The Power of Cooperatives: Benefits and Examples in Social Science.

A type of business operated for the shared benefit of the owners, who are also its consumers.

cooperative

The type of business being described here is known as a cooperative (or co-op). In a cooperative, members pool their resources to meet a common need or goal. They jointly own and democratically control the business, sharing in its profits and benefits. The members are typically customers, employees, or suppliers of the cooperative, who all have an equal say in how it operates.

The main advantage of a cooperative is that it is owned and controlled by the people who use it, so they have a direct stake in its success. This can lead to a greater level of commitment and engagement from members compared to other types of businesses. Additionally, cooperatives can often negotiate better prices and terms from suppliers, and return profits to members in the form of dividends or lower prices.

Examples of cooperatives include credit unions, agricultural marketing cooperatives, and consumer cooperatives such as REI or the Mondragon Corporation in Spain.

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