Cooperative Entrepreneurship

Entrepreneurship is defined as the creation of an innovative economic organization for the purpose of gain or growth under conditions of risk or uncertainty. In this context, cooperatives can be called community enterprises being managed by diverse member entrepreneurships.

Cooperative Entrepreneurship in India: Legal Framework

The legal framework of cooperatives is governed by Cooperatives Society Act, 1912; Mutually Aided Cooperative Thrift Society Act; and Multi-State Cooperative Societies Act, 2002.

Cooperative societies with members from one State are registered under the provisions of State Cooperative Societies Act concerned and are regulated by the State Registrars of the Cooperative Societies concerned.

Cooperative societies with members from more than one State are registered by the Central Registrar of Cooperative Societies under the Multi State Cooperative Societies (MSCS).

Challenges

• Awareness and Access to Information
• Training and Skill Development
• Technological Upgradation
• Finance
• Procurement and Marketing
• Mentoring

Recommendation/ Suggestions

The cooperative movement in India is not uniform across the nation. As per the information available, Goa, Gujarat, Maharashtra, Karnataka, Kerala and Tamil Nadu witness larger spread of cooperatives (National Cooperative Union of India, 2018).

• Efforts are needed to ensure convergence of schemes, to facilitate the ease of doing business.
• There is an urgent need to smoothen registration processes of cooperatives in diverse areas.
• The possible tenets of the National Policy for Cooperatives which is being drafted may stress on universal coverage and providing a single unique identity to each cooperative.
• There should be technology-driven single portal and identity number for registration and all other business affairs.
• Integration/convergence with other Ministries’ programmes, portals and efforts; and promoting and setting up of sector-specific export-oriented Multi-State and State Cooperatives.