Figure 1. The relationship of number of members and paid-up
shares
The result reveals that in spite that the number of members is
increasing, the pattern for growth in paid-up shares is slow which
depicts a scenario that the cooperative members are not committed to
paying their subscribed shares. As observed, the cooperatives in the
seven provinces in on region in the Philippines that the paid up shares
from the members is low and regression estimates reveals slow growth of
paid-up shares regardless that the number of members are increasing. The
result may affirm the findings of Puusa, et al. (2016) in their study
that an increase in number of members may not be a validating factor in
increasing commitment from members and having a larger group would bring
more people who are not so actively involved in which they may also
bring dissidence and disagreements.
The result implies that the members and the management have a weak
understanding of the values and principles of cooperativism. For
instance, the members manifest their voluntariness and willingness to
become a member through their commitment to continuously contribute
capital for the cooperative. In terms of democratic control, their
support and approval to the BODs and management are observed through
their payment of paid-up capital since the members’ contributed capital
serves as the lifeblood of any venture or project proposed by the BODs
and the management. The economic participation also of the members are
manifested in their willingness to contribute capital since operating
assets are mobilized through paid-up capital and growth can only be
achieved when members would always support their cooperatives. Further,
the desire of the members to have an autonomous and independent entity
can only be achieved when the cooperatives have accumulated enough
capital in order to pursue its business operation. Overall, since the
members were not committed, their respective cooperatives may not be
able to pursue other cooperative principles such as education, training
and information; cooperation among cooperatives; and concern for
community since they are hard-up in bringing in internally generated
funds for them to generate more funds and support other cooperative
principles.
The result manifests that the members have weak understanding of
collective attitude and individualistic behavior seems to be more
apparent. The members tend to serve their ulterior motives and they view
cooperatives simply as a source of insurance, loans and dividend. For
instance, the members are not much interested in their cooperative and
they tend to ignore their obligation to pay their share capital. There
were also few of them who were willing to pay and ignore their social
obligation of paying their subscribed shares as stated in the
cooperatives’ by-laws. Moreover, some of these members pattern their
behavior to their fellow members. There are instances also that even
though some members are willing to pay higher, they would only pay small
amount because their fellow members only pays minimally. There is a weak
understanding that the payment of share capital is essential for the
cooperative to maintain and sustain its operation and non-payment of the
members of their subscribed share capital becomes highly precarious as
their respective cooperatives may not be able to cope with their
financial and operating needs. This means that the cooperatives may be
hard-up in acquiring resources for the cooperative and in paying needed
expenses. The members’ willingness to become a team player is essential
in the growth and longevity of their cooperative because cooperatives
are autonomous and highly dependent on the members’ willingness to
become part of the team.
It manifest among the cooperatives that there were few members who are
willing to pay their shares and most of the members paid low amount of
share capital. Seemingly, the members do not regularly pay their
subscribed shares which may hinder the cooperatives’ growth. The result
does not fully conform to the cooperatives’ values and principles
wherein most members do not practice their collectivist norm and they do
not exercise economic participation through their regular payment of
their share capital. Due to this, the cooperatives should motivate their
members to add their share capital regularly to have more funds to use
in the business operations (Oras, 2010). Members’ contribution is the
common source of the fund of cooperatives, more participation from the
members would effect to a closer achievement of the cooperative’s goal.
The members’ share capital is very important in order for the
cooperative to maintain and sustain its operation but the members
themselves are not doing their part to pay their share capitals so there
is difficulty for the cooperatives to acquire resources for the
cooperative and in paying the expenses needed. Those members who are
willing to become a team player are helpful in the growth and longevity
of their cooperatives because they want to be part of the cooperatives.