What defines a Cooperative business organization?

A cooperative business organization is defined by its structure that emphasizes group ownership for mutual benefit. In a cooperative, members come together to pool resources and share in the ownership, decision-making, and profits of the business. This model supports the interests of its members, allowing them to achieve goals that may be difficult to accomplish individually. The focus is on serving the needs of the members rather than solely pursuing profits, which fosters a sense of community and collaboration among them.

This approach contrasts with other business models where ownership is concentrated in the hands of a single individual or a small group, such as sole proprietorships or corporations focused on profit maximization, which prioritize shareholder returns over member welfare. Such structures do not embody the collective and democratic principles that are fundamental to cooperatives. Additionally, while partnerships involve collaborative work between two companies, they do not encompass the broader collective ownership and mutual benefits characteristic of a cooperative.