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. Knowing about these cooperatives is essential before you can become part of its growth. Basically, a cooperative business practices democracy with its community-owned private entities that work with both sellers and buyers and owners and consumers. These co-ops stand out as being able to take care of any economic problem there is from business uncertainty to over or underproduction and excessive costs. These entities are the ones that take care of gaps and failures in the market that most private businesses cannot. 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. 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. This could be contributed to the fact that at the start of any cooperative, there are a number of people involved in them. Moreover, co-ops have a huge community support that not a lot of privately owned businesses get to have.
Cooperative businesses can keep any community stable because they are all rooted to the community. These co-ops ensure to multiply, recycle, and distribute the capital and expertise of the locals of 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. 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.