Cooperative is a widely spread organizational form in developing countries. These organizations are known for the strong commitment of, as well as the participation in decision-making of their members. Another characteristic of cooperatives is their dual goal: socially, supporting their members and economically, acting as an enterprise in the market. Cooperatives are voluntary membership organizations that enable individuals to pool their resources in order to meet common needs. Cooperatives exist for the sole purpose of serving their member-owners. Unlike an investor-owned corporation, a cooperative is owned and controlled by those who use its services.
Certain features distinguish cooperatives from investor-owned businesses:
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Cooperatives are part of a tier-structure, as they in their turn are members of an apex organization. They constitute the general body and as such the ultimate authority of the cooperative marketing federation. The apex body should give supervision and advice of an expert character by means of a facility for guiding, planning and helping societies at the lower level.
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