INTRODUCTION:

Development is the fundamental reason why every individual pursues to discover untried things and transforms them into reality. One's eagerness and desire to achieve growth and have an improved quality of living make things more complex and challenging. To develop people, it must start from them and in their community as well.

In line with this, cooperative movements serve as an avenue for people, especially at the community level, to exercise the freedom that is inherent in them.

It is the declared policy of the state to foster the creation and growth of cooperatives as a practical vehicle in promoting self-reliance and harnessing people power towards the attainment of economic development and social justice. The state shall encourage the private sector to undertake the actual formation and organization of cooperatives. It shall create an atmosphere that is conducive to the growth and development of these cooperatives (Republic Act No. 9520, 2008).

In cooperative, the primary source of their capitalization comes from the members through share capital. Each member is mandated to subscribe or pay the prescribed share capital before they are accepted as a member. Aside from this, a capital buildup program will be designed to increase their capitalization to grant or give the other demand of members to make them fulfilled and satisfied as well as to sustain and maintain the existence of the cooperative. In general, every cooperative has its capital build-up programs where some succeed while others fail in operation. Evidently, those cooperatives which have more capital tend to offer more services to their members, having a better economic status. This situation attracted the researcher's interest to study the capital buildup programs of the cooperatives in Ilocos Sur and to know their economic contributions like generation of more products or services, increase of volume of business operation, improvement and or increase of cooperative facilities, change in member's status of living, and better employee benefits. The result of the study would be used as a basis for their operation to be disseminated to other cooperatives in the community, which is eager for development or success. It would also serve as a guide for outside sources for the implementation of their policies, plans, and programs, especially in decision making. Also, it would be utilized in classroom discussions in so far as it would enhance the quality of education because the students would be informed with up – to - date cooperative operations.

The objectives of the study are; 1) to determine the level of implementation of the Capital Build-Up Programs of Cooperatives in the Province of Ilocos Sur in terms of the following: a) on members; retains, revolving capital, deposits (Savings and Time), voluntary contribution, capital share subscription, and other sources (bingo social and raffle draws), b) On outside sources; loans, donations, grants, legacies, and subsidies. 2) to know the level of attainment of the Economic Benefits of the Cooperative Capital Build-Up Programs in terms of the following; a) On cooperative; generation of more products/services, increases the volume of business operation, improvement of cooperative facilities and assets, and better employee benefits. b) On members; Increase in Income (patronage refund and interest on share capital). 3) to determine the level of attainment of the economic benefits of the cooperatives and members significantly influenced by the level of implementation of cooperatives’ capital build-up programs.

Republic Act No. 9520, known as the Philippines Cooperative Code of 2008, encourages everyone, especially the poor and marginalized sector, to actively participate in the economic endeavor that would augment their income. The law states that, cooperatives shall conduct its affairs in accordance with Filipino culture, values and experience the universally accepted principles of cooperation which include, but are not limited to voluntary and open membership, democratic member control, member economic participation, autonomy and independence, education, cooperation among cooperatives, and concern for community. Cooperatives work for the sustainable development of their communities. The general observation is that most, if not all, primary cooperatives are operating in consonance with the Cooperative Code in the Philippines.

Hendar (2010), as cited Ibrahim et al. (2015), pointed out that cooperatives will have a competitive advantage when customers (mainly members) obtain satisfaction through the impression that the product or service is better than competitors' products or services. For that, cooperatives should pay attention to five points in developing the competitiveness, which focus on the customer as a member or non-member, fidelity on quality, attention to comfort, concentration towards innovation, and dedication on services.

Capital buildup programs of every cooperative are vital to both the cooperatives and their members. The economic stability greatly depends on how big the financial contributions made by members. Sufficient funds are an indicator of sustainable cooperative operation. Therefore, the by-laws of every cooperative shall provide for a reasonable and realistic member capital buildup program to allow the continuing growth of the members' investment in their cooperative as their economic conditions continue to improve (section 5, rule 10 of RA # 9520). The capitalization of cooperatives and the accounting procedures shall be governed by the provisions of this Code and the regulations which shall be issued (Art.71 of Republic Act No. 9520. Capital).

