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Small cooperative or large cooperative: Which is the better option for investment

mmdoot
by Mukesh Doot 3 year(s) ago

Are you thinking of investing in a cooperative entity? The first thing you need to determine is what kind of cooperative society you must look for. Whether it should a small cooperative business or a large one. We have prepared a list of advantages and disadvantages associated with both. Here they are -

Small cooperatives

Advantages 

  • Great chances of growth
  • Less risk of loses on investment
  • More say in the management of the cooperative
  • Direct handling of finances, so increased transparency
  • Fast redressal of your complaints

Disadvantages

  • Inexperienced management
  • Small amount of capital available
  • Less risk taking power
  • Lack of resources to spread the business
  • Services and product availability on a smaller scale

Large Cooperatives

Advantages

  • Experienced management
  • A large amount of capital available
  • A great deal of risk taking power
  • Lot of resources to spread the business
  • Services and product availability on a larger scale

Disadvantages

  • A relatively slow chances of growth
  • Increased risk on investment
  • Less say in the management of the cooperative society
  • Direct access to financial activities are less
  • Slow redressal of your complaints

Conclusion

So you must have realised that both small and large cooperative society has their own advantages and disadvantages. As after going through this article, you have come to know about them, it is now up to you what you chose.

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