Small Business Law > Types of Businesses > Co-Operatives > Purpose of a Co-Operative
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Purpose of a Co-Operative

The primary aim of a co-operative is to provide services to its members. The goal of a co-operative is to provide services to its members at affordable prices, or to create employment for its members. The needs of the members come first. For example, the members of a service co-operative may want to market their products at a good price. They may want to purchase goods at bargain prices. They may want to be able to get a loan at a reasonable interest rate. Employees in worker co-operatives want to earn good wages. The aim of the co-operative is to provide the desired benefits as effectively as possible, in a sustainable way.

Any services provided by a co-operative must be provided mainly to its members. For example, a farmer’s marketing co-operative should market mostly crops or livestock produced by its members, not by persons outside the co-operative. The sewing machines which belong to a sewing co-operative should be mainly for the use of its members, not for people outside the co-operative.