{"id":36667,"date":"2022-12-15T00:38:00","date_gmt":"2022-12-15T00:38:00","guid":{"rendered":"https:\/\/businessyield.com\/?p=36667"},"modified":"2023-03-08T21:01:08","modified_gmt":"2023-03-08T21:01:08","slug":"what-is-cooperative","status":"publish","type":"post","link":"https:\/\/businessyield.com\/bs-business\/what-is-cooperative\/","title":{"rendered":"WHAT IS COOPERATIVE: Guide On Cooperative","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"
Cooperatives, irrespective of the form, have one purpose: the interests of their members at large. However, over the years, its focus expanded to not just meeting the needs of its members but also to economic growth and development. For instance, IWDC report that U.S. cooperatives generate more than 2 million jobs each year, contribute $652 billion in annual sales, and also possess over $3 trillion in assets. Interestingly the number keeps increasing all over the globe. In this article, we expound on what a cooperative is, how it works, its endeavor agreement, and some of its types such as housing, apartment, farmers, and so on.<\/p>\n
What Is Cooperative?<\/h2>\n
Generally, when we talk about cooperatives, we refer to a people-oriented organization. One whose ownership, management, and also operation lie with its members. The business solely exists for the members\u2019 social, common economic, and cultural needs and objectives. These people have a need, identified their needs, come together, pulled resources, started a business, operate the business, and meet their needs. The most significant thing about a co-op is that it democratically bring people together and represent their interest. Every cooperative out there irrespective of the form of its existence has one goal- value. That is literally why the driving force of cooperatives is value not profit.<\/p>\n
A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.<\/p>\n
International Co-operative Alliance<\/strong><\/cite><\/p><\/blockquote>\n
Cooperative Principles<\/h2>\n
In 1995, the International Cooperative Alliance adopted seven principles. These presently serve as the values that govern the operation of cooperatives to date.<\/p>\n
#1. Economic Participation of Members\u2019<\/h3>\n
Capital contribution is always done democratically and equitably.<\/p>\n
#2. Education, Training, and Information<\/h3>\n
Generally, cooperatives make sure that their board and every member have access to educational training. After being armed with knowledge, they in turn contribute to the cooperative\u2019s growth. Cooperatives also aim to educate and inform the public about their mission and operations.<\/p>\n
#3. Concern for Community<\/h3>\n
Generally, a co-op policy must add to the overall development of the community and the global environment as it expands.<\/p>\n
#4. Democratic Control<\/h3>\n
Co-op members manage and control their affairs without external influence. What\u2019s more? Members have a say on the cooperative\u2019s policies decision.<\/p>\n
#5. Cooperation Among Cooperatives<\/h3>\n
Co-ops frequently collaborate, forming regional, national, and worldwide organizations that benefit the community and the world. Most often, it begins as a small community and gradually expands.<\/p>\n
#6. Independence and Autonomy<\/h3>\n
Cooperatives are free from external influence. Additionally, they are autonomous and democratically controlled without external authority.<\/p>\n
#7. Voluntary Membership<\/h3>\n
Anyone can be a member of a co-op. All you need to do is apply to become a member and also adhere to their regulations. Although you may be asked to pay the registration fee, it still holds great goodies in store for all members.<\/p>\n
What Are the Different Types of Co-ops?<\/h2>\n
Cooperatives usually operate in a variety of business sectors and industries. It also takes different forms depending on who the member-owners are and what they do. The following are the most common types of co-op in the State.<\/p>\n
#1. Producers Cooperative<\/h3>\n
This is specifically for producers who come together to protect their interests. These producers are mostly product manufacturers that came together to improve the sale of their products or develop their manufacturing process.<\/p>\n
#2. Worker Cooperatives<\/h3>\n
More often than not, you\u2019d find the workers\u2019 co-op in sales and service. Ownership of the worker\u2019s cooperatives lies with the worker within a company. The cooperative gets its support from the labor and volunteering work of workers.<\/p>\n
#3. Farmer and Independent Small Business Cooperatives<\/h3>\n
When it comes to farmers\u2019 cooperatives, their ownership and control lie with the people who use their services, while the business fulfills the purchasing, processing, and marketing needs of the members.<\/p>\n
#4. Processing Co-ops<\/h3>\n
When it comes to processing cooperatives, members jointly own the processing equipment. This reduces the cost of processing goods for members. It also records revenue from non-members.<\/p>\n
#5. Agricultural Cooperative<\/h3>\n
This is one of the oldest cooperatives in existence.\u00a0According to IWDC, over 2 million farmers are members of farmer cooperatives. These groups provide more than 250,000 jobs and about $8 billion in yearly earnings. The agricultural cooperatives use their resources to assist farmers in obtaining land and supplies.<\/p>\n
#6. Insurance<\/h3>\n
Mostly, Insurance either covers all co-op members completely or the businesses that use a cooperative business model.<\/p>\n
#7. Purchasing Cooperatives<\/h3>\n
The purchasing co-op\u00a0consists of similar\u00a0businesses allying\u00a0to acquire products and services. It is owned by individual retailers who buy\u00a0goods and services needed to run their own companies, members also exchange purchasing contracts.<\/p>\n