Disadvantages Of Co-operative Store

 Although co-operative stores have several advantages, these stores suffer from some weakness such as limited resource of finance, inefficient service, not dedicated members and very limited scope.

The main disadvantages of co-operative store are as follows:

1. Limited financial resources

The main source of capital of co-operative store is only the share capital collected from its members. The number of its member remain limited. Moreover, those who belong to economically low and middle class become members of co-operative store. As a result, co-operative store cannot collect adequate capital. In the lack of adequate capital, it cannot purchase goods as much as it wants and has to remain deprived of the benefits of specialists' services and advice. Therefore, limited source of finance is the main disadvantage of co-operative stores.

2. Lack of efficient services

Efficient, skilled, noble and unselfish leadership is needed for the success of a co-operative store. Mostly the persons who operate and manage co-operative store are not found to have such qualities and do not work with selfless feeling. Moreover, efficient as well as experienced managers and skilled staff cannot be appointed due to lack of sufficient resources. This is why, co-operative stores cannot get success as they should.

3. Lack of protection by members

Co-operative store may not get sincere and dedicated members. They get protection by buying goods fro the store, but do not care for activities and development of the store.

4. Limited scope

Limited scope is another notable disadvantage of co-operative store. The scope of co-operative store remains very limited. It deals in the goods or purchase and sells only the goods, which its members need. So, it remains limited within its members due to which it cannot develop.


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