Cooperatives are generally defined as community-based, and member-owned, managed, and controlled organizations. The first cooperative in Nepal was established in 1956. Due to a lack of a fundamental understanding of cooperatives, the movement was very weak in Nepal till 1992. A major change in the sector took place in 1992, when the Cooperative Act 1992 was promulgated. The Act specified that the government would no longer directly promote cooperatives. As a result, the independent growth of cooperatives took off and the number of cooperatives had reached over 26,500 as of July 2012. Cooperatives in Nepal offer a wide range of savings and credit, insurance, and non-financial services. Their accomplishments to date in the area of socio-economic development of members indicate that cooperatives can continue to grow as key players in the development of Nepal. This paper provides evidence that if cooperatives operating in different villages are strengthened, they will contribute significantly to improving access to finance and the well-being of members.