Consumer cooperatives are businesses which belong to the people who use them. America s first successful co-op was formed by Benjamin Franklin to provide insurance for homes. Today, more than 100 million Americans participate in cooperatives.
Cooperatives are successful because they provide valuable services and save consumers money.
Since the primary goal of cooperatives is to meet needs, not generate profits, they can serve their members at low cost. Cooperatives often provide services to their communities that are not readily available from for-profit businesses. In other cases, cooperatives enhance the level of competition in the marketplace by providing consumers with an alternative source of products and services. The central principle of consumer cooperatives is member control and participation. Members control the business and provide capital for a strong and efficient operation.