The co-op s financial benefits to members, including patronage refunds, provide an economic boost to the community as well. It is important to note, however, that forming a cooperative is not a guarantee for success. A co-op must not only meet its members needs, but survive in the marketplace while doing so. Like other businesses, cooperatives start with the recognition of a need or an opportunity. In fact, the economic motivation for starting a co-op is very much the same as for starting other businesses.
Cooperatives also operate very much like other businesses.
They must serve a market efficiently and effectively, they must be well managed, and they must survive financially. However, there are important distinctions that make co-ops unique. As owners, they provide the capital necessary for start-up and growth of the business. Members control their co-ops. Each member usually gets one vote, regard less of the amount of equity they have invested in the co-op.