1. Limited funds: Co – operative societies have limited membership and are promoted by the weaker sections. The membership fees collected is low. Therefore the funds available with the co-operatives are limited.
2. Over reliance on Government funds: Co – operative societies are not able to raise their own resources. Their sources of financing are limited and they depend on government funds.
3. Imposed by Government: In the Western countries, co – operative societies were voluntarily started by the weaker sections. The objective is to improve their economic status and protect themselves from exploitation by businessmen. But in India, the co – operative movement was initiated and established by the Government.
