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Cooperative businesses are an important part of economic and community development strategy. Cooperatives are an essential component to creating a vibrant, successful economy.
Co-ops bring stability to the local market. The World Council of Credit Unions found after five years in business, 90% of cooperatives were still operating, compared to 3-5% of traditional businesses.
Locally owned cooperatives offer another form of local investment, which further diversifies the risk associated with local investment. This diversification helps strengthen the local economy.
Concern for community is part of the cooperative DNA. This means cooperatives are committed to the sustainable development of their communities, both socially and economically.
The impact of co-op investment
Supporting local businesses, no matter their structure, creates an economic multiplier effect. Studies show on average, 48% of each purchase at a local business is recirculated locally, compared to 14% of purchases at national businesses.
Through direct investments in cooperatives, the Co-op Capital initiative aims to foster the growth of a sustainable, locally-owned and controlled part of our economy. The initiative seeks to:
- Help create living-wage jobs
- Support a sustainable and fair food system
- Provide affordable housing
- Develop democratic workplaces and community ownership