Advantages of cooperatives

Main advantages of cooperatives ie. small businesses formed by farmers or customers are:

  • increase of competition
  • cost reduction of procurement of goods or selling
  • provide high quality services to specific group of interested people (which may be unprofitable to big business)
  • provide various resources to members (credit, housing, etc.)
  • cooperatives are owned and controlled by members
  • profits of cooperative are transferred directly to members, members decide about fund transfers
  • cooperatives with open membership provide important social service to the community
  • decision are undertaken democratically
  • often this type of business is supported by government
  • middlemen are eliminated which leads to cost reduction, main goal of cooperative is good service not profit for a limited few people


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