Impact of Cooperative Membership on the Business Growth of Small-Scale Traders in Ibadan South, Oyo State

Small-scale traders constitute a significant segment of Nigeria's informal economy, and cooperative membership is widely perceived as a mechanism for enhancing their business resources and growth trajectories. This study assessed the impact of cooperative membership on the business growth of small-scale traders in Ibadan South West Local Government Area, Oyo State. A comparative cross-sectional survey was conducted among 120 cooperative member traders and 120 non-member traders from Dugbe, Gbagi, and Agbeni markets. Structured questionnaires collected data on business assets, turnover, credit access, inventory levels, and market linkages. Independent samples t-tests and binary logistic regression were used for analysis. Results showed that cooperative member traders had significantly higher business asset values (mean 2.68 million naira versus 1.42 million for non-members; p < 0.001), higher monthly turnovers, and greater credit availability. The probability of business expansion was 2.9 times higher for cooperative members after controlling for years in business and initial capital. Collective purchasing and access to cooperative loans were the primary mechanisms linking membership to growth. However, 39.2 percent of members reported that the cooperative's loan size was insufficient for meaningful business expansion. The study concludes that cooperative membership significantly enhances small-scale trader business growth and recommends enhanced capital mobilisation within trading cooperatives and stronger linkage to formal financial institutions. Keywords: small-scale traders, business growth, cooperative membership, Ibadan, Oyo State