THE IMPACT OF SOCIO-ECONOMIC FACTORS ON THE MANAGEMENT OF AGRO-COOPERATIVES IN LOCAL COMMUNITIE

Abstract

The development of entrepreneurial initiatives in the form of agro-cooperatives can be a perspective way for the community to develop through the formation of active civil awareness of the population, to create new jobs, to improve the local infrastructure and to find additional investments. The research aimed at examining structure and factors which influenced cooperatives management in Sumy region. Questionnaires were administered in 5 cooperatives to 19 members. Multiple regression and correlation analyses were performed to identify factors believed to influence cooperatives’ management as well as to examine the degree of association between farm-specific and socio-economic variables. To evaluate the importance of cooperatives for its members and management, such a resulted factor, as “receiving a better price as a member of cooperative” was chosen. Results indicate that a significant factor on perception to receive a better price as a member of the agricultural cooperative was age with the effect of the coefficient been about 4.1 %. Factors such as gender, education, farm size and ways to resolve conflict situations in the agro-cooperative turned out to be statistically insignificant. The purpose of this research mini-paper is to study certain aspects of the cooperative movement in Ukraine and the Sumy region. The object of research is to identify the extent to which various factors influence the activities of cooperatives. The theoretical and methodological basis of the research reported in the research mini- paper were the main provisions of national scientists and development and international experience problems with cooperation, theory, and practice of marketing, personal assessment of the authors. People with a higher level of education better evaluated the importance of cooperative for the local community. However overall local’s vision of the cooperative movement is positive and most of the respondents would like to have more cooperatives in their villages. It was founded, that the lack of information about cooperative movement which resulted in the low interest of low people in joining cooperatives. In light of the above, creating more awareness of the cooperative movement in the local communities could be a way to involve the youth to participate in the cooperative movement.