Author(s) :

Sofoluwe N A.

Volume :

Abstract :

This study investigates the effect of cooperative structure on its performance in the rural sector. It focuses on democratic control and ownership structure of Agricultural cooperatives which dominates the rural areas. Primary data collected through structured survey instrument were obtained through multi-stage sampling procedure. The data were fitted to multi-linear regression model after descriptive and Pearson correlation analysis. The regression results suggests that one-member, one-vote principle is not related to performance of agricultural cooperative societies in the rural area. The extent to which control right is tied to members’ capital contribution has positive and significant effect on performance of cooperatives in the rural areas. The individual economic strength of cooperative members also exerts positive and significant effect on cooperative performance at 5% level. The cooperative members’ economic strength could provide opportunity for investments to generate more surpluses for the members. Thus, membership dimension in cooperatives could be a requisite for positive outcome of cooperative enterprise most especially in the rural areas

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