ENTREPRENEURSHIP

AND COOPERATIVES
MANAGEMENT AND
DEVELOPMENT

Presenters:
o Fe r d i n a n d C . G a t b o n t o n
o Ro n a fe A . D o l o
o Lo ve l y J o y E . C u s t o d i o
o Aldwin Jon A. Villero
o H i l a r i o R . M o n t e r o n , J r.
Topic Outline:
A Planning Model of Cooperatives as Business
Organization; and

How Cooperatives can Attain Self-Reliance,

Stability and Growth

Role of Cooperatives in Livelihood

Development

Assistance Programs for Entrepreneurship

Development

Stories of a Successful Entrepreneurs

Entrepreneurship and Cooperatives Management and Development 2

Ferdinand C. Ronafe A. Lovely Joy E. Aldwin Jon A. Hilario R.
Gatbonton Dolo Custodio Villero Monteron, Jr.

Group 2 Presenters
Entrepreneurship and Cooperatives Management
and Development 3
Topic Outline:
A Planning Model of Cooperatives as Business
Organization; and

How Cooperatives can Attain Self-Reliance,

Stability and Growth

Role of Cooperatives in Livelihood

Development

Assistance Programs for Entrepreneurship

Development

Stories of a Successful Entrepreneurs

Entrepreneurship and Cooperatives Management and Development 9

Q.-1. WHAT IS THE BUSINESS MODEL OF
COOPERATIVE ?
Q.-1. WHAT IS THE BUSINESS MODEL OF COOPERATIVE ?

A.-1. COOPERATIVES ARE BUSINESS OWNED BY “MEMBER –

OWNERS”. CO-OPS ARE DEMOCRATICALLY CONTROLLED BY
THEIR MEMBER-OWNERS, UNLIKE TRADITIONAL BUSINESS,
EACH MEMBER GETS A VOICE IN HOW THE BUSINESS IN
RUN. SERVICES OR GOODS PROVIDED BY THE CO-OP
BENEFIT AND SERVE THE MEMBER OWNERS.
Q.-2. WHAT ARE THE EXAMPLES OF
COOPERATIVE BUSINESS MODEL?
Q.-2. WHAT ARE THE EXAMPLES OF COOPERATIVE BUSINESS MODEL?

A.-2. THOSE TYPES OF COOPERATIVES INCLUDE:

• PRODUCER/MARKETING • PRODUCER/MARKETING
• RETAIL SUPPLY • RETAIL SUPPLY
•UTILITIES •UTILITIES
•CABLE TELEVISION •CABLE TELEVISION
•COOPERATIVES ARE A TYPE OF BUSINESS ORGANIZATION
THAT OPERATES ON THE PRINCIPLES OF COOPERATION,
DEMOCRATIC CONTROL AND MUTUAL BENEFIT.
PLANNING MODELS FOR COOPERATIVES:
SEVERAL KEY ASPECT TO CONSIDER
PLANNING MODELS FOR COOPERATIVES: SEVERAL KEY ASPECT TO CONSIDER

1. VISION AND MISSION: PLANNING PROCESS FOR A COOPERATIVE

BEGINS WITH A CLEAR VISION AND MISSION STATEMENTS. THIS OUTLINES THE
COOPERATIVES' PURPOSE AND VALUES.

2. MEMBER PARTICIPATION: AS COOPERATIVES ARE OWNED AND

GOVERNED BY THEIR MEMBERS, PLANNING INVOLVES ACTIVE PARTICIPATION FOR
ALL MEMBERS. THIS INCLUDE GATHERING INPUT, CONDUCTING SURVEYS, AND
HOLDING MEETINGS TO ENSURE COOPERATIVES’ PLANS ALIGN WITH THE NEEDS
AND PRIORITIES OF EACH MEMBERS.
PLANNING MODELS FOR COOPERATIVES: SEVERAL KEY ASPECT TO CONSIDER
3. BUSINESS PLAN: COMPREHENSIVE BUSINESS PLAN IS ESSENTIAL FOR GUIDING
THE COOPERATIVES’ ACTIVITIES AND DECISION-MAKING PROCESSES. THIS PLAN
TYPICALLY INCLUDES SECTIONS ON MARKET ANALYSIS, PRODUCT OR SERVICE
OFFERINGS, MARKETING STRATEGIES, OPERATIONAL PLANS, FINANCIAL PROJECTIONS,
AND RISK MANAGEMENT.