Cooperative registered under this Code may derive their capital from any or all of the following sources (Art. 72 of Republic Act No. 9520, 2008. Capital Sources): (1) Members’ share capital; (2) Loans and borrowings including deposits; (3) Revolving capital which consists of the deferred payment of patronage refunds, or interest on share capital; and (4) Subsidies, donations, legacies, grants, aids, and such other assistance from any local or foreign institution whether public or private: Provided, that capital coming from such subsidies, donations, legacies, grants, aids, and other assistance shall not be divided into individual share capital holdings at any time but shall instead form part of the donated capital or fund of the cooperative.

Reotutar (2014) revealed that the main source of their capitalization came from the share capital of members. He also stresses that one of the measurements of an enterprise's success or failure is looking at the size and growth of its market capitalization. Sometimes a company's market capitalization can fluctuate for unknown reasons that have no relation to the performance of the business, such as acquisitions, divestitures, and repurchases. Also, he found out that the common problem of cooperatives was both the poor participation of members of capital build-up programs and the collection of delinquent accounts. Furthermore, in his recommendation, he stresses that cooperatives should also improve their financial management practices, especially in terms of their capitalization and budgeting, because these factors are critical to cash flow management.

Cabunoc (2007) found out that cooperative members are very much aware of the desire to obtain loan assistance rather than to develop the cooperative, which attributed to the failure of many cooperatives. It is interesting to note, however, that most of the respondent-members of the cooperative had undergone training and seminars in connection with cooperative development, which included leadership and management training, bookkeeping and recording, and also proposal making. This would show an advantage of cooperatives with other types of organization, Gallardo (2001), as cited by Cabunoc (2003), further stated along with financial resources management the cooperatives are viable on capital buildup, loan repayment by the members, and external loan repayment by the cooperative. The services and credit rendered are perceived as viable.

Galvez (2015) found out that the majority of cooperative respondents source out their capitalization through deposits of members, and a great percentage came from the paid-up share capital of members.

Capitalization pertains to the factors considered in financing the operation of the cooperatives (Que, 2012). This corroborates to the study of Alconcel (2016), who found out that the success indicator of cooperatives was significantly correlated with cash management, among others.

Laureta (2008) found out that respondent cooperatives organized their capitalization mainly on shares of the members; secondly, from grants and donations, none of the respondent cooperatives source out their capital on loans from lending institutions or banks.

The aforementioned related literature summarizes the basic operations of cooperatives and different factors affecting them, such as the quality of members, capitalization for the cooperative, and employees' participation in attaining the cooperative goal. These things catch the idea of the researcher to pursue this research study.

CONCEPTUAL FRAMEWORK:

Figure 1: The Research Paradigm

The paradigm shows the Capital Build-up Programs of cooperatives which includes retains, revolving capital, deposits (savings and time), voluntary contribution, loans, donations, grants, legacies, subsidies, and capital share subscription and their relationship to the economic benefits which are generation of more products/services, increase of volume of business operation, improvement of cooperative facilities and assets, better employee benefits, and increase in income for the members.

METHODOLOGY:

Research Design:

This study used the triangulation method of research. The descriptive-correlation method was used to describe the level of implementation of capital build-up programs of cooperatives, and the level of attainment of the economic benefits of capital build-up programs to the cooperatives and to the members. The economic benefits were also correlated to the capital build-up programs of the cooperative. Interviews and observations were also conducted to validate some information taken from the answer of respondents to the questionnaires.

Population and Sample:

The population of the study consisted of 70 primary cooperatives, which were registered at the Cooperative Development Authority operating in the province of Ilocos Sur with ten years or more of operation. However, only 59 of them served as respondents of the study. There were 59 cooperative managers (27 males and 32 female) while 727 (333 males and 394 female) from members in purposive and convenience sampling.

