................................
3
REVIEW OF LITERATURE……………………………………………………..
4
Cooperative Defined ................................................................................
4
Cooperative
Objectives............................................................................ 4
Significance of Cooperatives...................................................................
4
The Role of Cooperatives in Community Development..........................
5
The Role of Cooperatives in Economic Development..............................
6
Opportunities Offered by Cooperatives....................................................
8
Types of Cooperatives...............................................................................
9
Why Organize a Cooperative?..................................................................
12
Cooperative Purposes…………………………………………………………………………
13
How to Organize a Cooperative?..............................................................
15
Requirements for Organizing a Cooperative...........................................
16
Who Sparks A Cooperative?......……..………………………………….
17
Importance of Cooperatives..……………………………………………
18
Membership on a Cooperative…..………………………………………
19
Organizing Steps………………………………………………………...
19
Developing Realistic Objective………………………………………….
22
Definition of Terms ..................................................................................
23
METHODOLOGY……………………………………………………………...... 24
Locale and Time of the Study ..................................................................
24
Respondents of the Study .........................................................................
24
Data Gathering Procedure ........................................................................
24
Data to be Gathered .................................................................................
24
Data Analysis ...........................................................................................
25
RESULTS AND DISCUSSION…………………………………………………………. 26
Location Map …………………………………………………………………..
26
Profile of the Respondents …………………………………………………….
26
Organization Affiliation ……………………………………………………….
30
Sources of income …………...…………………………………………….......
32
Household income per Annum ……………………………………………......
33
Perception of community people towards Cooperatives ………………………
34
Awareness about Cooperatives............................................................................ 36
Awareness on What Cooperatives can Offer………………………………….
37
Perceived Cooperative Services ……………………………………………….
38
Willingness to Join a Cooperative ……………………………………………..
40
Involvement in Cooperative Services ………………………………………….
41
Choice of Cooperative Type …………………………………………………..
42
Investment
……………………………………………………………………..
44
Willingness to be an Officer ………………………………………………......
45
Potentials and Hindrances of Organizing a Cooperative ………………………
47
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS ………………………
50
Summary
……………………………………………………………………….
50
Conclusions
…………………………………………………………………….
51
Recommendations
……………………………………………………………..
53
LITERATURE CITED ..........................................................................................
54
APPENDIX……………………………………………………………………….
A. Letter to the Barangay Head.......................................................
56
B. Letter to the Respondents ...................................................................
57
C. Survey Questionnaire ........................................................................
58
1
INTRODUCTION
Rationale
A cooperative is a special case of enterprising. At the risk of oversimplifying, it is
useful to review the general structure of enterprising according to today's economic
theory. Here in our country, despite its positive prospects in economic development, is
seriously confronted with the continuing problems of poverty and income inequality.
People empowerment is indeed the correct approach in solving these twin problems of
poverty and income inequity. Cooperatives and other labor enterprises are among the
major pillars of the people empowerment movement. This empowerment movement,
which is now known as the civil society movement, aspires for a strong pro-people mixed
economic society where the state, private and civil society sectors are cooperatively
harnessed in the development efforts of the society.As a business, a cooperative is subject
to the needs and demands of any business, cooperatives require sufficient financing and
comprehensive planning, and well-trained and competent personnel. Cooperatives are
vulnerable to the same kinds of market and economic forces that are faced by all
businesses. But in many ways, cooperative are also unique and different(Pascian, 2010).
Barangay Labayug is the 8th largest barangay with an area of 3.30 square
kilometer and has the 3rd largest population people among the 28 barangay of Sison,
Pangasinan. It is actually located before the Northern Cement Corporation Compound
where some of the community people are working for their living. Another source of
income in the area is farming,there are little who depend their living on a sari-sari
store,and other small businesses.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
2
The people in the community belong to different cultures. The original settlers are
Ilocano’s and others came from different areas here in the Philippines, mostly from the
south. They resided in the said area because of Northern Cement Corporation where in
they work for living.
Labayug has ahousehold of 638.The people especially the officials were working
for the better economy of the community.There is no cooperative in the area,which will
be a help to the community to their economic progress, andthus a good study for someone
to conduct if there is really a potential of organizing such organization, because there are
some community members who have a little background on it, yet they cannot pursue the
organizing since they are not sure if their co-members will support it, another problem is,
what type of cooperative would be organized.
Importance of the Study
This study was conducted with the hope that it will bring benefit to the researcher,
and the community.
The researcher gain essential knowledge about research and about organizing
cooperatives. The study also provides information to the community members that
organizing a cooperative if viable or feasible and if will rush through will have a great
help to the economic upliftment of the whole community. The results can also be used as
a reference for researchers who would be conducting research of the same line of interest.
Statement of the Problem
This study seeked to answer the following questions:
1. What is the perception of community people about a cooperative?
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
3
2. Are community people aware of the benefit a cooperative can give?
3. Are community people willing to join if a cooperative will be organized?
4. What type of cooperative do community people want to organize?
5. What are the possible constraints in the organization of a cooperative in
Labayug, Sison, Pangasinan.
Objectives of the Study
This research study aimed to:
1. Determine the perception of communitypeople about a cooperative.
2. Determine the awareness of community peopleon the benefits a cooperative
can provide.
3. Identify the people who are willingto join if there will be cooperative to
organize.
4. Identify the preferred type of cooperative the community wants to organize.
5. Determine the possible hindrances or constraintsto organizea cooperative in
Labayug, Sison, Pangasinan.
Scope and Delimitation of the Study
The study focused on the perception on cooperative by the community
members,the needs, their interest in organizing a cooperative in their community and the
possible constraints that may affect the possibility of organizing a cooperative in the
community.These variables were used in the analysis on the potential of organizing a
cooperative in the area.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
4
REVIEW OF LITERATURE
Cooperative Defined
It is a business owned and controlled by the people who use its services. They
finance and operate the business or service for their mutual benefit. By working together,
they can reach an objective that would be unattainable if acting alone (Rapp and Ely,
1996).It is an association of persons with common interests not capital. It begins with the
people who wish to provide themselves with goods and services they need (Fajardo and
Abella,1999).
Cooperative Objectives
According to De Leon (1998), the primary objective of every cooperative is to
provide goods and services to its members and thus enable them to attain increased
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 without, however, conducting the affairs of the
cooperative for eleemosynary or charitable purposes. A cooperative shall also provide
maximum economic benefits to its members teach them efficient ways doing things in a
cooperative manner and propagate cooperative practices and new ideas in business and
management and allow the lower income groups to increase their ownership on the
wealth of the nation.
Significance of Cooperatives
Anonymous (2009),cooperatives as economic enterprises and as self-help
organizations,play meaningful role in uplifting the socio-economic conditions of their
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
5
members and their local communities. Over the years, cooperative enterprises have
successfully operated locally owned people centered businesses while also serving as
catalysts for social organization and cohesion. With their concern for their members and
communities,they represent a mode of economic enterprise that places high regard for
democratic and human values and respect for their environment. As the world today faces
unstable financial systems, increased insecurity of food supply, growing inequality
worldwide, rapid climate change and increased environmental degradation, it is
increasingly compelling to consider the model of economic enterprise that cooperatives
offer. The cooperative sector, especially in developing countries, also presents itself as an
important element that can contribute to the realization of the Millennium Development
Goals(MDG’s) by 2015.
The cooperative enterprise is also relevant in addressing the problem of food
security. The cooperative enterprise also presents an important model as many of the
world’s poorest and disadvantage face social exclusion, lack of access to opportunities
and growing economic inequality. As the uneven effects of globalization have led to a
rise in the unregulated informal economy, workers in the informal sector have formed
shared service cooperatives and associations to assist in their self-employment.
Cooperatives may not be the solution to the world’s problems, but they are
certainly part of the solution. An International Year of Cooperatives can firm up the
international will to strengthen cooperatives and in so doing help achieve MDG’s and
alleviate world crises (Marcelino, 2010).
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
6
The Role of Cooperatives
in Community Development
Community development is a way for the people in the community to work
together in order to build a better community and thereby improve the welfare of all. It is
a both product and a process. As a product, it involves specific projects and activities in
the community. And as a process, it is concerned with the method the people in the
community used to attack community problems and make the community a better place
to live in and raise children. Moreover, community development is primarily a self-help
process. Outside resources are only availed of by thee people if these are not available in
the community. The ultimate social objective of a cooperative is community building, the
same with community development. Both use the principle of self-help and involvement
in their methods of solving community problems. Moreover, both depend on cooperation
and teamwork in attaining their goals. Cooperatives are primarily concerned with the
development of human resources. The same is true with community development. Both
consider man as the most important resource and factor of development.
Through cooperatives, the rural people can secure credit at very low interest rate.
They can use their cooperative loans for putting up their micro-business, such as
backyard piggery, poultry, garden, and other income producing projects. This way, they
are no longer the customers of usurers. In addition, their production inputs, like fertilizer,
seedling, chemicals, etc., can be purchased on a wholesale basis by their cooperative.
This reduces their production expenses. Likewise, their products can be sold direct to the
buyers. This means higher prices for their goods than those offered by traders or
middlemen (Fajardo and Abella, 1999).
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
7
The Role of Cooperatives
in Economic Development
As cited by Dogarawa (2005) from various authors; cooperatives are community-
based, rooted in democracy, flexible, and have participatory involvement, which makes
them well suited for economic development (Gertler, 2001). Cooperatives are viewed as
important tools for improving the living and working conditions of both women and men.
Since the users of the services they provide owned them, cooperatives make decisions
that balance the need for probability with the welfare of their members and community,
which they serve. As cooperatives foster economics of scope and scale, they increase the
bargaining power of their members providing them, among other benefits, higher income
and social protection. Hence cooperatives accord members opportunity, protection and
empowerment- essential elements in uplifting them form degradation and poverty.
Cooperatives are specifically seen as significant tools for the creation of decent jobs and
for the mobilization of resources for income generation. Many cooperatives provide jobs
and pay local taxes because they operate in specifically geographical regions (Somavia,
2002). As governments around the word cut services and withdraw from regulating
markets, cooperatives are being considered useful mechanisms to manage risk for
members and keep markets efficient (Henehan, 1997). In number of ways, cooperative
play an important role in global and national economic and social development. With
regard to economic and social government, cooperatives promote the “fullest
participation of all people” and facilitate more equitable distribution of the benefits of
globalization. They contribute to sustainable human development and have an important
role to play in combating social exclusion. Thus the promotion of cooperatives should be
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
8
considered as one of the pillars of national and international economic and social
development (Levin, 2002).
Opportunities Offered by Cooperatives
As further stated by Fajardo and Abella (1999), cooperative provide all the
economic advantages and opportunities for the poor people to improve their conditions.
The government, through its agencies, extends financial and technical support to
cooperatives.
Form the book of Onaganet al (1973), they enumerated 3 major opportunities in
involving a cooperative. These are;
1. Opportunities for service. A cooperative, more than any other form of
enterprise, offers a wide range of opportunities. Showing members in a farmer’s
cooperative marketing association, for instance, the wisdom of holding their produce in
the cooperative warehouse until such a time when the price is at its highest, is a genuine
service that may be measured not only in terms of money but also in terms of welfare and
happiness for the members. Saving members in a credit union from the clutches of
usurers and freeing them from the fear of want and poverty cannot be measured in any
value. Leading consumers to economic sufficiency by providing the service at the same
time providing savings, thus increasing their purchasing power, is itself an unrequited
service. Organizing retailers into a cooperative in this country and freeing them from the
domination of foreign retailers is not a mere service. Cooperation among them would
allow them to control the channels from which their merchandise is procured and through
which they are distributed. This promotes the attainment of the aspiration of our people
for nationalism.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
9
2. Opportunities to earn a satisfactory income. A cooperator is an enterpriser
who is placed on competitive level that would enable him to produce with a surplus
income. His production is aided by his cooperative, which assists him in his financial,
production, and marketing problems. His effort is adjusted where it is best productive.
Wastes are eliminated. His initiative is given full sway, and his income may be measured
progressively in accordance with the effort and attention he puts in his enterprise.
3. Opportunities for employment. The business of cooperatives is expanding
steadily. More trained personnel’s are needed. A farmer’s cooperative needs a good
manager, two or three assistants, a marketing expert, a warehouse man, an assistant
warehouse man, credit man, merchandise manager, accountant and bookkeepers,
effective secretary and god public relations Officer and others. There is a need for
thousands of trained cooperators on different levels of agricultural and non- agricultural
cooperatives. For government bureaus and institutions charged with the promotion,
supervision and financing of existing cooperatives, such as Bureau of Commerce, the
cooperative Administration, Office, the Agricultural Office, the Agricultural Credit
Administration Office, the Agricultural Productivity Commission and others.
Types of Cooperatives
From Article 23 of the Cooperative Code 2008, these are the types and categories
of cooperatives:
1. Credit cooperative.One that promotes and undertakes savings and lending
services among its members. It generates a common poll of funds in order to provide
financial assistance and other related financial services o its members for productive and
provident purposes;
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
10
2. Consumers cooperative.The primary of which is to procure and distribute
commodities to members and non-members;
3. Producers cooperative.Undertake joints production whether agricultural and
industrial. It is formed and operated by its members to undertake the production and
processing of raw materials or goods produced by its members into finished or processed
products for sale by the cooperative to its members and non-members. Any end product
or its derivative arising from the raw materials produced by its members, sold in the name
and for the account of the cooperative, shall be deemed a product of the cooperative and
its members;
4. Marketing cooperative.Engages in the supply of production inputs to members
and markets their products.
5. Service cooperative.Engages in medical and dental care, hospitalization,
transportation, insurance, housing, labor, electric light and power, communication
professional and other services;
6. Multipurpose cooperative.Combined 2 or more of the business activities of
these different types of cooperatives;
7. Advocacy cooperative. Promotes and advocates cooperativism among its
members and the public through socially-oriented projects, education and training,
research and communication, and other similar activities to reach its intended
beneficiaries;
8. Agrarian reform cooperative.Organized by marginal farmers majority of
which are agrarian reform beneficiaries for the purpose of developing an appropriate
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
11
system of land tenure, land development, land consolidation or land management in areas
covered by agrarian reform;
9. Cooperative bank. Organized for the primary purpose of providing a wide
range of financial services to cooperatives and their members;
10. Dairy cooperative. Members are engaged in the production of fresh milk
which maybe processed and/or marketed as dairy products;
11. Education cooperative. Organize for the primary purpose of owning and
operating licensed educational institutions, notwithstanding with the provisions of
Republic Act. No.9155,otherwise known as the Governance of Basic Education Act of
2001;
12. Electric cooperative. Organized for the purpose of undertaking power
generation, utilizing renewable energy sources, including hybrid systems, acquisition and
operation of sub transmission or distribution to its household members;
13. Financial service cooperative. One organized for the primary purpose of
engaging in savings and credit services and other financial services;
14. Fishermen cooperative. One organized by marginalized fishermen in localities
whose products are marketed either as fresh or processed products;
15. Health services cooperative. One organized for the primary purpose of
providing medical, dental, and other health services;
16. Housing cooperative. One organized to assist or provide access to housing for
the benefit of its regular members who actively participate in the savings program for
housing. It is co-owned and controlled by its members;
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
12
17. Insurance cooperative. One engaged in the business of insuring life and
property of cooperatives and their members;
18. Transport cooperative. One which includes land and sea transportation,limited
to small vessels, as defined or classified under the Philippine maritime laws, organized
under the provisions of the cooperative code;
19. Water service cooperative. Organize to own, operate and manage water
systems from the provision and distribution of potable water for its members and their
households;
20. Workers cooperative. One organized by workers, including the self-employed,
who are at the same time the members and owners of the enterprise. Its principal purpose
is to provide employment and business opportunities to its members and manage it in
accordance with cooperative principles; and
21. Other types of cooperatives as may be determined by the Authority.
Why Organize a Cooperative?
Anonymous (2008), Cooperative is organized to improve community member’s
income or economic position or to provide a needed service. This may achieve through
one or more of the following:
1.Marketing
activities
a. Improve bargaining power. Combining the volume of several members
leverages their position when dealing with other businesses;
b. Reduce costs. Volume purchasing reduces the purchase price of
neededsupplies;
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
13
c. Earnings of the cooperative returned to individual members
lower their costs;
d. Obtain market access or broaden market opportunities. Value is added
to products by processing or offering larger quantities of an assured type and quality to
attract more buyers;
e. Improve product or service quality. Member satisfaction is built by
adding value to products; the cooperative provides and improves facilities, equipment and
services.
2.Purchasing Supplies/Services
a. Obtain products or services otherwise unavailable. Often provide
services or products that would not attract other private businesses;
b. Reduce Cost/Increase Income. Reducing the cooperative's operating
costs increases the amount of earnings available for distribution to members to boost their
income.
Cooperative Purposes
According to Garcia and Guanzon (2004), as cited by Garcia (2009), a
cooperative may be organized with at least only one purpose, depends on the type of
cooperative organized. Aside from the specific purpose for which a cooperative has been
set-up, it shall provide maximum economic benefits to its members, teach them efficient
ways of doing things in a cooperative manner, propagate cooperative practices and new
ideas in business and management, and allow the lower income groups to increase their
ownership in the wealth of this nation.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
14
Cooperatives provide greater benefits to the members such as increasing
individual income or enhancing a member’s way of living by providing important needed
services. For instance, it may be the vehicle to obtaining improved markets or providing
services of supplies or other services otherwise unavailable if members acted alone (Rapp
and Ely,1996).
From Pimentel (1996), there are 11 purposes of cooperative existence, these are
the following;
1. Thrift and savings. To encourage thrift and savings among members
2. Funds and credit. To generate funds and extend credit to their members for
productive and provident purposes.
3. Production and marketing. To encourage systematic production and marketing
among members.
4. Goods and services. To provide goods and services and other needs to their
members.
