What you should know about American co-ops

Co-op Month, celebrated all through October, reminds Americans of the important role co-ops play in the economy.

Did you know that one in three Americans is a proud member of a cooperative, and that consumer cooperatives have over 343 million members across the country?

Here’s why co-ops are integral to our economy.

They foster economic stability
Cooperatives tend to be much more stable than traditional companies. A 2007 study by the World Council of Credit Unions showed that cooperatives in the United States had a much higher five-year survival rate than traditional firms: 90 percent compared to five percent.

In addition, the Federal Deposit Insurance Corporation reported that credit unions were five times less likely than banks to fail during the financial crisis, even doubling their lending to small businesses between 2008 and 2016.

Long-term survival allows co-ops to grow along with their communities and to adapt to the changing needs of their members.

They’re everywhere
Cooperatives come in many forms, largely because their structure is beneficial to a wide range of economic activities.

For example, over 2,000 American agricultural co-ops of all kinds have enabled producers to band together and ensure their financial stability while providing quality products to their customers.

Credit unions, on the other hand, are a staple of our financial landscape because their democratic organization allows them to put the needs of their members first.

They support communities
American co-ops generate over $25 billion in wages a year and create jobs for entire communities. Their unique structure and organization ensure that every worker is invested in the success of the co-op and this keeps members motivated.

Since members take part in the decision-making process, these companies also contribute to a stronger sense of belonging and community.

Find out more about Co-op Month at coopmonth.coop.