What is co-operative society

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What is a Cooperative Society?

A cooperative society is a voluntary organization formed by individuals who come together with a common goal of meeting their social and economic needs. It is a type of business structure that is owned and operated by its members, who also share in its profits and losses. The primary purpose of a cooperative society is to promote the economic and social welfare of its members.

Types of Cooperative Societies

There are different types of cooperative societies, each with its own unique characteristics and objectives. These include:

1. Consumer Cooperative Society – This type of cooperative society is formed by consumers who come together to purchase goods and services in bulk at discounted prices.

2. Producer Cooperative Society – This type of cooperative society is formed by producers who come together to market their products collectively and share in the profits.

3. Marketing Cooperative Society – This type of cooperative society is formed by individuals or businesses who come together to market their products and services collectively.

4. Housing Cooperative Society – This type of cooperative society is formed by individuals who come together to own and manage their housing units collectively.

5. Credit Cooperative Society – This type of cooperative society is formed by individuals who come together to provide financial assistance to their members.

Benefits of Cooperative Societies

Cooperative societies offer various benefits to their members, including:

1. Lower prices – By purchasing goods and services in bulk, members can enjoy lower prices.

2. Shared profits – Members share in the profits of the cooperative society.

3. Democratic control – Members have an equal say in the decision-making process of the cooperative society.

4. Access to credit – Members can access credit facilities at lower interest rates than commercial banks.

5. Social welfare – Cooperative societies promote the social and economic welfare of their members.

How to Start a Cooperative Society

Starting a cooperative society involves the following steps:

1. Identify the need – Identify the social or economic need that the cooperative society will address.

2. Form a group – Form a group of like-minded individuals who share the same goal.

3. Conduct a feasibility study – Conduct a feasibility study to determine the viability of the cooperative society.

4. Develop a business plan – Develop a business plan that outlines the objectives, strategies, and operations of the cooperative society.

5. Register the cooperative society – Register the cooperative society with the relevant regulatory body.

Conclusion

Cooperative societies are an effective way for individuals to come together and address their social and economic needs. By working together, members can enjoy lower prices, shared profits, democratic control, access to credit, and social welfare. Starting a cooperative society involves identifying a need, forming a group, conducting a feasibility study, developing a business plan, and registering the cooperative society. With the right strategies, a cooperative society can be a successful and sustainable business model.