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Ø State Assistance: Both Central and State governments provide all kinds of help to the societies.

Such help may be provided in the form of capital contribution, loans at low rates of interest, exemption in tax, subsidies in repayment of loans, etc.

Ø Lack of Co-operation: The co-operative societies are formed with the idea of mutual co-operation.

The members or their elected representatives are not experienced enough to manage the society.

Again, because of limited capital they are not able to get the benefits of professional management.

Unlike sole proprietors and partners the personal properties of members of the co-operative societies are free from any kind of risk because of business liabilities.

Ø Elimination of Middlemen’s Profit: Through co-operatives the members or consumers control their own supplies and thus, middlemen’s profit is eliminated.

Ø Democratic Control: A co-operative society is controlled in a democratic manner.

The members cast their vote to elect their representatives to form a committee that looks after the day-to-day administration.

The selfish attitude of members may sometimes bring an end to the society.

Ø Dependence on Government: The inadequacy of capital and various other limitations make cooperative societies dependant on the government for support and patronage in terms of grants, loans subsidies, etc.

Government’s assistance is often inadequate for most of the co-operative societies.

Ø Problems in Management: Generally it is seen that co-operative societies do not function efficiently due to lack of managerial talent.

A comprehensive verify indicates a right and steady analysis where therapy may be given easily.