What is a Co-Op?

A co-op is a cooperative business, organization or enterprise owned and managed by its members. The members of a co-op share the benefits, risks and control of the organization. A co-op is an enterprise established and owned by its members to meet their common economic, social and cultural needs.

Co-ops come in all shapes and sizes. They can be large and multi-national (like credit unions, housing co-ops and employee-owned companies) or small and local (like community gardens, microfinance initiatives and craft-making projects). What unites them is the participants’ collective ownership of the enterprise and shared responsibility for their own welfare and development.

Co-ops may be for-profit or non-profit, independently run organizations or those affiliated with international networks and national organizations. All co-ops balance both cooperative principles and mutually beneficial business economics to ensure their success.

How do Co-Ops Work?

At the heart of a cooperative is the idea of members helping each other out. Co-op members come together to share in the successes, risks and resources of a venture, setting and abiding by democratic rules established to guide the business. In return, members receive a share of the profits and sense of ownership over the business.

Co-ops strive to create jobs, boost local economies and spread knowledge. They are often started by people who are unable to find jobs, or are restricted from participating in the traditional business economy. Co-ops also involve and train more members, creating more jobs and opportunities in the process.

At the same time, through collective ownership, co-op members share in the responsibilities of running a business. This includes upholding their commitment to members, the environment, and any larger missions the group may set for itself beyond generating revenue for its members.

Benefits of Joining a Co-Op

Joining a co-op has many benefits. Members enjoy greater buying power, access to resources and infrastructure that they may not otherwise have access to, and the strength of a collective voice. They also share in economic stability and an increased sense of pride and connection to the organization.

The benefits of joining a co-op go beyond just economic or the tangible. Co-ops can build relationships and trust, strengthen communities, and provide a platform for members to support each other in times of need.

Ultimately, cooperating together in a democratic space provides the means to achieve collective goals that may have otherwise been unattainable. It also makes a powerful statement about the power of collective action and the role that members play in achieving success.