Abstract:
Cooperatives are effective tools to sustain the livelihoods of communities because they prioritize
community interests over short-term financial gain. This study aims to assess the role of
cooperatives in building sustainable livelihoods in Ambo Town. A descriptive and explanatory
research design was used, employing both qualitative and quantitative approaches. Primary
data was collected through questionnaires and key informant interviews, with a sample size of
340 members selected using a proportionate random sampling technique. The data collected was
analyzed by applying descriptive such as frequency tables and charts. The findings revealed that
cooperatives in Ambo Town provide various service modalities including saving and credit
services, consumption goods provision, marketing, and life skill training. Cooperatives also play
a vital role in enhancing the social, economic, and political well-being of the communities,
promoting economic independence, income increment, asset building, and social interaction. The
community has a positive perception of the role of cooperatives. However, there are challenges
that affect the participation of community in cooperatives, such as inadequate capital, low
access to markets and training, negative attitudes towards cooperatives, and government
interference. Based on these findings, it is recommended that cooperative members, government,
and NGOs work together to address these challenges and enhance the capacity of cooperatives
for better community development. The study recommends that prioritizing community interests
and addressing challenges, cooperatives can play a significant role in promoting social,
economic, and political well-being in the community.
