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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.
Advantages

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
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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
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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
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