What is a co-operative?

A co-operative is an independent enterprise that is jointly owned and democratically run by its members to meet their common goals according to a set of internationally agreed principles.  Any type of business can be a co-operative such as a printer, landscape gardener, café, broadband provider and graphic designer. 

These are the seven co-operative principles:

1. Open and voluntary membership - all those who qualify for membership must be allowed to join
2. Democratic member control - one member one vote
3. Member economic participation - members decide on the use of surpluses to prevent someone with a greater financial stake having more control. Members will usually receive a limited return, if any, on capital subscribed
4. Autonomy and independence - any agreements with other organisations must protect the democratic control of the organisation by members and protect its autonomy
5. Education, training and information of members – members are educated in co-operative principles and practice
6. Co-operation amongst co-operatives – co-operatives like to trade with and support other co-operatives
7. Concern for the community. 

Types of co-operative

There are several types of co-operative including:

• Worker Co-operatives - companies that are owned and controlled by the people who work in them.   They may employ people who are not members but only workers may become members.
• Consumer or Retail Co-operatives - organisations owned and controlled by members who are consumers
• Employee-owned Co-operatives – these have the primary aim of creating and preserving employment for their members
• Housing Co-operatives - tenants of a building collectively own and manage their housing
• Credit Unions - financial co-operatives that encourage regular savings to create a pool of money from which loans can be made to members
• Co-operative Consortium  or Secondary Co-operatives - collections of businesses that come together to buy or use services that would be beyond the reach of each business

For more information on co-operatives see the Co-operatives UK website.

For information on co-operatives and co-operative activity in the East Midlands see the Co-operatives East Midlands website.