4. DEMOCRATIC GOVERNANCE: COOPERATIVES, MEANING THAT MEMBERS

HAVE A SAY IN THE OPERATION ON THE PRINCIPLE OF DEMOCRATIC CONTROL
COOPERATIVES DECISION MAKING PROCESSES. PLANNING MODELS FOR COOPERATIVES
SHOULD THEREFORE INCORPORATE MECHANISMS FOR MEMBER PARTICIPATION IN
GOVERNANCE, SUCH AS ELECTED BOARDS OF DIRECTORS AND REGULAR MEMBERS
MEETINGS.
PLANNING MODELS FOR COOPERATIVES: SEVERAL KEY ASPECT TO CONSIDER

5. SUSTAINABILITY AND SOCIAL RESPONSIBILITY : MANY COOPERATIVES

PLACE A STRONG EMPHASIS ON SUSTAINABILITY AND SOCIAL RESPONSIBILITY IN THEIR
PLANNING MODELS. THIS MAY INVOLVE CONSIDERING THE ENVIRONMENTAL IMPACT OF THEIR
OPERATIONS, PROMOTING FAIR LABOR PRACTICES, AND THE CONTRIBUTING THE WELLBEING OF
THE COMMUNITY THEY SERVE

6. FINANCIAL MANAGEMENT: EFFECTIVE FINANCIAL MANAGEMENT IS CRUCIAL FOR

SUCCESS OF ANY COOPERATIVE. PLANNING MODELS SHOULD INCLUDE STRATEGIES FOR
MANAGING FINANCES, SUCH AS BUDGETING, CASH FLOW MANAGEMENT, INVESTMENT PLANNING,
AND FINANCIAL REPORTING.
OVERALL, THE PLANNING MODEL FOR COOPERATIVES EMPHASIZE
DEMOCRATIC PARTICIPATION, MEMBER OWNERSHIP, AND A
COMMITMENT TO MUTUAL BENEFIT, MAKING BIT A UNIQUE AND
SOCIALLY RESPONSIBLE FORM OF BUSINESS ORGANIZATIONS.
EXAMPLE OF BUSINESS PLAN:
TITLE PAGE
BUSINESS PLAN
NAME OF CO-OPERATIVE
ADDRESS
WEBSITE
EMAIL ADDRESS
ABN
BUSINESS LOGO
DATE PREPARED AUTHOR
COVER PAGE:
• THE BUSINESS PLAN ITSELF DOES NOT NEED TO HAVE ALL THE SECTIONS LISTED IN THE
TABLE OF CONTENTS BELOW, BUT YOU SHOULD PUT SOME EFFORT INTO EVERY SECTION
LISTED IN IT TO HAVE THE CO-OPERATIVE WELL PREPARED BEFORE IT IS OPEN FOR
BUSINESS.
• FOLLOWING THE TITLE PAGE, THE BUSINESS PLAN SHOULD, AT A MINIMUM,
HAVE AN EXECUTIVE SUMMARY, CO-OPERATIVE OVERVIEW, MARKET
ANALYSIS, AND PLANS FOR MARKETING, OPERATIONS, PRODUCTION AND
FINANCES.
TABLE OF CONTENTS
EXECUTIVE SUMMARY PRODUCTS AND SERVICES
INTRODUCTION INVENTORY
THE CO-OPERATIVE CURRENT PERFORMANCE
CO-OPERATIVE STRUCTURE MEMBERS AND DIRECTORS
PREMISES KEY PERSONNEL
REGISTRATIONS AND LICENSES CO-OPERATIVE ADVISORS
INSURANCES RISK MANAGEMENT
PLANT AND EQUIPMENT
• OPERATIONAL PLAN • PRODUCT SALES, MARGINS AND DISTRIBUTION
• PRODUCTION PLAN • STRATEGIC ALLIANCES
• THE MARKET • MARKETING PLAN
• INDUSTRY • THE FINANCES
• THE ENVIRONMENT • COMMENCEMENT CAPITAL – NEW COOPERATIVES
• MARKET RESEARCH
• COMPETITORS • FINANCIAL OBJECTIVES
• COMPETITIVE ADVANTAGE • ASSUMPTIONS
• S.W.O.T. • RATIOS
• TARGET MARKETS • MONTHLY CASH FLOW FORECASTS
• PRODUCT PRICING AND TERMS
TABLE OF CONTENTS
•MONTHLY INCOME AND EXPENDITURE FORECASTS
•BALANCE SHEET FORECAST
•FINANCIAL PLAN (A NOTE ON FINANCIAL MANAGEMENT)
•THE STRATEGIES
•THE STRATEGIC PLAN 33 APPENDICES
THANK YOU!
 HOW COOPERATIVES
CAN ATTAIN SELF-
RELIANCE, STABILITY
AND GROWTH?

