Tuesday 10 January 2017

Cooperatives - Purpose & Types of Cooperatives


Cooperatives - Co means together, while the operation means do a job/business. So the cooperative means of cooperation/effort – have worked together – the same. In this case a group of people doing business/joint activities to achieve common goals. To achieve a common goal. Thus the cooperative can be interpreted in two versions of IE in a broader sense and in the sense of narrow. Of cooperation in the broad sense is any form of cooperation. While in a sense narrow is a form of cooperation in the field of Economics based on over the principle of family with the goal of improving the welfare of its members. 


The cooperative is a business entity that consists of a person or legal entity of cooperatives with underpinning its activities based on the principles of the cooperative movement as well as the people's economy based on the principle of family.

The sense of a cooperative association composed – person or entity – a business entity that provides freedom of entry come out as members, with cooperation in as a family run business to increase the well-being of its members.

The meaning of the cooperative is established cooperation in doing business to improve the welfare of members, and the kind of work done is in accordance with the level of needs of its members in particular and society in General. The presence of co-operatives in the midst of the community is vital in building the economic needs of the community.

The cooperative is a business entity that is engaged in the field of economy, consists of those who are generally economical weak who join voluntarily over equal rights, the obligation of doing business which aims to meet the needs – the needs of its members. Essentially cooperative is a business entity engaged in the economy or a calm social economy organizations.

Like other business entity to succeed in running his business then should be able to work efficiently, continuously, managing potential environmental and in working on a professional manner in accordance with the required expertise. In other words, the management of the cooperative effort is not different from the management of the various types of other businesses also need the same requirements.

The purpose of the cooperatives

The cooperative that aims to realize the welfare of members in particular and society at generally and join the build order of the national economy in order to realize a society forward, fair, and prosperous.


Thus, an important goal of the cooperative is to meet the needs of its members and society in General in order to realize the prosperity together. In the context of the national economy, cooperatives have the goal to create a just and prosperous society.

Based on the purpose of the cooperative, then it can be said that the people's economy governance cooperative is governed according to the continuation and development of economic democracy. With family and mutual cooperation cooperative is expected to raise the standard of living of its members as well as the people in General.

Types of Cooperatives

The cooperative can be divided into several types (sorts) namely production cooperatives (cooperatives earning), cooperative purchasing, consumption cooperatives, cooperative sales, credit cooperatives ( cooperative loan), and cooperatives service.

A. Cooperative production

People can work together in the field of production. Cooperative engaged in cooperative production or income.

B. Cooperative purchasing

People-people can unite and work together with the purchase of items needed this cooperative called the cooperative purchase.

C. Cooperative consumption

True to its name, members – members of consumption is made up of the customer or the user of the goods. Therefore, then cooperative consumption often called cooperative usage.

D. Co-operative sales

The same work can be done in a sales cooperation. Goods – goods produced for the producers of its kind can be sold on a cooperative effort of their own.

E. credit cooperatives

As outlined above can also carried out cooperation in save borrowed. Cooperatives that take care of this thing called credit cooperatives or cooperative loan. They submit for example goods – goods they produce and submit to their cooperative. 

That's the trade off cooperative store goods – goods results of their efforts. It can also do the fishermen, the farmers producing fruit – fruits, the manufacturer of the egg, the milk and so on. Thus they can avoid competition among themselves their own detriment always competition. In the competition that they are usually mutual seize subscriptions by lowering the price of goods – goods production. 

This is clearly very detrimental to their own. The farmer or the other producers are United and work together to raise money. Then they collect to be stored in a cooperative, the cooperative then lend money to members – members who are in need. The intent of this collaboration is to obtaining a loan or credit as much as possible bring benefits with the terms – these terms are easiest and soft.

F. a cooperative services

Sorts and types of cooperation that we need to know is a cooperative engaged in the service. Kinds or types of cooperatives can be found among others in which provide transport services on land and in the water.

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