Cooperatives, both rural and urban, have been part of the American economy for more than 100 years. In the United States there are more than 40,000 cooperatives that serve one out of every four citizens. Application of the cooperative business structure in rural economies is virtually limitless. The differences between cooperatives and other businesses are often expressed as three broad principles that characterize all cooperatives and explain how they operate. The member-users own and provide the necessary financing.
Members finance cooperatives in several different ways.
The user-control principle. The member-users control the business. They elect the board of directors and approve changes in its structure and operation. The board sets policy and is responsible for business oversight. The user-benefit principle.