Question

Cooperatives have been working as a capital formation in the rural areas. Justify in four points.

Answer in long.​

Answer 1

1. Cooperatives enable members to pool resources, making it easier to access capital.

2. By providing much-needed capital and credit access, cooperatives help strengthen rural economic growth.

3. Cooperatives provide a risk-sharing system, in which members are willing to put some of their own capital at risk, thereby reducing the burden on entrepreneurs.

4. Cooperatives also provide a platform for collective bargaining, which encourages members to share financial risk and increase their buying power.