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. The thing about cooperative business is that they are private entities that are owned by a community that practices democracy combining together sellers and buyers as well as owners and consumers. Co-ops have been shown to resolve the economic issues pertaining to excessive costs, business uncertainty, and over or underproduction. 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. Some of these issues include provision of quality affordable farm supplies, utilities such as electricity in not so populated areas, healthy and organic food, access to affordable banking and credit services, quality elder and child care at affordable prices, affordable housing, and outdoor living tools and arts that one can use.
Usually, the challenges in starting your own business starts during the first year you start it and the after the first five years in terms of maintaining it; however, cooperative businesses have been found out to have higher success rates than small businesses and traditional corporations out there. Most of the time, after the first year of being in the business, 60 to 80% of small businesses have been shown to fail while for cooperative businesses, only 10% of them do. As the five years has hit the mark, you only see 3 to 5% of traditional businesses that are still running while 90% of cooperative businesses, on the other hand, are strongly thriving. You can expect this to happen since starting a cooperative always implies a number of people working together for the benefit of every member who is part of them. Furthermore, there is nothing quite like the kind of community support that you get from these cooperatives.
Cooperative businesses can keep any community stable because they are all rooted to the community. These co-ops are known to be able to distribute, multiply, and recycle the local capital and expertise that are ever present in the community. The put together limited resources so that they can become bigger. The members of these co-ops will be able to generate more assets, jobs, and income. The prices of the services and goods that are of high quality will also be provided to you in affordable terms. You expect a much more independent economy as well as work on more of your social and human capital. In addition, co-op members are never late in paying their taxes. They give back to the community in the form of donations and practice business strategies that are sustainable. Fair payment is something that the members of these co-ops make sure to practice as well when it comes to their employees.