Cooperatives are organizations owned and operated for purposes of benefiting members of the cooperation. The gains realized by cooperatives are shared among members. Cooperatives have been in existence in the US for centuries.
Over 100 million of people in the US are members of cooperatives. There are four major classifications of cooperatives in the US, user, community, workers and producer cooperatives. There are numerous reasons why cooperative membership is popular in this country. Some of the benefits are discussed below.
Cooperatives expand the funding opportunities for members. It is easier for cooperatives to gain access to funds than individual members. The US has special programs that are responsible ensuring cooperatives have access to funds. Cooperatives use these funds to finance their various projects.
Cooperatives also play the important role of ensuring that members access new markets while expanding the existing markets for their products. Pooling together of resources especially for the producer’s cooperatives increases the supply capacity hence members can access large scale markets.
The members are able negotiate for appropriate prices for their products hence increasing their returns. The market power that a cooperative offers their members is very crucial.
In the US cooperatives ensure that the quality of goods and services is high. Cooperatives play the role of ensuring that consumers are supplied with quality products and services. This is achieved by employing the use of advanced technology in the production of goods and delivery of services. Employing technology helps in the reduction of the cost of production.
Cooperatives also play the role of ensuring there is economic growth of the nation. Cooperatives create jobs and pay taxes hence helping the government offer essential services to its citizens. The investments that cooperatives are involved go a long way in ensuring economic growth and stability. Cooperatives also lobby with the federal government for favorable legislation.