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. The board of directors is elected by the membership. Members benefit from their co-ops. Profits are distributed to the members in proportion to each member s use of the co-op. The owners of IOF s may never even use the products or services their company produces.