Abstract:
Agribusiness cooperatives face increasing challenges in global markets, requiring professional
management for survival, growth, and competitiveness. Studies show that skilled managers improve
operational efficiency, innovation, and profitability, while poor management leads to resource
losses and inefficiencies. The main objective of this study was to investigate the effects of
professional managers on cooperative business performance, specifically examining the effects of
financial management practices on cash flow and analyzing the impact of strategic decision-making
on business outcomes, while also providing insights into the role of professional managers in
enhancing cooperative performance. A quantitative approach was employed, using a census
method to gather data from all 151 members of the Ambo Farmers' Cooperative Union through
questionnaires featuring both closed and open-ended questions focused on management practices,
decision-making, financial performance, member satisfaction, and overall cooperative success,
complemented by secondary data sources such as literature reviews and theoretical frameworks.
Descriptive and inferential statistics, along with multiple regression analysis using SPSS version
24, were applied to examine the relationship between professional managers and cooperative
business performance. The results indicated that financial management practices, including
budgeting, forecasting, and performance reviews, had a positive impact on financial performance,
with a significant portion of respondents, most with 6 to 15 years of experience, affirming that
professional managers enhanced profitability, particularly through innovation, with over 62%
confirming increased profitability. In this study on the effects of professional managers on
cooperative business performance, the relationship between professional management and cash
flow was established using structured questionnaires that included items on managerial practices
and financial indicators, with data analyzed through statistical methods to determine their
correlation. Although primary data were collected via questionnaires, books and scholarly articles
were treated as secondary data because they provided previously published information, theories,
and empirical evidence that supported the research framework and analysis, helping to
contextualize and interpret the findings. A strong positive correlation (R = 0.850) was found
between the predictors and business performance, explaining 72.3% of the variance. The study
concluded that professional managers significantly enhance cooperative business performance,
particularly in financial management, strategic decision-making, and fostering innovation, and
emphasized that sustained focus on managerial skills development and innovation is crucial for the
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continued growth and success of cooperative businesses like the Ambo Farmers' Cooperative
Union.
