Limitations of co-operative societies:
1. Limited capital:

It is difficult to raise capital in a co-operative society. The main reason for this is that the price of shares to be sold to members is quite low and members generally belong to poor class. Moreover, unlike companies any member can have only one vote irrespective of the number of shares he holds. So, members are not much interested in buying shares which further adds to capital shortage.

2. Lack of efficient management:

The directors of co-operative societies work on an honorary basis i.e. without taking any fees or salary. Hence, at times they may not take personal and deep interest in the management and administration.

• Since the directors work honorary the society may hot get an efficient person / having specialized knowledge, business experience and time.
• Lack of personal interest may also result in formation of opposite groups within the society and hence poor management.

3. Political interference:

Various political parties directly or indirectly try to control the co-operative societies. If the society starts functioning according to their political will the business freedom gets affected which in turn affects the objective of the co-operative society and its democracy.

4. Non Co-operation among members:

• The success of a co-operative society depends highly on the honesty, loyalty and co-operative approach of the members.
• When members lack these values it may result in disharmony, conflicts, division of members in various groups, selfishness, enmity and ultimately non-co-operation.
• Owing to these reasons, the co-operative society may not be able to fulfill its objectives.