The executive director’s blog

Why cooperatives thrive

Posted by Ramsey Margolis on 20 December 2008 | 0 Comments

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Found on the U.S. National Cooperative Business Association website at www.ncba.coop, the following tips on how cooperatives are successful have been gleaned from articles that first appeared in the NCBA's CBJ Cooperative Business Journal, and the U.S. Department of Agriculture's magazine for cooperative business, Rural Cooperatives.

● providing only the goods and services members use

● financed by the members – the greater the financing (risk capital) supplied by the members, the more efficient the cooperative

● using all major fixed assets at the 75 percent level, or more

● members who do the majority of their business with the cooperative

● low administrative and overhead costs

● more individualised and specialised services, particularly in the marketing area

● maintaining an open line of communication with members – individual members will then become more influential

● selecting and developing a quality management team

● placing more emphasis on electing business-oriented directors

● developing and implementing a systematic method of cooperative education for members, employees, directors and paid management

● aggressively positioning for changes in operations, markets and member needs.

What are your thoughts? What makes your cooperative successful? Post your comments.