ANALYSIS OF CAUSES OF HIGH RATE OF CO-OPERATIVE BUSINESS FAILURE AND POSSIBLE INTERVENTIONS IN TAITA TAVETA COUNTY IN KENYA.

Abstract

The purpose of this study was to establish and analyze the prime causes of high rate of co-operative business failure and possible interventions in Taita-Taveta County in Kenya. It was therefore an action research oriented study. The study was designed in August-December, 2014 and eventually executed in June, 2015. The study employed a mixed
approach paradigm that enabled adequate collection of both quantitative and qualitative data. The quantitative data
was analyzed using the Statistical Package for Social Sciences (SPSS). The qualitative data was analyzed by identifying objective thematic responses, together with their categorization and logical interpretations in accordance with the study objectives. Analytical tables were also appropriately utilized. The findings of the study revealed that major causes of co-operative business failure included lack of awareness of the functioning of the co-operative business model, inadequate professional skills, mismanagement and corruption among others. Key intervention strategies were identified as intensive co-operative education and training, adherence to co-operative principles and values, and enhancing professionalism in conducting day to day co-operative business affairs.