Types of Cooperative Societies The following are the main types of cooperative enterprises.
1. Producer cooperative societies. These are formed to eliminate the middlemen and capitalist groups from the industrial production, its main purpose goods for the requirements of its members. Surplus productions are also supplied to out sliders in the open market at profit. All the necessary activities as production, management and marketing are performed by the members themselves. Its members get dividend on the basis of the capital invested by them.
(a) .To purchases the raw materials and other factors at most economical prices.
(b) .To produces the goods at the most economical level.
(c) .To supervises the production most efficiently and effectively.
(d) .To disposes of the surplus production to non members at maximum price.
(e) .To eliminates the middlemen and capitalists.
(f) .To remove the workers grievances in respect of working conditions, wages etc.
(g) .To arrange for the democratic control of the industrial unit.
2. Consumer cooperative societies. This society is the voluntary association of ordinary people formed with the object of obtaining daily requirements of the members. It directly purchases the goods at large scale from the producer or wholesalers at whole sale price. It thus eliminates capitalists, retailers and other middlemen from the channel of distribution and members are in a position to make their purchase at cheaper rate. Any one can become member by purchasing one share of the society. Sometimes goods are also supplied to non-members but they do not share in the profit of the society. Profit earned by the store is distributed among the members according to the value of the purchases conducted by the manager who is elected by the members. Generally is two types are popular in the world.
(a) .Retail cooperative store.
(b) .Wholesale cooperative store.
1. Producer cooperative societies. These are formed to eliminate the middlemen and capitalist groups from the industrial production, its main purpose goods for the requirements of its members. Surplus productions are also supplied to out sliders in the open market at profit. All the necessary activities as production, management and marketing are performed by the members themselves. Its members get dividend on the basis of the capital invested by them.
(a) .To purchases the raw materials and other factors at most economical prices.
(b) .To produces the goods at the most economical level.
(c) .To supervises the production most efficiently and effectively.
(d) .To disposes of the surplus production to non members at maximum price.
(e) .To eliminates the middlemen and capitalists.
(f) .To remove the workers grievances in respect of working conditions, wages etc.
(g) .To arrange for the democratic control of the industrial unit.
2. Consumer cooperative societies. This society is the voluntary association of ordinary people formed with the object of obtaining daily requirements of the members. It directly purchases the goods at large scale from the producer or wholesalers at whole sale price. It thus eliminates capitalists, retailers and other middlemen from the channel of distribution and members are in a position to make their purchase at cheaper rate. Any one can become member by purchasing one share of the society. Sometimes goods are also supplied to non-members but they do not share in the profit of the society. Profit earned by the store is distributed among the members according to the value of the purchases conducted by the manager who is elected by the members. Generally is two types are popular in the world.
(a) .Retail cooperative store.
(b) .Wholesale cooperative store.
