What is The Cooperative Business Model?

Cooperatives represent an alternative business model to big for-profit corporations. Because their main focus is to serve their member-owners. As a result, customers and owners are one and the same.

Takeaways: These 7 principles set the foundation and guidance of any organization. Notwithstanding, the rules are not abiding they solidified their mission and interests.

  • Democratic controls,
  • Voluntary and open membership,
  • Members economic participation,
  • Autonomy and independence,
  • Education, training, and development
  • Cooperative among cooperatives,
  • Commitment to community

Cooperatives deliver quality services and affordability. As a consequence, there are whole different types based on individual needs. As a coop, customers are the priority. Even though they generate profit but the profit is redistributed to members or reinvested in the cooperative. Joining or creating one could be extremely rewarding because of all the advantages. But be sure it is exactly what you are looking for.


  • Strong bargain power because of the aggregation of needs.
  • Equality and democracy in its management
  • More stable business
  • Less exposure to the financial market

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