08/04/2016
How do co-ops benefit their communities?
(By Cooperative Development Institute)
III. Benefits to local community
First, of course, co-ops provide economic benefits that their members — local people — need. Co-ops also, as democratic enterprises owned by a group, generally provide all the benefits associated with “local” ownership, such as more local spending, more rootedness, more accountability, more local resilience, more sensible development, more creativity, more equity, and more participation… only more so. For one thing, being local lasts longer — it is not confined to one or two generations of owners, after which a business may sell to outside owners or close. Simply speaking, co-ops don’t just get up and leave their town, or funnel the money to absentee owners. And as a democratically-controlled enterprise with many owners, a co-op is even less likely to try to extract harmful advantages from a local community, since its owners are also residents. Likewise, because co-op members are learning and practicing democratic skills, often they are able to use those for increased participation in local affairs.
Many co-ops are keen to “give back” and establish good community ties through fundraising and sponsorships. And quite a few co-ops use their strengths, once established, to create new services or enterprises to meet the needs of members and the community. In places with a high density of co-ops, researchers have even found significant health impacts and benefits for the community generally.