5. Expertise and skills. To develop expertise and skills among their members
6. Land and housing benefits. To acquire lands and housing benefits among
members.
7. Insurance. To insure against loses of their members.
8. Advance status. To promote and advance the economic, social and educational
status of their members.
9. Economic enterprises. To establish, own, lease or operate cooperative banks,
wholesale and retail complexes, insurances, agricultural or industrial processing
enterprises, and public markets.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
15
10. Coordination. To coordinate and facilitate the activities of cooperatives.
11. Effective implementation. To undertake activities for the effective and
efficient implementation of the provisions of the code.
How to Organize a Cooperative?
According to Fajardo and Abella (1999). Organizers have to determine first the
feasibility of establishing a cooperative in the community or institution. The following
essential requirements should be surveyed:
1. Felt need.There must be a reason for organizing a cooperative. Usually, a need
for a cooperative arises if existing business organizations in the community are inefficient
and abusive. Conditions, such as high interest rates, poor quality of goods and services,
high prices, financial, production, and marketing problems encourage the organization of
cooperatives. People like to buy better goods and services at reasonable prices. On the
other hand, producers want fair price for their products.
2. Volume of businesses. Sufficient volume of businesses is needed to pay the
fixed and variable costs of operations, such as rentals and salaries of employees. The
business men who have been exploiting the buyers would soon disappear in the market.
Thus, the presence of cooperatives checks the activities of loan sharks and profiteers.
3. Availability of qualified officers. Management constitutes the most important
factor in the success of a cooperative. Men of integrity and honesty are the proper
individuals who should manage cooperatives. In many instances, there are qualified
persons but they are not willing to serve in the cooperative. They would rather work in
commercial and industrial firms where salaries and fringe benefits are much higher. At
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
16
any rate, the cooperative Authority has a management program for improving the
competence of cooperative officers through trainings and education.
4. Adequacy of facilities. When starting up a cooperative, it is not advisable to
begin with a plush office and expensive facilities. Not a few business officers are prone to
display their powerand prestige. Such manifestation of ostentation should not take place
in a cooperative organization.as long as the available facilities are adequate to ensure the
efficiency of the business operations of the cooperative, then it will be good enough t
start a cooperative.
5. Opportunities for growth. A cooperative has to be dynamic in order to be able
to meet effectively changing needs and problems of its members and the community. It
has to expand and diversify its business operations. Organizers must have good feasible
plans for business expansion. A business organization which can easily serve the needs of
people for a brief and limited period is not desirable. It has to survive and be successful
for a long time.
Requirements for Organizing a Cooperative
1. Financial requirement. Financing is the backbone of production. The lack of it
places the enterpriser at a great disadvantage. He cannot get his materials at the right
quality and price he desires. He cannot employ labor. His product or service, in the
absence of research, may not be in accordance with consumer requirement. To promote
the sale of his product or service needs financing. Originally, financial requirement in
organizing a cooperative was Php. 25,000.00 and membership was 250. The value of one
share of stock was Php. 100.00. However, in view of the great difficulties of organizing
cooperatives, the defunct Bureau of Cooperatives Development has reduced it to at least
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
17
Php. 5,000.00 and membership of 25. At present, only 15 members and Php. 2,000.00 are
required to organize a cooperative (Fajardo and Abella, 1999).
2. Social requirement. Before joining, prospective members must have first a
clear understanding on the part of the members of what a cooperative is, how it operates,
and why is it organized. Then, they must be willing and able to participate intelligently,
support the organization with their resources and assume the responsibilities of being
members or officers. Also, a number of them must have at least some knowledge or
experience in running the business and in making sound managerial decisions. All of
these clearly point out that the prospective members must have certain skills and attitudes
and must be capable of sustained cooperative behavior, before they can be organized into
a cooperative.
3. Other requirements. Some of them are: an outstanding and lasting demand for
the services or goods which the cooperative may offer; substantial capital to begin and
maintain the business operations of the cooperative; and a large number of residents who
are willing to patronize the cooperative. The solution lies in preparing them for
membership in a cooperative by first organizing them into semi-cooperative groups and
organizations at the barrio-level. Given enough time, this measure is expected to fulfill
the social requirements of the organization of barrio residents into a cooperative. Later,
these groups and organizations can be brought into full-pledged cooperative at the multi-
barrio or municipal level. This measure in turn ensures that the economic requirements
for the successful operation of a cooperative are adequately met.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
18
Who Sparks a Cooperative?
Anonymous (2010), a compelling need and a few community leaders can spark
the idea of forming a cooperative. Usually these leaders have an economic need or desire
a service they believe a cooperative can provide .They also know others who have similar
interests.
As with any business, starting a cooperative will involve thorough and careful
planning. The responsibility for starting a cooperative and seeing it mostly relies to a
group. That group will serve as the “spark” to keep the new cooperative and help it
through the start-up phase. Careful planning, thorough work out, and patience will result
to a stronger foundation and increase the likelihood of cooperative success
(Pascian,2010).
Also, any individual can spark the idea of a cooperative and test the community's
possible participation level by getting the word out, maybe because he/she wants to
develop spirit of cooperation in a certain area, or to have that specific service needed in
that area.
Importance of Cooperatives
Cooperative societies are important in order to help organize mutual benefits.
Within a cooperative structured society in its original tribal form, jobs are allocated and
resources are exchanged among each other and trading is only done with external
communities. Now cooperative societies are extremely important in the savings market
and for mortgage and professional credit banks. Cooperative societies are business that re
set up by a number of individuals with the intention of gaining mutual benefits from
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
19
them. These societies are important to ensure that everyone who has put an investment
into them gets a fair and equal return (Anonymous, 2010).
Throughout the twentieth century, co-operatives have played an integral role in
the social and economic development of the country. Initial forms of co-operation have
evolved into an extensive network of co-operatives involved in a wide range of activities:
agriculture and resources, community development, recreation, child care and education,
wholesale and retail, financial, community service, and other types of co-operation. The
impact of co-operatives on communities is substantial, especially in the smaller centre’s,
where they ensure competitive prices and supply a wide range of services(Ketilson,
2001).
Membership on a Cooperative
According to De Leon (1998), any natural person, who is a Filipino citizen, a
cooperative or non-profit organization with juridical personality, shall be eligible to
become a member of a cooperative, if the applicant meets the qualifications prescribed in
the by- laws.
In cases of Primary cooperatives, only natural persons may be admitted as
members and they are residing or working in the area where the cooperative will operate,
and must be in legal age, unless for laboratory cooperative which may be organized by
minors (Pimentel, 1996).
Organizing Steps
As further stated by Rapp and Ely (1996), starting a cooperative is a complex
project. A small group of prospective members discuss a common need and develop an
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
20
idea how to fulfill it. Depending on the situation generating the idea, a new cooperative
maybe welcomed with enthusiasm or maybe met with vigorous competitive opposition.If
opposed leaders must be prepared to react to various strategies of competitions such as
price changes to retain potential cooperative member’s business; better contract terms or
cancelled contracts;attempts to influence lenders against providing credit; and even
publicity,misstatements, and rumors attacking the co-op business concept. Regardless of
the business climate for the proposed cooperative, leaders must demonstrate a
combination of expertise, enthusiasm, practically declination and determination to see
that the project is completed.
From Dogarawa(2005), like other business cooperatives start with the recognition
of a need or an opportunity. In fact, the economic motivation for starting a cooperative is
very much the same as for starting other business. Starting a new cooperative takes
energy and resources. By following a planed step-by step procedure, the process can be
completed in an efficient and timely manner. Because cooperatives are people-driven
organizations, the first key to their success is to identify individuals with like needs who
want to explore the feasibility of forming a cooperative business. The original group of
individuals is usually potential users of the cooperative. They often have leadership and
organizational skills. They organize informational meetings for other potential users and
discuss topics such as: how the proposed cooperative could meet identified needs,
cooperative operational practices, advantages and disadvantages of the cooperative
business structure, member investment and financial requirements, and members
commitment needed.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
21
He stated in his book that starting a cooperative involves the following steps,
these are:
1. Hold an organizing meeting; establish steering committee. A core group of
interested individuals should hold an informational meeting of potential cooperative
members and others in the community. The primary purpose of the meeting is to explain
the identified need and how a cooperative would address it. It is important that the group
come to general agreement on the nature and importance of the problem and the potential
for a cooperative to address it. Such an agreement will become the group’s shared vision,
so it is worth spending as much time as necessary to achieve it.
2.Survey on potential members. Under the guidance of the steering committee and
resource persons, potential cooperative members are surveyed. Topics include: need for
services, volumes to be purchased or marketed, willingness to join, finance, and use of
and familiarity with cooperatives.
3. Feasibility study of the business; then report on the results. The steering
committee can either conduct a feasibility study (using the guidelines provided), or hire a
consultant to carry out the study. The purpose of feasibility study is to examine critical
opportunities and obstacles that might make or break the proposed cooperative business.
The feasibility study should give the group a good idea of whether the cooperative is
likely to be successful as a business. The critical issues that a feasibility study analyzes
include the number and interest level of potential members; market issues (can the
cooperative get better prices, better quality or better services than potential members
currently get through other means?); operating costs; start-up costs; and availability of
financing.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
22
4. Develop a business plan. If the feasibility study results are favorable, the
steering committee carries out or hires a consultant firm to develop a detailed business
plan. The business plan serves two primary purposes: to provide a blueprint for the
development and initial operation of the cooperative and to provide supporting
documentation for potential members, financial institutions and other investors.
5. Develop legal documents. Under the guidance of professional advisors, the
steering committee should draft legal documents for approval by prospective members.
These documents are: articles of incorporation; bylaws and other legal documents.
6. Secure financing for the cooperative. Cooperative businesses vary greatly in the
amount of capital they need to get up and running. The business plan should include the
amount and type of financing needed by the cooperative and a strategy for obtaining it.
The steering committee and its advisors are responsible for implementing this strategy.
7. Recruit members for the cooperative. During their organizational phase, many
cooperatives hold meetings for potential members, conduct surveys and mail organizing
updates to them, and collect initial down payments on membership fees. All of these
activities provide a good indication of the level of interest in, and commitment to, the
cooperative.
8. Hold cooperative’s first membership meeting; Hire management and staff.
After financing has been secured and sufficient members have signed up, the first general
membership meeting is convened.
9. Start cooperatives. The directors must acquire the necessary facilities for
business operations. Actual operations may begin after all facility transactions are
completed and the manager has hired the needed complement of employees.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
23
Developing Realistic Objectives
Anonymous (2010), the rural population of the developing world is often not
aware of the potentials and possibilities that cooperative offer. Thus information from
external sources could be the key to getting things moving. This kind of information can
be of great importance in the choice and evaluation of objectives and targets the first step
in establishing a cooperative project. The process has three integrated components, which
are to:
1. Develop a technical description of possible targets;
2. Inform potential participants about the possible benefits to an input required
from those taking past;
3. Conduct a search for local leaders.
Definition of Terms
Potentials.Indicating the possibility of putting up a cooperative in an area
Perception. Thoughts or ideas of individuals in the community about a
cooperative
Awareness. Familiarity of community members of what a cooperative is and how
it operates
Diagnostic. A study wherein the researcher analyze the area out of the situation, is
there really a potential of organizing a cooperative, and what to put up
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
24
METHODOLOGY
Locale and Time of the Study
The study was conducted in Labayug, Sison, Pangasinan, and conducted on
January- February 2012.
Respondents of the Study
The respondents were the community people who are at legal age and have
his/her own source of living to be considered as potential member. They were classified
or categorized according to source of income. They may be agricultural dependents that
can be from farming or animal raising, dependents of OFW, small entrepreneurs, laborers
from NCC and employees either from government or private entities.150 individuals
which represent one member per householdwere randomly chosen as respondents in this
study.
Data Gathering Procedure
A request letter wassent to the barangay head. A survey questionnaire and a data
sheet were distributed to the respondents to gather information complimented with either
personal interview or focus group discussion for validation.
Data to be Gathered
The data gatheredwere the perception of the community people about a
cooperative, the need to the area addressed by a cooperative, the level of awareness on
the benefit derive from, their degree of willingness to join the cooperative, the type of a
cooperative to organize, and the possible constraints to organize a cooperative in the area.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
25
Data Analysis
The data gathered wasanalyzed using descriptive method like percentage,
frequency counts and mean.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
26
RESULTS AND DISCUSSION
Location Map
Figure I shows the map of the community where the study was implemented.
Labayug consist of 3.30 km2and contains for about more than 600 households. Houses
were grouped on the center of the community wherein the community people called
Barrio. Most of the houses were built along the road side, althoughsome chose to build
their houses on the farm. Community people on the part near the bridge were those
depends their living on non-agricultural works such as skilled works and others are those
who works from NCC Corporation while those who lived in the barangay central mostly
depend their living on Agriculture. National highway is about 2- 3 kilometers from the
area. Anyone can arrive at the place through a jeepney or tricycle within 12-15 minutes
from the National Highway.Products were sold in the nearby town Pozorrubio where
basic necessities were bought.
The community is just in the vicinity of NCC Corporation compound. The
company has a multi- purpose cooperative organized by the employees. The credit
cooperative office is located on the company compound while the Consumers grocery
store is located in the nearby barangay the reason why employees living in the area did
not join the organization.
Profile of the Respondents
Table 1 presents the profile of the respondents. The profile includes the age,
gender, marital status, household size, position in the family and educational background
of the respondents.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
27
PM
Figure 1. Location Map
Legend:
- House
- Church
- Cemetery
- Rice field
-Public Market
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
28
Age.Many (38%) of the respondents aged between 31-45 years old followed by
the age bracket 20-30 years old with 31.33%. The age bracket of 46-60 was next with
29.33% while the 61 years old and above age were the least in number with 1.33%. The
results show that many were of middle aged individuals.
Gender. Majority of the respondents were female with 58% but not that far with
male respondents with 42%.
Civil status. Majority of the respondents (74.67%) were married followed by
singles with 18.67%with least (1.33%) were separated. Therefore this indicates that most
of them support their families.
Household size.The results shows that majority of the respondents (59.33%) have
a household size of 1-5 person living with the family, many (37.33%) have 6-10 heads
and there were few (3.33%) whose household size of 11 persons and over.The results
indicated that the household size in the area was large.
Position in the family.Many (47.33%) of the respondents were housewives who
were busy in keeping the household, some (36.67%) are family heads wherein mostly
are the fathers who works for family, though some are mothers who are widowed who
headed the family.Few (16%) who let the child answered the questions in the answer
sheet and in the interview.
Educational attainment. The finding shows that all of the respondents had
undergoneformal education. Many finishedsecondary level of education with 42%,
followed by those who reach college level with 16.67%, high school level and college
graduates were of the same percentage with 11.33%, vocational graduates with 8.67%,
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
29
elementary graduate 4%, elementary level with 3.33% and lastly, those who try
vocational courses with 2.67%.
Table 1. Profile of the respondents
PARTICULAR FREQUENCY
PERCENTAGE
Age
20-30
47
31.33
31-45
57
38.00
46-60
44
29.33
61 and above
2
1.33
TOTAL 150
100.00
Gender
Male
63
42.00
Female
87
58.00
TOTAL 150
100.00
Civil Status
Single
28
18.67
Married
112
74.67
Widow/er
8
5.33
Household size
1-5
89
59.33
6-10
56
37.33
TOTAL 150
100.00
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
30
Table 1.continued….
POSITION IN THE FAMILY FREQUENCY
PERCENTAGE
Family Head
55
36.67
Mother
71
47.33
Child
24
16.00
TOTAL 150
100.00
Educational Attainment
Elementary Undergraduate
5
3.33
Elementary Graduate
6
4.00
High School Undergraduate
17
11.33
High School Graduate
63
42.00
Vocational Undergraduate
4
2.67
Vocational graduate
13
8.67
College Undergraduate
25
16.67
College Graduate
17
11.33
TOTAL 150
100.00
Organization Affiliation
Among the respondents, 58.67% are affiliated with an organization, wherein most
(90.91%) are members of an association and only few belongs to a cooperative. Many
(47.73%)were involved in the organization for a period of 1-5 years, while others
(40.91%) are already affiliated for 11 years and above and only few for 6-10 years. Only
(41.33%) from the respondents are not affiliated with any organization neither from a
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
31
cooperative or an association. The result shows that majority of the respondents had
already knowledge and experience about organizations.
Table 2. Organization affiliation
PARTICULAR FREQUENCY
PERCENTAGE
Organization Affiliation
Affiliated
88
58.67
Not Affiliated
62
41.33
TOTAL 150
100.00
Organizational type
Cooperative
8
9.09
Association
80
90.91
TOTAL 88
100.00
Type of Involvement
Member
80
90.91
Officer
8
9.09
Years of involvement
1-5 years
42
47.73
6-10 years
10
11.36
11 years and above
36
40.91
TOTAL 88
100.00
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
32
Sources of Income
Household sources of income. Majority (57.33%) of the respondents are engaged
in Agricultural activities as one of their source of income. Of the 57,most wereengaging
in farming to includes rice, vegetables productionand some get income from fruits .Only
8% engages in animal raisingwhich includeswine raising, poultry and some triedcaprine
raising.
Many (26%) among the respondents are employed from different agencies. Out of
this, only few work from government agencies like in teaching in public schools,while
others are employed in private organization, wherein many work in NCC Corporation
and onlyfew works from other agencies. Those employedin NCC were laborer/helper,
driver/operator,welder and mechanic.
Table 3. Sources of income
SOURCES OF INCOME
FREQUENCY
PERCENTAGE
Farming
74
49.33
Animal raising
12
8.00
Employment
49
30.67
Skilled workers
38
25.33
Other sources
37
24.67
Sari-sari store
19
12.67
Small entrepreneurs
16
10.67
Middle men
2
1.33
OFW 19
12.67
*Multipleresponse
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
33
Many (25.33%) from the respondents were engaged in skilled works such as
carpentry, wherein one of the family member is into construction and driving. There are
somewho are Overseas Filipino Worker independents, and some have other
sources(24.67%) of income such as sari-sari store owners, and vendors. There are few
who constitutes the traders, engaged in buy and sell of animals.
