It is a legal entity with certain rights, privileges and regulations. Substantial tax advantages can be realized by coops. Cooperatives have only limited liability. Co-ops enjoy certain antitrust and regulatory exemptions. Cooperation among members is often difficult to achieve.
Coops are often slow to organize and difficult to get started.
Members fail to recognize their ownership responsibilities and do not participate to the degree necessary for maximum advantage. Often the other members of the business community resent the coops.