What is a startup cooperative business?
Art Business

What is a startup cooperative business?

Looking to find out what a cooperative business is? Read on for the advantages and disadvantages to running a coop and for some successful cooperative business examples We’ve all heard of The Co-op, the popular high-street supermarket, famed for its support of Fairtrade goods and quality stock. But what does “cooperative” actually mean? And why should a startup care about a co-op structure? In addition to providing a product or service, the fundamental purpose of a cooperative is to serve its members and the community in which it is situated. Instead of outside investors benefiting financially from a business’ profits, members of a co-op see surplus revenue returned to them in proportion to how much they use the co-op. Every member of a co-op will also have a say in how the business is run via a democratic vote. For the business decisions that have to be made on the day-to-day, a board of directors is elected. The board monitors the business, sets goals and fulfills managerial duties, held wholly accountable to the members for all decisions, actions and outcomes. A cooperative model is an alternative business structure that suits particular kinds and sizes of business, but isn’t suited […]

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