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What are some advantages and disadvantages of cooperatives changing to a cooperation what would be the major reason to do so?
Wiki User
∙ 14y ago
- Act as 'schools of democracy' due to their democratic member control.
- Inclusive and open membership.
- Facilitate upskilling and capacity building due to their principle of 'education, training and information'.
- Lower economic vulnerability due to risk pooling.
- Greater generation of ideas and debate due to existence of multiple owners.
- Allow for greater input into policy dialogues due to their tendency to federate into larger bodies at national and international levels.
- Collective action can open up national and international markets, as seen with many examples in the Fairtrade market.
- Lower input and distribution costs due to greater economies of scale.
- possibility of conflict between members;
- longer decision-making process;
- participation of members required for success;
- extensive record keeping necessary;
- less incentive to invest additional capital
- Meeting both co-operative aims and business needs requires complex management.
- They can limit your choice of external finance.
- Employment benefits often can't match those offered by other business types.
- Workers' co-operatives can enjoy tax incentives, such as employee share schemes, but most small co-operatives find these too costly to run.
- possibility of conflict between members;
- longer decision-making process;
- participation of members required for success;
- extensive record keeping necessary;
- less incentive to invest additional capital
- Meeting both co-operative aims and business needs requires complex management.
- They can limit your choice of external finance.
- Employment benefits often can't match those offered by other business types.
- Workers' co-operatives can enjoy tax incentives, such as employee share schemes, but most small co-operatives find these too costly to run.
Wiki User
∙ 14y ago
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