Co-op Basics
Co-op Basics
A cooperative or co-op is a business that is owned and democratically controlled by the members who use its services. Cooperatives are found across the U.S. in nearly every sector of the economy.
The cooperative model can be an effective way for people to meet a common set of economic or social needs.
What makes a co-op different?
Three unique features make co-ops different:
Member Owned
Members who use the cooperative own their co-op because they finance it in a variety of ways. They share in both the business risks and the business profits. Each cooperative determines the level of financial participation that is required to establish membership status in the co-op.
Member Controlled
Members democratically control their cooperative by exercising the voting rights that come with membership. In Wisconsin, each member is typically entitled to one vote.
Members Benefit
Members benefit from the cooperative based on their use of the co-op. All or part of a cooperative’s profits may be distributed proportionately, based on each member’s use, or patronage, of the co-op.
Explore Co-op Basics
Types of Co-ops
Cooperatives span many different activities and services from childcare to transportation, farming to solar energy, financial services to purchasing school supplies. Cooperatives are owned by their members, which could be consumers, producers/farmers, workers, businesses or organizations, municipalities, and other co-ops.
Cooperative Principles & Values
One of the ways cooperatives differ from other business structures is their adherence to cooperative principles and values that reflect social, political, and business concerns. The seven principles used by the International Cooperative Alliance today are generally accepted by cooperatives worldwide.
Co-op Glossary
Business terminology is not always clear, and different terms are often used to describe the same business concept. This glossary defines and explains common business terms associated with cooperatives, and can help members, employees, and newly elected directors better understand the financial reports, as well as other business reports, of their cooperative.
How Cooperatives are Different from Other Businesses
The legal structure of any business defines ownership, control, and earnings distribution. Like other businesses, a cooperative incorporates as a legal entity under state statutes, which provide a framework for governance and operations.
Co-ops are everywhere!
They provide nearly every good and service imaginable, and they are a great choice for buying local and keeping jobs in the community.
What exactly is a co-op? Cooperative Network has developed an animated short “Co-ops Are Everywhere” to help answer that question.