As the name suggests, Co-operative is a business that is owned and operated by its members. It remains a powerful vehicle for meeting people’s needs in fair minded participatory ways. They come together to meet their common needs like economic, social, cultural, environmental needs. Co-operatives can be either for-profit or non-profit enterprises. They are community-focused businesses and democratic and value based by nature.

It is considered as co-operative for the commons because it is often democratic, with each member having one vote. It helps in fighting with the imbalances of the capitalist market economy. While Capitalism has proven successful in generating more income, goods and services and technological progress, it has also led to inequality, misuse of power and exploitation of resources for own profit. Co-operatives businesses keep their money circulating within the local communities. They help in providing secure income, secure employment and help in sustaining healthy communities.

Co-operatives gives its owners a power to make their own decisions and help them not to be exploited by others. Often co-operatives work for the betterment of their communities. They share their profits within the communities, as their sole motive is not to only generate profit but to sustain their businesses for the society. Non-profit enterprises work to sustain businesses, their main motive is to run the business for the well-being of the community. Co-ops can be designed to mutualize benefits for participants rather than to maximize profits siphoned away by private investors. They remain a powerful vehicle for meeting people’s needs in fair minded participatory ways.

Co-operatives have been competing successfully in the Canadian marketplace for almost a century, many of them leaders in their industries. As in all businesses, however, co-op performance depends on good management and the ability to adapt and innovate in a changing economy.

Tamanna Garg and Navjot Kaur

References

Guttmann, A. (2020). Commons and Cooperatives: A new governance of Collective Action. Annals of Public and Cooperative Economics, 92(1), 33–53. https://doi.org/10.1111/apce.12291  

Kenton, W. (2021, May 19). Financial cooperative definition. Investopedia. Retrieved April 15, 2022, from https://www.investopedia.com/terms/f/financial_cooperative.asp  

What is a co-operative?: Ontario Co-operative Association. What is a Co-operative? | Ontario Co-operative Association. (n.d.). Retrieved April 15, 2022, from https://ontario.coop/what-co-operative