The finding implies that majority of the respondents were engaged in agricultural
activities as one of the source of income in the family.
Household Income per Annum
Majority (64.67%) of the respondents had an annual income of Php. 100,000.00
and below. These are the families engaging in farming where fields planted were rented
or shared with the landowners. Families whose members employedin Northern Cement
Corporation and those engaged in skilled works also claimed to have low income. Only
few(35.33%) had an income between Php.101, 000- 200,000 a year. These include the
families who owned the land cultivated, and those with permanent job.Not all of the
OFW dependents claimed to have this amount of annual income. The finding reveals that
majority of the respondents earned Php. 100,000 and below every year.
Table 4. Household income per annum
PARTICULARS FREQUENCY
PERCENTAGE
Household Income per annum (Php.)
100, 000.00 and below
97
64.67
101,000.00-200,000.00
53
35.33
TOTAL 150
100.00
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
34
Perception of Community People
towards Cooperatives
According to Rapp and Ely (1996), cooperatives are businesses owned and
controlled by the people who use its services; they finance and operate the business or
service for their mutual benefit and reach objectives unattainable for only one through
cooperation. Fajardo and Abella (1999) stated that such organizations are associations of
persons with common interest not on capital and begins with the people who wish to
provide themselves with good and services they need.
Some of the perceptions on cooperatives (Table 5) by the respondents were
identified like organized by people with common needs, organization that deals mainly
with its members, association of people that engages business activities, organization that
provides goods and services to members, organization that offers loans and savings,
sources of income, sources of capital and low prices of goods.
Generally, the respondents have little knowledge about the cooperative, since
there isan existing one is established by NCC employeesAs presented in Table 5, the
community people know cooperatives as business enterprise, which procures goods and
services and offers loans and savings like banks, some says cooperatives deals mainly
with its members as based on the cooperative organized by NCC Corporation that deals
only with its members. There are also few who said that cooperatives service low prices
of commodities basing from the cooperatives from the places they came from.
Based from the results, most of the respondents have little knowledge about what
cooperative is all about. Most knew it other than as a business enterprise that offers loans
and savings and provides goods and services.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
35
Table 5. Perception on cooperatives
PERCEPTION
FREQUENCY
MEAN SIGNIFICANCE
5 4 3 2 1
Organized by people
3 19 28 38 62 2.09 Little
knowledge
with common needs
An organization that
1 23 37 53 36 2.33 Little
knowledge
deals mainly with its
members
An association of people
9 39 51 43 8 2.99 Fair
knowledge
that engages in business
activities
An organization that
2
15
24
31
78 1.88
Little knowledge
develops expertise and
skills among its
members
An organization that
8 37 45 38 22 2.81 Fair
knowledge
provides goods and
services to members
An organization that
6 34 50 37 23 2.75 Fair
knowledge
offers loans and savings
Sources of income
0 14 22 30 84 1.77 Little
knowledge
Sources of capital
1 15 21 26 87 1.78 Little
knowledge
Lower price of goods
3
3
0
58
86 1.53
Little knowledge
Range: 1.5 and below = no knowledge
1.51 – 2.5
= little knowledge
2.51 – 3.5
= fair knowledge
3.51 – 4.5
= good knowledge
4.51 – 5.0
= excellent
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
36
Awareness about Cooperatives
Based from Table 6, result shows that most (80.67%) of the respondents were
aware on what is a cooperative. Majority (68.60%) learned about from relatives/friends
who are affiliated though17.36% already. Few (6.61%) are currently members andsome
(4.96%) learned the idea from school and to those whose parents are affiliated. Only few
(19.33%)have no idea about a cooperative. This implies that most respondents were
already oriented about a cooperative and introducing one for the community will not be
that difficult.
Table 6. Awareness about cooperatives and sources of knowledge
PARTICULAR FREQUENCY
PERCENTAGE
Awareness of a cooperative
Aware
121
80.67
Unaware
29
19.33
TOTAL 150
100.00
Where did you learn about cooperatives
School
6
4.96
Joined organizations before
21
17.36
Learned from relatives/friends who are
83 68.60
members
Current members
8
6.61
Parents are members
3
2.48
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
37
Awareness about what Cooperative
can Offer
Cooperative provides economic advantages and opportunities to poor people to
improve their economic conditions.
Opportunities for Service.A cooperative, more than any other form of enterprise,
offers a wide range of opportunities. Showing members in a farmer’s cooperative
marketing association, for instance, the wisdom of holding their produce in the
cooperative warehouse until such a time when the price is at its highest, is a genuine
service that may be measured not only in terms of money but also in terms of welfare and
happiness for the members. Saving members in a credit union from the clutches of
usurers and freeing them from the fear of want and poverty cannot be measured in any
value. Leading consumers to economic sufficiency by providing the service at the same
time providing savings, thus increasing their purchasing power, is itself an unrequited
service. Organizing retailers into a cooperative in this country and freeing them from the
domination of foreign retailers is not a mere service. Cooperation among them would
allow them to control the channels from which their merchandise is procured and through
which they are distributed. This promotes the attainment of the aspiration of our people
for nationalism (Onaganet al. 1973).
Opportunities to earn a satisfactory income. A cooperator is an enterprise who is
placed on competitive level that would enable him to produce with a surplus income. His
production is aided by his cooperative, which assists him in his financial, production, and
marketing problems. His effort is adjusted where it is best productive. Wastes are
eliminated. His initiative is given full sway, and his income may be measured
progressively in accordance with the effort and attention he puts in his enterprise.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
38
Table 7. Awareness of cooperative services
PARTICULAR FREQUENCY
MEAN
SIGNIFICANCE
5 4 3 2 1
Procures goods and
10 33 30 54 23 3.05 Moderately
aware
services
Loans and savings
3
9
40 57
41
2.69
Moderately aware
Sales of production input
0
4
4
24 118
1.61
Slightly aware
and market products
Undertake production and
0 3 5 17
125 1.54 Slightly
aware
processing of raw
materials into finished
products marketed by
coop to members and
non-members
Range: 1.5 and below = not aware
1.51-2.5
= slightly aware
2.51-3.5
= moderately aware
3.51-4.5
= very aware
4.51-5
= very much aware
As presented form Table 7, the respondents are slightly aware from the services of
cooperatives such as selling of production inputs and marketing outputs and the
undertakings of production and processing of raw materials which marketed to the
members in return. Most are aware from the services of cooperatives that include loans
and savings and procuring goods and services.
Perceived Cooperative Services
According to Fajardo and Abella(1999), there must be a reason for organizing
a cooperative. Usually, a need for a cooperative arises if existing business organizations
in the community are inefficient and abusive. Conditions, such as high interest rates, poor
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
39
quality of goods and services, high prices, financial, production, and marketing problems
encourage the organization of cooperatives. People like to buy better goods and services
at reasonable prices. On the other hand, producers want fair price for their products.
Some of the needs addressed by a cooperative were identified, which includes
loans and savings, discounts on commodities, charity, additional income, work and
insurance. As presented in Table 8, the result shows that respondents need a cooperative
which service loans and savings and gives discounts, charity, additional income, and
work but mostly needs the first two from the enumerated. There are few requested a
cooperative which service insurance but base on the result, it is not viable.
Table 8.Perceived cooperative services
PARTICULAR FREQUENCY
MEAN
SIGNIFICANCE
5 4 3 2 1
For loans and
7 39 76 23 5 2.89 moderately
needed
savings
For
discounts
2 24 64 46 14 2.69 moderately
needed
Provides charity
2
5
14
48
81
1.66
slightly needed
For additional
5 14 46 60 25 2.43 slightly
needed
income
Provides
work
2 11 24 39 74 1.85 slightly
needed
Insurance
3
0
0
0
147
1.08
not needed
Range: 1.5 and below = not needed
1.6- 2.5
= slightly needed
2.6-3.5
= moderately needed
3.6-4.5 =strongly
needed
4.6-5
=very strongly needed
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
40
Willingness to Join a Cooperative
Majority (74%) of the respondents was willing to join in case there will be a
cooperative to organize although many(18.67%)were not willing. There are
few(7.33%)who are uncertain whether to join or not. From those signifying their interest
in joining,most (77%) wants to avail services with expectation to receive patronage
refunds and dividends every year end. Many (43%) wants to avail loans and services
some(32%) wants to have additional knowledge about a cooperative and few (13%)
wants to take part and learn about how cooperative is operating, others wants to develop
their expertise and skills that interests those individuals in joining. Many (35.71%) from
those who are not willing lack knowledge about cooperatives, however few claimed
thatsuch organization may only exist for short period of time while those uncertain
(36.36%) depend their decision ifthe policy of the cooperativewill be acceptable.Some
answered cooperatives will be first established before joining.
Table 9. Willingness to join a cooperative
WILLINGNESS
FREQUENCY
PERCENTAGE
Willing 111
74.00
Not willing
28
18.67
Uncertain 11
7.33
TOTAL 150
100.00
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
41
Table 10. Reasons for being willing and not willing to join a cooperative
REASONS FOR BEING WILLING
FREQUENCY
PERCENTAGE
To have additional knowledge about
36 32.00
a cooperative
To take part and learn in the
14 13.00
cooperative activities
To avail services and benefits of the
85 77.00
cooperative such as patronage
refunds and dividends every year end
For loan and saving purposes
48
43.00
To develop leadership skills and
17 15.00
social skills
Reasons not willing to join
Don't know about cooperatives
10
35.71
Don't like to join
9
32.14
Cooperatives are just another
5 17.86
organization that won'tlast
*Multiple response
Involvement in Cooperative Services
As shown in Table 11, some services of a cooperative were identified. Some
particular services were enumerated for the respondents’ choice on where to
affiliate.Choices includes market outlet of agricultural produce with reasonable prices,
source of financial services with low interest, source of consumer goods, source of
potable water for the community and as conduit of external support programs from
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
42
government and NGO's. The result shows that financial services, selling of commodities
and water
Table 11.Involvement in cooperative services
PARTICULARS FREQUENCY
MEAN
SIGNIFICANCE
5 4 3 2 1
As market outlet of agricultural
11 20 24 25 42 2.46 Slightly
willing
products with fair prices
As source of financial services
13 23 60 18
8 3.12 Moderately
with low interest
willing
As source of consumer goods
11 27 52 14 18
2.99
Moderately
willing
As source of potable water for
6 24 38 27 27 2.63
Moderately
the community
willing
As conduit of external support
8 11 42 34 27 2.50 Slightly
willing
programs from government and
NGO's
Range: 1.5 and below = not willing
1.51-2.5 =slightly
willing
2.51-3.5
= moderately willing
3.51-4.5
= very willing
4.51-5
=very much willing
services are the first three choices of the respondents. Some wants to have a market outlet
on the community, but limited only to those who are engaged in agricultural activities
who want and can avail of the service.
Choice of Cooperative Type
Some types of cooperatives fromwere identified based on the Cooperative Code
of 2008on what cooperative respondents want to organize in the community. One is
Credit cooperativewhich promotes and undertakes savings and lending services among its
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
43
members and generates a common poll of funds in order to provide financial assistance
and other related financial services to its members for productive and provident purposes.
Majority (53.33%) of respondents preferred credit cooperatives with the expectation that
the financial services could lessen their financial needs. It is also helpful to people who
want to start small businesses and lack resources to for finance. Some of the farmers also
want to join this type of cooperative to support their farming activities.
Another type of cooperative is consumers cooperativewhich primary service of it
is to procure and distribute commodities to members and non-members. There are
already lots of businesses in the community engaging in selling of goods, but still some
(37.33%) among to those who are willing to join chose consumers cooperative because of
notion that cooperatives lowers prices of goods compared to the stores privately owned.
Table 12.Choice in cooperative type
COOPERATIVES
FREQUENCY PERCENTAGE
Credit
80 53.33
Consumer
56 37.33
Producers
23 15.33
Marketing
36 24.00
Housing
2 1.33
Water service
30 20.00
Producers’ cooperatives undertake joints production whether agricultural and
industrial and it is formed and operated by the members who undertake the production
and processing of raw materials or goods into finished or processed products, for sale by
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
44
the cooperative to them and also to non-members. There are 15.33% among the
respondents who are willing to join who wants to organize this type of cooperative. These
groups are among the housewives who want additional income aside from the monthly
wages of the spouses. Some also from the OFW dependents wants to join this type of
cooperative for a resourceful pastime.
Many (24%) from those who engages agricultural activities want to organize
Marketing cooperative especially the rice farmers for the reason that they want market
outlet of agricultural produce with reasonable prices. Some (20%) want a water service
cooperative for the distribution of potable water to the community. As to present, it is not
that much safe for the community to drink water from springs, because of pollution that
affects the cleanliness of the springs.
Investment
One of the requirements in organizing a cooperative is financial for it is the
backbone of production. Originally, organizing a cooperative requires Ᵽ25,000 and
members of 250 with Ᵽ100.00 cost per share but due to difficulties in reaching those
amounts to start its operation, it has reduced to Ᵽ5,000 and members of 25 and eventually
Ᵽ2,000 and 15 members. According to the new cooperative code, for a cooperative to be
registered, 25% of the authorized share capital shall be subscribed and at least 25% of the
total subscription has been paid, not unless for the cases that the paid up share capital is
less than Ᵽ15,000.
Table 13 presents that 40.67% are willing to invest Ᵽ1,500 followed by Ᵽ3,000
with 20.67%. Others want to invest Ᵽ5,000 for believing that the higher the investment,
the higher the benefit. Others want to try Ᵽ1,000 for starting and make up for the capital-
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
45
Table 13.Amount of investment
INVESTMENT (Php)
FREQUENCY PERCENTAGE
1,000.00
6 4.00
1,500.00
61 40.67
3,000.00
31 20.67
5,000.00
7 4.67
Capital build-up(Php)
200.00/yr
9 9.18
500.00/yr
64 65.31
1,000.00/yr
18 18.37
build-up. One responded to invest Ᵽ10,000 for the reason of helping in the capitalization
of the cooperative
Most (65.31%) of the respondents chooses Ᵽ500 for capital-build up every year
and 18.37% went for Ᵽ1000, others (9.18%) chose Ᵽ200 and few chose Ᵽ300. Others said
it depends if in case, with the availability of money they’ll have. There are some who
were uncertain and some said the topic will be discussed on an assembly and that’s the
time for decision making.
Willingness to be an Officer
Availability of qualified officers. Management constitutes the most important
factor in the success of a cooperative. Men of integrity and honesty are the proper
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
46
individuals who should manage cooperatives. In many instances, there are qualified
persons but they are not willing to serve in the cooperative. They would rather work in
commercial and industrial firms where salaries and fringe benefits are much higher. At
any rate, the cooperative Authority has a management program for improving the
competence of cooperative officers through trainings and education.
Table 14shows that among the 74% who are willing to join the cooperative,
26.13% signified interest to become an officer,16.22% wants to join the committee group
and 3.60% wants to become the chairman for wanting to share knowledge in leading.
Some wants to join the Board of Directors group and some volunteered themselves to be
secretary and treasurer for a reason of having experience on such positions.
The results revealed that respondents wanting for a position have each reason for
taking the position but most wanted to help for the success of the organization.
Table 14. Willingness to be an officer
PARTICULAR FREQUENCY
PERCENTAGE
Willingness to be an officer
Willing
29
26.13
Not willing
80
72.07
Uncertain 2
1.80
Position want to take
Chairman
4
13.79
Committee
18
62.07
Treasurer
3
10.34
Reasons taking the position
To help in the success of the cooperative
15
51.72
To share my knowledge in leading
8
27.59
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
47
Potentials and Hindrances in
Organizing a Cooperative
Majority (86%) of the respondents agreed that there is a potential of organizing a
cooperative in the community. Although, some (9.33%) do not agree with the idea due to
believing that cooperatives are not financially strong and will not succeed. Many
(21.43%) among those who are not willing do not trust cooperatives because on their
experiences in affiliating cooperatives before.
Through cooperatives, the rural people can secure credit at very low interest rate.
They can use their cooperative loans for putting up their micro-businesses, such as
backyard piggery, poultry, garden, and other producing activities.
In addition, their
production inputs, like fertilizer, seedling, chemicals, etc., can be purchased on a
wholesale basis by the cooperative. This reduces production expenses. Likewise,
products can be sold direct to the buyers. This means higher prices for their goods than
those offered by traders or middlemen (Fajardo and Abella, 1999).
Majority (63.57%) from the respondents who agreed in the potential in organizing
a cooperative in the area said that the organization will be a great help for the community
financially. Some(27.13%) said the cooperative will enhance people’s living through its
programs and few (16.28%) agreed it will reduce marketing cost through transportation
and other marketing strategies.
Many (38%) of the respondents mentioned that people in the community does not
cooperate that much and it can hinder the organizing of cooperative. Some are busy to
attend meetings, others busy making a living and others cannot volunteer for an activity
which can be helpful to the organization. Some (16%) said, political issues can be a cause
for a cooperative not to be succeeding. There are few (12.67%) who value the peace and
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
48
order to be one of the hindrances for the organization to establish. The barangay cannot
still control the cases of stealing in the community although it’sminimal. Few (10%) are
already dismayed with their previous experiences before. There are also some who said
there will be no one who will manage the cooperative and it will hinder the organizing of
the said organization because no one will lead in the first place. Some also said that there
is no potential due to lack of knowledge about the true management of a cooperative.
Despite the negative thoughts of majority of the respondents, 6% said there’s no
hindrance in organizing a cooperative in the area, as long as there is unity and there is an
organizer who will guide what to do.