• RONAFE A. DOLO

ENTREPRENEURSHIP AND COOPERATIVES MANAGEMENT AND DEVELOPMENT

28
Business Model Comparison

How Cooperatives can Attain Self-

Reliance, Stability and Growth?
 Business Model Comparison

Notes
✓ The co-operative business model combines the best of small business ownership
(local wealth creation, reflects community interests) and a corporation
(governance, potential for longevity and limited liability).

✓ The co-operative model is the only one on this chart that provides a governance
model where every voice around the table is equal.

✓ It is important to remember that a co -operative is NOT community -owned, but

rather owned by members of the community. You are only a member or shareholder
of a co-operative when you choose to join the business and are allowed to
purchase a share. You are not a member by default of being a member of the
community..

How Cooperatives can Attain Self -Reliance,

Stability and Growth? 30
 Business Model Comparison
Differences to note

✓ All members or shareholders generally have one vote. This differs

from an investor-driven shareholder group where influence is based
on number of shares owned. That said, you can have different classes
of shareholders, which will impact decision -making influence, but it
will not impact the one share, one vote rule.

✓ Profit distribution is generally based on shareholder or membership

use of the service or product the business delivers.

How Cooperatives can Attain Self -Reliance,

Stability and Growth? 31
 THE ROLE OF COOPERATIVES
IN ECONOMIC DEVELOPMENT
• Co-ops all over the world continue to
serve and better their communities,
bringing more jobs, lower poverty rates
and even wealth distribution.

• Co-ops can do these things for their

communities because they follow a
specific list of principles, known as the
Rochdale Principles, which provide
guidelines for co-ops to put their values
into action.

Source: NCBA CLUSA 32

The seven cooperative principles are:

1. Voluntary membership 5. Education, information

2. Democratic member and training

control 6. Cooperation among

3. Member economic cooperatives

participation 7. Concern for community

4. Autonomy and
independence

Source: NCBA CLUSA 33

 WAYS CO-OPS IMPROVE ECONOMIC GROWTH IN
BOTH RURAL AND URBAN COMMUNITIES

1. OFFER FLEXIBILITY
o The flexible nature of cooperative businesses is the
primary reason they can adapt and thrive in any size or
type of community.
o Co-ops can tailor their products or services to the needs
of the community and find a way to make them both
useful and affordable.
o Since co-ops can operate in any industry, it makes it
easy for the members to assess the community and fill
any gaps in the market.
Source: NCBA CLUSA 34
WAYS CO-OPS IMPROVE ECONOMIC GROWTH IN BOTH RURAL
AND URBAN COMMUNITIES

2. CIRCULATE MONEY
o With co-ops, the money stays within the community because any
profit goes back into the business, which then uses the money for
purposes that benefit the community — like lowering prices and
hiring new employees.
o This circulation is beneficial to any type of community, but it is
especially helpful to communities that lack a strong cash flow.
o When members of a community don’t have much money, they don’t
have a lot to spend. When they don’t have a lot to spend, the entire
community’s cash flow is weaker, resulting in a weaker economy.
Co-ops combat this problem by inserting more cash into
circulation.

