many young entrepreneurs with sound business ideas are hindered because of starting capital. Our economy is not designed to help start-ups in any field. The financial market is sceptical of lending to an individuals/start-ups basically for fear of losing their money. From personal experience, financial institutions including government funded institutions like the bank for Agriculture, bank of industry prefers to deal with a group of people like COOPERATIVE SOCIETIES, Established organisations (big companies, churches) and wealthy individuals.

In view of taking the advantage of the collective benefit in achieving one's goal, establishing or joining a cooperative society remains one better option to raise start up capital.

practically, I have approached more than 10 banks, few micro finance banks and private financial institutions for loan even with my land C of O yet was not worthy in their assessment for a start up loan but they all agree on one point: lending to a cooperative.

My submission here is not however to say that borrowing money is a better way than trusting God for financial solution but if its the last option, coming together under an umbrella of a cooperative can break that barrier against start ups.

There are farmers cooperative, traders cooperative, workers cooperative etc. joining one and regular payment of your dues may allow you borrow upto 2 to 3 times your savings with lower interest rate and good payback period without collateral.

Some State govt are interested in developing SMEs and are providing soft loan through cooperative societies to support various ideas especially in agric ventures.

To this end, those who are facing similar financial constrain may wish to consider this collective fund raising initiative. Though the process of registering and establishing good business relationship with financial institution and govt funding agencies may take a little time but one thing is sure, you will get fund to establish your business in so far as you are sincere, hard working and committed to your business.

10 people are enough to start cooperative society. Members do not have to be in similar line of business but better if all are in common trade. Age, location and your trade( legal business any-ways)are not important if you are interested.

Islam and Christianity forbid usury (lending with interest)This point is vital and am convinced its possible depending on what members agree to. lets start the process. drop your email and line of business, location and general views if you are interested

But does the cooperative need to register with any other body apart from CAC?

yes there is govt ministry that handles the registration of cooperatives thru the director of cooperative in each state of the federation.

OK. Thanks.

integrityfood: many young entrepreneurs with sound business ideas are hindered because of starting capital. Our economy is not designed to help start-ups in any field. The financial market is sceptical of lending to an individuals/start-ups basically for fear of losing their money. From personal experience, financial institutions including government funded institutions like the bank for Agriculture, bank of industry prefers to deal with a group of people like COOPERATIVE SOCIETIES, Established organisations (big companies, churches) and wealthy individuals.

In view of taking the advantage of the collective benefit in achieving one's goal, establishing or joining a cooperative society remains one better option to raise start up capital.

practically, I have approached more than 10 banks, few micro finance banks and private financial institutions for loan even with my land C of O yet was not worthy in their assessment for a start up loan but they all agree on one point: lending to a cooperative.

My submission here is not however to say that borrowing money is a better way than trusting God for financial solution but if its the last option, coming together under an umbrella of a cooperative can break that barrier against start ups.

There are farmers cooperative, traders cooperative, workers cooperative etc. joining one and regular payment of your dues may allow you borrow upto 2 to 3 times your savings with lower interest rate and good payback period without collateral.

Some State govt are interested in developing SMEs and are providing soft loan through cooperative societies to support various ideas especially in agric ventures.

To this end, those who are facing similar financial constrain may wish to consider this collective fund raising initiative. Though the process of registering and establishing good business relationship with financial institution and govt funding agencies may take a little time but one thing is sure, you will get fund to establish your business in so far as you are sincere, hard working and committed to your business.

10 people are enough to start cooperative society. Members do not have to be in similar line of business but better if all are in common trade. Age, location and your trade( legal business any-ways)are not important if you are interested.

Islam and Christianity forbid usury (lending with interest)This point is vital and am convinced its possible depending on what members agree to. lets start the process. drop your email and line of business, location and general views if you are interested

@integrityfood..... ... I thought about this 2 years ago. I called on many to form an association like this ( all for one, one for all) many didn't sign up. Thank God for those that believe in my dream then and joined me as collective poineeering members. Last year the cooperative was registered after over a year processing modalities. After spending about 300k.

