What is a Co-operative?
A co-operative is a business or organisation owned and controlled by its members to meet their shared needs. Members can be customers, employees, residents or suppliers who all have a say in how the co-op is run.
Co-operatives are part of an international movement, and every co-op across the world shares the same principles and values.
The 7 co-operative Principles are:
- Voluntary and open membership
- Democratic member control
- Member economic participation
- Autonomy and independence
- Education, training and information
- Cooperation among co-operatives
- Concern for our community
The 10 co-operative values are:
- Caring for others
- Democracy
- Equity
- Equality
- Honesty
- Openness
- Self help
- Self-responsibility
- Solidarity
- Social responsibility
Co-operatives UK has a wealth of detailed information and resources for organisations working in the sector.
Types of Co-operative
There are lots of different types of co-operative businesses. All uphold the same values and principles, but have different ways of working and different models of ownership. They work across all sectors of the economy; from retail to agriculture, manufacturing, hospitality, arts and culture, digital services and banking, to name just a few.
Co-ops are grouped into types based on who they are owned by:
- Worker co-operatives are owned by the people who work in them.
- Community co-operatives are owned by people in a specific community (can be defined by location, or as a community of interest).
- Consumer co-ops are owned by the customers of a business.
- Multi-stakeholder co-ops include members who have a mix of different kinds of relationships with the business (i.e. staff, consumers and community members working together).
- Co-operative Consortiums are a group of individuals or businesses who work together for mutual benefit, whilst also maintaining their independent status. They might undertake joint marketing, bulk-buying, share premises or deliver contracts together.
- Credit Unions provide a local and secure savings facility, low-cost loans and other financial services for their members.
- Housing co-ops buy or rent housing for tenants, who are their owner members.
Co-ops in the UK are also part of a wider sector, sometimes referred to as the ‘Democratic Economy’, which includes Mutuals, Building Societies, and Social Clubs. CASE supports organisations across the whole Sector, working anywhere our expertise is needed in the East Midlands.
Co-op Legal Forms
There are a wide range of options for the legal form under which a co-operative is registered. The differences between these forms determine the liability of directors, how profits are handled, and whether investment can be raised from outside of the business.
Suitable legal forms for co-ops include:
- Unincorporated Association
- Co-operative Society
- Community Benefit Society
- Community Interest Company
- Private Limited Company
- Limited Liability Partnership
Understanding the differences between co-op types and forms can be complex, and it’s important to consider a wide range of factors – CASE’s advisors are expert at guiding startups through finding the right form to fit their ambitions, and sometimes helping organisations to convert from one type into another. If you would like to know more get in touch to arrange a free chat.
Why Be a Co-op?
Choosing to be a co-operative brings a whole host of benefits:
- The power of member ownership: In situations where we might struggle to make meaningful change as individuals, working together as a co-operative allows people to prosper and achieve their shared goals - by pooling resources, working together, and harnessing the power of community. The democratic involvement of members allows co-ops to use their skill, enthusiasm and energy to thrive.
- Resilience: Co-Ops perform better when they are faced with the challenges that would see many private businesses fail. This is because their collective membership are invested in seeing them succeed, and work hard to overcome challenges. Research published by Co-operatives UK in 2025 showed that 81.2% of UK co-ops survive the first five years of business compared to 39.6% of companies.
- Fiercely Independent: Co-ops are a bit rebellious in nature! They are independent of ties to government or institutions, and can use the profits made through successful trading to invest in the things that will have an impact for themselves and their communities. Co-operators see an opportunity to make a difference, and step in to make it happen.
- Solidarity: Co-ops are part of an international movement of organisations working together to make the world a better place. The principle of ‘Co-operation among co-operatives' means that these businesses work together - sharing knowledge, resources, and sometimes investing their profits into each other, helping to grow the wider co-operative economy.
- Unique ways of raising investment: Some types of co-op can raise investment from the public using Community Shares and Loanstock. These can be a good way to raise a large amount of money without having to go through a bank or grant funder, and useful for buying the freehold of a property, saving an asset at risk, or getting a business up and running.
How CASE supports Co-ops:
As the co-operative Development Agency for the East Midlands, CASE advisors are experts at working with co-ops. We can:
- Help start-ups choose the right type and structure for their ambitions, navigating the varied mix of options available.
- Set up good governance structures that allow co-ops to harness the power of their membership. This can include processes for recruiting new members, running AGMs and building boards that benefit the organisation.
- Establish good business practices, for example using cashflow forecasting to gain a clear picture of your current financial situation and to anticipate future issues, and identifying opportunities for growth, by developing or introducing new products, services and partnerships
- Support fundraising – whether scoping potential sources of grant funding, or identifying suitable types of social investment to get your business idea off the ground, grow or develop. Some of our advisors are certified Community Shares practitioners, meaning they can work with you through all stages of running a community share offer.
To find out how CASE could support your co-op, get in touch to arrange a free chat with one of our advisors.
What’s the difference between a Co-Op and a Social Enterprise?
CASE Works with both co-ops and social enterprises – understanding the difference between the two can sometimes be confusing.
Co-ops are defined by their ownership structure (who their members are and how decisions are made) whilst social enterprises are defined by their mission – existing to fulfil a social purpose.
Many organisations are both – for example co-ops that trade for social benefit, or serve the needs of a community.