Have you ever considered the diversity of business? Still, in the public debate, they’re often treated the same. Like large-scale monopolistic profit-driven monsters or innovation-driven development heroes (depending on the side of the perspective). I find it essential we start to understand the diversity of business and not at least the role of cooperatives. As the world prepares for the International Year of Cooperatives 2025 (IYC2025), there is renewed global attention on the vital role cooperatives play in creating inclusive, equitable, and sustainable societies.
What is a Cooperative?
A cooperative is a member-owned business that operates to meet the common needs of its members, rather than to maximise profits for shareholders. Whether it’s a rural farming co-op, an urban housing association, or a financial credit union, cooperatives are democratic institutions where each member typically has an equal vote, regardless of their capital contribution.
This democratic ownership structure ensures that cooperatives are fundamentally different from conventional corporations. They are rooted in the values of self-help, self-responsibility, democracy, equality, equity, and solidarity, as set out by the International Co-operative Alliance (ICA).
The seven cooperative principles are foundational guidelines that shape the values and practices of cooperatives worldwide. They include;
Voluntary and open membership
Democratic member control
Economic participation by members’ autonomy and independence
Education and training
Cooperation among cooperatives
Concern for the community
These principles aim to ensure that cooperatives are equitable, inclusive, and focused on long-term social and economic sustainability.
The Democratic Essence of Cooperatives
In many ways, cooperatives exemplify the ideals of participatory democracy. They give ordinary people a voice in decisions that affect their livelihoods and communities. This democratic structure promotes transparency and accountability while also fostering long-term social cohesion. This is the opposite compared to a profit-driven private company, whose major purpose is to maximise profit to its shareholders. Of course, in terms of small-scale companies, shareholders can be the workers themselves, family or community members and, as such, still, be democratic, but cooperatives offer a way to include more stakeholders, shares votes equally and not based on capital, further allow people involved in the business to have a say. In an era of growing disillusionment with corporate greed and political alienation, cooperatives offer an alternative model built on collective ownership and empowerment.
Sustainbility and cooperatives
Cooperative enterprises continue to lead the way in gender equality within Swedish business. According to a recent report by Svensk Kooperation (Coompanion), women hold significantly more top leadership roles, such as CEOs, board chairs, and executive team members, in cooperatives compared to listed companies, where progress has stalled or even reversed. For example, 31% of cooperative CEOs are women (versus 12% in listed firms), and the share of female board chairs in cooperatives is more than double that of stock-listed companies (23% vs. 9%). Cooperatives have also been acknowledged for their role in climate change prevention and mitigation through local management and democratic member control, where they often have local knowledge, experience, and environmental education.
Beyond GDP and Cooperatives
Cooperatives also offer a powerful alternative to growth-dependent economic models by prioritising social value, democratic governance, and long-term sustainability over profit maximisation. Their member-driven structure encourages reinvestment in communities, equitable wealth distribution, and environmentally conscious practices. By aligning with post-growth principles, cooperatives help shift the focus from GDP to well-being, resilience and shared prosperity.
A Global Movement with Historical Roots
The cooperative movement has deep historical roots. The Rochdale Pioneers in England, often credited with founding the modern cooperative model in 1844, laid down principles that still guide cooperatives today. Since then, the movement has grown exponentially, not just in the UK but across Europe and the world.
Worldwide, it is estimated that over 1 billion people are members of cooperatives.
In the European Union, there are around 250,000 cooperatives providing employment to more than 5.5 million people.
In Sweden, the 100 largest cooperative associations and nine nationwide mutual companies had a combined turnover of SEK 662 billion in 2023, equivalent to about 10% of Sweden's GDP
Notable Cooperatives Worldwide
Some well-known cooperatives include:
Mondragon Corporation (Spain): A federation of worker cooperatives, known for its strong democratic governance.
Co-op Group (UK): One of the largest consumer co-operatives in the world.
Credit unions globally: Member-owned financial institutions serving millions. In Sweden we have JAK Banken!
Challenges Cooperatives are facing
Cooperatives face structural challenges under today’s legislation, as laws and policies are often tailored for shareholder-owned companies, creating unfair conditions. They struggle with access to capital and financial services, and many are denied bank accounts or investment funding simply due to their business form. Knowledge about cooperatives is also lacking in education, government institutions, and financial systems. This limits awareness of their benefits and potential, especially in times of crisis. To level the playing field, countries must promote cooperative business models through legislation, education, and fairer access to funding.
Read an article by cooperatives in Sweden here!
The International Year of Cooperatives: Then and Now
The United Nations first declared an International Year of Cooperatives in 2012, under the theme "Cooperative Enterprises Build a Better World." The aim was to highlight how cooperatives contribute to poverty reduction, job creation, and social inclusion. The initiative marked a turning point, sparking increased interest in cooperative models and their potential to address global challenges. Now, in 2025, the world is gearing up for the second International Year of Cooperatives (IYC2025).
The Road to IYC2025: Events and Objectives
The official launch was held in New Delhi, India, during the ICA Global Cooperative Conference and General Assembly from 25–30 November in 2024. This major event brought together global leaders and cooperative practitioners to celebrate the movement’s achievements and map out the future.
Key objectives of IYC2025 included:
Encouraging governments to create supportive policies for cooperatives.
Empowering cooperatives to raise public awareness, nurture new leaders, and foster collaboration.
Involving institutions and development agencies to promote cooperative education and capacity building.
Increasing public understanding of cooperative identity and encouraging wider participation.
Looking Ahead
As the global community prepares for IYC2025, there is a sense of optimism and urgency. Cooperatives are more than a business model; they can be a force to democratise our economy. In a time when democracy is under threat and communities are increasingly polarised, cooperatives offer a path toward solidarity, shared prosperity, and sustainable development.
To learn more about the International Day of Cooperatives and how to participate in upcoming IYC2025 events, visit the UN’s cooperative page.