Mimshack multipurpose cooperative society limited. You can hook up with us has foundation member's . This is the beginning of good thing to come. Those that didn't believed then. They saw the reality. You that is just hearing about don't be left out.

Further info could be directed to me by submitting your email on this thread or maybe we open a fresh thread so not so as not distort the opinion being raised by @Integrityfoods

Thank you.

Akdams:

@integrityfood..... ... I thought about this 2 years ago. I called on many to form an association like this ( all for one, one for all) many didn't sign up. Thank God for those that believe in my dream then and joined me as collective poineeering members. Last year the cooperative was registered after over a year processing modalities. After spending about 300k.

Mimshack multipurpose cooperative society limited. You can hook up with us has foundation member's . This is the beginning of good thing to come. Those that didn't believed then. They saw the reality. You that is just hearing about don't be left out.

Further info could be directed to me by submitting your email on this thread or maybe we open a fresh thread so not so as not distort the opinion being raised by @Integrityfoods

Thank you.

I welcome your inspiring contribution. Pls can you share the challenges you encountered during the build up to your registration and the specific requirement. Have you thought of the interest free model

Thanks

Thank you for the opportunity to hijack your thread. Its not every day that someone see this kind of rear opportunity. Or you may be ban. Have been ban so many times on this forum, only God and the Modsc knows why. Maybe my sin is that I actually don't know the laws governing Nairaland.
Any way that's by the way side.

@integrityfood..... I will keep on making reference to your opening views and comment.
Am very sure by the time Am through with my experiences many would have been informed, enlightened and ready to take action.

EXPERIENCES

After my NYSC in 2001 in Anambra State, I stated a little longer in the state trying to see if man can pinched its tent there. But alas to my greatest surprise nothing thrives in Anambra except informal business. I love doing business. I did it in school. I did it during the 1 month camping. When I was posted to Nnewi L.G, I continued. Was working in 4 different places then. The L.G, 2 secondary schools and a community bank. For a whole NYSC year. Why and how did I do it? For the sake of generating money.
So when I found out that there is no show for me in Anambra ( was actually looking for a white collar job) I carried my bags and baggages back to Lagos. that same day Osama was on the ploy bombing twin tower, I was bombing Onitsha - Lagos express road.

On getting back to my domain, to my very own people, I got a job.
I got a job in a very popular bank in 2003. I mean very good job. I spent 8 years there. 8 years of fulfillment?. So I thought. It was actually 8 years of fake life with no salvage value.

In march 2003, one fateful day i misplaced 250k during working hours. How it happened I didn't know. Am not in any way a Teller. I kept some money , 3m to precise, in proxy for someone. Only for me to go to the toilet and 250k has disappeared. Now it is a sin for money not to be complete in the bank. Its a gravier sin for the money not to be complete by close of business of that day. That is automatic sack letter.
The very first question my boss asked was that am I in any the COOPERATIVES. When I said no. He put he hand on his head and "so you have been eating all your salary and not preparing for the evil day, days like this. Its only the COOPERATIVE that can bail you out". Thank God for the life of one of the excos of one the cooperatives. He backed dated my membership for me to qualified for a loan to pay the debt. The loan was given to me for 18 months to repay back. Forget about what lead to the problem , that is a subject for another day. What matter is that a COOPERATIVE kept my job for me.
That very month I joined 3 COOPERATIVES AND 2 ESUSU outfits at the same time. Even though I never have issues for the next 7 years, the COOPERATIVE was always there for me in terms of support. Support for good things now.

Join me tomorrow as I will talking about COOPERATIVE SUPPORT.........

Akdams:

@integrityfood..... ... I thought about this 2 years ago. I called on many to form an association like this ( all for one, one for all) many didn't sign up. Thank God for those that believe in my dream then and joined me as collective poineeering members. Last year the cooperative was registered after over a year processing modalities. After spending about 300k.

Mimshack multipurpose cooperative society limited. You can hook up with us has foundation member's . This is the beginning of good thing to come. Those that didn't believed then. They saw the reality. You that is just hearing about don't be left out.

