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How To Start a Cooperative

Author

Listed:
  • Rapp, Galen
  • Ely, Gerald
  • Wadsworth, James J.
  • Bau, Margaret

Abstract

This guide outlines the process of organizing a cooperative business and provides information on the potential steps involved and some important aspects of cooperative development. A cooperative business is briefly described, including its structure and basic principles. Twelve steps involved in most cooperative development projects are introduced and explained. Important considerations—such as practitioner principles, pitfalls to avoid, cooperative capitalization, legal aspects of cooperative development, and general rules for success—are presented. This information should provide a reader with a comprehensive understanding of the cooperative development process. While this report focuses on agricultural cooperative development, it also contains information that is pertinent to non-agricultural applications. The cooperative business structure, shown to be successful in agriculture, has also been useful in helping others obtain benefits or provide needed services in areas such as housing, utilities, finance, healthcare, homecare, childcare, grocery retailing, manufacturing, business support services, and more.

Suggested Citation

  • Rapp, Galen & Ely, Gerald & Wadsworth, James J. & Bau, Margaret, 1996. "How To Start a Cooperative," Cooperative Information Reports (CIR) 280517, United States Department of Agriculture, Rural Development.
    • Handle: RePEc:ags:urdcir:280517
    DOI: 10.22004/ag.econ.280517
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    File URL: https://ageconsearch.umn.edu/record/280517/files/CIR_7_HowtoStartaCooperative.pdf
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    References listed on IDEAS

    as
    1. Reynolds, Bruce & Wadsworth, James, 2009. "A Guide for the Development of Purchasing Cooperatives," Cooperative Information Reports (CIR) 280606, United States Department of Agriculture, Rural Development.
    2. Frederick, Donald A., 1996. "Do Yourself a Favor: JOIN a Cooperative," Cooperative Information Reports (CIR) 280596, United States Department of Agriculture, Rural Development.
    3. Patrie, William, 1998. "Creating ‘Co-op Fever’ A Rural Developer’s Guide To Forming Cooperatives," Service Reports (SR) 280698, United States Department of Agriculture, Rural Development.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Reaves, Dixie Watts & Young, Micki & Jones, Eluned & Younos, Tamim, 2003. "Cooperative Infrastructures For Small Water Systems: A Case Study," Journal of Food Distribution Research, Food Distribution Research Society, vol. 34(1), pages 1-1, March.

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    More about this item

    Keywords

    Agribusiness; Agricultural Finance;

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