WHAT IS A COOPERATIVE?. What is a Cooperative?. This presentation: A Type of Business Different Sectors Providing Various Services Cooperative Principles & Practices Geographical and Governance Structures Cooperative Functions Participation Roles Meeting Member Needs In Sum
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WHAT IS ACOOPERATIVE?
Two or more owners
*Source: Research on the Economic Impact of Cooperatives, University of Wisconsin Center for Cooperatives, March 2009 (data does not include housing cooperatives).
Wholesale goods and supplies
Telephone and electric services
Farm production supplies and service
The people who own and finance the cooperative are those who use it.
The people who use the cooperative are those who control the cooperative
The cooperative’s sole purpose
is to provide and distribute
benefits to members on the
basis of their use
Quality products and services
Some unique practices make cooperatives different:
Also see the International Co-operative Alliance (ICA) Statement of the Co-operative Identity that provides the definition, values, and 7 principles of cooperatives: http://www.ica.coop/coop/principles.html
Geographical characterization defines a cooperative’s size and scope of operations in reference to serving members.
Based on membership structure and essentially defines who the members are and how the cooperative is organized to serve them.
Three Core Functions
Assist members in maximizing returns from goods they produce
Assist members to maximize the return they receive
for the goods they produce!
of their products
Allow members to gain access to affordable production supplies and goods
Used by members to gain access to affordable, quality supplies
Provide needed services
Used by members to gain access to affordable, quality services
Cooperatives operate through the roles of principal parties
Meet Member Needs by:
Board of Directors