What are Cooperatives?
Cooperatives are businesses that --
- are owned and democratically controlled by their members--the people who use the co-op's services or buy its goods--not by investors.
- return surplus revenues (income over expenses and investment) to members proportionate to their use of the cooperative, not proportionate to their ownership share.
- are motivated by service to their members, not by profit.
Types of Co-ops
Cooperatives fall into four categories: consumer, producer, worker and purchasing/shared services.
Consumer-owned Co-ops
Consumer cooperatives are owned by the people who buy the goods or use the services of the cooperative. Consumer co-ops include credit unions, child care cooperatives, electric and telecommunications cooperatives, food co-ops, health care co-ops, housing cooperatives, and many more.
Producer-owned Cooperatives
Producer cooperatives are owned by producers of farm commodities or crafts that band together to process and/or market their products.
Worker-owned Cooperatives
Worker co-ops are owned and democratically governed by their employees.
Purchasing Co-ops
Purchasing cooperatives are owned by small, independent businesses, municipalities or other like organizations that band together to enhance their purchasing power.
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