Table15.Potentials and hindrances of organizing a cooperative
POTENTIALS
FREQUENCY PERCENTAGE
Yes
129 86.00
Reasons
The organization will be a great help in
82 63.57
terms of financial assistance
As meeting place for consultation for
13 10.08
improvement of production and
marketing system
The organization will enhance
35 27.13
community people's living through its
programs
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
49
Table 15. Continued…..
PARTICULARS FREQUENCY
PERCENTAGE
No 21
14.00
Reasons why not agree
No trust on a cooperative
3
21.43
Cooperatives are not financially
5 35.71
Strong
It will not succeed anyway
6
42.86
Hindrances
Issues on peace and order
19
12.67
Political issues
24
16.00
There's no cooperation among
57 38.00
community people(walangpaki-
alaman system
Phobia on failure of the
15 10.00
organizations people affiliated
before
No sufficient knowledge about
5 3.33
such organizations
Financial problems
2 1.33
Nobody will manage
5 3.33
Competition
5 3.33
No hindrance
9 6.00
*Multiple response
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
50
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study was conducted to analyze diagnostically the potentials of organizing a
cooperative in Labayug, Sison, Pangasinan.
The respondents of this study were the community people, who were at legal age
and have his/her own source of living to be considered as potential member. A total of
150 persons served as respondents through survey and personal interview.
Majority of the respondents were married, females and middle aged and
undergone formal education. Majority of them finished high school and there are few
who only stepped elementary though some graduated college. Agriculture is the major
source of income in the area. They engaged in farming, mostly of vegetables and few
took care of animals. Some works at NCC Corporation, and other private
agencies.Majority also have an annual income of Ᵽ100,000 and below. Fewer are not
affiliated with any of the organizations and majority of those affiliated are involved in an
association.
Majority of the respondents are slightly knowledgeable about what cooperative is
all about. They only knew cooperative as business enterprise which procures goods and
services and offers loans and savings. There are only few who were not aware about
cooperatives. Mostof them learned about it from their relatives and friends who are
involved with such kind of organization wherein the cooperative services they’re aware
of are loans and savings and selling of commodities. Most said that they need a
cooperative that offers loans and savings to help them in their financial problem, they
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
51
also said that they need additional income such as livelihood. Also they need discounts
for commodities because as of present prices are already high.
Majority were also willing to join if in case there will be a cooperative to organize
due to believing that it will be a great help for them in terms of financial and the
organization will enhance their way of living through the programs. Majority also want to
avail services and benefits such as patronage refunds and dividends every year end and
for loans and saving purposes. Those who are not willing reason out that they don’t know
about cooperatives, according to them they’ll be joining if the organization will already
be established.
Credit cooperative ranks first in the community people’s choice of what type of
cooperative they want to organize followed by consumers’ cooperative and majority
chosen Ᵽ1,500 to be their initial investment and Ᵽ500 for capital build-up. Few only
volunteered their selves to be one of the officers. Majority of them wants to be with the
committee group for the reason they wanted to share their knowledge in leading and
some wants to share their knowledge in leading.
Majority agree that there is a potential for a cooperative to be organized in the
community except for those who already dismayed from their previous experiences and
for those who are not aware of the benefits and services of such organizations.
Conclusions
Based from the result the following conclusions were drawn:
1. Majority of the respondents were affiliated with an organizations, thus they’ll
have a little knowledge about how cooperative works.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
52
2. The community people areslightly and moderately aware of a cooperative and
its services and benefits from being involved, that affects their perception about such
organizations.
3. The community had already a cooperative before where majority of the
respondents learned about it.
4. NCC Corporation has a cooperative at present where few of the respondents
were member, yet the membership was exclusive only for the regular employees.
5. Majority were willing to involve in the organizing of a cooperative for financial
services and source of low cost of commodities.
6. Majority who wants to join the cooperative wants to avail services such as
loans and savings and benefits such as patronage refunds and dividends every year end.
7. Majority from those who are willing to join the cooperative invests Ᵽ1,500
initially and agrees for Ᵽ500 per year for the capital build-up.
8. Majority from those who want to become officers chosen the committee group
for the position for the reason that they want to help in the success of the cooperative.
9. Most of the respondents agree that there is a potential of organizing a
cooperative in the area for the reason that it will be a great help for them financially and it
will enhance their way of living through its programs.
10. Majority from the respondents said that cooperation among the community
people will be a problem in organizing a cooperative in the community aside from the
issues on politics though few said that it has no hindrance in the organization of the
organization.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
53
Recommendations
Based on the findings, these are the following recommendations;
Since majority of the respondents were willing to join a cooperative, information
dissemination about the cooperative shall be conducted to the community(Pre-
membership Education Seminar), discussing essentially the principles and practices,
objectives and purposes of cooperatives, the importance of cooperative in the community
development, policies and identified need and how cooperative would address it.
Most of the respondents preferred a cooperative with loan and saving purposes
thus a Credit Cooperative is suitable to organize in the area for starting, and then convert
to a Multi-purpose Cooperative the time the cooperative will be well established to
address the other needs of the community such as low prices of goods for consumers
cooperative or contributor for the community peoples’ additional income (Producers
Cooperative).
To complement the information dissemination, steps on organizing a cooperative
will be continued since potential members were already surveyed. Develop a feasibility
to study deeper on the opportunities and obstacles that might make or break the proposed
cooperative, develop business plan for support documentation for potential members,
financial institutions and other investors then develop legal
documents,seminar/workshops on the organization, registration, and management of a
cooperative shall be launched by theconcerned organizations/agency. It will be attended
by willing community people to be a member.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
54
LITERATURE CITED
ANONYMOUS. 2008. Why Start a Co-operative? Retrieved August 15, 2011 from
http://www.creatives.uk.coop/why-start-co-operative
ANONYMOUS. 2009. Significance of Cooperatives. Retrieved July 25, 2011.from
http://www.un.org/esa/socdev/social/cooperatives/documents/survey/background
ANONYMOUS. 2010. Explain the Importance of Cooperative Society? Retrieved
November 14, 2011 from http://www.blurtit.com/q1972739.html
ANONYMOUS. 2010. Who Sparks a Cooperative? Retrieved July 25,
2011.Http://www.vaticproject. Blogspot.com/2010/10/taking-back-control
DE LEON, H. S. 1998 Textbook on Agrarian Reform and Taxation (with Cooperatives)
11th Edition.Rex Book Store, Manila, Philippines. Pp. 340-346.
DOGARAWA, A. B. 2005. The Role of Cooperative Societies in Economic
Development. Retrieved November 14, 2011 from http://mpra.ub.uni
muenchen.de/23161/1/MPRA_paper_23161.pdf
FAJARDO, F. and F. ABELLA. 1999. Cooperatives 4th edition. Rex Book Store
Incorporation. Pp. 34-35,50,52-54,237-240
GARCIA, J. K. 2009. “Potentials of establishing a laboratory Cooperative in La
Trinidad Benguet”.Thesis.Benguet State University La Trinidad, Benguet. P. 10.
GERTLER, M. 2001. Rural Co-operatives and Sustainable Development, Saskatoon SK:
Centre for the study of Cooperatives, University of Sasktchewan
HENEHAN, B. 1997. Cooperating for Sustainability, USA: Cornell University
KETILSON,L. H. 2001. An Economic Impact Analysis of the Co-operative Sector in
Saskatchewan: Update 1998. Retrieved November 14, 2011 from
http://usaskstudies.coop/?page_id=80
LEVIN, M. 2002. The promotion of cooperatives, ILO cooperative branch. Retrieved
November 14, 2011 from www.ica.coop/europe/ra2002/speech
MARCELINO, M. B. 2010. “Assessment on socio-economic impact of BenteoTimpuyog
Credit Cooperative (BENTICCO) in Atok, Benguet”.Thesis. Benguet State
University La Trinidad, Benguet. Pp. 8-9.
ONAGAN, L., SIMANGON, J., and M. ESGUERRA. 1973. Cooperatives. L.D. Onagan
and Sons Pubishers Quezon City, Philippines. Pp. 224-230.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
55
PASCIAN, J. A. 2010. “Cooperative leaders perception on potentials of agricultural
marketing cooperatives in La Trinidad, Benguet”. Thesis. Benguet State
University La Trinidad, Benguet. Pp. 1, 10-11.
PIMENTEL, A. Q. 1996. A Handbook with Case of Citations on Cooperatives.White
Orchids Printing and Publishing Company. Pp. 49-51
RAPP, G. and G.ELY. 1996. Cooperative Information Report. Retrieved July 25, 2011
from http://www.rurdev.usda.gov/rbs/pub/cir7/cir7rpt.htm
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
56
APPENDIX A
Letter to the Barangay Head
Department of Agricultural Economics and
Agribusiness Management (DEAEM)
Benguet State University
La Trinidad Benguet
December 2011
Hon. Richard Denver Deli
Barangay Chairman
Barangay Labayug, Sison, Pangasinan
Sir:
Warm greetings!
I am a student of Benguet State University taking up Bachelor of Science in Agribusiness
major in Cooperative Management. I am presently conducting a research titled
“Diagnostic Analysis on the Potentials to Organize a cooperative in Labayug, Sison,
Pangasinan” as a requirement for the degree.
In connection, may I request permission to conduct my study and float questionnaire to
the community members. Rest assured that the data to be obtained from you will keep
confidential.
Thank you for your kind consideration.
Respectfully yours,
ANNALISA T. CAMODA
Researcher
Noted:
LEOPOLDO N. TAGARINO
Adviser
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
57
APPENDIX B
Letter to the Respondents
Department of Agricultural Economics and
Agribusiness Management (DEAEM)
Benguet State University
La Trinidad Benguet
December2011
Sir/Madam:
Warm greetings!
I am a student of Benguet State University taking up Bachelor of Science in Agribusiness
major in Cooperative Management. I am presently conducting a research titled
“Diagnostic Study on the Potentials to Organize a cooperative in Labayug, Sison,
Pangasinan” as a requirement for the degree.
In connection, may I request your cooperation in answering the attached questionnaire.
Rest assured that the data to be obtained from you will keep confidential.
Thank you for your kind consideration.
Respectfully yours,
ANNALISA T. CAMODA
Researcher
Noted:
LEOPOLDO N. TAGARINO
Adviser
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
58
APPENDIXC
Survey Questionnaire
Respondent No: ___________
Date: ___________________
Category of Respondents:_____________________
A. Profile of Respondents
1. Name of Respondent: ______________________________________
Age: ______
Gender: __ M __F
Civil Status: _S _M _W _Separated
No. of Members living in the household: ____________
Position in the Family:
___ Family head
___ Mother __ Child
__Breadwinner ___
In-laws
___Grandchild/
parents
Occupation: _______________________________
2. Educational Background: (please Check)
____ No Formal Education
____ Elementary Graduate
____ Elementary Undergraduate
____ High School Graduate
____ High School Undergraduate
____ Vocational Graduate
____ Vocational Undergraduate
____ College Graduate
____ College Undergraduate
3. Organization Affiliation
a. Are you a member of any organization?
___ Yes ___ No
b. If yes, what type of organization?
___ Cooperative (what type of cooperative) ____________________
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
59
___ Association (Name of association) _____________
c. What position are you holding?
__ Member, how many years have you been a member? ___
__ Officer, what position and how many years have you been in that position? __
4. What are the sources of income of your family?
Farming:
___rice __vegetables
__Fruits
Animal Raising: ___piggery
__poultry __cattle
raising __goat
raising
Employment: ___teaching
__ office works
___others, specify; ________
Skilled Works: ___carpentry
__ driving
___others, specify;________
Other sources: ___ buy and sell (animals, vegetables, junks and others)
___ franchise dealer (ex. Avon, Natasha and others)
___ sari-sari store/bakery
___ rentals (Boarding house)
___Selling (of Halo-halo, fishballs, balut and others)
___others,
specify;_________________________
5. Household income per annum (Php):
____ below 100,000
____100,001 – 200,000
____ 200, 001 – 300,000
____ 300,001 and up…
B. Perceptions about Cooperatives
What is your perception about a cooperative?
Particulars
5 4 3 2 1
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
60
a. Organized of people with common needs
b. An organization that deals mainly with its members
c. An association of people that engages business
activities
d. An organization that develops expertise and skills
among its members
e. An organization that provides goods and services to
members
f. An organization that offers loans
and
savings
g. Sources
of
income
h. Sources
of
capital
i. Others, specify;
Legend:5- excellent
4- good knowledge
3- fair knowledge
2-
little
Knowledge
1-
no
knowledge
C. Awareness on what cooperatives can provide.
1. Are you aware about cooperatives?
__Yes
__No
2. If yes, where did you learn about cooperatives?
___ In school
___I have joined with such organizations before
___I learned it from relatives/friends who are members of such organizations
___others, specify; ______________________________________________
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
61
3. What services of a cooperative are you aware of?
Particulars
5 4 3 2 1
Procures good and services
Loans
and
savings
Sales of production inputs and markets
the
products
Undertake production and processing of raw materials
into finished products marketed by the coop to members
and non-members
Others,
specify;
Legend:5-very strongly aware
4-strongly aware
3-moderately aware
2-slightly
aware 1-not
aware
4. What do you think a cooperative can offer to you?
Particulars
5 4 3 2 1
For
Savings
and
Loans
For
discounts
Provides
Charity
For
additional
income
Provides
work
Others;
Specify:
Legend:5- very strongly needed
4- strongly needed
3- fairly needed
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
62
2 – slightly needed
1- not needed
D. Willingness to join a cooperative and the type of cooperative want to organize.
1. If there will be a cooperative to be organize here in your community, are you willing
to join?
__Yes __No
2. What services are you willing to involve in the cooperative.
Particulars
5 4 3 2 1
As market outlet of agricultural products with fair
prices
As source of financial services with low interest
As source of consumer goods
As source of potable water for the community
As conduit of external support programs from
government and NGOs
Others,
Specify:
Legend:5- very much willing
4- Very willing
3- moderately willing
2- slightly willing
1- not willing
3. What type of cooperative do you want to organize? (please choose at least two)
Credit Cooperative ____
Consumers Cooperative ____
Producers’ Cooperative ____
Marketing Cooperative ____
Water Service Cooperative ____
others, specify: ________________
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
63
4. If yes, in what purpose? (Please choose at least two)
___To have additional knowledge about a cooperative
___To take part and learn in the cooperative Activities
___To avail services and benefits of the Cooperative such as patronagerefunds and
dividends every year end
___For loan and saving purposes
___To develop leadership skills and social skills
___Others, Specify: _________________________________
5. If no, why?
__I don’t know about cooperatives
__I just don’t like to join
__Cooperatives are just another organization that won’t last
__ Others (pls. specify) _______________________________________
6. If yes, how much are you willing to invest, initially?(Please Check)
___Php. 1,500.00
___ Php. 3,000.00
___ Php. 5,000.00
___ Others; Specify: ____________
7. How about for capital build-up?
__ Php. 500.00/year
__ Php. 1,000.00/year
__ Others, Specify; ______
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
64
8. In case there will be a cooperative to organize, would you want to be an officer?
___Yes
___
No
9. If yes, what position would that be?
__ Chairman
__ Committee
__Treasurer
__ Secretary
__ Others, specify;_______________
10. In what reason you want to take that position?
____ to help in the success of the cooperative
____ to share my knowledge in leading
____ to know more the concept about cooperative
____ others, please specify ___________
E. What do you think of the possible hindrances on organizing a cooperative on your
community?
____ Issues on peace and order
____ Political issues
____ There’s no cooperation among community people (walangpaki-alaman system)
____ Phobia on failure of the organizations people affiliated before
____ Others, specify; ________________________________________________
F. Potential of the organizing of Cooperative in the area.
1. Do you think establishing a cooperative is possible in your community?
__Yes
__No
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
65
2. If yes, how do you say so?
___the organization will be a great help in terms of financial assistance
___it will reduce marketing cost through transportation and other marketing
Strategies
___ as meeting place for consultation for improvement of production and
Marketing system
___ the organization will enhance community people’s living through its programs
___ Others, specify; ___________________________________________
3. If no, why?
__No trust in the cooperative
__Cooperatives are not financially strong
__It will not succeed anyway
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
CAMODA, ANNALISA T. APRIL 2012.A Diagnostic Analysis on the Potential to
Organize a Cooperative in Labayug, Sison, Pangasinan.Benguet State University, La Trinidad,
Benguet.
Adviser: Leopoldo N. Tagarino
ABSTRACT
The study was conducted to determine the Potentials of organizing a cooperative in the
Labayug, Sison, Pangasinan and aimed to determine the perception of the community people
about a cooperative, the need to the area addressed by a cooperative, the level of awareness on
the benefit derive from, their degree of willingness to join a cooperative, the type of a
cooperative to organize and the possible constraints to organize a cooperative in the area.
The respondents of the study were of 150 individuals who are categorized according to
their sources of income, whether on agricultural base, employees, skilled works (laborers), small
entrepreneurs such as sari-sari store owner and vendors and OFW dependents. A survey
questionnaire was distributed to the respondents to gather information complimented with either
personal interview or focus group discussion and data were analyzed through frequency counts,
percentage and mean.
Many of the respondents were housewives, female and married thus the result indicated
that most have a family to support. All of the respondents had undergone formal education
wherein many only finished high school. Most of the respondents were engaging in agricultural
activities wherein most are vegetable gardeners and majority earns Php.100, 000.00 and below a
year.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan/Annalisa T. Camoda. 2012
Based on the results most of the respondents have a little knowledge about what
cooperative is all about wherein opinions were based on the cooperatives which have organized
in the community before, and on the cooperative NCC corporation employees organized.
Respondents’ level of awareness was limited with cooperative services such as loans and
savings and provider of low cost of goods and services that affects the choices on what type of
cooperative respondents to join with.