Data Gathering Instrument:

The researcher utilized a checklist questionnaire and personal interview among the respondents of the study to gather the necessary data needed in the study.

Data Gathering Procedures:

The administration of the data gathering instrument was done by the researcher through the helped of some friends and relatives together with the permission from cooperative officers, specifically the cooperative managers and assistance from officers of the Cooperative Development Authority of the province.

Statistical Treatment of Data.

1. Mean was used to assess the level of implementation of Capital Build-Up Programs of cooperatives, level of attainment of the economic benefits of capital buildup on cooperatives, and on the members, the level of attainment of the impact of the capital build-up programs to the cooperative and the members.

2. Multiple Linear Regression Analysis was used to determine the significant influence between capital build-up programs of cooperatives and the economic benefits of the cooperative and members.

RESULTS AND DISCUSSION:

On Retains. Table 1 presents the level of implementation of the Capital Build-Up Programs of Cooperatives in the Province of Ilocos Sur on Retains. It can be seen that the level of implementation of capital buildup programs of the cooperatives in the province of Ilocos Sur along retains was “High” as backed up by its mean rating of 4.16 when taken as a whole. Based on the interview conducted by the researcher, this is the most common CBU program used by the coops deducted for every approved loan of their members.

Table 3: Item Mean Ratings showing the Level of Implementation of the Capital Build up Programs of the Cooperatives in the Province of Ilocos Sur on Deposits (Savings and Time)

Deposits (Savings and Time)	Manager		Members		As a whole
Deposits (Savings and Time)	Mean	DR	Mean	DR	Mean	DR
1. The coop encourages members to participate in depositing their idle money to the cooperative.	3.80	I	4.1	I	3.95	I
2. It is a compulsory program of the cooperative to raise funds for their varied programs.	3.69	I	4.0	I	3.85	I
3. The coop gives higher interest rates compared to commercial banks in the locality.	3.47	I	3.8	I	3.64	I
4. The coop offers better services than commercial banks.	3.56	I	3.9	I	3.73	I
5. The coop gives special treatment to no one.	3.47	I	3.8	I	3.64	I
6. The coop expands this program even to non-member/s (e.g., savings from pupils of educational institutions)	2.97	MI	3.6	I	3.29	I
7. The coop gives different rates on Savings and Time Deposits.	3.53	I	3.8	I	3.67	I
8. The coop explains well the terms and conditions on deposits to clienteles.	3.80	I	3.9	I	3.85	I
9. The coop derives the terms and conditions of depositing from the prescribed laws of cooperative and banking institutions.	3.68	I	3.9	I	3.79	I
10. The cooperative issues and maintains a passbook for each member.	4.00	I	4.0	I	4.0	I
11. The coop maintains policies on withdrawals of savings and time deposits.	3.86	I	4.0	I	4.93	I
12. The coop encourages members to sell the concept of safe keeping to other members of the community.	3.58	I	4.0	I	3.79	I
Overall	3.62	H	3.90	H	3.76	H

Table 5: Item Mean Ratings showing the Level of Attainment of the Capital Build-Up Programs of the Cooperatives in the Province of Ilocos Sur along Loans

