What is a co-operative?

A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.

Ranging from small-scale to multi-million dollar businesses across the globe, co-operatives employ more than 100 million women and men and have more than 800 million individual members.

What is the co-operative difference?

Co-operatives are enterprises that put people at the centre of their business and not capital. Co-operatives are business enterprises and thus can be defined in terms of three basic interests: ownership, control, and beneficiary. Only in the co-operative enterprise are all three interests vested directly in the hands of the user.

Co-operatives put people at the heart of all their business. They follow a broaderset of values than those associated purely with making a profit. Because co-operatives are owned and democratically-controlled by their members (individuals or groups and even capital enterprises) the decisions taken by co-operatives balance the need for profitability with the needs of their members and the wider interests of the community.

Co-operatives are also enterprises that follow a set of principles and values - The Co-operative Principles. The Co-operative Identity Statement elaborated in 1995 by the ICA is the internationally recognised definition of the co-operatives, its values, and principles.

Type of co-operatives The co-operative model of enterprise can be applied to any business activity. They exist in traditional economic sectors such as agriculture, fisheries, consumer and financial services, housing, and production (workers' co-operatives). However, co-operative activity spans to large number of sectors and activities including car-sharing child-care, health and social care, funeral, orchestras and philharmonics, schools, sports, tourism, utilities (electricity, water, gas, etc.), and transport (taxis, buses, etc).

Co-operatives are significant economic and social actors

All over the world, millions of people have chosen the co-operative model of business enterprise to enable them to reach their personal and community development goals. Co-operatives create and maintain employment providing income; they are responsible for producing and supplying safe and quality food and services to their members, but also to the communities in which they operate. By putting the Co-operative Principles and ethics in practice they promote solidarity and tolerance, while as 'schools of democracy' they promote the rights of each individual - women and men. Co-operatives are socially conscious responding to the needs of their members whether it is to provide literacy or technical training, or to take action against the HIV/AIDS pandemic. Through their varied activities, co-operatives are in many countries significant social and economic actors in national economies, thus making not only personal development a reality, but contributing to the well-being of entire populations at the national level.

• Over 800 million people are members of a co-operative.
• Co-operatives provide 100 million jobs worldwide, 20% more than multinational enterprises.

(http://www.ica.coop/coop/index.html)