Source: NCBA CLUSA 35

WAYS CO-OPS IMPROVE ECONOMIC GROWTH IN BOTH RURAL
AND URBAN COMMUNITIES

3. CREATE JOBS
o In almost every community, an increase in job opportunities is
a positive thing.
o There is a wide range of co-op variations, but each offers a
different and effective way of creating new jobs.
o Worker’s co-ops are a great way to create job security and
living wages since each employee gets a vote in every decision
the co-op makes.
o Alternatively, producer co-ops help create better jobs and job
security because it allows all the producers to work together,
share resources and buy in bulk.

Source: NCBA CLUSA 36

WAYS CO-OPS IMPROVE ECONOMIC GROWTH IN BOTH RURAL
AND URBAN COMMUNITIES

4. STRENGTHEN THE COMMUNITY

o The main purpose of a cooperative business is to serve the
community.
o Co-ops provide jobs, products, services and wealth distribution,
and they also strengthen the community as a whole.
o Co-ops teach the members of the communities in which they
operate invaluable leadership and professional skills that will
help them in all aspects of their lives.
o They also encourage people to further the cooperative movement
by creating and supporting other co -ops, hoping that the
economic benefits will continue to spread.

Source: NCBA CLUSA 37

 1. Sharing Information

2. Contacting Your Representatives

3. Building Alliances

4. Developing New Standards and Strategies

5. Helping Others Organize

HOW TO ENCOURAGE COOPERATIVE

DEVELOPMENT IN YOUR COMMUNITY

Source: NCBA CLUSA 38

Thank you for
listening!

39
THE ROLE OF COOPERATIVES IN
SUSTAINING THE LIVELIHOODS
OF RURAL COMMUNITIES:
THE CASE OF RURAL
COOPERATIVES IN
SHURUGWI DISTRICT,
ZIMBABWE

-LOVELY JOY E. CUSTODIO

Introduction
Ortman and King (2007)

▪ cooperatives originated in
Europe, before they spread to
other industrialised countries
during the late 19 th century. In
the African continent, Kenya is
one of the countries with the
longest history of cooperative
development that has been
characterized by strong growth,
such that it has made significant
contributions to the overall
economy of the nation since it
attained its independence.
Wanyama (2009)
- the Ministry of Development and Marketing in Kenya established
that 80% of Kenya’s population was deriving its income either directly
or indirectly from activities of cooperatives.
Schwettman (2004)
- at least 40% of the households in Africa are members of
cooperative societies. The cooperative movement is taken to be Africa’s
biggest non-governmental organization (NGO)
Wanyama, Develtere & Pollet (2008)
- An International Labour Organization (ILO) study in 1997
estimated that the cooperative sector in 15 African countries was
responsible for nearly 160,000 direct jobs.
 Three ways in which cooperatives can
create employment

1) Cooperatives offer direct wage employment to people who work in

both primary and secondary cooperatives.

2) Cooperatives offer self-employment to their members, whose

participation in the economic activities make it possible for them to
be guaranteed a decent income.

3) cooperatives indirectly employ other people through the spillover

effect of cooperatives’ activities to non -members, who generate
income through transactions and opportunities created by
cooperatives.
Statement of the Problem

The district’s food security situation has been under

threat owing to recurrent drought resulting from:

- climate change,

-political polarization or instability,

-devastating effects of HIV and AIDs pandemic.

44
Literature Review

• The concept of the cooperative movement

- the International Cooperative Alliance (ICA) defines a

cooperative as “an autonomous association of persons united
voluntarily to meet their common social, economic and
cultural needs as well as their aspirations through a jointly
owned and democratically controlled enterprises”.

- Chitsike (1998): notes that a necessary feature of a

cooperative is the mutual commitment of each member
involved.
45
 Principles governing cooperatives

• Kumar, Wankhede & Gena (2015); Tchami (2007)

- life and work of a cooperative business are governed

by several values and seven major principles that enable
cooperatives to be viable.

46
 Principles that govern cooperatives in
putting their values into practice
• Principle of voluntary and open membership
- cooperatives are open to all persons that are able to use their service and
willing to accept the responsibilities of membership without gender, social, racial,
political or religious discrimination.
• Democratic member control principle
- cooperative societies are democratic organizations, controlled by their
members who actively participate in the formulation of policies and in making
decisions.
• Principle of member economic participation
- members in a cooperative society contribute equitably to the society and
democratically control the capital of their cooperative societies.

