The Role Of Cooperatives To Build Sustainable Livelihood Of The Communities: The Case Of Ambo Town, West Shoa Zone, Ethiopia

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.