Loans	Manager		Members		As a whole
Loans	Mean	DR	Mean	DR	Mean	DR
1. The coop has a policy on loan application from outside sources.	3.80	I	4.0	I	3.90	I
2. The coop always consults and gets the approval of the general assembly before acquiring loans outside.	3.68	I	4.0	I	3.84	I
3. The coop always bases their purpose of obtaining loans on members’ needs.	4.27	HI	4.0	I	4.14	I
4. The coop has a policy that only members can avail loan services of the cooperative.	4.51	HI	4.0	I	4.26	HI
5. The coop properly investigates members applying for loans.	4.31	HI	4.0	I	4.16	I
6. The coop properly checks and evaluates loan application.	4.44	HI	4.0	I	4.22	HI
7. The coop follows a monitoring system on loans granted to members.	4.10	I	4.0	I	4.05	I
8. The coop requires security on loans for big amounts (like collateral)	4.17	I	4.1	I	4.14	I
9. The coop provides loan programs which are really needed by the members.	4.34	HI	4.0	I	4.17	I
10. The coop gives rate of interest which is just and reasonable.	4.42	HI	4.0	I	4.21	HI
11. The coop releases the applied loans on time.	4.36	HI	4.0	I	4.18	I
12. The coop practices loan re-structuring.	4.07	I	4.0	I	4.04	I
13. The coop imposes sanctions/penalties to unpaid loans on maturity.	4.25	HI	4.0	I	4.13	I
14. The coop formulates and implements policies in granting and collection of loans.	4.44	HI	4.0	I	4.22	I
Overall	4.23	VH	4.00	H	4.12	H

On Generation of more products/services. Table 9 shows the level of attainment of economic benefits of the capital build-up programs of the cooperatives in the province of Ilocos Sur on the generation of more products/services.

Table 9: Item Mean Ratings showing the Level of Attainment of Economic Benefits of the Capital Build-Up Programs of the Cooperatives in the Province of Ilocos Sur on Generation of more Products/Services

Economic Benefits	Manager
Economic Benefits	Mean	DR
1. Generation of more Products/services
a. New products/services are created	3.66	A
b. New variety of products/services are created	3.51	A
c. Provide better quality of products/services	3.86	A
d. Creates more supply of products/services	3.64	A
e. Products and or services are unique	3.53	A
Overall	3.64	H

Legend:

Statistical Range Item Descriptive Rating

4.21 – 5.00 Highly Attained (HA)

3.41 – 4.20 Attained (A)

2.61 – 3.40 Moderately Attained (MA)

1.81 – 2.60 Slightly Attained (SA)

1.00 – 1.80 Not Attained (NA)

As reflected on the table, the item mean ratings on the level of attainment of the economic benefits of capital build-up programs of the cooperatives in the province of Ilocos Sur on generation of more products/services were "High" as backed up by its mean rating of 3.64. Based on the documentary analysis made by the researcher, majority of the coop respondents have an increased in their revenue as proof that their coops have generated more products and services offered to their members.

On Increases in Volume of Business Operation. As shown in the table, the level of attainment of the economic benefits of the capital build-up programs of cooperatives on increasing the volume of business operation was “Average” as backed up by its mean rating of 3.39. Based on the documentary analysis made by the researcher, majority of the coop respondents have an increase in their net surplus.

Table 10: Item Mean Ratings showing the Level of Attainment of Economic Benefits of the Capital Build-Up Programs of the Cooperatives in the Province of Ilocos Sur along Increases Volume of Business Operation

Increases Volume of Business Operation	Manager
Increases Volume of Business Operation	Mean	DR
a. Additional programs/projects are introduced	3.59	A
b. Better programs/project are implemented	3.80	A
c. More availments from members	3.85	A
d. Expansion of market	2.73	MA
e. Sufficient supply of products/services needed by members	3.73	A
f. Creation of branches	2.22	SA
g. Increase in net surplus of the cooperative	3.80	A
Overall	3.39	A

On Improvement of facilities and assets. As the table shows, the level of the economic benefits of capital build-up programs of cooperatives in the province of Ilocos Sur on improvement of facilities and assets was at "Average" level as backed up by the mean rating of 2.75. Based on the interviews conducted by the researcher, improvement of cooperatives' facilities and assets is through government and non-government initiatives such as Department of Science and Technology, Department of Trade and Industry, Provincial Government, Federation of Cooperatives, and more. Based on the documentary analysis made by the researcher, majority of coop respondents had an increased on their assets as reflected in their financial reports.

