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What is the purpose of a cooperative?

A cooperative, or co-op, is a business owned and operated by its members. The purpose of a cooperative is to benefit its members by providing shared services, goods, or resources while maintaining democratic control and shared ownership.

Here's a breakdown of key aspects of a cooperative's purpose:

Benefits for Members:

* Access to affordable goods and services: Cooperatives often offer lower prices or better quality products and services than traditional businesses.

* Democratic control: Members have a say in how the cooperative is run, ensuring their needs are met.

* Shared ownership: Members share in the profits and losses of the cooperative.

* Social impact: Cooperatives often prioritize community development and sustainability.

Shared Services, Goods, or Resources:

* Housing cooperatives: Provide affordable housing for their members.

* Agricultural cooperatives: Help farmers pool resources and market their products.

* Consumer cooperatives: Offer groceries, retail goods, or other services at competitive prices.

* Worker cooperatives: Allow workers to own and manage their businesses.

* Credit unions: Provide financial services to their members.

Democratic Control and Shared Ownership:

* One-member, one-vote: Each member has an equal say in decision-making, regardless of their financial investment.

* Elected board of directors: Members elect a board to oversee the cooperative's operations.

* Open membership: Membership is typically open to anyone who meets certain criteria.

Overall, the purpose of a cooperative is to create a more equitable and sustainable business model that empowers members and benefits their communities.

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