Advantages and disadvantages of co operatives-

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1. Co-operatives Advantages and disadvantages

2. Each member has only one vote which makes it impossible for one person to run the business according to his/her will, and democracy will prevail. The co-operative is owned and controlled by its members. It is not based on profit-making principles but rather on service-rendering principles to its members, and as such members are sure of the highest quality of service at the lowest possible prices. The members work together because they have the same needs and goals. They are united around these goals and needs and management comes from the members. A dvantages

3. Free business advisory services are available from the office of the Registrar of Cooperatives. If the co-operative does more than 70% business with its members, the tax is lower than that of other businesses. The co-operative is a voluntary organisation and thus easy to form or end. Advantages (continue)

4. Longer decision-making process – decisions to be made can take very long because of the principle that all members have voting power. People do not work very hard, because the incentive to earn profits is not present. Unfortunately we have a negative attitude because we have to be motivated by profits and money instead of by the fact that we can render a better service or conditions or even have a job. This is a bad habit and attitude that should change. Disadvantages

5. There is a possibility of conflict between members. Participation of members is required for success. Extensive record-keeping is necessary. There is less incentive to invest additional capital. Meeting both cooperative aims and business needs require complex management. Disadvantages (continue)

6. They can limit your choice of external financing. Employment benefits often can't match those offered by other business types. Workers' cooperatives can enjoy tax incentives, such as employee share schemes, but most small co-operatives find these too costly to run. Disadvantages (continue)