ADVANTAGES
OF COOPERATIVES
Coming together to operate a joint business is a difficult task to be taken by the people. Sincerely, the intentions of persons that make up the various co-operative operating in the state was that they will collect themselves together and borrow money whish is to be shared among themselves.
But the actual purpose of setting up cooperatives is far from that. there are lots of knowledge and basic information's and education every intending cooperators must posses/acquire
If the standard set out to operate a co-operative is really applied,
cooperatives have the following advantages.
- Cooperatives are inherently just enterprises: they broaden the base of property ownership and distribution of wealth. This is particularly important for creating democratic institutions and true political equality. Otherwise, those who have the wealth control access to resources, the media, and political power, which acts to corrupt democracy.
- Cooperatives have demonstrated that they can outperform comparable private sector firms if they have access to sufficient means of production — i.e., capital, labor, and entrepreneurial and managerial talent. Productivity increases for two reasons. First, workers have greater motivation and morale because of greater individual rewards and because of elimination of the conflict between labor and management. Second, there is greater flow and use of information concerning production efficiency and there is greater scope to bring forward and use workers’ insights for improving production.
- Cooperatives enhance worker satisfaction and job fulfillment because of participation in decision-making, equitable sharing of profits, greater opportunity for self-expression and dignity, and an environment of mutual respect and social equity.
Cooperatives are one component of what
is known as "psycho-economy", a branch of economics recognized in
PROUT that is concerned (among other things) with increasing the psychic
rewards of individual and collective work activity.
- Cooperatives provide greater job security than private enterprise. In cooperatives, when it becomes necessary to cut back on production, workers are not immediately fired or laid off. Cooperative members can collectively arrange to reduce work hours or wages in order to maintain the employment of all members of the enterprise.
- Cooperatives are one component of PROUT’s economic system that contributes to local control of the economy. Worker-controlled businesses stay where workers live and are locally owned. This eliminates problems of outside ownership and of profits flowing out of the local economy to outside owners, as occurs in capitalist economies.
