Contribution of co-operative organizations as social entrepreneurs in poverty alleviation for the rural population in Tanzania: the case of selected co-operative organisations in Singida and Shinyanga regions

Abstract

Different studies have been conducted to ascertain the role which co operatives play in poverty alleviation. However, few studies have exploited the role of Co-operative Organizations (COs) as social entrepreneurs in poverty alleviation in rural areas of Tanzania where the majority of people are poor. Therefore, the purpose of this study was to examine the contribution of COs as social entrepreneurs in poverty alleviation in rural areas of Tanzania. The study adopted a survey design with the case of selected COs in rural districts of Shinyanga and Singida Regions.

The targeted people were the cooperative members located in rural areas. We opted to use this population so that we could make a comparison of the standards of living before and after receiving social and financial support from the COs in order to assess the impact of these organizations to their members. The population was 350 members with a sample size of 100 respondents. We used descriptive statistical analysis and thematic approaches in analyzing quantitative and qualitative data, respectively.

Generally, this study found that when the COs empower people to have access to education and training, social and financial capital, agricultural and livestock inputs and marketing services; the rural people are likely to alleviate poverty and raise their income through increasing their productivity in agriculture and livestock, self-employment, improved shelter, and increase in marketing of goods and services.

The study makes the following key contributions to the body of knowledge: First, the study reveals that there is great need for the Government, COs, and other potential partners to cooperate and fight for poverty alleviation for the people living in rural areas. It is the right time to make more effective use of co operative organizations in poverty alleviation efforts as the Government of Tanzania alone can no longer afford to provide the requisite social welfare to its citizens. Second, the study provides empirical evidence that people living in rural areas of Tanzania need to be taught entrepreneurial skills in order to take advantage of available economic opportunities, thereby helping them become better off in their lives.