A cooperative business is a member-owned and democratically controlled enterprise that operates for the mutual benefit of its members. Cooperartive prioritize shared decision-making, equitable distribution of profits, and serving community needs over maximizing investor returns.

A cooperative business is owned and governed by its members, who share in decision-making and profits, whereas traditional businesses are typically owned by investors or shareholders who prioritize financial returns. Cooperatives focus on meeting the needs of their members and the community rather than maximizing profits for outside investors.

Cooperatives exist across various industries and can include worker cooperatives (owned by employees), consumer cooperatives (owned by customers), producer cooperatives (owned by suppliers or farmers), and housing cooperatives (owned by residents). Each type operates on the same democratic principles but serves different member needs.

Cooperatives promote local economic development by keeping wealth within the community, creating jobs, and providing goods or services that meet local needs. They also foster democratic participation, ensuring that businesses operate with transparency and accountibility to their members.