Multipurpose Cooperative and Economic Sustainability of Small and Medium-Sized Enterprises in Awka South Local Government Area, Anambra State

Abstract

The economic sustainability of Small and Medium-sized Enterprises (SMEs) is crucial for economic development, especially in regions like Awka South, Anambra State. However, many SMEs face challenges such as limited access to credit, inadequate capital, and low participation in cooperative activities, which hinder their growth and sustainability. This study was motivated by the need to understand how multiple-purpose cooperatives influence the economic sustainability of SMEs in Awka South. Specifically, it examines how cooperative membership, participation level, cooperative credit, and cooperative capital impact the profitability of SMEs in the area. The study employed a descriptive survey design, utilizing both descriptive and inferential statistics. Data were collected from a sample of 229 respondents comprising SME owners and cooperative members. The analytical tools included simple percentages, means, standard deviations, and an econometric regression analysis using the Ordinary Least Squares (OLS) technique to determine the relationship between variables. The results indicated that cooperative membership (β = 0.183, p < 0.05), participation level (β = 0.214, p < 0.01), cooperative credit (β = 0.291, p < 0.001), and cooperative capital (β = 0.159, p < 0.05) all significantly and positively influence the profitability of SMEs. The findings suggest that active participation and access to cooperative resources substantially enhance the profitability and sustainability of SMEs in Awka South. Based on these results, it is recommended that policymakers and cooperative leaders promote increased membership and participation in cooperative activities, improve credit facilities, and strengthen the capital base of cooperatives to further support SME growth. In conclusion, multiple-purpose cooperatives play a vital role in fostering the economic sustainability of SMEs in the region. Strengthening these cooperative structures can lead to improved profitability, resilience, and overall economic development in Awka South.