Most of the respondents were willing to join a cooperative for a reason that the
organization will be great help for the community in terms of financial assistance. The results
revealed that credit cooperative was the first choice of community people to organize. Majority
were willing to invest Php. 1,500.00 initially though many want for a bigger investment such as
Php. 3, 000.00 and a capital build-up of Php. 500.00 every year ends.
Only few volunteered for having a position of officers for reason of helping in the
success of the cooperative. Some reason out that officers are to be voted, and not just because of
volunteerism.
Majority from the respondents agreed putting up a cooperative in the area has a potential
though the plan have to undergo some rough situations because respondents believed that
community people are not that cooperative and some thought a little knowledge about a
cooperative is not enough reason to join.
Based on the findings, majority form the respondents were willing to join a cooperative,
thus information dissemination shall be conducted to the community discussing the identified
need and how cooperative would address it. And it is recommended for the community to
organize a credit cooperative since it is the majority’s choice.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan/Annalisa T. Camoda. 2012
TABLE OF CONTENTS
Page
Bibliography............................................................................................................ i
Abstract …………………………………………………………………………………
i
Table of Contents ...................................................................................................
iii
INTRODUCTION………………………………………………………………... 1
Rationale....................................................................................................
1
Importance of the Study............................................................................
2
Statement of the Problem..........................................................................
2
Objectives of the Study.............................................................................
3
Scope and Delimitation of the Study........................................................
3
REVIEW OF LITERATURE……………………………………………………..
4
Cooperative Defined ................................................................................
4
Cooperative
Objectives............................................................................ 4
Significance of Cooperatives...................................................................
4
The Role of Cooperatives in Community Development..........................
5
The Role of Cooperatives in Economic Development..............................
6
Opportunities Offered by Cooperatives....................................................
8
Types of Cooperatives...............................................................................
9
Why Organize a Cooperative?..................................................................
12
Cooperative Purposes…………………………………………………………………………
13
How to Organize a Cooperative?..............................................................
15
Requirements for Organizing a Cooperative...........................................
16
Who Sparks A Cooperative?......……..………………………………….
17
Importance of Cooperatives..……………………………………………
18
Membership on a Cooperative…..………………………………………
19
Organizing Steps………………………………………………………...
19
Developing Realistic Objective………………………………………….
22
Definition of Terms ..................................................................................
23
METHODOLOGY……………………………………………………………...... 24
Locale and Time of the Study ..................................................................
24
Respondents of the Study .........................................................................
24
Data Gathering Procedure ........................................................................
24
Data to be Gathered .................................................................................
24
Data Analysis ...........................................................................................
25
RESULTS AND DISCUSSION…………………………………………………………. 26
Location Map …………………………………………………………………..
26
Profile of the Respondents …………………………………………………….
26
Organization Affiliation ……………………………………………………….
30
Sources of income …………...…………………………………………….......
32
Household income per Annum ……………………………………………......
33
Perception of community people towards Cooperatives ………………………
34
Awareness about Cooperatives............................................................................ 36
Awareness on What Cooperatives can Offer………………………………….
37
Perceived Cooperative Services ……………………………………………….
38
Willingness to Join a Cooperative ……………………………………………..
40
Involvement in Cooperative Services ………………………………………….
41
Choice of Cooperative Type …………………………………………………..
42
Investment
……………………………………………………………………..
44
Willingness to be an Officer ………………………………………………......
45
Potentials and Hindrances of Organizing a Cooperative ………………………
47
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS ………………………
50
Summary
……………………………………………………………………….
50
Conclusions
…………………………………………………………………….
51
Recommendations
……………………………………………………………..
53
LITERATURE CITED ..........................................................................................
54
APPENDIX……………………………………………………………………….
A. Letter to the Barangay Head.......................................................
56
B. Letter to the Respondents ...................................................................
57
C. Survey Questionnaire ........................................................................
58
1
INTRODUCTION
Rationale
A cooperative is a special case of enterprising. At the risk of oversimplifying, it is
useful to review the general structure of enterprising according to today's economic
theory. Here in our country, despite its positive prospects in economic development, is
seriously confronted with the continuing problems of poverty and income inequality.
People empowerment is indeed the correct approach in solving these twin problems of
poverty and income inequity. Cooperatives and other labor enterprises are among the
major pillars of the people empowerment movement. This empowerment movement,
which is now known as the civil society movement, aspires for a strong pro-people mixed
economic society where the state, private and civil society sectors are cooperatively
harnessed in the development efforts of the society.As a business, a cooperative is subject
to the needs and demands of any business, cooperatives require sufficient financing and
comprehensive planning, and well-trained and competent personnel. Cooperatives are
vulnerable to the same kinds of market and economic forces that are faced by all
businesses. But in many ways, cooperative are also unique and different(Pascian, 2010).
Barangay Labayug is the 8th largest barangay with an area of 3.30 square
kilometer and has the 3rd largest population people among the 28 barangay of Sison,
Pangasinan. It is actually located before the Northern Cement Corporation Compound
where some of the community people are working for their living. Another source of
income in the area is farming,there are little who depend their living on a sari-sari
store,and other small businesses.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
2
The people in the community belong to different cultures. The original settlers are
Ilocano’s and others came from different areas here in the Philippines, mostly from the
south. They resided in the said area because of Northern Cement Corporation where in
they work for living.
Labayug has ahousehold of 638.The people especially the officials were working
for the better economy of the community.There is no cooperative in the area,which will
be a help to the community to their economic progress, andthus a good study for someone
to conduct if there is really a potential of organizing such organization, because there are
some community members who have a little background on it, yet they cannot pursue the
organizing since they are not sure if their co-members will support it, another problem is,
what type of cooperative would be organized.
Importance of the Study
This study was conducted with the hope that it will bring benefit to the researcher,
and the community.
The researcher gain essential knowledge about research and about organizing
cooperatives. The study also provides information to the community members that
organizing a cooperative if viable or feasible and if will rush through will have a great
help to the economic upliftment of the whole community. The results can also be used as
a reference for researchers who would be conducting research of the same line of interest.
Statement of the Problem
This study seeked to answer the following questions:
1. What is the perception of community people about a cooperative?
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
3
2. Are community people aware of the benefit a cooperative can give?
3. Are community people willing to join if a cooperative will be organized?
4. What type of cooperative do community people want to organize?
5. What are the possible constraints in the organization of a cooperative in
Labayug, Sison, Pangasinan.
Objectives of the Study
This research study aimed to:
1. Determine the perception of communitypeople about a cooperative.
2. Determine the awareness of community peopleon the benefits a cooperative
can provide.
3. Identify the people who are willingto join if there will be cooperative to
organize.
4. Identify the preferred type of cooperative the community wants to organize.
5. Determine the possible hindrances or constraintsto organizea cooperative in
Labayug, Sison, Pangasinan.
Scope and Delimitation of the Study
The study focused on the perception on cooperative by the community
members,the needs, their interest in organizing a cooperative in their community and the
possible constraints that may affect the possibility of organizing a cooperative in the
community.These variables were used in the analysis on the potential of organizing a
cooperative in the area.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
4
REVIEW OF LITERATURE
Cooperative Defined
It is a business owned and controlled by the people who use its services. They
finance and operate the business or service for their mutual benefit. By working together,
they can reach an objective that would be unattainable if acting alone (Rapp and Ely,
1996).It is an association of persons with common interests not capital. It begins with the
people who wish to provide themselves with goods and services they need (Fajardo and
Abella,1999).
Cooperative Objectives
According to De Leon (1998), the primary objective of every cooperative is to
provide goods and services to its members and thus enable them to attain increased
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 without, however, conducting the affairs of the
cooperative for eleemosynary or charitable purposes. A cooperative shall also provide
maximum economic benefits to its members teach them efficient ways doing things in a
cooperative manner and propagate cooperative practices and new ideas in business and
management and allow the lower income groups to increase their ownership on the
wealth of the nation.
Significance of Cooperatives
Anonymous (2009),cooperatives as economic enterprises and as self-help
organizations,play meaningful role in uplifting the socio-economic conditions of their
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
5
members and their local communities. Over the years, cooperative enterprises have
successfully operated locally owned people centered businesses while also serving as
catalysts for social organization and cohesion. With their concern for their members and
communities,they represent a mode of economic enterprise that places high regard for
democratic and human values and respect for their environment. As the world today faces
unstable financial systems, increased insecurity of food supply, growing inequality
worldwide, rapid climate change and increased environmental degradation, it is
increasingly compelling to consider the model of economic enterprise that cooperatives
offer. The cooperative sector, especially in developing countries, also presents itself as an
important element that can contribute to the realization of the Millennium Development
Goals(MDG’s) by 2015.
The cooperative enterprise is also relevant in addressing the problem of food
security. The cooperative enterprise also presents an important model as many of the
world’s poorest and disadvantage face social exclusion, lack of access to opportunities
and growing economic inequality. As the uneven effects of globalization have led to a
rise in the unregulated informal economy, workers in the informal sector have formed
shared service cooperatives and associations to assist in their self-employment.
Cooperatives may not be the solution to the world’s problems, but they are
certainly part of the solution. An International Year of Cooperatives can firm up the
international will to strengthen cooperatives and in so doing help achieve MDG’s and
alleviate world crises (Marcelino, 2010).
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
6
The Role of Cooperatives
in Community Development
Community development is a way for the people in the community to work
together in order to build a better community and thereby improve the welfare of all. It is
a both product and a process. As a product, it involves specific projects and activities in
the community. And as a process, it is concerned with the method the people in the
community used to attack community problems and make the community a better place
to live in and raise children. Moreover, community development is primarily a self-help
process. Outside resources are only availed of by thee people if these are not available in
the community. The ultimate social objective of a cooperative is community building, the
same with community development. Both use the principle of self-help and involvement
in their methods of solving community problems. Moreover, both depend on cooperation
and teamwork in attaining their goals. Cooperatives are primarily concerned with the
development of human resources. The same is true with community development. Both
consider man as the most important resource and factor of development.
Through cooperatives, the rural people can secure credit at very low interest rate.
They can use their cooperative loans for putting up their micro-business, such as
backyard piggery, poultry, garden, and other income producing projects. This way, they
are no longer the customers of usurers. In addition, their production inputs, like fertilizer,
seedling, chemicals, etc., can be purchased on a wholesale basis by their cooperative.
This reduces their production expenses. Likewise, their products can be sold direct to the
buyers. This means higher prices for their goods than those offered by traders or
middlemen (Fajardo and Abella, 1999).
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
7
The Role of Cooperatives
in Economic Development
As cited by Dogarawa (2005) from various authors; cooperatives are community-
based, rooted in democracy, flexible, and have participatory involvement, which makes
them well suited for economic development (Gertler, 2001). Cooperatives are viewed as
important tools for improving the living and working conditions of both women and men.
Since the users of the services they provide owned them, cooperatives make decisions
that balance the need for probability with the welfare of their members and community,
which they serve. As cooperatives foster economics of scope and scale, they increase the
bargaining power of their members providing them, among other benefits, higher income
and social protection. Hence cooperatives accord members opportunity, protection and
empowerment- essential elements in uplifting them form degradation and poverty.
Cooperatives are specifically seen as significant tools for the creation of decent jobs and
for the mobilization of resources for income generation. Many cooperatives provide jobs
and pay local taxes because they operate in specifically geographical regions (Somavia,
2002). As governments around the word cut services and withdraw from regulating
markets, cooperatives are being considered useful mechanisms to manage risk for
members and keep markets efficient (Henehan, 1997). In number of ways, cooperative
play an important role in global and national economic and social development. With
regard to economic and social government, cooperatives promote the “fullest
participation of all people” and facilitate more equitable distribution of the benefits of
globalization. They contribute to sustainable human development and have an important
role to play in combating social exclusion. Thus the promotion of cooperatives should be
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
8
considered as one of the pillars of national and international economic and social
development (Levin, 2002).
Opportunities Offered by Cooperatives
As further stated by Fajardo and Abella (1999), cooperative provide all the
economic advantages and opportunities for the poor people to improve their conditions.
The government, through its agencies, extends financial and technical support to
cooperatives.
Form the book of Onaganet al (1973), they enumerated 3 major opportunities in
involving a cooperative. These are;
1. Opportunities for service. A cooperative, more than any other form of
enterprise, offers a wide range of opportunities. Showing members in a farmer’s
cooperative marketing association, for instance, the wisdom of holding their produce in
the cooperative warehouse until such a time when the price is at its highest, is a genuine
service that may be measured not only in terms of money but also in terms of welfare and
happiness for the members. Saving members in a credit union from the clutches of
usurers and freeing them from the fear of want and poverty cannot be measured in any
value. Leading consumers to economic sufficiency by providing the service at the same
time providing savings, thus increasing their purchasing power, is itself an unrequited
service. Organizing retailers into a cooperative in this country and freeing them from the
domination of foreign retailers is not a mere service. Cooperation among them would
allow them to control the channels from which their merchandise is procured and through
which they are distributed. This promotes the attainment of the aspiration of our people
for nationalism.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
9
2. Opportunities to earn a satisfactory income. A cooperator is an enterpriser
who is placed on competitive level that would enable him to produce with a surplus
income. His production is aided by his cooperative, which assists him in his financial,
production, and marketing problems. His effort is adjusted where it is best productive.
Wastes are eliminated. His initiative is given full sway, and his income may be measured
progressively in accordance with the effort and attention he puts in his enterprise.
3. Opportunities for employment. The business of cooperatives is expanding
steadily. More trained personnel’s are needed. A farmer’s cooperative needs a good
manager, two or three assistants, a marketing expert, a warehouse man, an assistant
warehouse man, credit man, merchandise manager, accountant and bookkeepers,
effective secretary and god public relations Officer and others. There is a need for
thousands of trained cooperators on different levels of agricultural and non- agricultural
cooperatives. For government bureaus and institutions charged with the promotion,
supervision and financing of existing cooperatives, such as Bureau of Commerce, the
cooperative Administration, Office, the Agricultural Office, the Agricultural Credit
Administration Office, the Agricultural Productivity Commission and others.
Types of Cooperatives
From Article 23 of the Cooperative Code 2008, these are the types and categories
of cooperatives:
1. Credit cooperative.One that promotes and undertakes savings and lending
services among its members. It generates a common poll of funds in order to provide
financial assistance and other related financial services o its members for productive and
provident purposes;
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
10
2. Consumers cooperative.The primary of which is to procure and distribute
commodities to members and non-members;
3. Producers cooperative.Undertake joints production whether agricultural and
industrial. It is formed and operated by its members to undertake the production and
processing of raw materials or goods produced by its members into finished or processed
products for sale by the cooperative to its members and non-members. Any end product
or its derivative arising from the raw materials produced by its members, sold in the name
and for the account of the cooperative, shall be deemed a product of the cooperative and
its members;
4. Marketing cooperative.Engages in the supply of production inputs to members
and markets their products.
5. Service cooperative.Engages in medical and dental care, hospitalization,
transportation, insurance, housing, labor, electric light and power, communication
professional and other services;
6. Multipurpose cooperative.Combined 2 or more of the business activities of
these different types of cooperatives;
7. Advocacy cooperative. Promotes and advocates cooperativism among its
members and the public through socially-oriented projects, education and training,
research and communication, and other similar activities to reach its intended
beneficiaries;
8. Agrarian reform cooperative.Organized by marginal farmers majority of
which are agrarian reform beneficiaries for the purpose of developing an appropriate
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
11
system of land tenure, land development, land consolidation or land management in areas
covered by agrarian reform;
9. Cooperative bank. Organized for the primary purpose of providing a wide
range of financial services to cooperatives and their members;
10. Dairy cooperative. Members are engaged in the production of fresh milk
which maybe processed and/or marketed as dairy products;
11. Education cooperative. Organize for the primary purpose of owning and
operating licensed educational institutions, notwithstanding with the provisions of
Republic Act. No.9155,otherwise known as the Governance of Basic Education Act of
2001;
12. Electric cooperative. Organized for the purpose of undertaking power
generation, utilizing renewable energy sources, including hybrid systems, acquisition and
operation of sub transmission or distribution to its household members;
13. Financial service cooperative. One organized for the primary purpose of
engaging in savings and credit services and other financial services;
14. Fishermen cooperative. One organized by marginalized fishermen in localities
whose products are marketed either as fresh or processed products;
15. Health services cooperative. One organized for the primary purpose of
providing medical, dental, and other health services;
16. Housing cooperative. One organized to assist or provide access to housing for
the benefit of its regular members who actively participate in the savings program for
housing. It is co-owned and controlled by its members;
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
12
17. Insurance cooperative. One engaged in the business of insuring life and
property of cooperatives and their members;
18. Transport cooperative. One which includes land and sea transportation,limited
to small vessels, as defined or classified under the Philippine maritime laws, organized
under the provisions of the cooperative code;
19. Water service cooperative. Organize to own, operate and manage water
systems from the provision and distribution of potable water for its members and their
households;
20. Workers cooperative. One organized by workers, including the self-employed,
who are at the same time the members and owners of the enterprise. Its principal purpose
is to provide employment and business opportunities to its members and manage it in
accordance with cooperative principles; and
21. Other types of cooperatives as may be determined by the Authority.
Why Organize a Cooperative?
Anonymous (2008), Cooperative is organized to improve community member’s
income or economic position or to provide a needed service. This may achieve through
one or more of the following:
1.Marketing
activities
a. Improve bargaining power. Combining the volume of several members
leverages their position when dealing with other businesses;
b. Reduce costs. Volume purchasing reduces the purchase price of
neededsupplies;
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
13
c. Earnings of the cooperative returned to individual members
lower their costs;
d. Obtain market access or broaden market opportunities. Value is added
to products by processing or offering larger quantities of an assured type and quality to
attract more buyers;
e. Improve product or service quality. Member satisfaction is built by
adding value to products; the cooperative provides and improves facilities, equipment and
services.
