1 2nd IŶterŶatioŶal SeŵiŶar oŶ EŶtrepreŶuership aŶd BusiŶess ;ISEBͿ ϮϬϭϯ,” Entreprenuership Ecosystem in TraŶsitioŶiŶg eĐoŶoŵy: DeliďeratiŶg Strategies’, UŶiversiti Malaysia KelaŶtaŶ ;UMKͿ on 15th December 2013 A STUDY ON PROFILE OF COOPERATIVE RETAIL BUSINESS OUTLET IN SARAWAK: PRESENT CAPACITY AND FINANCIAL GROWTH Yusman Yacob Cooperative College of Malaysia Sarawak Campus Jati Kasuma Faculty of Business Management UiTM Sarawak Abstract This exploratory study was undertaken to establish and describe the profile of cooperatives in Sarawak involved in the running of retail business. It is noted that most of these cooperative-run retail outlets are located in the rural areas. Establish prior to 1990, most of these cooperative have only one line of business with no ancillary or other complementary business activity. From the study also found that the acquiring of share capital, profits and dividends paid were still not encouraging. The financial growth of the cooperative retail business outlet in Sarawak need to be enhanced in order to improve their socio-economy and the country as a whole. Key Words:Profile, Cooperative Retail Business Outlet, Present Capacity, Financial Growth INTRODUCTION According to Section 4(1) of the Cooperative Act 1993, a cooperative is an organisation strictly made up of individual members, and is established to improve their socio-economy based on cooperation, and operated according to its own business principles. As a business entity, a cooperative seeks profit and strives to achieve its socio-economic objective. For this, a cooperative has to look into a wider range of business activities to remain viable and competitive. The cooperative movement in Sarawak started in 1949 with the setting up of Koperasi Memproses Sagu at Oya in Mukah. It was the first cooperative registered under the Sarawak Cooperative Ordinance 1949. From its inception to this day, the cooperative movement has been deemed to be vital to the economic development of the rural areas in the state. Later, a cooperative to process rice was established to serve farmers, and this was followed by the formation of retail cooperatives to provide sundries to the people in the interior (Ngadi, 2010). The retailing business is one that is synonymous with the consumerism function of cooperatives. Kotler & Armstrong (2008) in their book ‘Principles of Marketing 12 th Edition’, referred to marketing activities as the selling of products and services directly to the final consumers for their personal use. In Malaysia, the retail business of cooperatives extends beyond the boundaries of the urban areas and into the interior. In these retail premises, products are displayed prominently for prospective customers to see and select. Customers can purchase products on the spot (Baines et.al, 2008). According to Abu Bakar A.H., et. al (2007), a retail business may operate without a specific premise. Examples are