Effects Of Good Governance Practices On Business Activities Of Farmers‘ Cooperative Union: The Case Of Ambo Farmers‘ Cooperative Union, West Shoa Zone, Oromia Regional State, Ethiopia

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.