Business Strategy : Cooperative Societies

Cooperation is an act of being helping that leads to being cooperative together

What are Cooperative Societies and how do they help?

This is a form of business concerns primarily the economic benefits to particular group rather maximizing the profit values as whole. The word cooperative derived from Co-operari, ‘co’ means WITH and ‘oparari’ means TO WORK therefore implies Working Together. The society forms with objectives of rendering service rather profits, mutual help instead of competition, self help instead of dependence are the major ones.

Types of Co-operative Societies

• Consumer’s Co-operative Society – The society aims to protect the interest of general consumers by consumer goods available at a reasonable price. They buy goods directly from the producers or manufacturers and thereby eliminate the middlemen in the process of distribution. Kendriya Bhandar, Apna Bazar and Sahkari Bhandar are examples of consumers’ co-operative society.

• Producer’s Co-operative Society –  The society aims to protect the interest of small producers by making items available of their need for production like raw materials, tools and equipments, machinery, etc.

• Co-operative Marketing Society –  The society are formed by small producers and manufacturers who find it difficult to sell their products individually. The society collects the products from the individual members and takes the responsibility of selling those products in the market.

• Co-operative Credit Society –  The society aims to provide financial support to its members. They accepts deposits from members and grants them loans at reasonable rates of interest in times of need. Village Service Co-operative Society and Urban Cooperative Banks are examples of co-operative credit society.

• Co-operative Farming Society –  The society are formed by small farmers to work jointly and thereby enjoy the benefits of large-scale farming. Lift-irrigation cooperative societies and pani-panchayats are some of the examples of co-operative farming societies.

• Housing Co-operative Society – The Society are aims to provide residential houses to members. They purchase land, develop it and construct houses or flats. Some societies also provide loans at low rate of interest to members to construct their own houses. The Employees’ Housing Societies and Metropolitan Housing Co-operative Society are examples of housing co-operative society.

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