Further info could be directed to me by submitting your email on this thread or maybe we open a fresh thread so not so as not distort the opinion being raised by @Integrityfoods

Thank you.

am interested in joining the society. My email is nigerwide08@gmail.com

My brother how is life? has Oduz been able to grant you the 100k loan as promised? I feel the best way to begin is to be part of a process so you are sure of the foundation. instead of waiting for people who may not be able to deliver on promises due to reason that may not be within their control, lets build up a credible platform toward a collective self help.

Welcome back.....

COOPERATIVE SUPPORT
After the initial challenge I had on my job coupled with words of wisdom of the elders and the way the cooperative came to my rescue, I joined 3 cooperatives and 2 ESUSU outfit at the same time. Was actually contributing about 200k in all the 5 outfits. While the cooperatives are long term in nature the ESUSU is actually a 12 months thing. You save for 12.
Months and collect your total personal contribution plus interest in December. This gave me the opportunity to plan for the beginning of the year using my total saved contributions to pay school fees, house rent, and to pursue some new year projects. The ESUSU equally allows you to borrow money at an interest.

The cooperative is however more pronounced in terms of convenience, terms and coverage.
The cooperative is people coming together with just one goal in mind. Helping fellow member in the group. All for one, one for all. Making up for the lack of others. Others making up for the lack of one.

I greatly benefited from Cooperative in terms of support in many areas. Buying of vehicles, goods, part time business, and so on.

Even with all these I never actually value what I was doing then until I left the bank and because those cooperatives were the initiative of the bank once you are out of the employment of the bank automatically you are out of the cooperative and the ESUSU .


LIFE OUTSIDE THE COOPERATIVE

As a banker people used to meet me for loan and off course because you have to go in line with bank policy on credit many were not availed it could be due to low turnover, startup, no security/collateral, and so on. Even though there ideas are workable and good ideas. Though it's not the fault of the bank too. They just have to protect the stakeholders funds.
As a result of this many genuine dreams has been flushed than the drain.

After the banking experience I faced the real world. That was when I got to know that the world is more than wearing suits and ties and perfumes or even speaking grammer.
I saw the reason why while I was in the bank then many upon hearing that there loan was not approved some will faint, some will be begging , some will looked as if the end the world has come. Because I happened to be a business man at heart, I always felt there pain but there wasxnothingci could do about it. Afteralll if I need money I will just ran to my cooperative.

I saw the reason why many SMEs are not growing, the reason why many are into online biz that they are not even sure of. I actually joined one - Avenue to wealth moth because I wanted to but because of there other benefits apart from referrals. But this never give me the way of life I was use to.

I was use to having funds to do anything I want to do at call and at will. No delay. That was my life style.
Now get this am not saying am use to borrowing money. What am saying is that you having a plan , a desire and a goal and you been able to do it or meet without financial constraint is the best possibe life you can ever lived or imagine. I have tasted the two. So trust me I know what am talking about.

Just imagine me a former banker writing to banks and applications being turned down. Now my business is not even a startup, just want to up grade it now that am into if full time. No way.
The commercial banks are not helping matters.
The introduction of micro finance bank only added salt to an existing wounds. How? There operation is not the subject of this thread but if you go to a MFB, your chances of getting the loan is about 60% to 80%. Good you will say. But your interest charge to be paid on the loan may as well be equal to 90% to over 100% of your profit. The conclusion is you ended up working for them. Except those that are into supplies or importation or services but if you ad into small scale trading and provision run for your dear life.

I came up with all the govt banks and establishments like BOI, NERDUND etc. I read a thread on Nairaland where someone was say that pay N1,000 to get information of where you can obtain loan with easy or without collateral. Some who paid him later found out that the info was about NERFUND. Now how many have access loan from BOI. am not saying its not possible but from my experience getting loan from BOI is more than just writing application or having a business. It is about your packaging and what you are into. BOI and others only go for majorly manufacturing or production outfit that have direct impact on the economic. That means if you are into like one man business which is the most common or a distributor or services like barbing, dry leaning , you don't have a chance. They don't borrow you to buy land or build house.

