Cooperative Entrepreneurship - A Case Study of Uralungal Labour Contract Cooperative Society Kerala

Abstract

Cooperative enterprise is a democratic corporate entity, created in a legal mould. Cooperative enterprise is not a unit to which the profit maximization theory is applicable. It aims at optimization of resource use and maximization of net returns to the members. In this framework an attempt has been made to study a cooperative enterprise in Kerala which has been started to empower the unskilled workers. The objective of the study was to understand the practices of cooperative entrepreneurship in Uralungal Labour Contract Cooperative Society, Kerala (ULCCS). The study was based on both primary and secondary data. Primary data was collected from the records of the selected cooperative, and through focus group discussions. ULCCS which was started with 14 members in the year 1925 has got 952 members as on31st March 2010 and provides them regular employment. The performance indicators such as share capital, volume of business and profit earned from the year 1999-'00 to 2009-'10 shows an increasing trend. Democratic management practices, quality assurance, workers' discipline, competitive compensation and welfare measures beyond retirement are other significant features of the cooperative. Hither to a cooperative for unskilled workers is transforming itself in to a high-tech employment provider to attract and retain knowledge workers.