Do these 3 things before closing this tab:
1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problemsA cooperative business is owned and democratically controlled by the people who use it, work in it, or otherwise share a need it is organized to meet. Members contribute to the business and take part in its governance; any economic benefits distributed to them are generally tied to their participation or use, not simply to the amount of outside capital invested. The exact rules depend on the cooperative’s bylaws and the law that applies.
How a cooperative business works
People form or join a cooperative to meet a shared economic, social, or community need. They become members under the cooperative’s membership rules, contribute capital as required, and participate in decisions through its governance process. The cooperative then sells goods or services, or provides another shared benefit, to serve its members.
The International Cooperative Alliance defines a cooperative as “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.” The ICA’s revised Statement on the Cooperative Identity was adopted in 1995. Read the ICA’s cooperative identity statement.
This member-centered purpose distinguishes a cooperative from a business organized principally to maximize returns for outside investors. A co-op may still need to earn revenue, build reserves, and manage costs to remain viable; member ownership does not mean it operates without ordinary business responsibilities.
Free tools Windows power users keep installed
One-click scans. No signup required.
#1 Best Overall
Who owns and controls the cooperative
Members are both owners and, in many co-ops, users of the business. Democratic member control means they participate in setting policy and making decisions. Often, members elect a board or other representatives to oversee the business between member meetings.
One member, one vote is a common approach in primary cooperatives, but it is not a universal rule for every cooperative. Voting arrangements and member rights can vary with the cooperative’s structure, bylaws, and applicable law. USDA’s overview explains that details, including voting, can vary under state law. See USDA’s overview of cooperative basics.
Rank #2
- Ideal for Gifting
- Ideal for a bookworm
- Compact for travelling
How members contribute and receive economic benefits
Members contribute capital according to the cooperative’s rules. The co-op may use revenue to pay operating expenses, invest in the business, and retain earnings for future needs. If it distributes a surplus or other benefit to members, that distribution is generally connected to how much business each member did with the cooperative, rather than being based only on how much capital the member invested.
A patronage-based return is not guaranteed profit. Whether a cooperative has a surplus to distribute, whether it distributes one, and how it calculates the amount depend on its financial results, bylaws, and legal requirements. USDA describes member economic participation and patronage in its materials on cooperative services and organization. Learn about cooperative services and member economic participation.
Common types of cooperatives
Cooperatives are used in many industries. The members’ shared need determines who joins and what the business does.
| Type | Who the members are | What the cooperative may do |
|---|---|---|
| Consumer | People who use or buy the cooperative’s goods or services | Operate a grocery, housing, childcare, or other service organization |
| Worker | Workers who own and operate the business | Provide goods or services through a worker-owned firm |
| Producer | Businesses or individuals producing goods | Market members’ products or jointly purchase supplies |
| Multi-stakeholder | More than one member constituency, such as workers and consumers | Combine participation by distinct groups with a shared interest |
These are broad categories, not a complete legal classification. USDA lists agricultural marketing and purchasing, groceries, housing, childcare and other care services, financial services, and worker-owned businesses among cooperative examples. Explore USDA Cooperative Services resources.
Rank #4
How a cooperative compares with an investor-owned business
The contrast is a useful starting point, not a substitute for reviewing a particular company’s governing documents. Investor-owned businesses also vary in how they allocate voting rights and returns.
| Question | Cooperative | Investor-owned business |
|---|---|---|
| Who owns it? | Members, often the people who use or work in the business | Owners or shareholders whose stake may primarily be an investment |
| Who controls it? | Members participate in democratic governance; voting rules depend on the cooperative’s structure and law | Control follows the company’s shares and governing documents |
| How are economic benefits allocated? | Benefits, when distributed, are generally connected to member use or participation, subject to the co-op’s rules and results | Returns are generally connected to ownership interests and the company’s governing arrangements |
| What is it organized to do? | Meet members’ shared needs | Often principally to generate returns for owners or investors |
What to check before joining or starting one
The word “cooperative” does not by itself establish a single voting system, tax status, or legal structure. Those details depend on jurisdiction and the entity chosen. Before joining, review the membership terms, voting rights, capital requirements, and rules for any patronage distribution. Before forming a co-op, seek advice on the law and tax treatment that apply where it will operate.
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
Best Value
- It can be a gift option
- Comes with secure packaging
- Helpful in various ways
For people exploring a rural cooperative in the United States, USDA Rural Development describes technical assistance and Rural Cooperative Development Grants that support Cooperative Development Centers helping people start, expand, or improve rural cooperatives. The resource does not determine any particular applicant’s eligibility. Find USDA Rural Cooperative Development resources.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
