A cooperative is a business that is owned and controlled by the people who use it. Cooperatives provide a unique tool for achieving economic goals in an increasingly competitive global economy. Cooperation is most effective under economic conditions which respond to group action. For example, when individuals acting alone can t achieve sufficient economy of size to compete in the marketplace, pooling their resources and marketing together can be an effective strategy. Or there may be other barriers to market entry, a lack of sufficient capital, or an imbalance of market power which individuals alone can t effectively address.
Cooperatives enable groups of people to achieve goals which are only possible through joint effort.
In addition to the direct benefits they provide to members, co-ops strengthen the communities in which they operate. Many co-ops provide jobs and pay local taxes because they operate in specific geographical regions. 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.