Factors Influencing Capital-raising in Kermanshah Industrial Cooperative Societies

Cooperatives, constituting one of the three main sectors of the national economy, are expected to display high ability in production. As producers cooperatives comprise an important part of industrial cooperatives, they can significantly influence national economic development. Low capital-raising is a main problem in cooperative sector. The purpose of this research is to study the most important factors that affect this problem in 2007. The study method is survey and the sample of the study is 37 units of active industrial cooperatives in Kermanshah Province. Through regression which was adopted as the method of analysis, the research results indicated that the significant variables most involved were capital profitability, capital efficiency, collateral value, market location, borrowing rate, expert knowledge of cooperative founders, loan amount, and lengthy bureaucracy.