2.Purchasing Supplies/Services
a. Obtain products or services otherwise unavailable. Often provide
services or products that would not attract other private businesses;
b. Reduce Cost/Increase Income. Reducing the cooperative's operating
costs increases the amount of earnings available for distribution to members to boost their
income.
Cooperative Purposes
According to Garcia and Guanzon (2004), as cited by Garcia (2009), a
cooperative may be organized with at least only one purpose, depends on the type of
cooperative organized. Aside from the specific purpose for which a cooperative has been
set-up, it shall provide maximum economic benefits to its members, teach them efficient
ways of doing things in a cooperative manner, propagate cooperative practices and new
ideas in business and management, and allow the lower income groups to increase their
ownership in the wealth of this nation.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
14
Cooperatives provide greater benefits to the members such as increasing
individual income or enhancing a member’s way of living by providing important needed
services. For instance, it may be the vehicle to obtaining improved markets or providing
services of supplies or other services otherwise unavailable if members acted alone (Rapp
and Ely,1996).
From Pimentel (1996), there are 11 purposes of cooperative existence, these are
the following;
1. Thrift and savings. To encourage thrift and savings among members
2. Funds and credit. To generate funds and extend credit to their members for
productive and provident purposes.
3. Production and marketing. To encourage systematic production and marketing
among members.
4. Goods and services. To provide goods and services and other needs to their
members.
5. Expertise and skills. To develop expertise and skills among their members
6. Land and housing benefits. To acquire lands and housing benefits among
members.
7. Insurance. To insure against loses of their members.
8. Advance status. To promote and advance the economic, social and educational
status of their members.
9. Economic enterprises. To establish, own, lease or operate cooperative banks,
wholesale and retail complexes, insurances, agricultural or industrial processing
enterprises, and public markets.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
15
10. Coordination. To coordinate and facilitate the activities of cooperatives.
11. Effective implementation. To undertake activities for the effective and
efficient implementation of the provisions of the code.
How to Organize a Cooperative?
According to Fajardo and Abella (1999). Organizers have to determine first the
feasibility of establishing a cooperative in the community or institution. The following
essential requirements should be surveyed:
1. Felt need.There must be a reason for organizing a cooperative. Usually, a need
for a cooperative arises if existing business organizations in the community are inefficient
and abusive. Conditions, such as high interest rates, poor quality of goods and services,
high prices, financial, production, and marketing problems encourage the organization of
cooperatives. People like to buy better goods and services at reasonable prices. On the
other hand, producers want fair price for their products.
2. Volume of businesses. Sufficient volume of businesses is needed to pay the
fixed and variable costs of operations, such as rentals and salaries of employees. The
business men who have been exploiting the buyers would soon disappear in the market.
Thus, the presence of cooperatives checks the activities of loan sharks and profiteers.
3. Availability of qualified officers. Management constitutes the most important
factor in the success of a cooperative. Men of integrity and honesty are the proper
individuals who should manage cooperatives. In many instances, there are qualified
persons but they are not willing to serve in the cooperative. They would rather work in
commercial and industrial firms where salaries and fringe benefits are much higher. At
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
16
any rate, the cooperative Authority has a management program for improving the
competence of cooperative officers through trainings and education.
4. Adequacy of facilities. When starting up a cooperative, it is not advisable to
begin with a plush office and expensive facilities. Not a few business officers are prone to
display their powerand prestige. Such manifestation of ostentation should not take place
in a cooperative organization.as long as the available facilities are adequate to ensure the
efficiency of the business operations of the cooperative, then it will be good enough t
start a cooperative.
5. Opportunities for growth. A cooperative has to be dynamic in order to be able
to meet effectively changing needs and problems of its members and the community. It
has to expand and diversify its business operations. Organizers must have good feasible
plans for business expansion. A business organization which can easily serve the needs of
people for a brief and limited period is not desirable. It has to survive and be successful
for a long time.
Requirements for Organizing a Cooperative
1. Financial requirement. Financing is the backbone of production. The lack of it
places the enterpriser at a great disadvantage. He cannot get his materials at the right
quality and price he desires. He cannot employ labor. His product or service, in the
absence of research, may not be in accordance with consumer requirement. To promote
the sale of his product or service needs financing. Originally, financial requirement in
organizing a cooperative was Php. 25,000.00 and membership was 250. The value of one
share of stock was Php. 100.00. However, in view of the great difficulties of organizing
cooperatives, the defunct Bureau of Cooperatives Development has reduced it to at least
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
17
Php. 5,000.00 and membership of 25. At present, only 15 members and Php. 2,000.00 are
required to organize a cooperative (Fajardo and Abella, 1999).
2. Social requirement. Before joining, prospective members must have first a
clear understanding on the part of the members of what a cooperative is, how it operates,
and why is it organized. Then, they must be willing and able to participate intelligently,
support the organization with their resources and assume the responsibilities of being
members or officers. Also, a number of them must have at least some knowledge or
experience in running the business and in making sound managerial decisions. All of
these clearly point out that the prospective members must have certain skills and attitudes
and must be capable of sustained cooperative behavior, before they can be organized into
a cooperative.
3. Other requirements. Some of them are: an outstanding and lasting demand for
the services or goods which the cooperative may offer; substantial capital to begin and
maintain the business operations of the cooperative; and a large number of residents who
are willing to patronize the cooperative. The solution lies in preparing them for
membership in a cooperative by first organizing them into semi-cooperative groups and
organizations at the barrio-level. Given enough time, this measure is expected to fulfill
the social requirements of the organization of barrio residents into a cooperative. Later,
these groups and organizations can be brought into full-pledged cooperative at the multi-
barrio or municipal level. This measure in turn ensures that the economic requirements
for the successful operation of a cooperative are adequately met.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
18
Who Sparks a Cooperative?
Anonymous (2010), a compelling need and a few community leaders can spark
the idea of forming a cooperative. Usually these leaders have an economic need or desire
a service they believe a cooperative can provide .They also know others who have similar
interests.
As with any business, starting a cooperative will involve thorough and careful
planning. The responsibility for starting a cooperative and seeing it mostly relies to a
group. That group will serve as the “spark” to keep the new cooperative and help it
through the start-up phase. Careful planning, thorough work out, and patience will result
to a stronger foundation and increase the likelihood of cooperative success
(Pascian,2010).
Also, any individual can spark the idea of a cooperative and test the community's
possible participation level by getting the word out, maybe because he/she wants to
develop spirit of cooperation in a certain area, or to have that specific service needed in
that area.
Importance of Cooperatives
Cooperative societies are important in order to help organize mutual benefits.
Within a cooperative structured society in its original tribal form, jobs are allocated and
resources are exchanged among each other and trading is only done with external
communities. Now cooperative societies are extremely important in the savings market
and for mortgage and professional credit banks. Cooperative societies are business that re
set up by a number of individuals with the intention of gaining mutual benefits from
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
19
them. These societies are important to ensure that everyone who has put an investment
into them gets a fair and equal return (Anonymous, 2010).
Throughout the twentieth century, co-operatives have played an integral role in
the social and economic development of the country. Initial forms of co-operation have
evolved into an extensive network of co-operatives involved in a wide range of activities:
agriculture and resources, community development, recreation, child care and education,
wholesale and retail, financial, community service, and other types of co-operation. The
impact of co-operatives on communities is substantial, especially in the smaller centre’s,
where they ensure competitive prices and supply a wide range of services(Ketilson,
2001).
Membership on a Cooperative
According to De Leon (1998), any natural person, who is a Filipino citizen, a
cooperative or non-profit organization with juridical personality, shall be eligible to
become a member of a cooperative, if the applicant meets the qualifications prescribed in
the by- laws.
In cases of Primary cooperatives, only natural persons may be admitted as
members and they are residing or working in the area where the cooperative will operate,
and must be in legal age, unless for laboratory cooperative which may be organized by
minors (Pimentel, 1996).
Organizing Steps
As further stated by Rapp and Ely (1996), starting a cooperative is a complex
project. A small group of prospective members discuss a common need and develop an
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
20
idea how to fulfill it. Depending on the situation generating the idea, a new cooperative
maybe welcomed with enthusiasm or maybe met with vigorous competitive opposition.If
opposed leaders must be prepared to react to various strategies of competitions such as
price changes to retain potential cooperative member’s business; better contract terms or
cancelled contracts;attempts to influence lenders against providing credit; and even
publicity,misstatements, and rumors attacking the co-op business concept. Regardless of
the business climate for the proposed cooperative, leaders must demonstrate a
combination of expertise, enthusiasm, practically declination and determination to see
that the project is completed.
From Dogarawa(2005), like other business cooperatives start with the recognition
of a need or an opportunity. In fact, the economic motivation for starting a cooperative is
very much the same as for starting other business. Starting a new cooperative takes
energy and resources. By following a planed step-by step procedure, the process can be
completed in an efficient and timely manner. Because cooperatives are people-driven
organizations, the first key to their success is to identify individuals with like needs who
want to explore the feasibility of forming a cooperative business. The original group of
individuals is usually potential users of the cooperative. They often have leadership and
organizational skills. They organize informational meetings for other potential users and
discuss topics such as: how the proposed cooperative could meet identified needs,
cooperative operational practices, advantages and disadvantages of the cooperative
business structure, member investment and financial requirements, and members
commitment needed.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
21
He stated in his book that starting a cooperative involves the following steps,
these are:
1. Hold an organizing meeting; establish steering committee. A core group of
interested individuals should hold an informational meeting of potential cooperative
members and others in the community. The primary purpose of the meeting is to explain
the identified need and how a cooperative would address it. It is important that the group
come to general agreement on the nature and importance of the problem and the potential
for a cooperative to address it. Such an agreement will become the group’s shared vision,
so it is worth spending as much time as necessary to achieve it.
2.Survey on potential members. Under the guidance of the steering committee and
resource persons, potential cooperative members are surveyed. Topics include: need for
services, volumes to be purchased or marketed, willingness to join, finance, and use of
and familiarity with cooperatives.
3. Feasibility study of the business; then report on the results. The steering
committee can either conduct a feasibility study (using the guidelines provided), or hire a
consultant to carry out the study. The purpose of feasibility study is to examine critical
opportunities and obstacles that might make or break the proposed cooperative business.
The feasibility study should give the group a good idea of whether the cooperative is
likely to be successful as a business. The critical issues that a feasibility study analyzes
include the number and interest level of potential members; market issues (can the
cooperative get better prices, better quality or better services than potential members
currently get through other means?); operating costs; start-up costs; and availability of
financing.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
22
4. Develop a business plan. If the feasibility study results are favorable, the
steering committee carries out or hires a consultant firm to develop a detailed business
plan. The business plan serves two primary purposes: to provide a blueprint for the
development and initial operation of the cooperative and to provide supporting
documentation for potential members, financial institutions and other investors.
5. Develop legal documents. Under the guidance of professional advisors, the
steering committee should draft legal documents for approval by prospective members.
These documents are: articles of incorporation; bylaws and other legal documents.
6. Secure financing for the cooperative. Cooperative businesses vary greatly in the
amount of capital they need to get up and running. The business plan should include the
amount and type of financing needed by the cooperative and a strategy for obtaining it.
The steering committee and its advisors are responsible for implementing this strategy.
7. Recruit members for the cooperative. During their organizational phase, many
cooperatives hold meetings for potential members, conduct surveys and mail organizing
updates to them, and collect initial down payments on membership fees. All of these
activities provide a good indication of the level of interest in, and commitment to, the
cooperative.
8. Hold cooperative’s first membership meeting; Hire management and staff.
After financing has been secured and sufficient members have signed up, the first general
membership meeting is convened.
9. Start cooperatives. The directors must acquire the necessary facilities for
business operations. Actual operations may begin after all facility transactions are
completed and the manager has hired the needed complement of employees.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
23
Developing Realistic Objectives
Anonymous (2010), the rural population of the developing world is often not
aware of the potentials and possibilities that cooperative offer. Thus information from
external sources could be the key to getting things moving. This kind of information can
be of great importance in the choice and evaluation of objectives and targets the first step
in establishing a cooperative project. The process has three integrated components, which
are to:
1. Develop a technical description of possible targets;
2. Inform potential participants about the possible benefits to an input required
from those taking past;
3. Conduct a search for local leaders.
Definition of Terms
Potentials.Indicating the possibility of putting up a cooperative in an area
Perception. Thoughts or ideas of individuals in the community about a
cooperative
Awareness. Familiarity of community members of what a cooperative is and how
it operates
Diagnostic. A study wherein the researcher analyze the area out of the situation, is
there really a potential of organizing a cooperative, and what to put up
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
24
METHODOLOGY
Locale and Time of the Study
The study was conducted in Labayug, Sison, Pangasinan, and conducted on
January- February 2012.
Respondents of the Study
The respondents were the community people who are at legal age and have
his/her own source of living to be considered as potential member. They were classified
or categorized according to source of income. They may be agricultural dependents that
can be from farming or animal raising, dependents of OFW, small entrepreneurs, laborers
from NCC and employees either from government or private entities.150 individuals
which represent one member per householdwere randomly chosen as respondents in this
study.
Data Gathering Procedure
A request letter wassent to the barangay head. A survey questionnaire and a data
sheet were distributed to the respondents to gather information complimented with either
personal interview or focus group discussion for validation.
Data to be Gathered
The data gatheredwere the perception of the community people about a
cooperative, the need to the area addressed by a cooperative, the level of awareness on
the benefit derive from, their degree of willingness to join the cooperative, the type of a
cooperative to organize, and the possible constraints to organize a cooperative in the area.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
25
Data Analysis
The data gathered wasanalyzed using descriptive method like percentage,
frequency counts and mean.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
26
RESULTS AND DISCUSSION
Location Map
Figure I shows the map of the community where the study was implemented.
Labayug consist of 3.30 km2and contains for about more than 600 households. Houses
were grouped on the center of the community wherein the community people called
Barrio. Most of the houses were built along the road side, althoughsome chose to build
their houses on the farm. Community people on the part near the bridge were those
depends their living on non-agricultural works such as skilled works and others are those
who works from NCC Corporation while those who lived in the barangay central mostly
depend their living on Agriculture. National highway is about 2- 3 kilometers from the
area. Anyone can arrive at the place through a jeepney or tricycle within 12-15 minutes
from the National Highway.Products were sold in the nearby town Pozorrubio where
basic necessities were bought.
The community is just in the vicinity of NCC Corporation compound. The
company has a multi- purpose cooperative organized by the employees. The credit
cooperative office is located on the company compound while the Consumers grocery
store is located in the nearby barangay the reason why employees living in the area did
not join the organization.
Profile of the Respondents
Table 1 presents the profile of the respondents. The profile includes the age,
gender, marital status, household size, position in the family and educational background
of the respondents.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
27
PM
Figure 1. Location Map
Legend:
- House
- Church
- Cemetery
- Rice field
-Public Market
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
28
Age.Many (38%) of the respondents aged between 31-45 years old followed by
the age bracket 20-30 years old with 31.33%. The age bracket of 46-60 was next with
29.33% while the 61 years old and above age were the least in number with 1.33%. The
results show that many were of middle aged individuals.
Gender. Majority of the respondents were female with 58% but not that far with
male respondents with 42%.
Civil status. Majority of the respondents (74.67%) were married followed by
singles with 18.67%with least (1.33%) were separated. Therefore this indicates that most
of them support their families.
Household size.The results shows that majority of the respondents (59.33%) have
a household size of 1-5 person living with the family, many (37.33%) have 6-10 heads
and there were few (3.33%) whose household size of 11 persons and over.The results
indicated that the household size in the area was large.
Position in the family.Many (47.33%) of the respondents were housewives who
were busy in keeping the household, some (36.67%) are family heads wherein mostly
are the fathers who works for family, though some are mothers who are widowed who
headed the family.Few (16%) who let the child answered the questions in the answer
sheet and in the interview.
Educational attainment. The finding shows that all of the respondents had
undergoneformal education. Many finishedsecondary level of education with 42%,
followed by those who reach college level with 16.67%, high school level and college
graduates were of the same percentage with 11.33%, vocational graduates with 8.67%,
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
29
elementary graduate 4%, elementary level with 3.33% and lastly, those who try
vocational courses with 2.67%.
Table 1. Profile of the respondents
PARTICULAR FREQUENCY
PERCENTAGE
Age
20-30
47
31.33
31-45
57
38.00
46-60
44
29.33
61 and above
2
1.33
TOTAL 150
100.00
Gender
Male
63
42.00
Female
87
58.00
TOTAL 150
100.00
Civil Status
Single
28
18.67
Married
112
74.67
Widow/er
8
5.33
Household size
1-5
89
59.33
6-10
56
37.33
TOTAL 150
100.00
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
30
Table 1.continued….
POSITION IN THE FAMILY FREQUENCY
PERCENTAGE
Family Head
55
36.67
Mother
71
47.33
Child
24
16.00
TOTAL 150
100.00
Educational Attainment
Elementary Undergraduate
5
3.33
Elementary Graduate
6
4.00
High School Undergraduate
17
11.33
High School Graduate
63
42.00
Vocational Undergraduate
4
2.67
Vocational graduate
13
8.67
College Undergraduate
25
16.67
College Graduate
17
11.33
TOTAL 150
100.00
Organization Affiliation
Among the respondents, 58.67% are affiliated with an organization, wherein most
(90.91%) are members of an association and only few belongs to a cooperative. Many
(47.73%)were involved in the organization for a period of 1-5 years, while others
(40.91%) are already affiliated for 11 years and above and only few for 6-10 years. Only
(41.33%) from the respondents are not affiliated with any organization neither from a
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
31
cooperative or an association. The result shows that majority of the respondents had
already knowledge and experience about organizations.
