The Role of Cooperatives in Reducing Poverty in Banda Aceh, Indonesia

Abstract

-Currently, the city of Banda Aceh is experiencing poverty. Hence this research would like to try to overcome this poverty with the role of cooperatives, a role which can be profitable. The existence of cooperatives can reduce poverty or support poverty reduction in Banda Aceh. This research uses primary data and also secondary data, where primary data consisted of using questionnaires of 20 respondents that were distributed online, and secondary data consisted of internet media used to find sources of support in this research. The results of this research indicate that improving people's lives has positive outcomes and can have an effect on reducing poverty in Banda Aceh. However the data were analyzed with e-views version 9 to examine how big independent variables influence dependent variable, the variables of partially Creating and Expanding Employment and Leading a Democratic Economic Life had negative outcomes and did not have an effect on reducing poverty in Banda Aceh. Simultaneously, the variables of variables of improving people’s lives, creating and expanding employment and leading a democratic economic life had a positive and significant effect, showing the potential for cooperatives to reduce poverty in Banda Aceh. Keywords-Creating and expanding employment; Improving people’s lives; Leading a democratic economic life