The Role of Socio-Economic Characteristics in Shaping Public Interest in Cooperatives: A Quantitative Analysis

Abstract This study aims to examine the influence of socio-economic characteristics on public interest in cooperative participation during the era of financial modernization. Employing a quantitative approach with a cross-sectional survey design, primary data were collected from 157 respondents in Suka Makmur Village, Muaro Jambi Regency, Jambi Province. Multiple linear regression analysis was applied, incorporating dummy variables for occupation to precisely capture professional heterogeneity. Simultaneous analysis results indicate that socio-economic factors are strong determinants in predicting interest in cooperative participation (R² = 0.663). However, at the individual level, basic demographic attributes such as age and education level did not exert a significant influence. Conversely, empirical findings highlight a financial substitution effect, wherein individuals with higher average incomes and Civil Servant (CS) status demonstrated significantly lower interest in cooperatives. The highest probability of interest was found among agricultural sector workers (farmers and farm laborers) and private-sector employees. The study concludes that cooperative institutions in the observed area primarily function as an economic safety net for the working class and low-to-middle-income groups. Cooperative managers are advised to transform their services and enhance commercial competitiveness to attract a broader segment of the population. Keywords: Cooperative interest, socio-economic characteristics, financial substitution effect, rural economy, dummy variables.