So what happens to the guy who is looking for just 50,000 to start his recharge card business, what happens to someone looking for N1m to become a distributor some where, what happen to someone looking for bus to buy and pay in instalmental bases. What happens to that informal business or garri seller who business is thriving but doesn't have a package.
They are left in the cold.

And this exactly what gave birth to the revolutionized cooperative movement in Nigeria. Even though cooperative has been in existence.

And this what gave way to a dream in January 2011.

A dream that gave birth to a vision.

A vision now call MIMSHACK MULTIPURPOSE COOPERATIVE SOCIETY LTD in May 2012.



BUILDING UP A COOPERATIVE : HOW AND CHALLENGES

to be continued..........

Email: elvis.chidera@gmail.com my startup: Xmx Me www. location: port harcourt

Just when I thought it's finished, Akdams came on board. I am earnestly on queue for the next article in this series!
Thanks for the effort.

I m seriously interested in this cooperative.my email is bankygee_solutionsltd@yahoo.com.pls let's know the next step.Thanks.

Okay, i will join you.

Check out http://moneyreserve.net/?ref=Vicky

Hope you are still keeping it lock down..........


BUILDING UP A COOPERATIVE : HOW AND CHALLENGES

All those who were left in the cold actually have life line.
The life line is the cooperative movement.
The earlier days cooperative outfit were formed by people of the same location, trade, capacity, age group, etc to come together to help each other in times of need. They made daily, weekly and monthly contributions. This is monies are gathered together in the hand of one of them to administered it according to the cooperative agreement set by the members.
Therefore if any need to by crops or repair house or hospital bills or by market and his short of cash, they will just inform their cooperative. That way things were move for them. They were actually practicing ESUSU then.

Now fewer generations down the line, many begin to see the beauty of this arrangement like this and begin to adopt this informal arrangement.
Then government began to put down different legislation as regards it formation, structure, administration, legality, operation, corperate entity and as a going concern.

Time will not permit me to start explaining all these couple with the fact that as a financial consultant am not suppose to give out all this free. But I will talk on some for the purpose of this thread.
many young entrepreneurs with sound business ideas are hindered because of starting capital. Our economy is not designed to help start-ups in any field. The financial market is sceptical of lending to an individuals/start-ups basically for fear of losing their money. From personal experience, financial institutions including government funded institutions like the bank for Agriculture, bank of industry prefers to deal with a group of people like COOPERATIVE SOCIETIES, Established organisations (big companies, churches) and wealthy individuals.

In view of taking the advantage of the collective benefit in achieving one's goal, establishing or joining a cooperative society remains one better option to raise start up capital.

Like @integrity said and I quote ......."many young entrepreneurs with sound business ideas are hindered because of starting capital. Our economy is not designed to help start-ups in any field. The financial market is sceptical of lending to an individuals/start-ups basically for fear of losing their money. From personal experience, financial institutions including government funded institutions like the bank for Agriculture, bank of industry prefers to deal with a group of people like COOPERATIVE SOCIETIES, Established organisations (big companies, churches) and wealthy individuals. In view of taking the advantage of the collective benefit in achieving one's goal, establishing or joining a cooperative society remains one better option to raise start up capital".


FORMATION

The formation of a cooperative Society is an effort of people coming together with agreed aims and objective as regards what they want to do, how they want to do it, what they want to achieve.

In the present day legislation which is being controlled by the Individual state Director of Cooperative Service under the Ministry of Agriculture and Cooperative.

The minimum pioneering members for a new cooperative is minimum of 10 members out of which 3 must be the principal officers - President, Treasurer and General Secretary.
These 3 will lead and spear head the formation requirements in terms of information, document signing and representation for the registration process. While others pray and join in the registration financing.

However in most case the owners and or financier of this project are always the one at the fore front. There fore they ended up being the first set of Principal officers or even life officers at the end of the day. For your information you can't blame them really. Other pioneering members tend to commit there monies when the food is already done. When they are sure of the reality. And you cant blame them really.

