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Advantages And Objectives Of Cooperatives

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What are the goals and objectives of cooperatives?
The primary objective of every cooperative is to help improve the quality of life of its members. Towards this end, the cooperative shall aim to:

(a) Provide goods and services to its members to enable them to attain increased income, savings, investments, productivity, and purchasing power, and promote among themselves equitable distribution of net surplus through maximum utilization of economies of scale, cost-sharing and risk-sharing;

(b) Provide optimum social and economic benefits to its members;

(c) Teach them efficient ways of doing things in a cooperative manner;

(d) Propagate cooperative practices and new ideas in business and management;

(e) Allow the lower income and less …show more content…

Its principal purpose is to provide employment and business opportunities to its members and manage it in accordance with cooperative principles; and

(u) Other types of Cooperatives : as may be determined by the Authority.
What are the categories of cooperatives?
Cooperative shall be categorized according to membership and territorial consideration. In terms of membership, cooperatives shall be categorized into:

Primary-the members of which are natural persons. Secondary-the members of which are primaries. Tertiary-the members of which are secondary cooperatives.

Thus, those with cooperative memberships are considered federations or unions as the case may be. In terms of territory, cooperatives shall be categorized according to areas of operation which may or may not coincide with the political subdivisions of the country. Those organized by minors shall be considered a laboratory cooperative and must be affiliated with a registered cooperative. It is governed by special guidelines promulgated by the …show more content…

This financing shall be in the form of blanket loans to qualified cooperatives, without need for individual processing.
How to organize a Cooperative?
Organizing a cooperative can be complex and simple. It requires an understanding of the basic needs of the prospective cooperative members. It demands patience from the organizer who must make the cooperative's long-term goals and objectives, and its visions a real part of the members' lives.

But it can be too easy because the Cooperative Code of the Philippines (RA 6938) has devised very clear-cut steps for the cooperative organizer and members. The following are the basic information that the prospective members should understand before organizing a

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