What is a Co-operative?

Co-operatives are enterprises that are owned by members. They are businesses which operate in all sectors of the business community, and they carry on a wide range of activities. Some co-operatives have only 2 or 3 members, others have hundreds.  Those who work within them and who wish to become members of them share responsibilities, profits and opportunities according to a set of internationally agreed principles.

These are the seven co-operative principles:

1.	Voluntary and open membership - all those who qualify for membership must be allowed to join.
2.	Democratic member control - one member one vote.
3.	Member economic participation - members contribute equitably to and democratically control the capital of their co-operative, in order to prevent someone with a greater financial stake having more control. Members will usually receive a limited return, if any, on capital subscribed.
4.	Autonomy and independence - if they enter into agreements with other organisations, it should be on terms that protect the democratic control of the organisation by members and protects the autonomy of the co-operative.
5.	Education, training and information of members in the co-operative principles and practice.
6.	Co-operation amongst co-operatives.
7.	Concern for the community.

Different types of co-operative

Worker or Producer Co-operatives - companies that are owned and controlled by the people who work in them. While they may employ staff who are not members of the co-op, only those who work for the co-op may become members of the co-op.

Consumer or Retail Co-operatives - organisations owned and controlled by members who are consumers, such as the Co-operative Group supermarkets are counted among this group.

Housing Co-operatives - in which the tenants of a housing organisation collectively own and manage their housing.

Credit Unions - financial co-operatives whose members save together to provide a collective loan fund from which each may borrow as the need arises.

Agricultural Co-operatives - organisations of farmers and growers who come together to increase their effectiveness in buying stock and equipment and in marketing and distributing produce.

Co-operative Consortia / Secondary Co-operatives - like agricultural co-operatives, collections of small businesses that have come together to buy or use services that would be beyond the reach of each as individuals.  A co-op consortium would not trade directly with the public, but would provide services to its members.

Care Co-operatives - a recent form of co-operative development which groups together care workers and often also users of that care so that they manage the provision of care services, usually under contract from a local authority.

What is a social firm?
Social Firms employ individuals with disabilities and trade in the open market place. All employees are involved in the running of the business and are paid market-rate wages for their work. Social Firms UK goes on to further define them through the following statements:

•	Social Firms are committed to the social and economic integration of disabled people through employment. A key means to this end is economic empowerment through the payment of market wages to all employees.
•	Social Firms are supportive workplaces where the working environment is one that provides all employees with support, opportunity and meaningful work.
•	Social Firms are businesses that combine a market orientation and a social mission ("businesses that support" rather than "projects that trade")