47
• Principle of autonomy and independence
- cooperatives as autonomous, self-help organizations that are controlled by
their members.
• Principle on education, training and information
- cooperatives should provide education and training to their members
• Principle of cooperation
- cooperatives server their members most effectively, whilst at the same time
strengthening the cooperative movement to work together through local, national,
regional and international structures.
• Principle of concern for community
- one major principle guiding the operations and activities of cooperatives.
- cooperatives should work for the sustainable development of their
communities through enabling policies which are approved by their members.
48
How cooperatives can sustain livelihood
communities

• Cooperatives exist for different purposes in human societies. As such,

they can sustain livelihoods f rural communities in many different
ways.
• Tchami (2007) - observes that the main purpose of a cooperative is
to allow individuals to come together and pool their resources in
order to reach a common goal, which would be difficult for them to
achieve as individuals.
• National Cooperative Business Association (NCBA) – argues that
cooperatives are formed by their members.

49
• Barton (2000) – states that the major reason why cooperatives
are formed is to strengthen the bargaining powers of their
members, help them in maintaining access to comparative
markets and to capitalise on new market opportunities.
• Attwood & Baviskor (1980) – most of the rural cooperatives
sought to bridge the gap that existed between rural and urban
areas
• Chitsike (1988) – most rural communities across Africa find the
need to increase agricultural productivity through cooperatives.

50
 Research Methodology and Design
• Design (descriptive survey) – research employed a mixed method approach
through adopting both quantitative and qualitative approaches. The quantitative
method involved data collection procedures that resulted primarily in numerical
data which was analysed by statistical method.

• Setting – this research was Shurugwi District in the Midlands Province of

Zimbabwe. There are two government administrations in this district.
• Shurugwi Town Council – the local authority running the affairs of Shurugwi town
• Tongogara Rural District Council – running the affairs of Shurugwi rural in the district.

- The district has an estimated total population of 99,475 people. The

central focus of the study was on the role played by rural cooperatives as a
livelihood strategy adopted by the rural communities to sustain their livelihoods in
order to earn decent living.
51
• Sampling – a sample of 50 research participants was used in the study,
through purposive sampling, which is a non-probability technique. In this
study, the sample comprised members of the rural cooperatives in Shurugwi
District, as well as government officials drawn from central and local
government departments in district.
• Procedure – the researcher used questionnaires with open- and closed-
ended questions, semi structured interviews and observations. The officials
included Agricultural Extension Officers, officials from the Ministry of Small
and medium enterprises and officials from the local government.
- 42 members were the six management committee members of
the six cooperatives who acted as key informants.

52
• Ethical Considerations
- Refers to the question of right or wrong, and as such ethical concerns in
any research are very important as they are meant to protect the rights of
participants.
- Miller (2000), ethics can be taken to refer to issues to do with morality,
culture and customs, whereby the researcher in the field has to make
some considerations on issues that can affect respondents.
- Fraenkel and Wallen (2003) indicate that it is fundamental responsibility
of researchers to do all in their power to ensure that participants are
protected from physical and psychological harm, and from discomfort
that may arise due to the research.
• Results and Discussion
- seeks to answer the objectives of the study, which are to identify the
reason for the establishment of rural cooperatives in the district

53
Table 1: Main cooperatives in Shurugwi District and their
years of establishment.

Name of cooperative Date established Years of operation

Gutsaruzhinji cooperative 1983 33

Sunrise Savings and Credit

2011 5
Cooperative

Makwikwi cooperative 1983 33

Shurugwi dairy cooperative 2001 15

Tamuka Fishing Cooperative 2009 7

Bongwe savings and credit

2012 4
cooperative

54
Table 2: Reasons for establishing cooperatives

Reason Frequency Percent

Economic development – to meet members’ economic

12 24
needs

Empowerment tool 09 18

To address market failures– to increase bargaining

09 18
power on the market

As a defence against adverse social-economic

08 16
conditions
To access cheap transport and storage facilities 06 12

To purchase bulk inputs at lower prices 06 12

55
 Table 3: Roles of cooperatives in
improving livelihoods

Role Frequency Percent

Employment creation 10 20
Poverty reduction 12 24
Improved food security 09 18
Women empowerment 07 14
Human capital development 03 06
Creation of rural market 03 06
Social integration 06 12
N = 50.

