Cooperative Societies

Table of Contents

Cooperative Societies

A cooperative society is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.

Cooperative societies are owned and controlled by their members, who are typically the people who use the cooperative’s services. This means that cooperatives are not-for-profit organizations, and any surpluses they generate are returned to the members in the form of lower prices, better services, or dividends.

Cooperative societies have a long history, dating back to the 17th century. The first cooperative society was founded in Rochdale, England, in 1844. The Rochdale Pioneers, as they were known, were a group of working-class people who wanted to improve their lives by buying goods in bulk and selling them at a lower price than they could get from local shopkeepers.

The Rochdale Pioneers’ success inspired the formation of cooperatives all over the world. Today, there are millions of cooperative societies in over 100 countries. Cooperatives are involved in a wide range of activities, including agriculture, banking, consumer goods, housing, insurance, and retail.

Benefits of Cooperative Societies

Cooperative societies offer a number of benefits to their members. These benefits include:

Lower prices: Cooperatives are able to buy goods and services in bulk, which allows them to pass on savings to their members.
Better services: Cooperatives are owned and controlled by their members, which means that they are responsive to the needs of their members.
Dividends: Cooperatives are not-for-profit organizations, but they often return surpluses to their members in the form of dividends.
Job creation: Cooperatives can create jobs in their communities.
Economic development: Cooperatives can help to stimulate economic development in their communities.
Social inclusion: Cooperatives can help to promote social inclusion by providing opportunities for people who might otherwise be excluded from the economy.

Types of Cooperative Societies

There are many different types of cooperative societies, each with its own specific purpose. Some of the most common types of cooperative societies include:

Agricultural cooperatives: These cooperatives are formed by farmers to help them buy and sell goods, get access to credit, and share information.
Consumer cooperatives: These cooperatives are formed by consumers to buy goods and services at a lower price.
Credit unions: These cooperatives are formed by people to save money and borrow money at a lower interest rate.
Housing cooperatives: These cooperatives are formed by people to buy or build housing at a lower cost.
Insurance cooperatives: These cooperatives are formed by people to buy insurance at a lower cost.
Retail cooperatives: These cooperatives are formed by people to buy goods and services at a lower price.

How to Start a Cooperative Society

If you are interested in starting a cooperative society, there are a few things you need to do. First, you need to identify a need that your cooperative can meet. Once you have identified a need, you need to find a group of people who are interested in forming a cooperative to meet that need. Once you have a group of people, you need to draft a constitution and bylaws for your cooperative. You also need to file paperwork with the government to register your cooperative.

Once your cooperative is registered, you can start operating. You will need to find a way to finance your cooperative, and you will need to develop a marketing plan to attract members. You will also need to develop a management structure for your cooperative.

Conclusion

Cooperative societies are a valuable part of the economy. They offer a number of benefits to their members, including lower prices, better services, dividends, job creation, economic development, and social inclusion. If you are interested in starting a cooperative society, there are a few things you need to do. First, you need to identify a need that your cooperative can meet. Once you have identified a need, you need to find a group of people who are interested in forming a cooperative to meet that need. Once you have a group of people, you need to draft a constitution and bylaws for your cooperative. You also need to file paperwork with the government to register your cooperative.