In this session, we will discuss what is a cooperative business is and its definition, principles, meaning, types.
What is a cooperative business?
In the whole world, we all are facing most of the business organization, and that all business organization motive has to earn profit like that a sole trade, partnership or joint-stock company. But today I am going to discuss those types of business organizations that intended is never earn profit. Those types of organizations motive only to help each other and that’s one is a cooperative business society.
Let’s defines deeply about the cooperative society. A cooperative business society is a type of the form of business organization that is a voluntary organization of individuals who are mostly workers and small producers. these types of business organizations are private in that one is owned and controlled by the people who use its products, supplies, or services. A cooperative society is not a new theory. It prevails all over the world of the countries, this is almost a universal theory. These types of society are active all over the world of the countries and are represented in all the sectors including agriculture, food, finance, healthcare, etc.
These types of societies need to be registered under the Cooperative Societies Act, 1912, in order to obtain the status of a separate legal identity. The members of the society raise the capital themselves by issuing shares.
“According to Robert Owen. He was the first person who had to develop the first cooperative society that was initiated in 1844 A.D. named “Rochdale Society of Equitable Pioneers”.
According to Dr. H.N. Kunzen “Co-operative is self-help as well as mutual help. It is a joint enterprise of those who are not financially strong and cannot stand on their legs and therefore come together not with a view to get profits but to overcome disability arising out of the want of adequate financial resources”.
Prof. Henery Calvert defines the cooperative society, “cooperative is a form of business organization where persons voluntarily associate together as human beings on the basis of for the promotion of the economic interest of themselves.”
In the session on what is cooperative business is, we will also discuss the types of cooperative society.
Most of the different types are available on google but after some research, this result has been come out. Here are some effective types of cooperative business.
The types of cooperative business can be dedicated by the following points.
- Producers Cooperative Society
- Consumer Cooperatives society
- Cooperative marketing society
- Cooperative credit society
- Cooperative insurance
- Cooperative Housing Society
- Cooperative Farming Society
Producers’ cooperative society: – Producer cooperative society is a type of society which are formed with the objective of protecting the interests of small producers. These types of societies have limited resources and they cannot expand their business individually. It helps their member in the supply of raw materials, purchase of modern machinery, provides skilled human resources. This co-operative also helps in producing high-quality goods and services. This type of cooperative society is also called an industrial cooperative business.
Consumer cooperative society: – A consumer cooperative is a type of society that is owned by members who use the co-op to purchase the goods or services can provide their members for their personal use. for Example, Food, credit unions, housing, insurance co-operatives, etc. these types of society are mainly used in different sectors like credit unions, grocery co-ops, telephone, and electrical distribution, housing, and childcare. So that here are classified some examples of the consumer cooperative are Adams-Columbia Electric Cooperative, UW Credit Union, Willy Street Co-op, REI, Madison Community Cooperative business.
Cooperative marketing society: – A cooperative market society is that type of society that is associated with small producers and manufacturers selling their output at a fair price. They come together to advertise their output in the market. In the market, there are different types of characters performs by the market co-operative like that sampling, grading, market research, processing, warehousing, etc. for the benefit of their members. The main objective of marketing co-operative includes:
- Providing the fair price to members product
- Promoting members output in the market
Cooperative credit society: – A cooperative credit society is a type of business in India that was first formed under the Co-operative Credit Societies Act, 1912. These types of societies are mainly organized to provide short-term financial assistance to members and to promote the habit of thrift.