The Nexus of Social Entrepreneurship and Business Efficiency Study of Cooperative Societies in Ogun State, Nigeria

Abstract

The role of cooperative societies in any national economic growth and development as well as social development of members and businesses can never be over emphasized. However, inspite of these enormous contributions of cooperative societies, evidence from literature shown that the efficient and effective functioning/performance of cooperative societies are militated by factors declining funds, low productivity, and difficulties in maintaining business efficiency. The aforementioned factors are suggestive of the absence of social value creation, social learning, and social innovations (social entrepreneurship dimensions). Previous studies attempted to clarify the challenges faced by cooperative societies and the associated potential solutions remain inconclusive. Thus, this study examined the nexus of social entrepreneurship and business efficiency with reference study of cooperative societies in Ogun State, Nigeria.

Survey research design was adopted for this study and the population for the study comprised 1,590 executives of co-operative societies in Ogun State, Nigeria. A sample size of 403 was determined using Raosoft calculator. Purposive sampling technique was adopted in selecting respondents. A structured and validated questionnaire was utilized for data collection and the response rate was 72.5%. Data were analyzed using descriptive statistics and hierarchical multiple regression analysis.

The analysis of findings revealed that Social Learning (β = 0.363, t = 5.673, p<0.05) and Social Innovation (β = 0.485, t = 7.632, p<0.05), both have positive and significant effect business efficiency, while Social Value Creation (β = 0.048, t = 0.828, p>0.05) has positive and insignificant effect on the business efficiency of selected cooperative society in Ogun States, Nigeria. The analysis of findings indicated that two out of the three dimensions of social entrepreneurship have direct and significant effect on business efficiency of selected cooperative society in Ogun States, Nigeria. The findings on the aggregate revealed that social entrepreneurship have significant effect on business efficiency of the selected cooperative societies in Ogun State, Nigeria (Adj.R2= 0.769, F (3, 357) = 400.205, p<0.05).

The study concluded that the social entrepreneurship dimensions have a significant effect on the business efficiency of the cooperative societies. Thus, the model proved to fit and adequately predict the relationship between the variable.  Therefore, the study recommended that that the owners and executive of cooperative societies in Nigeria should develop strategy to connect social entrepreneurship ancillaries in order to make the sector profitable and enviable in the long run. Such a strategy would be the premise on actions adopted by the firms in matters pertaining to market dominance.

Key Words: Business Environment, Cooperative Societies, Business Efficiency, Performance, Social Capital, Social Entrepreneurship