Business Models
Cooperative Business Model
Also Known As Co-op
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A cooperative is a business jointly owned and democratically controlled by its members, who each hold one vote regardless of investment, distinguishing it from investor-owned firms; the model's modern form traces to the Rochdale Society of Equitable Pioneers, founded in 1844.
Facts
Partially Attested
Origin YearThe Rochdale Society of Equitable Pioneers, founded in 1844 by 28 weavers in England, established the principles most modern cooperatives still follow; mutual-aid and jointly owned arrangements existed earlier, but Rochdale is the conventionally cited origin of the modern model. Core MechanismMembers jointly own and democratically control the enterprise, one member one vote, and economic benefits are distributed proportionally to each member's participation, such as a dividend on purchases or sales, rather than according to capital invested. 1 Cross-Tradition Connections
Associated With
A mutual insurance company owned by its own policyholders, the member-ownership structure the cooperative business model is defined by.
Sources
1. Wikipedia, Cooperative
Wikipedialead sectionQuote, lead section
an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically-controlled enterprise
Wikipedia, State Farm
WikipediaAssociated With: State Farm Mutual Automobile Insurance Company, History sectionQuote, Associated With: State Farm Mutual Automobile Insurance Company, History section
State Farm was founded in June 1922 by retired farmer George J. Mecherle as a mutual automobile insurance company owned by its policyholders.
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