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.