A cooperative business, or co-op, is a business owned and controlled by the people who use it, with decisions made democratically and benefits shared among members rather than outside investors. It is designed to meet members’ common economic, social, or cultural needs.

Quick Scoop

A co-op usually works on the idea of “one member, one vote,” so each member has a say in major decisions. Its main purpose is to serve members and the community, and any surplus is often reinvested or returned to members in some form.

How it differs

  • Traditional businesses usually focus on maximizing profit for shareholders.
  • Cooperative businesses focus on member benefit, shared ownership, and community value.
  • Members are often both the users and the owners of the business.

Common examples

  • Food co-ops.
  • Credit unions.
  • Housing co-ops.
  • Agricultural co-ops.

If you want, I can also give you a very short 2-line definition or a simple real-life example.