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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.
Due to this, the government sometimes directly interferes in the management of the society and also audits their annual accounts.
But it is often seen that there is a lot of friction between the members because of personality differences, ego clash, etc.
The selfish attitude of members may sometimes bring an end to the society.
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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 State Assistance: Both Central and State governments provide all kinds of help to the societies.
Ø Open Membership: Persons having common interest can form a co-operative society.
Ø Problems in Management: Generally it is seen that co-operative societies do not function efficiently due to lack of managerial talent.