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Introduction To Cooperative Development and Entrepreneurship

Cooperatives are organizations owned and controlled by their members to meet common needs. They emerged during industrialization as workers and consumers organized to gain autonomy. A key early success was the Rochdale Society of Equitable Pioneers, which established principles of voluntary membership, democratic control, member economic participation, autonomy, education, cooperation among cooperatives, and concern for community that define cooperatives today. Cooperatives play an important role in entrepreneurship by providing access to resources, risk sharing, market access, capacity building, democratic governance, and positive social and environmental impact.

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Lowela Abogadie
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248 views11 pages

Introduction To Cooperative Development and Entrepreneurship

Cooperatives are organizations owned and controlled by their members to meet common needs. They emerged during industrialization as workers and consumers organized to gain autonomy. A key early success was the Rochdale Society of Equitable Pioneers, which established principles of voluntary membership, democratic control, member economic participation, autonomy, education, cooperation among cooperatives, and concern for community that define cooperatives today. Cooperatives play an important role in entrepreneurship by providing access to resources, risk sharing, market access, capacity building, democratic governance, and positive social and environmental impact.

Uploaded by

Lowela Abogadie
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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INTRODUCTION TO COOPERATIVE

DEVELOPMENT AND
ENTREPRENEURSHIP

DEFINITION AND ROLE OF COOPERATIVE


HISTORY OF COOPERATIVES IN PRINCIPLES AND
COOPERATIVE ENTREPRENEURSHIP VALUES
ORGANIZATIONS

ABOGADIE, CRISTINE JOANA LEAH C. | ADVANCE COOPERATIVE DEVELOPMENT AND ENTRPRENEURSHIP


COOPERATIVE
The people of the
cooperative are those
who use its products,
an association of supplies, and/or
persons services. Profits are
(organization) that also often returned
is owned and back to the members
controlled by the of the cooperative,
people to meet their however, cooperatives
common economic, are often more focused
social, and/or on services for
cultural needs and members than for
aspirations through investments.
a jointly-owned and
democratically
controlled business
(enterprise).
HISTORY OF COOPERATIVE ORGANIZATIONS

EARLY CO-OP
ORIGINS
People learned to cooperate and work together to increase their success in hunting, fishing,
gathering foods, building shelter, and meeting other individual and group needs. Historians
have found evidence of cooperation among peoples in early Greece, Egypt, Rome, and
Babylon, among Native American and African tribes, and between many other groups.

The First
• Cooperatives
Industrial Revolution in the Late 18 th
and 19th centuries
The earliest cooperatives emerged as a response to the challenges faced by people moving from
farms to cities. They had to rely on stores for food, leading to little control over food quality and
living conditions for working people. Wealth disparities grew, with those with money gaining more
power.
HISTORY OF COOPERATIVE ORGANIZATIONS

The First
Cooperatives
Early cooperatives aimed to protect the interests of:
> Workers
> Consumers
> Farmers
> Producers

Workers often received wages in company credit usable only at company stores, limiting
consumer choice. In response, groups pooled resources to purchase groceries collectively,
leading to cost savings and higher-quality products from wholesale dealers.
HISTORY OF COOPERATIVE ORGANIZATIONS

The Rockdale Equitable


In
Pioneers Society
1843, textile mill workers in Rochdale, England, faced hardships after a failed strike.
Seeking autonomy, they formed the Rochdale Equitable Pioneers Society to establish their
own food store as an alternative to company-run stores. After a year of saving, they opened
their co-op store in December 1844, offering basic provisions. Despite challenges like the gas
company's refusal to supply, they persevered.
The Rochdale Pioneers' success lay in their
adherence to operational principles, which
became the foundation of cooperative
principles. Rochdale is hailed as the birthplace
of the modern cooperative movement, as the
pioneers' model endured and influenced
cooperative endeavors globally.
ROLE OF COOPERATIVES IN
ENTREPRENEURSHIP

01 Access to Resources 02 Risk Sharing

Cooperatives allow entrepreneurs, Cooperatives help mitigate individual


especially those with limited individual members' financial and operational
resources, to pool their capital, labor, risks associated with entrepreneurship
and skills to start and sustain
businesses.

03 Market Access 04 Capacity


and Bargaining Building and
Power
Cooperatives can negotiate better Support
Entrepreneurs develop necessary skills
prices for inputs or access to markets, and knowledge for running successful
enabling members to compete more businesses within the cooperative
effectively structure.
ROLE OF COOPERATIVES IN
ENTREPRENEURSHIP

05 Democratic 06 Social and


Governance and Environmental
Fosters aParticipation
sense of ownership and Impact
By focusing on sustainable practices, fair
encourages active involvement among trade, or community development,
members, enhancing entrepreneurship cooperatives can generate positive social
within the cooperative. and environmental impact through their
entrepreneurial activities.

07 Resilience and Longevity

Their focus on collective ownership,


shared values, and long-term
sustainability contributes to greater
resilience and longevity, supporting
entrepreneurship over time.
u es
v al
an d
l es
ci p
p r in
iv e
at
o p er
Co
Cooperative principles and values

Cooperatives are open to all individuals willing to accept


Voluntary and Open the responsibilities of membership, without discrimination
Membership based on gender, race, religion, or social status.

Each member has one vote, ensuring equal representation


Democratic Member and preventing the concentration of power in the hands of
Control a few.

Surplus generated by the cooperative is reinvested to


Member Economic benefit members or the community, fostering economic
Participation empowerment and sustainability.

Cooperatives are autonomous, self-help organizations


Autonomy and controlled by their members. They operate independently
Independence and make decisions based on their members' needs and
priorities, free from external control or interference.
Cooperative principles and values

Cooperatives provide education and training to


Education, Training, and their members, empowering them to effectively
Information participate in the governance and management of
the cooperative.

Cooperatives work together to strengthen the


Cooperation Amongcooperative movement, sharing resources, knowledge,
Cooperatives and best practices.

Cooperatives contribute to the sustainable development of their


Concern for communities, addressing local needs and priorities.
Community
References:

University of NEBRASKA–LINCOLN. (2010, July). What is


a Cooperative. Nebraska Cooperative Development
Center. Retrieved February 12, 2024, from
https://ncdc.unl.edu/what-cooperative

Admin. (2021, September 24). History of co-ops. Co+Op.


https://www.grocery.coop/food-coops/history-of-co-ops

Cooperative identity, values & principles | ICA. (2024,


February 9). ICA.
https://ica.coop/en/cooperatives/cooperative-identity

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