Understanding Coops: A Guide to Cooperative Business Models

Coop is a French word that means "cooperative". In the context of business, a coop is a type of enterprise that is owned and controlled by its members, who are usually also the customers or users of the business. Coops are often formed to provide goods or services that are not available from traditional commercial sources, or to address social or environmental issues that are not being addressed by the market.

Coops can take many forms, such as consumer cooperatives, worker cooperatives, housing cooperatives, and producer cooperatives. They can be small, like a local food coop, or large, like a national chain of grocery stores. Some well-known examples of coops include the REI outdoor recreation retailer, the Mondragon Corporation in Spain, and the Ocean Spray agricultural cooperative.

One of the key characteristics of a coop is that it is owned and controlled by its members, rather than by outside investors or shareholders. This means that the profits of the business are distributed back to the members, rather than being paid out to external owners. This can create a more equitable and sustainable business model, as the benefits of the business are shared more widely among the people who use it.

Coops also often have a social or environmental mission, in addition to their primary business activities. For example, a worker coop might prioritize providing good working conditions and fair wages to its employees, while a consumer coop might focus on sourcing products from local, sustainable suppliers. Overall, coops offer an alternative to traditional capitalist business models, and can be a powerful tool for creating more equitable and sustainable economies.