What is a Co-op
There are many cooperatives all over the world including consumer co-ops, worker co-ops and producer co-ops. No matter what their function, all cooperatives exist to serve their member-owners.
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Each member makes an investment in their co-op and has a voice in controlling their co-op’s activities. A member will get the benefits all members receive, including one vote in member decisions. This is different from privately owned businesses, in which there is unequal ownership and control based on the size of one’s investment.
Co-ops operate according to a set of specific business practices designed to benefit their memberships. Although cooperatives serve a wide variety of purposes and use differing organizational structures, they generally direct their activities toward the common good and foster active democratic participation and education.
100 million Americans own more than 48,000 cooperative private businesses that produce $100 billion annual economic activity. This means cost savings, less risk and more choices for America’s consumers and producers.
Electric cooperatives operate nearly half of the electric distribution lines in the United States and provide electricity for 34 million people – that’s more than one in 10 Americans. Revenue generated by cooperatives tends to stay in the community as it is distributed to local members rather than removed shareholders.
Cooperatives exist not to generate a profit for themselves or outside investors, as do other businesses, but rather to provide goods and services at the lowest possible cost.