Table 2. Organization affiliation
PARTICULAR FREQUENCY
PERCENTAGE
Organization Affiliation
Affiliated
88
58.67
Not Affiliated
62
41.33
TOTAL 150
100.00
Organizational type
Cooperative
8
9.09
Association
80
90.91
TOTAL 88
100.00
Type of Involvement
Member
80
90.91
Officer
8
9.09
Years of involvement
1-5 years
42
47.73
6-10 years
10
11.36
11 years and above
36
40.91
TOTAL 88
100.00
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
32
Sources of Income
Household sources of income. Majority (57.33%) of the respondents are engaged
in Agricultural activities as one of their source of income. Of the 57,most wereengaging
in farming to includes rice, vegetables productionand some get income from fruits .Only
8% engages in animal raisingwhich includeswine raising, poultry and some triedcaprine
raising.
Many (26%) among the respondents are employed from different agencies. Out of
this, only few work from government agencies like in teaching in public schools,while
others are employed in private organization, wherein many work in NCC Corporation
and onlyfew works from other agencies. Those employedin NCC were laborer/helper,
driver/operator,welder and mechanic.
Table 3. Sources of income
SOURCES OF INCOME
FREQUENCY
PERCENTAGE
Farming
74
49.33
Animal raising
12
8.00
Employment
49
30.67
Skilled workers
38
25.33
Other sources
37
24.67
Sari-sari store
19
12.67
Small entrepreneurs
16
10.67
Middle men
2
1.33
OFW 19
12.67
*Multipleresponse
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
33
Many (25.33%) from the respondents were engaged in skilled works such as
carpentry, wherein one of the family member is into construction and driving. There are
somewho are Overseas Filipino Worker independents, and some have other
sources(24.67%) of income such as sari-sari store owners, and vendors. There are few
who constitutes the traders, engaged in buy and sell of animals.
The finding implies that majority of the respondents were engaged in agricultural
activities as one of the source of income in the family.
Household Income per Annum
Majority (64.67%) of the respondents had an annual income of Php. 100,000.00
and below. These are the families engaging in farming where fields planted were rented
or shared with the landowners. Families whose members employedin Northern Cement
Corporation and those engaged in skilled works also claimed to have low income. Only
few(35.33%) had an income between Php.101, 000- 200,000 a year. These include the
families who owned the land cultivated, and those with permanent job.Not all of the
OFW dependents claimed to have this amount of annual income. The finding reveals that
majority of the respondents earned Php. 100,000 and below every year.
Table 4. Household income per annum
PARTICULARS FREQUENCY
PERCENTAGE
Household Income per annum (Php.)
100, 000.00 and below
97
64.67
101,000.00-200,000.00
53
35.33
TOTAL 150
100.00
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
34
Perception of Community People
towards Cooperatives
According to Rapp and Ely (1996), cooperatives are businesses owned and
controlled by the people who use its services; they finance and operate the business or
service for their mutual benefit and reach objectives unattainable for only one through
cooperation. Fajardo and Abella (1999) stated that such organizations are associations of
persons with common interest not on capital and begins with the people who wish to
provide themselves with good and services they need.
Some of the perceptions on cooperatives (Table 5) by the respondents were
identified like organized by people with common needs, organization that deals mainly
with its members, association of people that engages business activities, organization that
provides goods and services to members, organization that offers loans and savings,
sources of income, sources of capital and low prices of goods.
Generally, the respondents have little knowledge about the cooperative, since
there isan existing one is established by NCC employeesAs presented in Table 5, the
community people know cooperatives as business enterprise, which procures goods and
services and offers loans and savings like banks, some says cooperatives deals mainly
with its members as based on the cooperative organized by NCC Corporation that deals
only with its members. There are also few who said that cooperatives service low prices
of commodities basing from the cooperatives from the places they came from.
Based from the results, most of the respondents have little knowledge about what
cooperative is all about. Most knew it other than as a business enterprise that offers loans
and savings and provides goods and services.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
35
Table 5. Perception on cooperatives
PERCEPTION
FREQUENCY
MEAN SIGNIFICANCE
5 4 3 2 1
Organized by people
3 19 28 38 62 2.09 Little
knowledge
with common needs
An organization that
1 23 37 53 36 2.33 Little
knowledge
deals mainly with its
members
An association of people
9 39 51 43 8 2.99 Fair
knowledge
that engages in business
activities
An organization that
2
15
24
31
78 1.88
Little knowledge
develops expertise and
skills among its
members
An organization that
8 37 45 38 22 2.81 Fair
knowledge
provides goods and
services to members
An organization that
6 34 50 37 23 2.75 Fair
knowledge
offers loans and savings
Sources of income
0 14 22 30 84 1.77 Little
knowledge
Sources of capital
1 15 21 26 87 1.78 Little
knowledge
Lower price of goods
3
3
0
58
86 1.53
Little knowledge
Range: 1.5 and below = no knowledge
1.51 – 2.5
= little knowledge
2.51 – 3.5
= fair knowledge
3.51 – 4.5
= good knowledge
4.51 – 5.0
= excellent
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
36
Awareness about Cooperatives
Based from Table 6, result shows that most (80.67%) of the respondents were
aware on what is a cooperative. Majority (68.60%) learned about from relatives/friends
who are affiliated though17.36% already. Few (6.61%) are currently members andsome
(4.96%) learned the idea from school and to those whose parents are affiliated. Only few
(19.33%)have no idea about a cooperative. This implies that most respondents were
already oriented about a cooperative and introducing one for the community will not be
that difficult.
Table 6. Awareness about cooperatives and sources of knowledge
PARTICULAR FREQUENCY
PERCENTAGE
Awareness of a cooperative
Aware
121
80.67
Unaware
29
19.33
TOTAL 150
100.00
Where did you learn about cooperatives
School
6
4.96
Joined organizations before
21
17.36
Learned from relatives/friends who are
83 68.60
members
Current members
8
6.61
Parents are members
3
2.48
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
37
Awareness about what Cooperative
can Offer
Cooperative provides economic advantages and opportunities to poor people to
improve their economic conditions.
Opportunities for Service.A cooperative, more than any other form of enterprise,
offers a wide range of opportunities. Showing members in a farmer’s cooperative
marketing association, for instance, the wisdom of holding their produce in the
cooperative warehouse until such a time when the price is at its highest, is a genuine
service that may be measured not only in terms of money but also in terms of welfare and
happiness for the members. Saving members in a credit union from the clutches of
usurers and freeing them from the fear of want and poverty cannot be measured in any
value. Leading consumers to economic sufficiency by providing the service at the same
time providing savings, thus increasing their purchasing power, is itself an unrequited
service. Organizing retailers into a cooperative in this country and freeing them from the
domination of foreign retailers is not a mere service. Cooperation among them would
allow them to control the channels from which their merchandise is procured and through
which they are distributed. This promotes the attainment of the aspiration of our people
for nationalism (Onaganet al. 1973).
Opportunities to earn a satisfactory income. A cooperator is an enterprise who is
placed on competitive level that would enable him to produce with a surplus income. His
production is aided by his cooperative, which assists him in his financial, production, and
marketing problems. His effort is adjusted where it is best productive. Wastes are
eliminated. His initiative is given full sway, and his income may be measured
progressively in accordance with the effort and attention he puts in his enterprise.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
38
Table 7. Awareness of cooperative services
PARTICULAR FREQUENCY
MEAN
SIGNIFICANCE
5 4 3 2 1
Procures goods and
10 33 30 54 23 3.05 Moderately
aware
services
Loans and savings
3
9
40 57
41
2.69
Moderately aware
Sales of production input
0
4
4
24 118
1.61
Slightly aware
and market products
Undertake production and
0 3 5 17
125 1.54 Slightly
aware
processing of raw
materials into finished
products marketed by
coop to members and
non-members
Range: 1.5 and below = not aware
1.51-2.5
= slightly aware
2.51-3.5
= moderately aware
3.51-4.5
= very aware
4.51-5
= very much aware
As presented form Table 7, the respondents are slightly aware from the services of
cooperatives such as selling of production inputs and marketing outputs and the
undertakings of production and processing of raw materials which marketed to the
members in return. Most are aware from the services of cooperatives that include loans
and savings and procuring goods and services.
Perceived Cooperative Services
According to Fajardo and Abella(1999), there must be a reason for organizing
a cooperative. Usually, a need for a cooperative arises if existing business organizations
in the community are inefficient and abusive. Conditions, such as high interest rates, poor
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
39
quality of goods and services, high prices, financial, production, and marketing problems
encourage the organization of cooperatives. People like to buy better goods and services
at reasonable prices. On the other hand, producers want fair price for their products.
Some of the needs addressed by a cooperative were identified, which includes
loans and savings, discounts on commodities, charity, additional income, work and
insurance. As presented in Table 8, the result shows that respondents need a cooperative
which service loans and savings and gives discounts, charity, additional income, and
work but mostly needs the first two from the enumerated. There are few requested a
cooperative which service insurance but base on the result, it is not viable.
Table 8.Perceived cooperative services
PARTICULAR FREQUENCY
MEAN
SIGNIFICANCE
5 4 3 2 1
For loans and
7 39 76 23 5 2.89 moderately
needed
savings
For
discounts
2 24 64 46 14 2.69 moderately
needed
Provides charity
2
5
14
48
81
1.66
slightly needed
For additional
5 14 46 60 25 2.43 slightly
needed
income
Provides
work
2 11 24 39 74 1.85 slightly
needed
Insurance
3
0
0
0
147
1.08
not needed
Range: 1.5 and below = not needed
1.6- 2.5
= slightly needed
2.6-3.5
= moderately needed
3.6-4.5 =strongly
needed
4.6-5
=very strongly needed
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
40
Willingness to Join a Cooperative
Majority (74%) of the respondents was willing to join in case there will be a
cooperative to organize although many(18.67%)were not willing. There are
few(7.33%)who are uncertain whether to join or not. From those signifying their interest
in joining,most (77%) wants to avail services with expectation to receive patronage
refunds and dividends every year end. Many (43%) wants to avail loans and services
some(32%) wants to have additional knowledge about a cooperative and few (13%)
wants to take part and learn about how cooperative is operating, others wants to develop
their expertise and skills that interests those individuals in joining. Many (35.71%) from
those who are not willing lack knowledge about cooperatives, however few claimed
thatsuch organization may only exist for short period of time while those uncertain
(36.36%) depend their decision ifthe policy of the cooperativewill be acceptable.Some
answered cooperatives will be first established before joining.
Table 9. Willingness to join a cooperative
WILLINGNESS
FREQUENCY
PERCENTAGE
Willing 111
74.00
Not willing
28
18.67
Uncertain 11
7.33
TOTAL 150
100.00
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
41
Table 10. Reasons for being willing and not willing to join a cooperative
REASONS FOR BEING WILLING
FREQUENCY
PERCENTAGE
To have additional knowledge about
36 32.00
a cooperative
To take part and learn in the
14 13.00
cooperative activities
To avail services and benefits of the
85 77.00
cooperative such as patronage
refunds and dividends every year end
For loan and saving purposes
48
43.00
To develop leadership skills and
17 15.00
social skills
Reasons not willing to join
Don't know about cooperatives
10
35.71
Don't like to join
9
32.14
Cooperatives are just another
5 17.86
organization that won'tlast
*Multiple response
Involvement in Cooperative Services
As shown in Table 11, some services of a cooperative were identified. Some
particular services were enumerated for the respondents’ choice on where to
affiliate.Choices includes market outlet of agricultural produce with reasonable prices,
source of financial services with low interest, source of consumer goods, source of
potable water for the community and as conduit of external support programs from
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
42
government and NGO's. The result shows that financial services, selling of commodities
and water
Table 11.Involvement in cooperative services
PARTICULARS FREQUENCY
MEAN
SIGNIFICANCE
5 4 3 2 1
As market outlet of agricultural
11 20 24 25 42 2.46 Slightly
willing
products with fair prices
As source of financial services
13 23 60 18
8 3.12 Moderately
with low interest
willing
As source of consumer goods
11 27 52 14 18
2.99
Moderately
willing
As source of potable water for
6 24 38 27 27 2.63
Moderately
the community
willing
As conduit of external support
8 11 42 34 27 2.50 Slightly
willing
programs from government and
NGO's
Range: 1.5 and below = not willing
1.51-2.5 =slightly
willing
2.51-3.5
= moderately willing
3.51-4.5
= very willing
4.51-5
=very much willing
services are the first three choices of the respondents. Some wants to have a market outlet
on the community, but limited only to those who are engaged in agricultural activities
who want and can avail of the service.
Choice of Cooperative Type
Some types of cooperatives fromwere identified based on the Cooperative Code
of 2008on what cooperative respondents want to organize in the community. One is
Credit cooperativewhich promotes and undertakes savings and lending services among its
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
43
members and generates a common poll of funds in order to provide financial assistance
and other related financial services to its members for productive and provident purposes.
Majority (53.33%) of respondents preferred credit cooperatives with the expectation that
the financial services could lessen their financial needs. It is also helpful to people who
want to start small businesses and lack resources to for finance. Some of the farmers also
want to join this type of cooperative to support their farming activities.
Another type of cooperative is consumers cooperativewhich primary service of it
is to procure and distribute commodities to members and non-members. There are
already lots of businesses in the community engaging in selling of goods, but still some
(37.33%) among to those who are willing to join chose consumers cooperative because of
notion that cooperatives lowers prices of goods compared to the stores privately owned.
Table 12.Choice in cooperative type
COOPERATIVES
FREQUENCY PERCENTAGE
Credit
80 53.33
Consumer
56 37.33
Producers
23 15.33
Marketing
36 24.00
Housing
2 1.33
Water service
30 20.00
Producers’ cooperatives undertake joints production whether agricultural and
industrial and it is formed and operated by the members who undertake the production
and processing of raw materials or goods into finished or processed products, for sale by
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
44
the cooperative to them and also to non-members. There are 15.33% among the
respondents who are willing to join who wants to organize this type of cooperative. These
groups are among the housewives who want additional income aside from the monthly
wages of the spouses. Some also from the OFW dependents wants to join this type of
cooperative for a resourceful pastime.
Many (24%) from those who engages agricultural activities want to organize
Marketing cooperative especially the rice farmers for the reason that they want market
outlet of agricultural produce with reasonable prices. Some (20%) want a water service
cooperative for the distribution of potable water to the community. As to present, it is not
that much safe for the community to drink water from springs, because of pollution that
affects the cleanliness of the springs.
Investment
One of the requirements in organizing a cooperative is financial for it is the
backbone of production. Originally, organizing a cooperative requires Ᵽ25,000 and
members of 250 with Ᵽ100.00 cost per share but due to difficulties in reaching those
amounts to start its operation, it has reduced to Ᵽ5,000 and members of 25 and eventually
Ᵽ2,000 and 15 members. According to the new cooperative code, for a cooperative to be
registered, 25% of the authorized share capital shall be subscribed and at least 25% of the
total subscription has been paid, not unless for the cases that the paid up share capital is
less than Ᵽ15,000.
Table 13 presents that 40.67% are willing to invest Ᵽ1,500 followed by Ᵽ3,000
with 20.67%. Others want to invest Ᵽ5,000 for believing that the higher the investment,
the higher the benefit. Others want to try Ᵽ1,000 for starting and make up for the capital-
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
45
Table 13.Amount of investment
INVESTMENT (Php)
FREQUENCY PERCENTAGE
1,000.00
6 4.00
1,500.00
61 40.67
3,000.00
31 20.67
5,000.00
7 4.67
Capital build-up(Php)
200.00/yr
9 9.18
500.00/yr
64 65.31
1,000.00/yr
18 18.37
build-up. One responded to invest Ᵽ10,000 for the reason of helping in the capitalization
of the cooperative
Most (65.31%) of the respondents chooses Ᵽ500 for capital-build up every year
and 18.37% went for Ᵽ1000, others (9.18%) chose Ᵽ200 and few chose Ᵽ300. Others said
it depends if in case, with the availability of money they’ll have. There are some who
were uncertain and some said the topic will be discussed on an assembly and that’s the
time for decision making.
Willingness to be an Officer
Availability of qualified officers. Management constitutes the most important
factor in the success of a cooperative. Men of integrity and honesty are the proper
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
46
individuals who should manage cooperatives. In many instances, there are qualified
persons but they are not willing to serve in the cooperative. They would rather work in
commercial and industrial firms where salaries and fringe benefits are much higher. At
any rate, the cooperative Authority has a management program for improving the
competence of cooperative officers through trainings and education.
Table 14shows that among the 74% who are willing to join the cooperative,
26.13% signified interest to become an officer,16.22% wants to join the committee group
and 3.60% wants to become the chairman for wanting to share knowledge in leading.
Some wants to join the Board of Directors group and some volunteered themselves to be
secretary and treasurer for a reason of having experience on such positions.
The results revealed that respondents wanting for a position have each reason for
taking the position but most wanted to help for the success of the organization.
Table 14. Willingness to be an officer
PARTICULAR FREQUENCY
PERCENTAGE
Willingness to be an officer
Willing
29
26.13
Not willing
80
72.07
Uncertain 2
1.80
Position want to take
Chairman
4
13.79
Committee
18
62.07
Treasurer
3
10.34
Reasons taking the position
To help in the success of the cooperative
15
51.72
To share my knowledge in leading
8
27.59
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
47
Potentials and Hindrances in
Organizing a Cooperative
Majority (86%) of the respondents agreed that there is a potential of organizing a
cooperative in the community. Although, some (9.33%) do not agree with the idea due to
believing that cooperatives are not financially strong and will not succeed. Many
(21.43%) among those who are not willing do not trust cooperatives because on their
experiences in affiliating cooperatives before.
Through cooperatives, the rural people can secure credit at very low interest rate.
They can use their cooperative loans for putting up their micro-businesses, such as
backyard piggery, poultry, garden, and other producing activities.
In addition, their
production inputs, like fertilizer, seedling, chemicals, etc., can be purchased on a
wholesale basis by the cooperative. This reduces production expenses. Likewise,
products can be sold direct to the buyers. This means higher prices for their goods than
those offered by traders or middlemen (Fajardo and Abella, 1999).
