Hey,

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Following are its demerits -

1. Lack of Capital :-

Generally the MEMBERS of cooperative societies are poor and they can not provide the capital on large scale. The external resources of the society are ALSO limited so it faces the shortage of capital problem.

2. Lack of Experience :-

There is a lack of business experience to the members of the society. Another problem is that a society can not hire the services of the experts due to its limited resources.

3. Absence of Discipline :-

EVERY member of the society considers him the owner of the business so inefficiency takes place and business suffers a loss.

4. Lack of Sincere MANAGEMENT :-

Generally the management of the society remains in the hands of the selfish and dishonest members and they take undue advantages of their powers, so it affects the business.

5. Lack of Profit Incentive :-

Basically cooperative society is not a profit earning institution. So the absence of profit incentive is an obstacle in the way of its progress.

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# Regards :-)