Cooperation and community are always worth celebrating, but October puts all the advantages of the cooperative business model front and center! National Co-op Month is an excellent opportunity to recognize the many positive ways co-ops add real value to the communities they serve.
At Oryana, we have a raft of co-op events celebrating several cooperative businesses in the area, and invite you to become a member today!
What Is a Cooperative Business?
A cooperative business is any organization that is owned and democratically controlled by members and the people who use its services. There are three core criteria that define a co-op business:
Member ownership: Customers, workers, or producers hold equity as member-owners.
Democratic control: Member-owners have an equal say in how the co-op is run. Each owner has exactly one vote, no matter how many shares they control or how long they have been a member.
Profit sharing: Any remaining profit after expenses are covered goes back to the members, usually based on their spending, contributions, or usage.
Types of Cooperative Businesses
There are several examples of cooperative businesses you may already patronize.
- Consumer cooperatives, like Oryana, are owned by their members.
- Financial cooperatives are member-owned banks, such as credit unions.
- Worker cooperatives are owned and managed by employees.
- Producer cooperatives are owned by a group of farmers, workers, or manufacturers to process and sell their goods more efficiently.
Learn more about various types of co-ops and the cooperative principles here.
Is a Cooperative a Corporation?
Yes, but with a twist. Technically, a co-op is legally incorporated under state and federal laws. It also has the same limited liability protections and structure as a corporation, including bylaws, articles of incorporation, and a board of directors.
There are some obvious differences. In a normal corporation, shareholders with more vested interest (more shares) have more votes. Corporations are focused solely on maximizing profits for shareholders; for co-ops, there are typically other priorities spelled out in its bylaws.
The Benefits of the Cooperative Business Model
In addition to democratic control and elected leadership, cooperatives offer economic and social benefits to their communities.
- By pooling their purchasing power first as members and through National Co-op Grocers (NCG), the co-op of food co-ops, cooperatives enjoy better pricing.
- Because profits are distributed as patronage refunds directly to members, more money stays local. This is on top of our efforts to source products from within the region and state.
- Co-ops also provide stable, long-term services that aren’t likely to move away from the region. That’s true of utility cooperatives, food cooperatives, and other organizations, many of which require them to operate within a specific area as part of their bylaws.
The best way to experience the benefits of a co-op is to support one! From becoming an owner at Oryana, joining one of Traverse City’s many credit unions, or supporting local agricultural co-ops like Mi Farm Co-op, Cherry Central, or North Bay Produce.
We are thrilled to collaborate with Cherryland Electric Cooperative, 4Front Credit Union, TBA Credit Union, and Lake Michigan Credit Union for National Co-op Month this year!
Get In the Cooperative Spirit!
Oryana Community Co-op has put cooperation, community, and quality first since 1973. We believe that the cooperative business model adds lasting, impactful value to our lives and benefits our friends, family, and neighbors. Stop by customer service to learn more about co-ops and join today! Stay connected by subscribing to our weekly newsletter.
