There are two types of co-operative:
This is where the business is run by its workers. They are often set up when they are about to close. The workers take it over and run it themselves. They elect their managers and share out the profits. People tend to work hard in a co-operative because they feel that the business is their’s and they are working for themselves. They can lack management experience however and be somewhat chaotic because everybody wants their ‘say’.
This is where a shop is owned by its customers who receive a dividend for shopping there – the more money they spend in the co-op the more dividend they receive.
View video of Tyrone O'Sullivan, elected director of Tower Colliery Co-operative (Window Media Player required) (size 2.25MB)
These are companies that have branches in more than one country. They have expanded because the market in their original country is not large enough. They are enormous businesses that have very high production and employ a lot of people. Their very size can give them excessive influence however, sometimes more than governments and their activities in many Third World countries has given rise to concern.
These are businesses owned by the Government. Their main aim is to provide a public service rather than make profits. After the Second World War much of British industry – coal, electricity, gas , water, telephones etc. were taken over by the Government. This was called NATIONALISATION. In the 1980’s however Mrs Thatcher’s Conservative government decided that they would be run better in the private sector because there would be more competition and people would have the chance to become shareholders and earn a share of the profits. This was called PRIVATISATION.