How to form a co-operative?

What is a co-operative?

A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspiration through a jointly owned and a democratically controlled enterprise.

Characteristics of the co-operative are;

• Association of persons
• Voluntary basis
• Common need
• Joint ownership
• Democratic
• Enterprise

Co-operative Principles

A co-operative is guided by seven internationally recognized principles

• Open and voluntary membership
• Democratic member control
• Member economic participation
• Education, training and development
• Autonomy and Independence
• Co-operation among co-operatives
• Community concern

A co-operative is a form of an enterprise that provides services to it members. It's surplus are divided among members in relation to the amount of business each member did with the co-operative depending on the nature of the co-operative business.

Benefits

• As a co-operator on achieves what he/she could not achieve on his/her own
• A co-operator is provided with an easy access to needed services
• A co-operator pay less for inputs, marketing, distribution and selling of produce

How to start a co-operative?

Engage people who need the service, and identify the common service interest. Once that is done, organize a meeting for the potential members to discuss the process including doing a feasibility study for the co-operative sustainability.

Requirements

• Five people are required to form a primary co-operative
• A constitution adopted by members (models are available)
• A business plan

NB: This information is produced by Dora Tamana Co-operative Centre in support co-operative development in South Africa and can be contacted @ 011 339 1592/1651 during office hours or by emailing diteko@dtcc.org.za for further information.