Cooperative societies are organizations owned and controlled by their members, who have come together to meet their common economic, social and cultural needs and aspirations. There are different types of cooperative societies that serve different purposes, and in this blog post, we will discuss the various types of cooperative societies.
History of cooperative society
The history of cooperative societies dates back to the 19th century when people came together to form associations to address the challenges they faced in their daily lives. The first recognized cooperative society was the Rochdale Society of Equitable Pioneers, founded in Rochdale, England, in 1844.
The Rochdale Society was formed by a group of weavers who were frustrated by the high cost and poor quality of food and household goods they could afford. They decided to pool their resources and buy goods directly from producers to ensure they were of good quality and at affordable prices. They also established a set of democratic principles to guide their operations, which became known as the Rochdale Principles. These principles emphasized member ownership, democratic control, equitable distribution of profits, and education.
The success of the Rochdale Society inspired the establishment of other cooperative societies around the world. In the late 19th century, cooperative movements emerged in many European countries, including Germany, France, and Italy. These movements focused on improving the living and working conditions of workers through collective ownership and democratic control of businesses.
Cooperative societies continued to grow in the 20th century, with the formation of new types of cooperatives, such as credit unions and agricultural cooperatives. Cooperatives played an important role in economic development and social progress, especially in developing countries.
Today, cooperative societies exist in virtually every country, providing a range of economic and social benefits to their members. They continue to operate on the principles of democratic control, member ownership, equitable distribution of profits, and education, as established by the Rochdale Society over 170 years ago.
What is cooperative society?
A cooperative society is a type of business organization that is owned and controlled by its members. It is formed by a group of individuals with a common interest or goal, who pool their resources and work together to achieve their objectives.
The main purpose of a cooperative society is to provide economic benefits to its members, such as increased purchasing power, access to credit, and improved market opportunities. Members typically share in the profits of the cooperative society based on their level of participation or investment.
Cooperative societies can be found in a variety of industries, including agriculture, consumer goods, housing, and financial services. They operate on the principles of democracy, equity, and solidarity, with decisions made through a democratic process where each member has an equal vote.
Overall, cooperative societies promote a sense of community and mutual support among their members, while also providing economic benefits and opportunities for growth.
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Types Of Co-operative Society
Overall, the type of cooperative society formed depends on the needs and goals of the members. Each type of cooperative society provides a unique set of benefits and opportunities for its members. There are several types of cooperative societies, including:
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Consumer Cooperative Societies
Consumer cooperative societies are established to provide goods and services to their members at a lower cost. They buy goods in bulk and pass on the savings to their members. The members of these societies are the customers who benefit from the economies of scale. Examples of consumer cooperative societies include supermarkets, retail stores, and credit unions.
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Producer Cooperative Societies
Producer cooperative societies are formed by individuals or businesses engaged in the production of goods or services. These societies are established to pool resources, skills, and knowledge to enhance production and marketing of their products. Members of producer cooperative societies share the profits and risks of the business. Examples of producer cooperative societies include agricultural cooperatives, artisan cooperatives, and worker cooperatives.
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Marketing Cooperative Societies
Marketing cooperative societies are established to assist their members in the marketing of their products. Members of marketing cooperative societies pool their resources to purchase inputs, storage facilities, transportation, and marketing services. These societies help their members to get better prices for their products by negotiating with buyers on behalf of their members. Examples of marketing cooperative societies include fruit and vegetable marketing cooperatives, dairy marketing cooperatives, and coffee marketing cooperatives.
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Housing Cooperative Societies
Members of housing cooperative societies own and manage their housing units collectively. They share the costs of maintenance and repair, and each member contributes to the capital funds of the society. Housing cooperative societies may also provide other services such as child care and community facilities. Examples of housing cooperative societies include apartment cooperatives, mobile home cooperatives, and senior housing cooperatives.
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Credit Cooperative Societies
Credit cooperative societies are formed to provide credit to their members at lower interest rates than those charged by commercial banks. Members of credit cooperative societies contribute to the capital of the society, and the funds are then used to provide loans to members. Credit cooperative societies are also known as credit unions, and they provide various financial services to their members such as savings accounts, checking accounts, and debit cards.
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Multi-Purpose Cooperative Societies
Multi-purpose cooperative societies combine several types of cooperative societies to provide comprehensive services to their members. Members of multi-purpose cooperative societies have access to goods and services at lower prices, credit facilities, housing facilities, and other services provided by the society. Examples of multi-purpose cooperative societies include rural cooperatives, urban cooperatives, and community cooperatives.
Benefits of cooperative society
There are several benefits of cooperative societies, including:
- Economic benefits: Members of cooperative societies can pool their resources to increase their purchasing power and improve their access to credit. This can help them to obtain better prices for goods and services, and to invest in their businesses or other ventures.
- Profit-sharing: Members of cooperative societies share in the profits of the organization based on their level of participation or investment. This can provide an additional source of income for members and help to promote economic stability.
- Democratic decision-making: Cooperative societies operate on the principles of democracy, with decisions made through a democratic process where each member has an equal vote. This ensures that all members have a voice in the organization and can participate in decision-making.
- Community support: Cooperative societies promote a sense of community and mutual support among their members. This can help to build strong relationships and networks, and to promote social and economic development in the community.
- Improved market opportunities: Cooperative societies can help members to access new markets and increase their market share. By working together, members can take advantage of economies of scale and improve their bargaining power.
Overall, cooperative societies can provide a range of benefits to their members, including economic, social, and community benefits. They can help to promote economic development, improve access to resources, and build strong and resilient communities.
How to choose a cooperative society
Choosing a cooperative society involves several factors to consider, including:
- Purpose and goals: Consider the purpose and goals of the cooperative society, and whether they align with your needs and interests. Some cooperative societies are formed to provide economic benefits to members, while others focus on social or community development.
- Membership requirements: Look at the membership requirements of the cooperative society, including any eligibility criteria or fees. Make sure that you meet the requirements and are comfortable with the terms.
- Financial stability: Examine the financial stability of the cooperative society, including its revenue sources, expenses, and debt. Look for a cooperative society that is financially sound and has a track record of success.
- Member benefits: Consider the benefits of membership in the cooperative society, including any discounts, access to credit, or profit-sharing opportunities. Look for a cooperative society that provides tangible benefits to its members.
- Reputation: Look at the reputation of the cooperative society in the community, and whether it has a history of success and positive impact. Consider talking to current or former members to get a sense of their experiences.
Overall, choosing a cooperative society involves careful consideration of the organization’s purpose, governance, finances, and benefits, as well as your own needs and goals as a potential member.
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Conclusion
In conclusion, there are several types of cooperative societies that exist to serve various needs of their members. These include consumer cooperatives, producer cooperatives, marketing cooperatives, worker cooperatives, housing cooperatives, credit unions, and agricultural cooperatives. Each type of cooperative society has its unique characteristics, governance structure, and membership requirements.
However, they all share a common goal of providing members with economic and social benefits through collective ownership, democratic control, and shared responsibilities. Ultimately, the success of a cooperative society depends on the active participation and commitment of its members to work together towards achieving their common goals
