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A cooperative society is an economic entity organized by people who having common interest, through pooling reasonable capital they have, so that they would be able to share the results with their fellow members and where members´ democratic participation is highly expressed. The development movement of cooperatives in Ethiopia shows different ups and downs. This was mainly due to different socio economic policies followed by the Country under different Governments. Financial management has a profound impact on business efficiency of an enterprise. The general objective of this study is thus to measure the financial performance of cooperatives in the Enderta Woreda and to recommend appropriate and reliable monitoring in management practice. In analyzing the financial performance of the cooperatives in the Woreda, ratio analysis and focus group discussion were used. Therefore, this study has significant importance for the policy makers, cooperative societies´ managers and members, higher education´s academic staff, students, and anyone else who want to know and understand the challenges of financial management in cooperatives.

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Mr. Tsegay Berhane Reda, MSc in Cooperatives Marketing, Department of Accounting and Finance, College of Business and Economics, Mekelle University, Ethiopia; Lecturer in the Department of Accounting, Banking, and Cooperatives, College of Business and Economics, Axum University, Ethiopia.

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