A business cooperative, also known as a co-op, is an organization that is owned and operated by its members. Members of a cooperative typically share a common interest, such as the same industry or geographic location. Business cooperatives are different from other types of businesses because they are structured to serve the needs of their members rather than to maximize profits for shareholders.
There are many different types of business cooperatives, but all share a few key characteristics. First, cooperatives are owned and controlled by their members. This means that each member has an equal say in how the cooperative is run. Second, cooperatives are organized to serve the needs of their members. This means that the cooperative’s primary purpose is to provide benefits to its members, rather than to generate profits for shareholders. Finally, business cooperatives are typically governed by a set of democratically-elected leaders.
Business cooperatives can be structured in a variety of ways, but most fall into one of three categories: producer cooperatives, consumer cooperatives, and worker cooperatives.
Producer cooperatives are businesses that are owned and operated by the producers of a good or service. For example, a farmer’s cooperative might be owned by the farmers who sell their products through the cooperative. Producer cooperatives typically exist to provide their members with access to markets, capital, and other resources that they might not otherwise have.
Consumer cooperatives are businesses that are owned and operated by the consumers of a good or service. For example, a credit union is a type of consumer cooperative. Credit unions are owned by their members, who use the credit union’s services. Consumer cooperatives typically exist to provide their members with access to goods and services at a lower cost than they would pay for those same goods and services from a traditional business.
Worker cooperatives are businesses that are owned and operated by the employees of the business. For example, a worker-owned restaurant might be owned by the cooks, servers, and other employees who work there. Worker cooperatives typically exist to provide their members with a greater degree of control over their work lives and to share in the profits of the business.
