"United we stand, divided we fall": The basics on cooperatives

Friday, June 24, 2016

"United we stand, divided we fall." This is the common quote attributed to teamwork, and this does not just apply to sports or politics, it's the motion that makes society work its way.

Today on our Road to PBEX series, we will discuss the basics on the Cooperative, why there are so many of them in the country, and why they're set up.

The concept of cooperatives started in England in 1844 with the Rochdale Society of Equitable Pioneers, who designed its Rochdale Principles which is included in Corporate Law studies of today.

A cooperative is like a corporation, and the "stock holders" are owners of micro, small and medium enterprises with each contributing an equity stock. Each member has to contribute something; but compared to a corporation, the members have equal voting power that is not determined by the value of the investment they gave to it. To add, the owner-members operate the cooperative for their own benefit. When the cooperative gains profit, its members has its share.

Taking a cue from our first post in the Road to PBEX series, "Who is Juan in the ASEAN Economic Community?," one has his share of contributions to others, and once they gather, they are building a community of owner-members that has its chance to stand amid incoming economic challenges.

While we are talking about Cooperatives in a business sense, there are also other kinds of cooperatives for personal benefit such as credit, insurance, consumer cooperatives, so on and so forth. Multi-purpose cooperatives are also common.

Being in a cooperative has its benefits, such as loans (in case of Credit Cooperatives). They require you to pay a membership fee and follow its rules and regulations which are set with a goal of benefiting its members.

Overall, joining a cooperative can be beneficial to those who will commit to it. As with the stock market, this can be a high-risk investment, depending on which cooperative you will join. Now that we have brought you the basics on cooperatives, it is your step if you will pursue an investment.

There are lots of ideas and concepts on doing business in the Philippines at the 7th Philippine Business & Entrepreneurs' Expo this August 26 to 28 at the SM Megatrade Hall in Mandaluyong City. You can talk with fellow entrepreneurs, or just observe and gain knowledge to polish your business and expand it further.

This event is organized by business event organizer Ex-Link Management & Marketing Services Corporation. For inquiries and partnerships, call telephone numbers 633-01-53, 643-3887 or email info@exlinkevents.com. Ex-Link Events is also on FacebookTwitter and Instagram.

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