Table 11: Item Mean Ratings showing the Level of Attainment of Economic Benefits of the Capital Build-Up Programs of the Cooperatives in the Province of Ilocos Sur on Improvement of Facilities and Assets

Improvement of Facilities and Assets	Manager
Improvement of Facilities and Assets	Mean	DR
a. Acquisition of additional facilities (Computer, Elec. Fan, Air Conditioned, Ref., etc.)	3.42	A
b. Improvement of cooperative facilities	3.49	A
c. Construction of new building or office	2.64	MA
d. Purchase of lot for cooperative use	2.24	SA
e. Purchase of utility vehicle/service vehicle	2.34	SA
f. Purchase furniture’s and fixtures	3.17	MA
g. Installation of CCTV camera/burglar alarm	1.92	SA
Overall	2.75	A

On Better Employee Benefits. As shown in table 12, the level of attainment of the economic benefits of capital build-up programs of cooperatives in the province of Ilocos Sur in terms of better employee benefits was "Average" as backed up with a mean rating of 2.80. This shows that better employee benefits are moderately attained in cooperatives. This may be because they are financially capable of giving compensation.

Table 12: Item Mean Ratings Showing the Level of Attainment of Economic Benefits of the Capital Build-Up Programs of the Cooperatives in the Province of Ilocos Sur on Better Employee Benefits

Better Employee Benefits	Manager
Better Employee Benefits	Mean	DR
a. Maternity and paternity benefits are implemented in accordance with the law.	2.78	MA
b. The used of service incentive leaves are being observed.	2.80	MA
c. Salaries are in accordance with the mandated wage rate.	3.14	MA
d. Salaries are received on time.	3.27	MA
e. The coop sponsors activities such as outing, lakbay aral, recreation/sport activities, etc.	3.02	MA
f. Free uniforms are provided to employees.	3.27	MA
g. Employees are paid overtime pay.	2.15	SA
h. Employees are given discount in some special patronage.	1.90	SA
i. Support to professional advancement of personnel.	2.90	MA
Overall	2.80	A

On Increase in income (Patronage refund and Interest on share Capital for Members). Table 13 shows the level of attainment of the economic benefits of the capital build-up programs of cooperatives in the province of Ilocos Sur in terms of an increase in income (Patronage refund and Interest on share capital).

Table 13: Item Mean Ratings showing the Level of Attainment of Economic Benefits of the Capital Build-Up Programs of the Cooperatives in the Province of Ilocos Sur on the increase on Income (Members)

Increase on income (Patronage refund and Interest on share capital)	Members
	Mean	DR
a. Presence of viable livelihood projects.	3.90	A
b. Patronage refund is an additional income to the members.	4.04	A
c. Patronage refund and interest on share capital encourages members to patronize the services of the cooperative.	4.14	A
d. Patronage refund and interest on share capital are of great help in the budget of the family.	3.98	A
e. Patronage refund and interest on share capital serves as augmentation for the education of their children.	3.90	A
f. Patronage refund and interest on share capital are of great help of the cooperative to the members for an improved quality of life.	4.0	A
Overall	3.99	H

The table reflects that the level of attainment of the economic benefits of the capital build-up programs of cooperatives in the province of Ilocos Sur in terms of increase in income (Patronage refund and Interest on share capital) is at "High" level with a mean rating of 3.99. This means that through sound capital build-up programs of cooperatives, the income of members increases. Based on interviews conducted, the income of members increased because of an additional amount from the interest of their share as well as their patronage refund from their coop which other business organizations do not give.

Table 14 presents the results of the regression analysis of the economic benefits of the cooperative and members on the implementation of the capital build-up programs of cooperatives in the province of Ilocos Sur.