Before you go for application for formation the following must have been known and agreed upon:
1. The name of the cooperative.
2. The 3 principal officers
3. The location of the cooperative Secretariat
4. Minimum of 10 pioneering members in existence - body and soul
5. The aims and objectives of coming together in the first place now to be incorporated as that of the society.
6. The constitution of the final 10 to 11 man board - what each and every one is putting on the table.
7. Funding of the registration process vis a vis funding of the cooperative

I don't know of other but ours cost us N300k. The money was borrowed from a MFB. N250k covers the whole process including PR and ...... You should know what am talking about. Then N50k for the bank interest.
With all these it took about 12 months for the certificate to come out. Reason for that I don't know. Whether it is normal, I may not be able to explain.

But while the registration was on-going we were moving on with our plans and objectives.

I won't lie to you and I don't want your praise. But based on what we agreed upon to be our aims and objectives among the usual and normal cooperative outfit aims because we were actually thinking outside the box, I did a research on 10 big cooperative outfits in Nigeria for 8 good months before coming up with our objectives. And I can tell you it's a blue print. Now it not everybody who can do this. Some may even go for a consultant or rely on what ever the cooperative service dumps on their table.
It was easy for me because I know what I was looking for, have been a cooperator for many years and because we are in one accord.

For those that wants to setup a cooperative, is either you have the technical know-how or you go and accumulate information before starting or you hire a consultant.


AFTER REGISTRATION: WHAT'S NEXT?


To be continue..................

Akdams:

@integrityfood..... ... I thought about this 2 years ago. I called on many to form an association like this ( all for one, one for all) many didn't sign up. Thank God for those that believe in my dream then and joined me as collective poineeering members. Last year the cooperative was registered after over a year processing modalities. After spending about 300k.

Mimshack multipurpose cooperative society limited. You can hook up with us has foundation member's . This is the beginning of good thing to come. Those that didn't believed then. They saw the reality. You that is just hearing about don't be left out.

Further info could be directed to me by submitting your email on this thread or maybe we open a fresh thread so not so as not distort the opinion being raised by @Integrityfoods

Thank you.

I am interested: dairo.ayo@gmail.com

Wow, such insights. These are some of the critical areas being addressed at the entrepreneurship training I'm involved with.. www.faculty.osiworld.com.. reading some of these posts has been quite insightful.

i'm highly interested.flomakdel@gmail.com

ronoseji: Wow, such insights. These are some of the critical areas being addressed at the entrepreneurship training I'm involved with.. www.faculty.osiworld.com reading some of these posts has been quite insightful.

@ronoseji... Signify your intention by putting your email address.
Thank you.

ronoseji@yahoo.com

ajani_kola@yahoo.com> i know this year am breaking free!!!

linklanre@gmail.com. I am interested. Thanks.

Nairaplus: Just when I thought it's finished, Akdams came on board. I am earnestly on queue for the next article in this series!
Thanks for the effort.

@Nairaplus ....... Drop ur email to sign on.

Thank for following this thread.........


AFTER REGISTRATION: WHAT'S NEXT?

After the registration process is completed, the following document will be issued by the Cooperstive Service:
1. A Certificate bearing the cooperative name, address and date of registration with a seal.
2. 3 Original copies of an application sheet upon which the initial members had already put their details and the names of the Pricipal officers with signatures.
3. Copy of Bye-Laws

During the registration process, the principal officers are advise to start organizing preliminary meetings and discussions on the following:

1. The aims and objectives of the Society
The reason for coming together.
What they plan to address.
What they plan to achieve.
How to work it out.
The vision and mission of the society will actually determined its aims and objectives.
So what is your vision and mission?

2. The constitution of the final 10 to 11 man board - what each and every one is putting on the table.
Normally the Management Committee of any cooperative society is not always more than 11 members inclusive of the Pricipal officers. That does not mean it cannot be more. But 10 to 11 members of Management Committe is however advised.
Be sure to make sure that it is by merit. I mean like in Mimshack Coop those already in the Management committee are there by virtue of what they are offering to make the Society grow from the scratch. What to offer could be in terms of funds, network, market, technical expertise, free consultancy, etc
Though Management committee is constituted through election process this cannot work out for constituting the pioneering Management Committee members.the guide to this in the Bye-Laws.


