Abstract:
Cooperatives have been playing important roles in the socio-economic lives of communities
for a long time during which they have also encountered challenges and weaknesses.
Governance cooperatives practices are pivotal process for firms’ survival based on their size,
listing status and mode of operation. Therefore, the main aim this study was to assess the
effects of good cooperatives governance practices on Business Activities of Farmers’
Cooperative Union: The case of Ambo Farmers’ Cooperative Union, West Shoa Zone,
Oromia Regional State, Ethiopia’’. In order to achieve, the objectives of the study the
researcher used a mixed research approach and both primary and secondary data were
taken in to consideration to effects of good cooperative governance practices on Business
Activities of Ambo Farmers’ Cooperative Union. The researcher also used a three-multistage sample procedure. In the first stage the researcher select the study area through
purposive sampling method, at second stage random sampling procedure was followed to
included total of 144 sample respondents were select from 3 PPCs. The study combines both
quantitative and qualitative mixed approach. Primary data pertaining to the year 2021/2022
was collected from the selected sample respondents by using a structured questionnaires,
FGD and interview schedule. The researcher was used percentage and frequency descriptive
statistics and multi linear regression model were employed to identify factors that influence
business activities of cooperative in the study area as a method of data analysis. The result
of the study indicated that Cooperative members should be involved in election of their
leaders since the results indicate that successful cooperatives have higher extent of achieving
set objectives, low level of member participation and low management capacity. It was
recommended that quality of management be considered as vital factors to improve the good
governance practices on business activities.
