Benefits of Cooperative Business Model

In this article we will have a detailed discussion on why and what kind of advantages cooperative business model can offer us.

We don’t have to pitch the investors and bring in the Investment

Major reason the investment and funding is required is to hire the best people. If we are able to attract people to work on a project without getting investment. There is no reason to seek investment from the investors.

Getting an investment can be really tough and it can delay the project. Further sometimes investors have more commercial interest and less concerned about the welfare of the organization. As an example they would be willing to compromise the values and principles of the organization for making more profits even its the decisions they are making are detrimental for the welfare of organization in long term.

Moreover people who actually contribute to the project know what is the best for the welfare of the organization in the long term.  They have the balanced judgement

In the commercial organization the decisions the management and investors make may not be according to the democratic consensus of the people. They can actually go against the democratic consensus. While in the cooperative business model the business model itself ensures legally that all the decisions are made according to the democratic consensus in the organization.

Fair Compensation for the contributors

Your contributions

Freedom and Flexibility for the contributors

Ability to attract the best talent


It is easier to hire people and attract the best people

Fair compensation, flexible working hours, freedom to travel across the world while you do your work ( digital nomad lifestyle). This is some of the benefits that Convention Organizations cannot offer their employees freely. Even if they make an effort to offer these benefits their business model does not allow / enable them to offer these benefits.


Cost efficiency

Conventional organizations have to keep a watch on people and therefore they have to have strict working hours. And have an office and a building. This puts


You can live in a more affordable area and save your costs

We keep hearing that the cost of living in big cities like san-francisco can be huge. If we have an office in city like san-francisco with huge cost of living. Even if we pay good salary they would not be able to enjoy their income because most of the income of the people would go in paying for the rent and such.

But if we allow you to work from anywhere you as an employee can choose where you want to live cities which offer good facilities even with reasonably affordable cost of living.


Ownership and Responsibility

With ownership comes the responsibility because you are accountable for your mistakes and you reap the rewards of your good work both.

If you don’t do good work you will not earn anything or you may earn less income. And if you do good work you will earn more. This will ensure that people understand their responsibility and take them seriously.

Day to day operations become simple, easy and efficient

When people work responsibly the founders and the management does not have to keep a watch on people to ensure that they are working properly. This relieves them of the extra burden so that they can focus more on their actual work.