Enhancing Well-Being Through Cooperative: Strengthening Social Capital for Public Welfare in Ethiopia

Abstract

Cooperatives remain a crucial tool in Ethiopia’s economic and social transformation since they contribute significantly towards poverty reduction efforts by creating jobs especially among marginalized communities at large. This study investigates the impact of cooperative enterprises in Ethiopia on members’ well-being, focusing on economic, social, and environmental factors. The study used a qualitative approach for collecting data from questionnaires, interviews, and focus group discussions. The research involved 122 respondents with at least five years of experience in a cooperative, which were selected using the purposive sampling method. The collected data was analyzed by descriptive data analysis method. The results showed that cooperative enterprises positively affect members' economic, social, and environmental well-being by enhancing income and financial stability, improving life standards, increasing income, and providing access to microloans, training, and self-employment opportunities. The study also highlights the importance of social interaction within cooperatives, contributing to the creation of social capital and members’ well-being. Additionally, the study found that participation in cooperative services increases voluntary savings among beneficiary members, but the assessment of service contributions to well-being conditions is lacking. In general, the individual, which participates, has overall improvement in the economic, human, and social capital, despite there is limited attention given to the concerned body. The study emphasizes the importance of encouraging voluntary cooperative members to engage in services, providing education and support, and enabling them to purchase agricultural inputs and expand businesses. Recommendations include public voluntary saving mobilization, training on loan usage, and collaboration between policymakers, donors, program managers, NGO personnel, and researchers. The paper does not discuss any potential external factors or contextual influences that may affect the well-being outcomes of cooperative members in Ethiopia. Additionally, the study does not provide a comprehensive analysis of the long-term sustainability and lasting impact of cooperative membership on individual well-being.