Challenge Frequency Percent

TABLE 4: Challenges for Poor management 10 20
cooperatives in sustaining Small value of shares 06 12
livelihoods.
Lack of access to credit facilities 14 28

Lack of access to competitive

20 40
markets 56
• Limitations to the study
• Financial resources to cover the cost of transport and to purchase
research materials
• Recommendations
• Government and banking sector render financial support to cooperatives
in rural communities to allow them to expand and diversify their business
operations.
• Constant training on leadership and management skills
• Focus on investigating issues that hinder the growth of the cooperative
movement.

57
• Conclusion
• Cooperatives are not a new phenomenon to exist in rural communities
• Cooperatives play a significant role in defining and sustaining the lives of the
communities
• Running cooperatives
• Cooperatives are established for various purposes:
-economic development
-empowering of marginalised members of communities
-to address market failures
-defence against adverse socio-economic conditions
-access cheap transport and storage facilities
-purchase inputs at affordable prices
• Major roles of cooperatives to the rural communities include poverty reduction,
employment creation, improved food security, women empowerment and
human capital development.
• Cooperatives would continue to be part of rural life.

58
ASSISTANCE
PROGRAMS FOR
ENTREPRENEURSHIP
DEVELOPMENT

-Aldwin Jon A. Villero

 How can government support local
entrepreneurship

Funding opportunities: Government often offer grants, loans,

and tax incentives to help entrepreneurs kickstart their ventures.

Business development programs: Government agencies

offer training, mentorship, and networking opportunities to equip
entrepreneurs with the necessary skills.

Regulatory environment: Governments create favorable

policies and regulations that encourage innovation, fair
competition, and ease of doing business.
Microfinance Lending Program of Cooperatives in
Cebu, Philippines: Realities, Benefits and
Women’s Participation

• Ferdinand T. Abocejo
• Zosima A. Pañares
• Leonora T. Dotillos
• Lito L. Diones
• Sherwind A. Belciña
Introduction
• Poverty reduction is a priority thrust of the Philippines’ government. It is well
articulated in the ten-point agenda of the period 2004-2010. The government
is implementing multi-faceted poverty reduction strategies.
• Microfinance program design – help low-income households gain access to micro-credits.
• Almario (2006) – microfinance scheme sets the provision of a broad range of services

• Highlighted topics/talks
• Crucial role of cooperatives in delivering microfinance services
• Presence of the cooperatives in the local economy
• Participation of women at all levels of microenterprise activities
• Remarkable accomplishments about effective resource mobilization by cooperative
member-owners.
• Notable achievements on sustainable microfinance livelihood activities catalytic to local
entrepreneurial development
 Foreign
National Private
fund
government sector
providers

Cooperatives

Conceptual framework
Research objectives and significance of the
study

• Contributions of government’s microfinance program on

cooperatives and their members.
• How microfinance program contributed to the assets,
capitalization and profits of the cooperatives
• Contributions of microfinance program on cooperative
member borrowers’ disposable income, expenditures, living
standards and women’s participation.
 Literature review