Table 14: Regression Analysis on Economic Benefits of Cooperatives and Members on the Capital Build-Up Programs of Cooperatives in the Province of Ilocos Sur

Variables	Beta	t-value	t-prob
Retains	-.436	-2.103*	p < .05
Revolving Capital	-.752	-3.856**	p < .05
Voluntary Contribution	-.394	-1.986	p > .05
Loans	.080	.507	p > .05
Donations, Gants, Legacies, and Subsidies	-.226	-1.415	p > .05
Capital Share Subscription	-.372	-2.485*	p < .05
Other Strategies (Bingo and Raffle Draws)	-.467	-1.962	p > .05
Deposits	1.852	3.509**	p < .05

Legend:

MultR = .652 F-ratio = 4.612**

RSq = .425 F-prob = .000

When subjected to regression analysis, the F-ratio equivalent to 4.612 had an F-prob equivalent to .000 which was less than the probability value of .05. Therefore, the null hypothesis which states that economic benefits of cooperativess and members were not significantly influenced by the implementation of the capital build-up programs was rejected.

The capital build-up programs of cooperatives explained 42.5% (Rsq = .425) of the variance of the economic benefits of cooperatives and members. The remaining 57.5% could be explained by other variables not considered in the study.

On retains (t = -2.103, p<.05) were found to have a significant influence on the economic benefit of cooperatives and members in the province of Ilocos Sur. This implies that the economic benefits both of the cooperative and their members vary as the retain change. Economic benefits to the cooperatives and members were found to be significantly influenced by Revolving capital (t = -3.856, p < .05). That is, an increase in revolving capital decreases the economic benefits to the cooperative and members as backed up by the Beta value of -.752. On capital share subscription (t = -2.485, p < .05) found significantly influenced the economic benefits of cooperatives and members.

Finally, the economic benefits of cooperatives and members were significantly influenced by deposits (t = 3.509, p < .05). That is, for every one thousand units increase on deposits, the economic benefits of cooperatives and members increase by 3,509 units. Deposits came out as the best predictor of the capital build-up programs of the cooperatives in the province of Ilocos Sur. This means that more deposits the cooperatives have better programs and projects rendered to their members. This means that the collective effect of capital build-up programs on economic benefits is highly significant.

CONCLUSIONS AND RECOMMENDATIONS:

Based on the salient findings the following conclusions were drawn. 1) Cooperatives in the province of Ilocos Sur highly implemented capital build-up programs. 2) Capital build-up programs of cooperatives had contributed to the improvement of the economic status both to the cooperative and their members in terms of generations of more products/services, increase of volume of business operation, improvement of facilities and assets, better employee benefits, and increase of income on members. As a result, increase in revenue, increase in net surplus, an increase in membership, and improved quality of life to members was attained. 3) There was a significant influence of the level of capital buildup programs on the economic benefits of the cooperatives and members of Ilocos Sur along retains, revolving capital, capital share subscription, and deposits.

From the findings, the following recommendations are at this moment offered. 1) Cooperatives should continue realizing and strengthening their capital buildup programs for the improvement of the economic status both for the cooperative and their members. Moreover, the management should initiate more capital buildup programs for implementation thus capitalization of the cooperative will be added and more programs and projects will be offered to members such as mandatory contribution of at least 100 pesos yearly, birthday gift of 20 pesos, voluntary contribution of at least 50 pesos quarterly, and popularity contest. 2) Maintain the implementation of retains of at least 2 to 3% of every approved loan, revolving capital of at least 50% of the total patronage refund and interest on share capital of members every year, capital share subscription of at least 1 share every year, and deposits found to have significant influence on the economic benefits of the cooperatives should also be given emphasis like a minimum amount of deposit equivalent to one share every year. 3) Since constant expansion has the lowest mean rating, in order to generate more revenue, it is suggested that cooperative may look into possible opportunities of expansion through strengthening linkages with federations like Northern Luzon Confederation of Cooperatives (NORLUCODEC), National Confederation of Cooperatives (NATCCO), National Cooperative Development Council (NCDC), Philippine Cooperative Center (PCC), Philippine Federation of Credit Cooperatives (PFCC), Department of Trade and Industry (DTI), Department of Science and Technology (DOST), Department of Agrarian Reform (DAR), and Provincial/National Government. 4) A follow up study on cooperative operations should be conducted in order to determine the other variables that may influence the economic contribution of capital build-up programs of the cooperatives.

