Abstract:
Cooperatives are formed in a spirit of meting their members’ economic, social and cultural
needs that they cannot meet by their own. In this spirit members economic participation play
a crucial role. This study examined the factors that determine members’ economic
participation in multipurpose cooperatives in case of Yilmana Densa Woreda, Ethiopia. Post
positivist knowledge claim is followed and survey strategy of enquiry is used. Relevant data
are collected using self-administered questionnaire by distributing for 225 respondents. To
ensure face and content validity of measurement instruments, the questionnaire was reviewed
by advisors and cooperative experts. Cronbach’s alpha test is carried out (a=.892) to test
reliability of the instruments. Descriptive statistics and multiple linear regressions are used
for analysis. Assumptions are tested to check the appropriateness of multiple linear
regressions for analysis. The descriptive result shows that; there is weak members’ economic
participation, members have not sufficient awareness, the management system of
cooperatives are weak, members passed bad membership history, members are dissatisfied by
the cooperatives service delivery and demographic factors affect members’ economic
participation. Correlation coefficients show that, there is a positive relationship between the
dependent and all independent variables. But, regression analysis revealed that, there is
negative relationship between awareness and economic participation. However, there is a
positive relationship between management ability, membership history, satisfaction and
demographic factors of members; and members’ economic participation. It is concluded that,
demographic factors and management ability contributes a lot for members’ economic
participation but not without membership history and satisfaction. Other things held
constant, increasing awareness negatively affects economic participation. It is recommended
that cooperative promoters should well-train the management committee first and initiate to
deliver consistent quality service. Then, continuous awareness creation on members about
cooperation and equality increases economic participation and commitment