• United Nations Development Program’s Millenium Development

Goals on Eradications of Extreme Poverty and Hunger (UNDP-
MDGs) (2000)
• strengthens the view that microfinance lending is an alternative avenue
which plays a larger role in the development of an economy.
• The Regulatory Framework for Microfinance (RFM) in the
Philippines formulated by the Department of Finance (DOF)
strongly supports the current government’s fight to alleviate
poverty.
• Tightening of the regulation for the commercial micro-lending sector
• Strategies that redress the power of the lenders over the borrower.
• Kondo, Orbeta, Dingcong and Infantado (2008)
• The impact of availing of microfinance program loan on per capita
income and per capita expenditures is mildly statistically significant
(10%).
• Estimated that borrowing households earned about Php 1,333
(US$30.00) higher per year compared to those who did not avail of
microfinance program loan.
• Philippine government has been actively extending credit and technical
assistance to MFIs which implement microfinance lending programs to
the low –income groups:
• Direct lending
• Channeling funds
• Providing credit guarantees to MFIs for their member beneficiaries
• Encouraging linkages between banks and MFIs with incentives package.
 Methodology
• Research Locale and Sample Cooperatives, and Respondents
• Various localities of Cebu City
• 8 management officials from each cooperative and 400 randomly selected
cooperative microfinance program beneficiaries
• Respondents’ selection was based on:
• Must have applied for a credit/loan with the cooperative financed through the microfinance
program
• Have been legitimate members of the cooperative for at least three years
• Research Instrument
• Researcher-made interview guide based on the Living Standard Measurement
Survey of World Bank.
• Pilot-tested to more than 50 respondents
• Reliability test (Conbrach’s alpha = 0.71)
 Results and Discussion
Minimum Maximum Average
Number of Members 200 39,000 13,660
Contributions Membership Fees 100 500 130.00
of government Capitalisation

microfinance Initial Capital

Year Started
500
1970
5,000
2007
1,740.00

on Present Asset (2009) Php5.6 million Php2.8 billion Php8.72 million

cooperatives Microfinance Component

Total Amount of Financing
Table 1: Php2.0 million
This year (2009) Pph1.8 billion Php566.72 million
Selected Last Year (2008) Php1.5 million Php1.4 billion Php463.84 million
indicators of
samples Total number of beneficiaries

cooperatives At the start 9 278 14

At present 150 3,621 878
Beneficiaries with standing loans 90 3,422 815
Percentage share profit from
Microfinance (%) 3 6 3.67

Note: Based on a currency exchange rate of US$1.00 = Php45.00

 Variables Husband Wife

Total Count (n) 328 389

• Table 2:
Characteristics Mean (age in years) 46.51 45.89

of member Mode (age in years) 50 (n=21) 50 (n=19)

parent
Education (count) 328 389
respondents
Post-Graduate 0 1
College Graduate 44 39
College Level 56 63
HS Graduate 92 99
HS Level 38 57
Elem. Graduate 71 92
Elem. Level 25 37
Below Elementary 2 1
• Table 3: Estimated monthly family income and expenditures

A. Monthly Income Minimum Maximum Average

Husband Php12 Php70,000 Php8,584.91

Wife Php50 Php40,000 Php8,683.90

Children (combined) Php22 Php500,000 P22,926.60

B. Monthly Expenditures
Electric Bills Php18 Php5,000 P715.02
Telephone Bills Php15 Php5,000 P725.11
Rentals Php25 Php35,000 P2,001.59

Food Php50 Php30,000 P4,427.44

Wages for Labour P100 Php20,000 P3,287.75

Table 4: Acquisition cost of property and expenses on children’s
education
n Minimum Maximum Average

A. Acquisition of property

Real estate 97 Php10,000 Php2,000,000 Php240,698.92

Vehicles 78 Php65,000 Php980,000 Php127,358.97

Appliances 137 Php300 Php20,000 Php21,649.26

Jewelry 25 Php3,000 Php60,000 Php13,919.20

B. Expenditures on children's education

Daily school allowance 191 Php5 Php200 P75.45

Tuition fee per student 155 Php15 P51,000 P7,586.08

• Table 5: Microfinance investment and loan amortization
Minimum Maximum Average
A. Fixed Assets
Building P1,000 P3,000,000 P168,407.03
Goods in Stock 1,000 P1,000,000 P35,834.62
Appliances P1,000 P1,000,000 P20,993.52

B. Loan amortisation
Daily P10 P6,600 P261.80
Weekly P20 P15,000 P1,023.93
Monthly P70 P50,000 P4,395.53

C. Derived Income
Daily P25 P9,000 P635.78
Weekly P100 P14,000 P4,834.09
Monthly P400 P80,000 P21,534.86

D. Gross Profit
Daily P10 P9,000 P373.98
Weekly P249 P15,240 P3,810.16
Monthly P400 P80,000 P17,139.33

E. Other business bakery, sari-sari store, chicken andswine raising

• Women’s Participation in the Cooperative
• Figure 1. Women’s participation in microenterprise initiatives

