The Many Benefits of Being Part of a Cooperative Business
There are a lot of benefits to cooperative businesses that you should know about. Before you can learn more about these entities and their benefits, you have to know what they are first. It is through these cooperative businesses that both sellers and buyers as well as both owners and consumers will be found altogether in one place as they own a private enterprise as a community and using democracy as its structure. Co-ops have been shown to resolve the economic issues pertaining to excessive costs, business uncertainty, and over or underproduction. 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.
Usually, the challenges in starting your own business starts during the first year you start it and the after the first five years in terms of maintaining it; however, cooperative businesses have been found out to have higher success rates than small businesses and traditional corporations out there. Most of the time, after the first year of being in the business, 60 to 80% of small businesses have been shown to fail while for cooperative businesses, only 10% of them do. After five years has passed, 3 to 5% of traditional businesses still continue to operate while 90% of cooperatives are still 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.
Since cooperative businesses rely on community based concepts, you can rest assured that your community will become more stabilized. These co-ops are known to be able to distribute, multiply, and recycle the local capital and expertise that are ever present in the community. They make sure to collect resources that are limited and turn them into something bigger. Your assets, income, and jobs will be increased when you become a part of these co-ops. The prices of the services and goods that are of high quality will also be provided to you in affordable terms. The capital for your social and human development also gets to be more improved as well as the independence you get on an economic perspective. Moreover, the members that these co-ops have are keen on paying their taxes. These co-ops are also popular for their being able to give back to the community in the form of donations while making sure that the practices that they are going for are sustainable. Fair payment is something that the members of these co-ops make sure to practice as well when it comes to their employees.