1.2 How are co-operatives organised?

Co-operatives are of different types, for example:

• retail or consumer co-operatives that supply goods and services
• producer co-operatives, which usually consist of particular types of producer who come together to market their output (agricultural co-operatives being one of the most common)
• worker co-operatives where people join together in production and the joint ownership of their company
• credit unions, where members can save and borrow money (for example, Savings and Credit Co-operatives (SACCOs)).

There are also hybrid organisations that have some of the characteristics of a co-operative, such as community groups that operate co-operatively but have not set themselves up as a formal co-operative.

In general, co-operatives generally have a similar structure:

• a general assembly
• a board of directors
• a set of officers
• a committee system
• possibly some hired management and/or paid employees.

They typically also involve members buying shares – or investing – in the co-operative to provide it with working capital. Shares will be for a specified amount and/or quantity (although members may have different quantities of shares) depending on the kind of co-operative and the working capital needed.

Co-operatives are seen as the primary unit and are often organised into unions (the secondary level), which in turn may be part of a national federation or apex organisation.