83%
84

82
81%

80 78%

78

76
75% 75% 75%

74

72

70

borrowers Keep business decides on do payment

do budgeting source out
money and business of loans and business capital
and allocation
disburse matters bills
 Conclusion and Recommendations
• Government microfinance program had benefitted both cooperatives and their member-
borrowers
• Microfinance lending program has substantially benefitted the low income groups by way of
capacitating them to generate revenues for family and household sustenance.
• Cooperative members became viably productive in their local community through
microenterprise initiatives.
• There is a need to strengthen and sustain access by member beneficiaries especially for
families/households in the low income groups.
• Provision of micro-credits should result not only at increasing family/household incomes but
more so in allowing beneficiaries exit from the poverty threshold.
• Cooperatives should enforce effective monitoring schemes for microfinance borrowers
• Assess microfinance borrowers who could not remit or amortise their loans on due dates
because of unexpected/emergency cases
• Assessment of member borrowers who failed to pay their microfinance loans should be
conducted to evaluate root causes of non-payments as inputs to microfinance program’s policy
evaluation.
 Stories of
Successful
Filipino
Entrepreneurs
REPORTER:
Hilario Jr. R. Monteron
• July 9, 1976, 47 years old
• Police Officer
• Provincial Superintendent, Leyte
• Provincial Internal Affairs, Kuta Kankabatu, San
Jose, Tacloban City
• BS Criminiology
• Juris Doctor (J.D.)
 Crispy King
ERIC JOSEPH Q. TOLO
• 2001: Established "Dayka Bakeshop" bakery in
Cebu City.
• Expanded bakery to Ormoc, Leyte.
• Ventured into grilled-chicken business with
"Estong Manok and Liempo".
• Opened first fast-food outlet, "Crispy King", on
Lopez Jaena St., Ormoc City.
• Reached 50 Crispy King branches by 2019.
• By 2023, expanded operations to various cities
across the country, including Cebu, Davao, Iloilo,
Surigao, Leyte, and Samar.
 NATIONAL BOOKSTORE
Ma. Soccoro C. Ramos

• Established own bookshop in Escolta, Manila with

200 pesos in 1942.
• Bookstore destroyed during Battle of Manila in
1945.
• Rebuilt at new location on Rizal Avenue but
damaged by typhoon in 1948.
• Reopened store, expanded goods selection, and
hired more workers to branch out into other
cities.
• Nearly 8 decades later, still standing, having
served generations of students and office workers.
 Bench
Ben Chan
• 1987: Established a small t-shirt shop in Manila's SM
Department store, offering affordable yet stylish
shirts and jeans for men.
• 1988: Launched the first boutique, enlisting famous
actor Richard Gomez as the brand endorser.
• "Bench" store began to gain popularity, leading to
expansion into cosmetics and other products.
• 2023: "Bench" remains one of the largest clothing
brands in the Philippines, with nearly a thousand
branches worldwide.
THANK YOU

Presenters:
❑ Ferdinand C. Gatbonton
❑ Ronafe A. Dolo
❑ Lovely Joy E. Custodio
❑ Aldwin Jon A. Villero
❑ Hilario R. Monteron, Jr.
Presentation Title 80
Ferdinand C. Ronafe A. Lovely Joy E. Aldwin Jon A. Hilario R.
Gatbonton Dolo Custodio Villero Monteron, Jr.
Safety Officer II Budget Officer II Title Licensed Professional Police Officer
▪ 51 years old ▪ 30 years old Teacher ▪ July 9, 1976, 47
▪ DepEd ROVIII years old
▪ BS Mathematics ▪ 27 years old
(Finance Division) ▪ Provincial
▪ BS- Entrepreneurship ▪ BSED Mathematics Superintendent,
Leyte Provincial
Internal Affairs,
Kuta Kankabato,

Group 2 Presenters
San Jose, Tacloban
City
▪ BS Criminology
▪ Juris Doctor (J.D.)

Entrepreneurship and Cooperatives Management

and Development 81