Performance of Tanzanian co-operatives in a global competitive business environment

Abstract

The co-operative enterprise is one of the oldest and most enduring forms of business. Co-operatives have been playing a vital role in the socio-economic development of the country. There are different forms of co-operative enterprises in Tanzania which were designed to satisfy members’ needs. But for quite some time now, co-operative society’s performance has been unsatisfactory. The objective of this paper is to present the need of professionals and performance of co-operatives in a competitive business environment in Tanzania. The paper further examines the co-operative as well as business model and its taxonomy. Desk review has been conducted to collect data and information from various secondary sources. Furthermore, the desk review reviewed reputable journals related to the discipline. Finally, the information gathered was scrutinised, polished and modified to match the requirements of this article. The findings revealed that lack of professionalism has been one of the major problems affecting performance of co-operatives in Tanzania. This is because the co-operatives have been managed by officials who lack managerial or professional qualifications, and who do not have necessary experience and technical competency. Although globally co-operatives run or operate some of the largest businesses, they are largely overlooked when it comes to issues of professionalism. Its identity and taxonomy also lead to poor performance of co-operative enterprises in Tanzania. In this paper, reasons why professionalism is ignored in co-operatives is presented. Reasons why management needs to be professionals are also given as well as fiduciary responsibilities. Given the size of the co-op sector and its contribution to both economic and social capital, attention should be given to the following dimensions to ensure professionalism: emphasising on hiring managers with requisite qualifications, human resource development programmes, management information system, and adherence to principles of professional management, co-operative learning and strategic alliance with other co-operatives.