REFERENCES:

A. Books:

1. Fajardo, F. (2001). Cooperatives (4^th ed.). C.M. Recto Avenue, Manila Philippines: Rex Bookstore Inc.

2. Fajardo, F.R. (1994). Introduction to Entrepreneurship. Quad Alpha Centrum Building, 125 Pioneer St., Mandaluyong City, National Book Store.

B. Unpubished Researches

1. Alconcel, L.E. (2016). Success Indicators of Multi-purpose Cooperatives in the First District of Ilocos Sur (Unpublished master’s thesis). University of Northern Philippines, Tamag, Vigan City, Ilocos Sur.

2. Cabunoc, R. (2007). Agricultural multi-purpose cooperative in La Union.

3. Galvez, E.S. (2015). Status, problems, and prospects of the agricultural multi-purpose cooperatives in the province of Abra (Unpublished doctoral dissertation). University of Northern Philippines, Tamag, Vigan City, Ilocos Sur.

4. Laureta, M.S. (2008). Performance of cooperatives in selected municipalities of Abra (Unpublished master’s thesis). University of Northern Philippines, Tamag, Vigan City, Ilocos Sur.

C. Online Sources:

1. Hendar (2010). Influence business environment on the organization performance. Retrieved from http://www.ijstr.org/ final-print/apr2015/Influence-Business-nvironment-On-the-organization-performance.pdf

2. R.A. # 9520. (2008). The Philippine Cooperative Code. Retrieved from http://www.cda.gov.ph

3. Reututar, ML. (2014). Status and prospects of cooperatives in Metro Vigan (Unpublished master’s thesis). University of Northern Philippines, Tamag, Vigan City, Ilocos Sur.

Received on 23.07.2020 Modified on 14.08.2020

Asian Journal of Management. 2020;11(4):497-506.

DOI: 10.5958/2321-5763.2020.00074.8

On Retains	Manager		Members		As a whole
On Retains	Mean	DR	Mean	DR	Mean	DR
1. The cooperative has a clear and well-defined policy on retains approved by the general assembly.	4.49	HI	4.0	I	4.25	HI
2. The cooperative implements the policy on retains after a consultation and approval from general assembly.	4.41	HI	4.0	I	4.21	HI
3. The cooperative follows a fixed percentage on loan deduction based on the by-laws.	4.47	HI	4.0	I	4.24	HI
4. The cooperative posts and add to capital share of each member on time.	4.39	HI	4.0	I	4.20	I
5. The cooperative utilizes retains as to the purpose where they were intended.	4.29	HI	4.0	I	4.15	I
6. The cooperative used retains to increase business operation.	4.15	I	4.0	I	4.08	I
7. The cooperative makes retains compulsory to all members.	4.02	I	4.0	I	4.01	I
Overall	4.32	VH	4.00	H	4.16	H

On Revolving Capital	Manager		Members		As a whole
On Revolving Capital	Mean	DR	Mean	DR	Mean	DR
1. The coop management imposes deferment on the release of interest on share capital and patronage refund.	3.68	I	4.0	I	3.84	I
2. The cooperative implements deferment annually until it produces the necessary funds needed.	3.46	I	3.8	I	3.63	I
3. The coop management releases the amount being deferred when the coop gets established.	3.42	I	4.0	I	3.71	I
4. The coop management issues certificate of deferment to members.	2.98	MI	3.5	I	3.24	MI
5. The coop management gives interest on the deferred payment of interest on share capital and patronage refund.	3.41	I	4.0	I	3.71	I
6. The coop management defers payment with the consent and or a proper approval of the BOD and general assembly.	3.69	I	3.9	I	3.80	I
Overall	3.44	H	3.87	H	3.66	H