Majority (63.57%) from the respondents who agreed in the potential in organizing
a cooperative in the area said that the organization will be a great help for the community
financially. Some(27.13%) said the cooperative will enhance people’s living through its
programs and few (16.28%) agreed it will reduce marketing cost through transportation
and other marketing strategies.
Many (38%) of the respondents mentioned that people in the community does not
cooperate that much and it can hinder the organizing of cooperative. Some are busy to
attend meetings, others busy making a living and others cannot volunteer for an activity
which can be helpful to the organization. Some (16%) said, political issues can be a cause
for a cooperative not to be succeeding. There are few (12.67%) who value the peace and
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
48
order to be one of the hindrances for the organization to establish. The barangay cannot
still control the cases of stealing in the community although it’sminimal. Few (10%) are
already dismayed with their previous experiences before. There are also some who said
there will be no one who will manage the cooperative and it will hinder the organizing of
the said organization because no one will lead in the first place. Some also said that there
is no potential due to lack of knowledge about the true management of a cooperative.
Despite the negative thoughts of majority of the respondents, 6% said there’s no
hindrance in organizing a cooperative in the area, as long as there is unity and there is an
organizer who will guide what to do.
Table15.Potentials and hindrances of organizing a cooperative
POTENTIALS
FREQUENCY PERCENTAGE
Yes
129 86.00
Reasons
The organization will be a great help in
82 63.57
terms of financial assistance
As meeting place for consultation for
13 10.08
improvement of production and
marketing system
The organization will enhance
35 27.13
community people's living through its
programs
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
49
Table 15. Continued…..
PARTICULARS FREQUENCY
PERCENTAGE
No 21
14.00
Reasons why not agree
No trust on a cooperative
3
21.43
Cooperatives are not financially
5 35.71
Strong
It will not succeed anyway
6
42.86
Hindrances
Issues on peace and order
19
12.67
Political issues
24
16.00
There's no cooperation among
57 38.00
community people(walangpaki-
alaman system
Phobia on failure of the
15 10.00
organizations people affiliated
before
No sufficient knowledge about
5 3.33
such organizations
Financial problems
2 1.33
Nobody will manage
5 3.33
Competition
5 3.33
No hindrance
9 6.00
*Multiple response
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
50
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study was conducted to analyze diagnostically the potentials of organizing a
cooperative in Labayug, Sison, Pangasinan.
The respondents of this study were the community people, who were at legal age
and have his/her own source of living to be considered as potential member. A total of
150 persons served as respondents through survey and personal interview.
Majority of the respondents were married, females and middle aged and
undergone formal education. Majority of them finished high school and there are few
who only stepped elementary though some graduated college. Agriculture is the major
source of income in the area. They engaged in farming, mostly of vegetables and few
took care of animals. Some works at NCC Corporation, and other private
agencies.Majority also have an annual income of Ᵽ100,000 and below. Fewer are not
affiliated with any of the organizations and majority of those affiliated are involved in an
association.
Majority of the respondents are slightly knowledgeable about what cooperative is
all about. They only knew cooperative as business enterprise which procures goods and
services and offers loans and savings. There are only few who were not aware about
cooperatives. Mostof them learned about it from their relatives and friends who are
involved with such kind of organization wherein the cooperative services they’re aware
of are loans and savings and selling of commodities. Most said that they need a
cooperative that offers loans and savings to help them in their financial problem, they
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
51
also said that they need additional income such as livelihood. Also they need discounts
for commodities because as of present prices are already high.
Majority were also willing to join if in case there will be a cooperative to organize
due to believing that it will be a great help for them in terms of financial and the
organization will enhance their way of living through the programs. Majority also want to
avail services and benefits such as patronage refunds and dividends every year end and
for loans and saving purposes. Those who are not willing reason out that they don’t know
about cooperatives, according to them they’ll be joining if the organization will already
be established.
Credit cooperative ranks first in the community people’s choice of what type of
cooperative they want to organize followed by consumers’ cooperative and majority
chosen Ᵽ1,500 to be their initial investment and Ᵽ500 for capital build-up. Few only
volunteered their selves to be one of the officers. Majority of them wants to be with the
committee group for the reason they wanted to share their knowledge in leading and
some wants to share their knowledge in leading.
Majority agree that there is a potential for a cooperative to be organized in the
community except for those who already dismayed from their previous experiences and
for those who are not aware of the benefits and services of such organizations.
Conclusions
Based from the result the following conclusions were drawn:
1. Majority of the respondents were affiliated with an organizations, thus they’ll
have a little knowledge about how cooperative works.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
52
2. The community people areslightly and moderately aware of a cooperative and
its services and benefits from being involved, that affects their perception about such
organizations.
3. The community had already a cooperative before where majority of the
respondents learned about it.
4. NCC Corporation has a cooperative at present where few of the respondents
were member, yet the membership was exclusive only for the regular employees.
5. Majority were willing to involve in the organizing of a cooperative for financial
services and source of low cost of commodities.
6. Majority who wants to join the cooperative wants to avail services such as
loans and savings and benefits such as patronage refunds and dividends every year end.
7. Majority from those who are willing to join the cooperative invests Ᵽ1,500
initially and agrees for Ᵽ500 per year for the capital build-up.
8. Majority from those who want to become officers chosen the committee group
for the position for the reason that they want to help in the success of the cooperative.
9. Most of the respondents agree that there is a potential of organizing a
cooperative in the area for the reason that it will be a great help for them financially and it
will enhance their way of living through its programs.
10. Majority from the respondents said that cooperation among the community
people will be a problem in organizing a cooperative in the community aside from the
issues on politics though few said that it has no hindrance in the organization of the
organization.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
53
Recommendations
Based on the findings, these are the following recommendations;
Since majority of the respondents were willing to join a cooperative, information
dissemination about the cooperative shall be conducted to the community(Pre-
membership Education Seminar), discussing essentially the principles and practices,
objectives and purposes of cooperatives, the importance of cooperative in the community
development, policies and identified need and how cooperative would address it.
Most of the respondents preferred a cooperative with loan and saving purposes
thus a Credit Cooperative is suitable to organize in the area for starting, and then convert
to a Multi-purpose Cooperative the time the cooperative will be well established to
address the other needs of the community such as low prices of goods for consumers
cooperative or contributor for the community peoples’ additional income (Producers
Cooperative).
To complement the information dissemination, steps on organizing a cooperative
will be continued since potential members were already surveyed. Develop a feasibility
to study deeper on the opportunities and obstacles that might make or break the proposed
cooperative, develop business plan for support documentation for potential members,
financial institutions and other investors then develop legal
documents,seminar/workshops on the organization, registration, and management of a
cooperative shall be launched by theconcerned organizations/agency. It will be attended
by willing community people to be a member.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
54
LITERATURE CITED
ANONYMOUS. 2008. Why Start a Co-operative? Retrieved August 15, 2011 from
http://www.creatives.uk.coop/why-start-co-operative
ANONYMOUS. 2009. Significance of Cooperatives. Retrieved July 25, 2011.from
http://www.un.org/esa/socdev/social/cooperatives/documents/survey/background
ANONYMOUS. 2010. Explain the Importance of Cooperative Society? Retrieved
November 14, 2011 from http://www.blurtit.com/q1972739.html
ANONYMOUS. 2010. Who Sparks a Cooperative? Retrieved July 25,
2011.Http://www.vaticproject. Blogspot.com/2010/10/taking-back-control
DE LEON, H. S. 1998 Textbook on Agrarian Reform and Taxation (with Cooperatives)
11th Edition.Rex Book Store, Manila, Philippines. Pp. 340-346.
DOGARAWA, A. B. 2005. The Role of Cooperative Societies in Economic
Development. Retrieved November 14, 2011 from http://mpra.ub.uni
muenchen.de/23161/1/MPRA_paper_23161.pdf
FAJARDO, F. and F. ABELLA. 1999. Cooperatives 4th edition. Rex Book Store
Incorporation. Pp. 34-35,50,52-54,237-240
GARCIA, J. K. 2009. “Potentials of establishing a laboratory Cooperative in La
Trinidad Benguet”.Thesis.Benguet State University La Trinidad, Benguet. P. 10.
GERTLER, M. 2001. Rural Co-operatives and Sustainable Development, Saskatoon SK:
Centre for the study of Cooperatives, University of Sasktchewan
HENEHAN, B. 1997. Cooperating for Sustainability, USA: Cornell University
KETILSON,L. H. 2001. An Economic Impact Analysis of the Co-operative Sector in
Saskatchewan: Update 1998. Retrieved November 14, 2011 from
http://usaskstudies.coop/?page_id=80
LEVIN, M. 2002. The promotion of cooperatives, ILO cooperative branch. Retrieved
November 14, 2011 from www.ica.coop/europe/ra2002/speech
MARCELINO, M. B. 2010. “Assessment on socio-economic impact of BenteoTimpuyog
Credit Cooperative (BENTICCO) in Atok, Benguet”.Thesis. Benguet State
University La Trinidad, Benguet. Pp. 8-9.
ONAGAN, L., SIMANGON, J., and M. ESGUERRA. 1973. Cooperatives. L.D. Onagan
and Sons Pubishers Quezon City, Philippines. Pp. 224-230.
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
55
PASCIAN, J. A. 2010. “Cooperative leaders perception on potentials of agricultural
marketing cooperatives in La Trinidad, Benguet”. Thesis. Benguet State
University La Trinidad, Benguet. Pp. 1, 10-11.
PIMENTEL, A. Q. 1996. A Handbook with Case of Citations on Cooperatives.White
Orchids Printing and Publishing Company. Pp. 49-51
RAPP, G. and G.ELY. 1996. Cooperative Information Report. Retrieved July 25, 2011
from http://www.rurdev.usda.gov/rbs/pub/cir7/cir7rpt.htm
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
56
APPENDIX A
Letter to the Barangay Head
Department of Agricultural Economics and
Agribusiness Management (DEAEM)
Benguet State University
La Trinidad Benguet
December 2011
Hon. Richard Denver Deli
Barangay Chairman
Barangay Labayug, Sison, Pangasinan
Sir:
Warm greetings!
I am a student of Benguet State University taking up Bachelor of Science in Agribusiness
major in Cooperative Management. I am presently conducting a research titled
“Diagnostic Analysis on the Potentials to Organize a cooperative in Labayug, Sison,
Pangasinan” as a requirement for the degree.
In connection, may I request permission to conduct my study and float questionnaire to
the community members. Rest assured that the data to be obtained from you will keep
confidential.
Thank you for your kind consideration.
Respectfully yours,
ANNALISA T. CAMODA
Researcher
Noted:
LEOPOLDO N. TAGARINO
Adviser
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
57
APPENDIX B
Letter to the Respondents
Department of Agricultural Economics and
Agribusiness Management (DEAEM)
Benguet State University
La Trinidad Benguet
December2011
Sir/Madam:
Warm greetings!
I am a student of Benguet State University taking up Bachelor of Science in Agribusiness
major in Cooperative Management. I am presently conducting a research titled
“Diagnostic Study on the Potentials to Organize a cooperative in Labayug, Sison,
Pangasinan” as a requirement for the degree.
In connection, may I request your cooperation in answering the attached questionnaire.
Rest assured that the data to be obtained from you will keep confidential.
Thank you for your kind consideration.
Respectfully yours,
ANNALISA T. CAMODA
Researcher
Noted:
LEOPOLDO N. TAGARINO
Adviser
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
58
APPENDIXC
Survey Questionnaire
Respondent No: ___________
Date: ___________________
Category of Respondents:_____________________
A. Profile of Respondents
1. Name of Respondent: ______________________________________
Age: ______
Gender: __ M __F
Civil Status: _S _M _W _Separated
No. of Members living in the household: ____________
Position in the Family:
___ Family head
___ Mother __ Child
__Breadwinner ___
In-laws
___Grandchild/
parents
Occupation: _______________________________
2. Educational Background: (please Check)
____ No Formal Education
____ Elementary Graduate
____ Elementary Undergraduate
____ High School Graduate
____ High School Undergraduate
____ Vocational Graduate
____ Vocational Undergraduate
____ College Graduate
____ College Undergraduate
3. Organization Affiliation
a. Are you a member of any organization?
___ Yes ___ No
b. If yes, what type of organization?
___ Cooperative (what type of cooperative) ____________________
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
59
___ Association (Name of association) _____________
c. What position are you holding?
__ Member, how many years have you been a member? ___
__ Officer, what position and how many years have you been in that position? __
4. What are the sources of income of your family?
Farming:
___rice __vegetables
__Fruits
Animal Raising: ___piggery
__poultry __cattle
raising __goat
raising
Employment: ___teaching
__ office works
___others, specify; ________
Skilled Works: ___carpentry
__ driving
___others, specify;________
Other sources: ___ buy and sell (animals, vegetables, junks and others)
___ franchise dealer (ex. Avon, Natasha and others)
___ sari-sari store/bakery
___ rentals (Boarding house)
___Selling (of Halo-halo, fishballs, balut and others)
___others,
specify;_________________________
5. Household income per annum (Php):
____ below 100,000
____100,001 – 200,000
____ 200, 001 – 300,000
____ 300,001 and up…
B. Perceptions about Cooperatives
What is your perception about a cooperative?
Particulars
5 4 3 2 1
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
60
a. Organized of people with common needs
b. An organization that deals mainly with its members
c. An association of people that engages business
activities
d. An organization that develops expertise and skills
among its members
e. An organization that provides goods and services to
members
f. An organization that offers loans
and
savings
g. Sources
of
income
h. Sources
of
capital
i. Others, specify;
Legend:5- excellent
4- good knowledge
3- fair knowledge
2-
little
Knowledge
1-
no
knowledge
C. Awareness on what cooperatives can provide.
1. Are you aware about cooperatives?
__Yes
__No
2. If yes, where did you learn about cooperatives?
___ In school
___I have joined with such organizations before
___I learned it from relatives/friends who are members of such organizations
___others, specify; ______________________________________________
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
61
3. What services of a cooperative are you aware of?
Particulars
5 4 3 2 1
Procures good and services
Loans
and
savings
Sales of production inputs and markets
the
products
Undertake production and processing of raw materials
into finished products marketed by the coop to members
and non-members
Others,
specify;
Legend:5-very strongly aware
4-strongly aware
3-moderately aware
2-slightly
aware 1-not
aware
4. What do you think a cooperative can offer to you?
Particulars
5 4 3 2 1
For
Savings
and
Loans
For
discounts
Provides
Charity
For
additional
income
Provides
work
Others;
Specify:
Legend:5- very strongly needed
4- strongly needed
3- fairly needed
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
62
2 – slightly needed
1- not needed
D. Willingness to join a cooperative and the type of cooperative want to organize.
1. If there will be a cooperative to be organize here in your community, are you willing
to join?
__Yes __No
2. What services are you willing to involve in the cooperative.
Particulars
5 4 3 2 1
As market outlet of agricultural products with fair
prices
As source of financial services with low interest
As source of consumer goods
As source of potable water for the community
As conduit of external support programs from
government and NGOs
Others,
Specify:
Legend:5- very much willing
4- Very willing
3- moderately willing
2- slightly willing
1- not willing
3. What type of cooperative do you want to organize? (please choose at least two)
Credit Cooperative ____
Consumers Cooperative ____
Producers’ Cooperative ____
Marketing Cooperative ____
Water Service Cooperative ____
others, specify: ________________
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
63
4. If yes, in what purpose? (Please choose at least two)
___To have additional knowledge about a cooperative
___To take part and learn in the cooperative Activities
___To avail services and benefits of the Cooperative such as patronagerefunds and
dividends every year end
___For loan and saving purposes
___To develop leadership skills and social skills
___Others, Specify: _________________________________
5. If no, why?
__I don’t know about cooperatives
__I just don’t like to join
__Cooperatives are just another organization that won’t last
__ Others (pls. specify) _______________________________________
6. If yes, how much are you willing to invest, initially?(Please Check)
___Php. 1,500.00
___ Php. 3,000.00
___ Php. 5,000.00
___ Others; Specify: ____________
7. How about for capital build-up?
__ Php. 500.00/year
__ Php. 1,000.00/year
__ Others, Specify; ______
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
64
8. In case there will be a cooperative to organize, would you want to be an officer?
___Yes
___
No
9. If yes, what position would that be?
__ Chairman
__ Committee
__Treasurer
__ Secretary
__ Others, specify;_______________
10. In what reason you want to take that position?
____ to help in the success of the cooperative
____ to share my knowledge in leading
____ to know more the concept about cooperative
____ others, please specify ___________
E. What do you think of the possible hindrances on organizing a cooperative on your
community?
____ Issues on peace and order
____ Political issues
____ There’s no cooperation among community people (walangpaki-alaman system)
____ Phobia on failure of the organizations people affiliated before
____ Others, specify; ________________________________________________
F. Potential of the organizing of Cooperative in the area.
1. Do you think establishing a cooperative is possible in your community?
__Yes
__No
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
65
2. If yes, how do you say so?
___the organization will be a great help in terms of financial assistance
___it will reduce marketing cost through transportation and other marketing
Strategies
___ as meeting place for consultation for improvement of production and
Marketing system
___ the organization will enhance community people’s living through its programs
___ Others, specify; ___________________________________________
3. If no, why?
__No trust in the cooperative
__Cooperatives are not financially strong
__It will not succeed anyway
A Diagnostic Analysis on the Potential to Organize a Cooperative in
Labayug, Sison, Pangasinan /Annalisa T. Camoda. 2012
Document Outline
- A Diagnostic Analysis on the Potential toOrganize a Cooperative in Labayug, Sison, Pangasinan
- BIBLIOGRAPHY
- TABLE OF CONTENTS
- INTRODUCTION
- REVIEW OF LITERATURE
- METHODOLOGY
- RESULTS AND DISCUSSION
- SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
- LITERATURE CITED