A cooperative also needs to educate its members about its purposes and organization as well as the values of cooperation. In some cooperatives members learn primarily through participation. A cooperative that does not educate its members effectively cannot expect to last longer than a generation and a half. Limited return on equity capital. Missouri statutes limit the payment on equity capital to 10 percent annually.
Most cooperatives pay nothing on equity capital.
Further, a member can sell the equity capital only to the cooperative and at its discretion and never for more than cost or book value. A member of a cooperative secures benefits through prices and services. In other forms of business, benefits accrue to the investor either as dividends or changes in the value of stock or both. Except for the distinctive features just mentioned, cooperatives are identical with other forms of business. All must be economically feasible and all require capital, management and use of sound business practices.