Organizing people into mutual aid associations for economic purposes. The main types are agricultural, consumer, credit, housing, marketing, artisan, supply and multi-purpose. The organization will vary according to the goals of the cooperative but generally ownership is by members, and management is hired or appointed by owners, councils or congresses.
The cooperative form of economic enterprise gives much closer control of management to owners. It saves members money and in many forms makes otherwise unviable economic ventures viable. People of varying financial circumstances can invest as little or as much as they wish in a cooperative venture to their benefit and/or to the benefit of society. The profits are distributed relative to the investment. Investment may take a variety of forms – money, goods, reduced costs, decreased effort for the same or a greater level of profit. Through investments of the profits cooperatives can have a powerful effect on mainstream economic enterprises through actually achieving a share of the ownership of these and affecting their policy and direction. They may also increase their share of the marketplace by reducing competition among themselves.