Co-Operatives – What Are They, Why Start One And Who Benefits?

Co-operatives are seeing resurgence in interest and offer an alternative to other business models.

Essentially a co-operative is owned by all the members. Members are both the employees and employers. Each member has a share in the business. Co-operatives will often work because each member has a greater commitment to making it work than traditional business models such as limited companies and partnerships.

Typically a co-operative would be started by members each putting in an investment to the business. Members are paid a dividend of earned income. Each member has a vote on how the business is run and in decision making.

Co-operatives are not suitable for all businesses and owners. It won’t for example work for owners seeking personal financial gain. However on the flip side co-operatives do tend to be more stable long term businesses. There is also the added bonus that it removes many of the stresses and isolation frequently felt by business owners because the responsibility is spread across the members.

Author – Paul Stanford

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