Why Coops Fail
Co-operatives work best when the idea and development of the business is led by the group that will be involved with the cooperative (e.g. the people that will shop there, work there, or sell products there). This can create a sense of ownership and
loyalty not commonly found in other business models. When a co-op is imposed by a group outside the community or market, this sense of ownership does not emerge organically. In these cases, the community may be mistrustful of the cooperative or have mixed expectations of its role in its operation. Likewise, just because a service might be needed in a community or market doesn’t mean there’s a market or appetite for it. Like any business, make sure to do a proper feasibility study and business plan before deciding whether the idea is good to go — or whether the co-op model is the best fit.
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