The Contribution of Employees on The Cooperative Businesses

  • Zulfadil Zulfadil Faculty of Economic, The University of Riau, Jalan Bakti IV No.37A RT 03 RT 11 Kelurahan Tangakerang Barat, Kecamatan Marpoyan Damai, Kota Pekanbaru, Provinsi Riau, Indonesia.
  • Futy Resnia University of Riau, Jalan Bakti IV No.37A RT 03 RT 11 Kelurahan Tangakerang Barat, Kecamatan Marpoyan Damai, Kota Pekanbaru, Provinsi Riau, Indonesia.
  • Rosyeti Rosyeti Faculty of Economic, The University of Riau, Jalan Bakti IV No.37A RT 03 RT 11 Kelurahan Tangakerang Barat, Kecamatan Marpoyan Damai, Kota Pekanbaru, Provinsi Riau, Indonesia.
Keywords: Secondary Cooperative, Employee contribution, Business development, Financial performance

Abstract

The role of cooperative is important for Indonesian Economic, especially for low and medium level of society incomes. This study investigates the contribution of employees on cooperative business. The study objects are secondary cooperatives where their members are primary cooperatives. The sample were selected based two criteria, as such (1) the cooperative businesses were active and (2) the cooperative performed members’ annual forum since last three years. Out of 22 secondary cooperatives in the Riau Province, there were six of them satisfied the criteria. The respondent of this study is cooperative boards and employees. The study conducted for six months, from October of 2022 to April of 2023. This study findings indicated that role cooperative boards on the cooperative business development were 71% which were more dominant compared to those of employees which was only 29%. The cooperatives’ businesses did not develop at all and nearly stagnant since last three. Almost all Indicators which were growth of assets, internal equity, business’ volume, and net profits, applied in this study were negative. Low role (contribution) of the employees on the cooperative business development, seen main cause of the bad cooperative financial performances. This study concluded that, in descriptive approach, there weas relation between employees’ contribution and cooperative businesses performances. For the cooperatives to develop in the future, the role/contribution of the employees need to be increased.

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Published
2024-08-31
Section
Articles