What is a cooperative?

A cooperative is defined as a business that is owned and operated by a group of individuals for their mutual benefit. This means that the members of the cooperative come together voluntarily to meet common economic, social, and cultural needs. The structure of a cooperative encourages democratic control, where members have a say in the decision-making process, typically on a one-member, one-vote basis, regardless of the size of their investment.

This model stands in contrast to other business forms where profit maximization for shareholders is the primary objective or where control is held by a board of directors appointed to represent shareholder interests. In a cooperative, the focus is on serving the needs and interests of the members rather than solely on profits. Therefore, cooperatives often operate in various sectors, including agriculture, housing, and retail, emphasizing community and collaboration among their members.