Training Manual: Financial Management and Income Generation In Co-operatives

A Training Guide for Co-operators and Co-operative Trainers

The main objectives of the training guide are the following:

• Provide tools for financial management:  Most co-operatives in South Africa areestablished within poor communities and under resource constraints.  For theseco-operatives to survive and grow they have to be able to source capital.However, capital is only forthcoming if the co-operatives have sound and properfinancial management.  Government and donors have “lost” lots of financialresources that are invested in local development projects.  In other words, manyprojects fail even though some kind of external financial support has been put inplace.  The tools provided in this manual will contribute to building the necessary financial management capacity in co-operatives so that they can be effective andsustainable recipients of financial resources.
• Provide tools for income generation:  In most instances in South Africa today, co-operatives have to compete with established businesses and corporations to wintheir share of community or local markets.  In this context, knowledge andexpertise about income-generation strategies are absolutely necessary.  Thismanual provides co-operators with tools to utilise their collective strengths,opportunities and financial resources effectively to win enough space for theirsurvival in a market place dominated by established businesses.
• Build the capacity of co-operative leadership and membership to understand financial management:  The financial management skills developed in this manualwill contribute to better leadership of co-operatives and the movement, improvegovernance, and ensure better self-management decisions.
• Build the co-operative movement:  The co-operative movement will bestrengthened through ensuring the economic success of co-operatives in providinglivelihoods and sustainable economic development for their worker-owners,members and communities.
• Empower trainers to train other co-operators:  Every co-operative has to have the capacity to educate its worker-owners about financial management and incomegeneration.  This guide attempts to develop training capacity among co-operatorsby empowering a core of dedicated trainers who will share this knowledge andtools with other co-operators.  In the end, every co-operator has to be a trainer andlearner, and ultimately understand financial management and income generationin a co-operative.

Financial Management and Income Generation In Co-operatives.pdf [316.45 KB]