The primary objective of every cooperative is to provide goods andservices to its members and thus enable them to attain increased income andsavings, investments, productivity, and purchasing power and promote amongthem equitable distribution of net surplus through maximum utilization of
P a g e | 13economies of scale, cost-sharing and risk-sharing (RA 6938). In this light,multipurpose cooperatives are cooperatives which combine two or more of thebusiness activities of the different types of cooperatives such as credit,consumers, producers and marketing cooperatives.Del Rosario (2004) described cooperative as both a social and aneconomic entity. It has to be service-oriented with economic viability andsustainability. It must serve as a critical structure for the attainment of socialjustice and economic development. Cañeda (2004), quoted George Fauquet,“The goal of cooperatives is to make people—people with both individual andjoint responsibility so that they may rise individually to a full personal life andcollectively to a full social life”. Studies and observations on the success and failures of cooperatives bothlocal and abroad have been undertaken. In the Philippines, the study conductedby the Cooperative Development Authority, as cited by Turingan (1995), foundout that some of the reasons for the failure of cooperatives were lack ofeducation and training, and inadequate information and practical know-how onthe principles, nature and operations of the cooperative organization which led toincompetent management.Lately, significant developments have already been undertaken tostrengthen the managerial capabilities of cooperatives. In the case of the FirstCommunity Cooperative (FICCO) as mentioned by del Rosario (2004), heidentified the following factors which contributed to their successful operations;
P a g e | 14(1) professional management is exercised in its operations and the untiringleadership of its Board of Directors and officers; (2) well-trained leaders of theBoard are decisive and are complemented by well-trained staff; (3) continuouseducation in the field of leadership and management is a must for thecooperative members, officers and employees; and (4) operational strategieswere well crafted and strictly implemented.Moreover, while a considerable number of cooperatives in the countrywere unable to meet sustainability for lack of continuing proper cooperativeeducation, majority of the duly registered cooperatives have displayedthemselves as exemplars of putting their vision into reality despite inadequateassistance extended to them by several government agencies and fundinginstitutions, both foreign and local. Furthermore, he mentioned that mostcooperatives which relied solely on mutual and self-help have undeniablyreached unprecedented heights (del Rosario, 2004).