What is a co-operative

What is a co-op?

A co-op is a business or organisation that is democratically owned and controlled by its members, to meet their shared needs. The members can be its customers, employees, residents or suppliers, who have a say in how the co-op is run.

Every co-op across the world shares the same co-operative principles and values.

How is a co-op different from other types of business?

Co-ops are owned by the people closest to the business, not distant investors only interested in a financial return.  These are typically the workers, customers or local community. This means co-ops focus not just on making a profit, but how they made it and what they do with it to bring value to their members and community.

What kinds of businesses are co-ops?

All kinds of businesses operate co-operatively. There are co-operative pubs, energy suppliers, taxi firms, bookstores, community gardens, wine sellers, farmers and sports clubs. There are housing co-ops, health care co-ops, co-operatives of actors, musicians, technology co-ops – and much more.

Why are there not more co-ops?

With all that’s going for co-operatives, why aren’t there more of them? Less than 1% of UK businesses are co-operatives, yet they're twice as likely to survive the first five years as other types of business - but there simply aren't enough being started. 

This may be due to a lack of awareness and understanding in communities and among entrepreneurs, workers, businesses, policymakers, and those who advise them.

Co-operatives often go against established ways of doing things and most support is usually geared to mainstream types of business. But things are changing... with the government committed to doubling the size of the co-operative and mutual economy.

Co-operatives UK works with and on behalf of our members to make it easier to start and grow co-operative enterprises.