Voluntary Contribution	Manager		Members		As a whole
Voluntary Contribution	Mean	DR	Mean	DR	Mean	DR
1. The coop has a policy to encourage members to subscribe additional share capital to the cooperative.	4.24	HI	4.3	HI	4.27	I
2. The coop requires members to contribute a certain amount every year.	3.80	I	4.0	I	3.9	I
3. The cooperative strictly implements the maximum subscription of share capital, which is 10% of the total subscribed share capital of the cooperative.	3.75	I	4.0	I	3.88	I
4. The cooperative accepts any amount or in-kind from members as additional share capital.	3.76	I	3.9	I	3.83	I
5. The cooperative designs specific purpose of voluntary contributions from members.	3.83	I	4.0	I	3.92	I
Overall	3.88	H	4.04	H	3.96	H

Donations, Grants, Legacies, Subsidies	Manager		Members		As a whole
Donations, Grants, Legacies, Subsidies	Mean	DR	Mean	DR	Mean	DR
1. The coop receives grants from outside sources.	4.02	I	3.9	I	3.96	I
2. The coop applies for grants to finance other undertakings of the cooperative.	3.39	MI	3.8	I	3.60	I
3. The coop accepts legacies, donations from generous persons, organizations, and/or institutions.	3.83	I	3.9	I	3.87	I
4. The coop seeks for subsidies from government only if necessary.	3.56	I	3.8	I	3.68	I
5. The coop is always independent from other organizations or institutions.	3.92	I	4.0	I	3.96	I
Overall	3.74	H	3.88	H	3.81	H

Capital Share Subscription	Manager		Members		As a whole
Capital Share Subscription	Mean	DR	Mean	DR	Mean	DR
1. The coop encourages members to subscribe share capital annually or periodically based on the by-laws.	4.20	I	4.2	I	4.20	I
2. The coop designs installment basis for members to pay their unpaid share capital.	4.07	I	4.1	I	4.09	I
3. The coop imposes fines or penalties on share capital not yet paid on scheduled time.	2.55	SI	3.4	MI	2.98	MI
4. The coop imposes 25% payment in cash of share capital upon membership.	3.49	I	3.8	I	3.65	I
5. The coop allows members to subscribe up 10% only of the total subscribed share capital of the cooperative.	3.69	I	3.9	I	3.80	I
6. The coop applies installment basis in the payment of unpaid share capital.	4.07	I	4.0	I	4.04	I
7. The coop follows the valuation or par value of share capital which is based on the bylaws or laws of cooperative (RA #9520) which is not lower than P 1.00 but not more than P 1,000.00.	4.29	HI	4.2	I	4.25	HI
8. The coop bases its collection of share capital holding on the bylaws and articles of cooperation of the coop.	4.39	HI	4.2	I	4.30	HI
Overall	3.84	H	3.97	H	3.91	H

Other strategies (Bingo Social and Raffle Draws)	Manager		Members		As a whole
Other strategies (Bingo Social and Raffle Draws)	Mean	DR	Mean	DR	Mean	DR
1. The cooperative uses bingo socials to raise capital.	2.44	SI	3.1	MI	2.77	MI
2. The cooperative conducts raffle draws for capital raising.	3.10	MI	3.6	I	3.35	I
3. The coop has a legal basis in its implementation of capital build-up programs.	3.78	I	4.0	I	3.89	I
4. The cooperative gives certain percentage to the capital share of members as they purchase and participate in the activity.	3.51	I	3.8	I	3.66	I
5. The coop prizes are reasonable enough to encourage members to participate.	3.63	I	4.0	I	3.82	I
6. The bingo socials and raffle draws are helpful in capital formation to increase volume of business operation.	3.24	MI	3.7	I	3.47	I
7. The coop provides sanction to members who fail to participate in capital formation activities.	2.46	SI	3.0	MI	2.73	MI
8. The coop forfeits prizes not claimed on time.	2.34	SI	3.0	MI	2.67	MI
9. The coop regularly conducts bingo socials or raffle draws.	2.73	MI	3.2	MI	2.97	MI
Overall	3.03	A	3.49	H	2.26	A