What is a Cooperative?


Cooperatives are autonomous entities that are owned by the people who use them. They are created to enable individuals to collectively meet shared needs. Co-op owners have the right to make decisions, receive profit, and direct the strategy for their business.


Cooperative Types and Industries


There are many cooperative types, with each one catering to different needs of members.

  • Worker-owned cooperatives are typically either business start-ups or conversions from an existing business.
    They choose the business model, and management and wage structure. They file business formation documents and ensure the business has sufficient capital to begin operating!
    Workers control the business, and share profits equitably.

  • A community can create a co-op to meet a shared need for access to certain goods or services. A classic example of this are grocery co-ops, but consumers can form co-ops to access any type of good or service.

  • Producers of a good or service collaborate to sell or market together. Typical producer-owned cooperatives are agricultural marketing cooperatives, which can exist at any scale. Artists, artisans, and independent contractors can also form cooperative structures to enable them to sell or market their products under a shared brand or platform.

  • Housing cooperatives provide communities access to shelter as a shared asset. In some cases, the property is owned by a cooperative association, and in other cases the property is held by a non-profit and membership with the co-op provide access to the property.

    There are multiple types of cooperative housing ownership, such as limited equity, group equity, and nonprofit housing with equity.

Cooperatives can form in any industry or business type.
Key industries include:

  • The food service industry is notorious for its exploitative nature and toxic workplace dynamics. Cooperatives are game-changers in establishing healthier environments for food service workers. Some restaurant co-ops include Black Star Co-op Pub and Brewery in Austin, and Arizmendi Bakery with several locations across Northern California.

  • Tech cooperatives have largely grown in numbers over the past decade as small start-ups seek to create a thriving, equitable industry with opportunities for work-life balance, less hierarchy in management, and fair wages. Tech co-ops include Web Hosting Co-op in Austin, and Throneless Tech in Washington.

  • This field is extremely broad and includes child care, elder care, home cleaning, and a multitude of skilled work that has been traditional undervalued- much less paid- in Western society. Workers in this industry often suffer low wages and limited autonomy. Cooperatives place management power into the hands of workers, offering opportunities to gain job leadership and skills training. Domestic work cooperatives include eQuality Home Care Cooperative in New Braunfels and Up & Go Home Cleaning in Philadelphia.

  • These industries are great examples of communities and consumers using collective power to meet their needs. Similar to other service industries, grocery and retail workers may find themselves in situations of labor exploitation, further highlighting the importance of establishing fair and safe workplace practices and wages.