What is a Cooperative and How is it Established?
Cooperatives are autonomous organizations formed by people who voluntarily come together to meet their common economic, social, and cultural needs and desires through a jointly owned and democratically controlled enterprise. (International Cooperative Alliance) Cooperatives are established by the signing of the articles of association by at least seven members. These signatures must also be approved by the Trade Registry Office.
Cooperatives are voluntary organizations open to everyone. They are supervised by their members and operate democratically, with elected representatives accountable to all members. Members participate fairly in the cooperative’s capital and manage it democratically. They are autonomous and member-managed organizations. Cooperatives provide education and training opportunities to all members to enable them to contribute effectively to the cooperative’s development. They operate within policies accepted by their members to promote the sustainable development of society.
Cooperatives operate in almost all sectors. Unlike other organizations, cooperatives do not aim for profit; they primarily aim to meet the economic interests and needs of their members and improve their members’ economic situation. The main goal of cooperatives is to meet the professional and livelihood-related needs of individuals with limited financial means through mutual help and solidarity. In this sense, cooperatives are participatory, strengthen local economies, instill responsibility, improve living conditions, and represent a sustainable business model. To ensure sustainability, cooperatives must generate sufficient income to guarantee their development and cover expenses. Any surplus income is secured in reserves to finance growth and development, and the remaining portion is returned to members in proportion to their transactions with the cooperative.
Cooperatives provide various benefits to both their members and society. They enable members to use their savings efficiently and meet their needs at the most reasonable cost. Working together with members fosters collaboration and teamwork. Additionally, by increasing members’ income levels, cooperatives contribute to the establishment of a stable and modern lifestyle, thereby promoting social balance.