Understanding Cooperatives

Cooperatives provide commendable services to every aspect of the global

community as social and commercial entities. It is the only movement to have impacted
all areas of human existence. Cooperative Development Authority defines cooperatives
as an autonomous and duly registered association of persons, with a common bond of
interest, who have voluntarily joined together to achieve their social, economic and
cultural needs and aspirations by making equitable contributions to the capital required,
patronizing their products and services and accepting a fair share of risks and benefits
of the undertaking in accordance with the universally accepted cooperative principles.

The primary objective of every cooperative is to help improve the quality of life
of its members. Towards this end, the cooperative shall aim to give its members access
to goods and services that will increase their income, savings, investments, productivity,
and purchasing power. Additionally, encourage fair distribution of net surplus among
members by maximizing economies of scale and risk- and cost-sharing. Also, Provide
optimum social and economic benefits to its members. Allow the lower income and less
privileged groups to increase their ownership of the wealth of the nation. Cooperative
entrepreneurship as a concept is essential. It has a direct impact on viability and
sustainability.

Cooperatives are organizations that prioritize people over profit. than the
business's primary goal of maximizing profit. in light of the fact that they adhere to a
wider set of principles than those that are only. Specifically, self-help, self-
responsibility, and democracy, equity, solidarity, and fairness. Additionally, it brings
cooperative society management with creativity, innovation, and strategic management.