Slide 4 of 10

Comparative advantages

Because of their double nature as associations of people and businesses, cooperatives have a distinct employment creation potential that differs from that of other enterprises:

• synergies between members (facilitates division of labour)
• greater bargaining power (group instead of individual)
• economies of scale because of joint economic operations
• member participation makes management cheaper
• protection and representation (especially in the informal sector which coops can help to “formalize”)
• greater stability (proven by recent studies carried out in Canada, 64% survival rate of coops after 5 years as compared to 36% of other types of enterprises)
• joint innovation (sharing of ideas among members)

Back to Forum Agenda

COPAC Home | COPAC Members| COPAC Meetings | Publications and Information | International Day of Cooperatives | Cooperative Policy and Legislation | Cooperative Development Projects | Site Map | Search

Comments or questions? Contact the COPAC Coordinator.
Posted: 19 July 2000