3. Funding of the registration process vis a vis funding of the cooperative.
How do you get the funds for processing. Is it from the bank or someone offering is own initial contribution or members contributions or do you have an investor, etc. this have to be known.


4. Structure - under request

5. Operation - under request

6. Administration - under request

In all these the Pricipal officers has a lot to do by studying the Bye-Laws given to them by the Cooperative Service and see whether there is need for it to be amended.
However non diligent in this area will spell doom for that society and it might run into mucky waters before long.
Let me tell you the trust cooperative service will not lose anything what that do is copy and paste. They may as well give you bye Laws that does not address your own vision and mission.
It's left for you to reject it by amendment. But how you know except you know what you want and having gone through the details of the one given to you.

The cooperative society is a highly regularized venture. It can be liken to the National Assembly I tell you. For it not to collapse na wahala, if it collapsed wahala.


BECOMING A MEMEBER OF A COOPERATIVE OUTFIT: HOW AND BENEFITS.


To be continued.................................

im also interested, would like to join ur coperative this is my email Address: uzodimma4sunnex@yahoo.com

Presently we have over 501 visitors on this thread. Thanks for Your visitation and comments. But Don't just visit, learn some thing and take action. How? by being a member of a society wherever you are today. So many of them are scattered through out the whole country. Find one and become a member. In any cooperative society location is not a barrier. I have two members in the US and UK. The world has become a global village.

If you have the capacity establish one too. In your office, village, town, street or state.

And if Seun decides to form a cooperative too for Mairaland,no problem. All should embrace it.

Mimshack Cooperative is equally available for who ever desire.

But the bottom line is don't just visit, drop ur comments and take action.

Keep follow.

God bless

I appreciate everyone who is following this thread. Pls do nt be carried away that any thing good comes easy. I will not also deceive you that making the most impact of financial freedom is a thing that comes with such ease. One thing remains sure, if you are focus, prayerful and persistent, you struggle to raise capital will be meet with an open opportunity soonest only let us accept that the tasks towards that destination must be borne by us all. In my view, let us set aside one day for a first virtual meeting for all interested members. Thereafter, we will decide on when and where we shall have our first meeting which is very essential requirement for cooperative set up. We appreciate our friend for all his enlightenment and hope he will be willing to do even more for the collective of all. i await your proposal on when we can have our first virtual meeting here online where all member may meet each other and agree on a central location for our first meeting. I have made contact with few financial institutions who are very willing to partner with us.

pls inbox me your location and fon num furthur details at integrityfood@gmail.com

integrityfood: I appreciate everyone who is following this thread. Pls do nt be carried away that any thing good comes easy. I will not also deceive you that making the most impact of financial freedom is a thing that comes with such ease. One thing remains sure, if you are focus, prayerful and persistent, you struggle to raise capital will be meet with an open opportunity soonest only let us accept that the tasks towards that destination must be borne by us all. In my view, let us set aside one day for a first virtual meeting for all interested members. Thereafter, we will decide on when and where we shall have our first meeting which is very essential requirement for cooperative set up. We appreciate our friend for all his enlightenment and hope he will be willing to do even more for the collective of all. i await your proposal on when we can have our first virtual meeting here online where all member may meet each other and agree on a central location for our first meeting. I have made contact with few financial institutions who are very willing to partner with us.

@integrity is already putting something on the table. Who else is taking up a challenge.

Akdams:


@Nairaplus ....... Drop ur email to sign on.

My email is in my signature. So feel free to sign me on.

If i write that am giving out N300,000 to investors, by now my office would have been over crowded but lets start building the capital base together, many are not viewing seriously.

Building the capital base of a cooperative society is by far the easiest of all factors. Just put the structure and it will start growing in an auto pilot mode. And thats what I will be talking about very soon. For free. I didn't intend making it for free before but I guess am taking up the challenge too. Just like @integrityfood.

And if you think many are not viewing seriously, well let me tell you that they are waiting to see how, when and where the bubble will burst out the dividends. Many are viewing even more than you that is commenting. It's a waiting game.

645 views already.