The Many Benefits of Being Part of a Cooperative Business
Cooperative businesses are becoming highly sought after in this day and age with the many good things that come out of them. But before that you should understand what it is all about. Basically, a cooperative business practices democracy with its community-owned private entities that work with both sellers and buyers and owners and consumers. For all economic issues like over or underproduction as well as excessive costs and business uncertainty, co-ops are the best entities that can take care of them. Cooperatives are the only private institutions that make sure to take care of any gaps or failure that the current market has that most private-owned businesses just ignore. These issues that are commonly resolved by them include the provision of organic and healthy affordable food, affordable utilities and electricity in unpopulated area, having access to affordable banking and credit services, quality elder and child care, affordable housing and so on.
These cooperative businesses have better chances of survival compared with other small business entities and traditional corporations during the risky times of starting a business, that is the first year, and what comes after, that is five years in the business. After the first year, traditional businesses have a failure rate of 60 to 80% while the co-op has 10% failure rate. When the five year mark has passed, there are about 3 to 5% of traditional businesses that survive while there are 90% of cooperatives that do get to still be in business. The main reason why this is the case will have to be the many number of people who have taken their role in starting a cooperative business. Also, co-ops are well known to have a higher level of support from the community.
A community becomes more stable with the use of cooperative businesses and what they have to offer in various business entities. Such co-ops do their best to recycle, multiply, and distribute what local capital and expertise their community has. The put together limited resources so that they can become bigger. Your assets, income, and jobs will be increased when you become a part of these co-ops. Affordability is also something that you can expect from these co-ops when it comes to the quality services and goods that they offer you. You clearly can expect for your economy to be very independent and will have a more developed social and human capital. Furthermore, the tax paying part of these co-ops is a given. They make sure to provide to the community by using sustainable practices and ensuring to provide donations. Lastly, there is fair payment when it comes to each and every member of these co-ops if they run a business and pay their employees.